I recently upgraded my iPhone 3GS to the new iOS4. And after using it for the past 24 hours, I’ve found that it changed only a few things. Sorry Steve Jobs — it isn’t revolutionary! The primary change that I immediately liked is the folders or application organization capability but even that is limiting. The 5 screens of apps on my iPhone have been reduced down to only three. Unfortunately, folders can hold up to 12 applications at a time. With this design, a user doesn’t have to scroll to access more apps but it also means that the 16+ games that my boys play couldn’t fit nicely into their own little container. Granted, I have quite a bit more room to spare at the bottom of each application screen but things aren’t as tight as I wish that they could be.

Second, I learned that Pandora had to be upgraded in order for the “new” multitasking feature to work. As a fan of music, I’ve been using another application called Electric FM which allows me to listen to music in the background (as a stream within Safari) since February 2010. And there have been no freezes as recently reported by some iPhone users! So for me, multitasking really isn’t revolutionary. I guess that a side benefit of introducing this feature will be that some iPhone app developers will get called to upgrade their app and subsequently the iTunes app store will get refreshed.

My last disappointment about iOS4 is that iPhone 3GS owners don’t get to enjoy the new feature called FaceTime, which allows users to conduct video conferencing calls. Granted, marketers can’t really take advantage of this new feature but it is still cool in concept. FaceTime to me is evolutionary — it introduces an set up from a phone call — an untethered (but not to be confused with mobile) video conference for the masses, or so I thought. While my device is missing the rear facing camera, I expected my processor to be good enough to support the demands of this feature. I imagined that when I would engage in a FaceTime based conversation, I would be use only the forward facing camera on my iPhone 3GS which is no major loss. So I’m perplexed by Apple’s decision to not add this feature to my iOS 4 upgraded device. It definitely feels like Apple see me as a second class citizen unless it is a ploy to simply force convince me to buy the new iPhone 4. Really? It has had to come down to this arm twisting contest where I can only use the Knocking Live application?

Last year, Apple acquired streaming music service Lala.com. Lala was unique in that members could listen to new tracks in their entirety (iTunes only allows you to listen to a clip) and then purchase the rights to stream the song for pennies. Timing of the deal was suspicious as Apple swooped in just as Lala announced the pending approval of their iPhone app, which would allow members to access their music catalog via an iTouch or iPhone. While some question Apple’s motive to make the deal (because as a standalone service Lala would pose a competitive threat to iTunes), most expected to Apple bring Lala into the iTunes Store “fold” and give members a choice to either purchase music download or streaming rights.

Lala Shutdown Notice

Unfortunately, in Microsoft-esque style Apple has pulled an embrace, extend and extinguish move with Lala. According to an announcement on the Lala website, the service will shut down on May 31, 2010. Some sites, including Gizmodo, are already questioning if this move will be followed by the release of a streaming service within iTunes but most think not. As a fan of Apple, I just find it amusing that the company, who is at odd with Adobe because of Flash performance concerns (which are valid; see my prior post on HTML5 and Flash) may get a pass for exterminating a competing music service.

While I’m not about to call Apple evil, I think that it is time for other fans to admit that Apple is no different than Adobe or Microsoft — it is all about business!

Apple has decided to pick a fight with developers. In a recent change to the Terms of Service (TOS) for their new iPhone SDK, Apple has indicated that apps developed with third party software, such as MonoTouch, Titanium, or the upcoming version of Flash, will not be allowed. The new TOS also blocks the use of third-party analytics software, such as Flurry. The details of these changes are well documented by Joe Crawford and Erik Kerr. These changes basically mean that developing an iPhone app using a language other than the native iPhone language, Objective-C, or a C-based languages (C, C++), and collecting user data and device data is no longer allowed. NOTE: Some of the above companies believe that they are compliant with these changes and/or are actively seeking clarification from Apple (see Jeff Haynie’s blog post).

From my point of view, it will be incredibly disappointing for Apple to block apps developed with these third party platforms. While Apple claims that these platforms produce sub-par apps that violate user privacy, in truth they empower developers to create multi-platform applications using a single code base while tracking user behavior to better understand user needs. This kind of behavior by Apple seems downright anti-competitive, especially considering that Apple’s iPhones are in high demand. Some think that Apple is simply trying to ensure that their app store maintains its dominant position (credit to Raghu Kakarala). I’m of the opinion that Apple wants developers to get serious about Objective-C. The real benefit of this move is that these developers can create apps for the MacOS, not just the iPhone or iPad (or iTouch) and Apple can easily expand its reach.

While no can predict the future, I suspect that this move will backfire on Apple. In a recent report from AdMob, 70% of iPhone developers said that they were planning to code an app for Android but only 48% of Android developers plan to code for the iPhone. When considering the TOS changes and how Android development requires only HTML/CSS/JavaScript skills (basic web programming skills), I’m not expecting any attitudinal changes with iPhone developer. However, the number of Android developers that planned to develop for the iPhone will likely drop. NOTE: The survey is based on responses from about 100 developers which is a very small pool.

Apple is not the only company that realizes that it is all about developers. Microsoft did so years ago (see Steve Ballmer chanting “Developers, Developers, Developers” in video below). So the question remains — will Android developers agree to learn Objective-C or will they abandon the iPhone?

UPDATE: Hans Eckman pointed out that ZDNet had an article that indicated that Goggle is reaching out to iPhone developers to get them to port their apps to Android (source).

NOTE: Picture via TheiPhoneBlog.

The demise of Flash has been prognosticated ever since Steve Jobs showed off the new iPad and explained that Flash support is not planned for the device. Instead, Apple chose to go with HTML5. This sparked a debate battle between Flash and HTML5. From a technology point of view, Flash is behind the times (in the same way that Google Gears is behind the times) because the HTML5 technology solves the problem of having a separate application to support rich media. But from my perspective, the death of Flash will not be driven by technology alone.

For the non-technical person reading this post, rich media files are typically read or decoded by an external application that’s associated with your brower using a codec. With HTML5, the codec is directly embedded into the browser. This is smart approach because recent tests of HTML5 demonstrate that video playback requires fewer CPU cycles. And this translates to less expensive, longer-lasting netbooks and mobile devices since they require cheaper CPU’s or chips that consume less battery power. The downsides to this approach are a lack of support or even absence of a standard. NOTE: Internet Explorer, the most dominant browser, provided hints of HTML5/video support in a recent demo of IE9.

The reasons behind media killing Flash are based on the most recent developments in the advertising world. Several notable newspapers and magazines, including the Wall Street Journal, GQ and Men’s Health have planned to be available as digital editions when the device hits store shelves on April 3 (some are opting for special apps!). Interestingly, many of these magazines are reporting that advertisements for the premier issue have already sold out on the iPad. This is a first for traditional media to sell out of ads, who in 2009 lost 25% of page ads.

Flash is used primarily for advertising. Based on a survey by Mochi Media of 1,100 Flash developers, the majority of respondents, or 58 percent, indicated that they have advertisements within their Flash game. In fact, 2009 rich media ad spend in the US was at $2B – $3B dollars and trends indicate that rich media ad spending in 2010 will grow at a healthy clip of 5.5%. With that kind of budget, it is advertising that has the necessary financial backing to make an impact. Money talk, right?!

We’re already seeing some initial indication of what the future holds. On the video front, Brightcove released a solution this week to its Fortune 500 clients that allows for seamlessly conversion of Flash video to HTML5. Additionally, rich media ad platform Greystripe enables clients to convert existing Flash ads into the HTML5 format.

In my mind, this is the tip of the iceberg. As advertising agencies and companies turn to these offerings, Flash will become less and less necessary, and relevant.

Google made headlines today with their first foray into social activity streaming (source). The new feature is basically like a Twitter tweet or a Facebook wall post embedded into gmail (Google’s email service).

To test it out, I tried it both on my desktop and my mobile device (the iPhone). I posted a quick status update about a meeting that I had in the afternoon and then I used the GPS-enables search capability to search for buzz posts from friends and people that are nearby. And the verdict is?

While Google may have thought that it had a hit on their hands, it feels more like a buzz-kill to me. There are several issues with this new service:

1. It is force social networking in email. Google opted to directly introduce this feature instead of using the Gmail Labs capabilities to introduce this feature as an add-on (the way that Google normally introduces new features). Google also added a special icon to this feature to draw focus to this new feature, ensuring that gmail users pay attention to it.
2. Google didn’t make Buzz super-intuitive. As a Google Wave user, I’ve wanted to tie my Wave, which is collaborative message, to an email as a means of continuing the conversation. While I learned that Google Buzz has this feature, I didn’t pick up on it until I watched the video (source). I also had a co-worker asking me how they can tie Buzz to Twitter, which they didn’t think was very obvious.
3. People don’t seem to know how to to use Buzz. I must be a super early adopter because NO ONE (and I mean none of my technologically or marketing savvy friends) seemed to have used Buzz to post a single buzz. The worst part about this test is that I know that they checked their gmail account at least once today so I would have expected to see one buzz. I think that this is indicative that while Google may have a significant user base, the Google Buzz service in by itself is not enough to entice a user to post to an activity stream nor is it a good replacement of twitter.

For Google, Buzz is a necessary service. It helps Google:

1. Generate more traffic/interest in Gmail. Gmail has less users than Hotmail and Yahoo so they need a service to increase subscribers.
2. Google Buzz creates a solution to connects your email with Twitter.  This feature is incredibly value to marketers who want to understand the consumers that interact with their brands. While DandyID offers a similar capability, Google already has a larger user base so it is game over for DandyID.
3. Buzz establishes a new page view/instance to sell an add. Google isn’t doing this because they want to offer something cool/evolutionary — Google needs buzz to goose their ad revenue (even if they don’t roll this feature out immediately).

The one thing that I noted on the first evening of having access to Google Buzz is that interest was fading fast. While Google Buzz was ranked 4th in hot search topics in the USA, it dropped to the 10th spot within 20 minutes (see below).

Let’s hope that tomorrow’s a better day for this shinny new service.

Over the past few months, I’ve been using FourSquare more regularly. FourSquare is a social networking service/game that you can use to track your whereabouts. It is typically accessed via an app on a mobile smartphone (Droid, BlackBerry or iPhone). The idea is that every time that you earn points each time that you arrive at a location and “check-in.” You earn more points for new places that you discover/visit vs. returning to your usual spots. But the points are virtual — they’re only a valuable way to tell who gets out who doesn’t. From my point of view, FourSquare is the perfect global economic stimulus solution — it encourages users to spend time exploring new places and money. What government or marketer wouldn’t love this thing?!

Well over the weekend, FourSquare sent me an alert that one my friends was at the Nike Factory Store, a nearby discount outlet. As soon as I saw it, I wanted to send him a note and ask him if there are any good deals on Nike running gear (I think that their Dri-FIT products are the ultimate but that’s a topic for another blog). While I could have called or sent him an email, I wanted to sent him a text and ask but that feature wasn’t available. I swear that I looked EVERYWHERE and came up empty handed.

While FourSquare is a great tool that allows you to keep up with your friends, it is missing a texting feature that allows you to quickly “chat” with them. Text messaging is the preferred mode to communicate, especially when you’re mobile (source). If it was there, I would have another reason to get out and stimulate the economy.

Apple has done it yet again. According to the Q1 2010 results (source), consumers snapped up 8.7 Million iPhone devices this past quarter. While a few mobile market analysts feel that Apple missed their sales target (BTW, some expected sales to reach the 9 Million to 11 Million units mark), the growth of the iPhone still represents a healthy 100% increase in sales in comparison to the same quarter last year.

In my discussions with Marketers, I’m regularly asked whether iPhone app development or iPhone mobile campaigns make sense considering the dominance of rival smartphone devices such as RIM’s BlackBerry. There’s valid concern if you consider only the number of mobile devices but that number isn’t as important when you consider usage. While RIM currently outsells Apple in smartphone devices (RIM sold 10.1 million devices in the quarter ending November 28, 2009 whereas Apple sold 7.4 million iPhones in about the same period), the iPhone accounted for 60% of page views AND 75% of mobile revenue at the top online retailers this past holiday season according to Omniture (source). So while BlackBerry devices are more prevalent, users avoid using this device to browse the web. This decision is likely based on the poor web browsing experience. And Marketers that are considering the accessibility of their website should optimize it for the iPhone.

So Marketers that want to interact with the largest group of mobile users should first focus on the iPhone platform — nothing else compares. But besides usage, Apple provides plenty of additional reasons for why the iPhone platform will also win in the long run:

• The current quarter’s iPhone unit sales numbers exclude the 55% year-over-year growth in sales of the iPod Touch. The iPod Touch is a Wifi-enabled mobile device that supports many of the iPhone applications. The iPod Touch user segment represent a group that is not bound by telephony service but are still connected (likely to be a younger demographic).
• Sales growth was driven by strong global demand. This implies that marketers can now expose their application/campaign or brand to an international audience (while facing the challenges that come with such a relationship).
• With the introduction of the iPhone 3GS, demand for the iPhone has spilled from the consumer market over to the enterprise market. Apple reported that 70% of the Fortune 200 are either deploying or piloting the iPhone. While marketers may have previously focused on the business to consumer or B-to-C market segment, they now have an opportunity to create applications that address the needs of the business to business or B-to-B market.
• Apple continues to invest heavily in customer service, whether it is through training of mobile carriers on device or one-on-one coaching of new customers at their 283 stores (currently present in 10 countries). This is a critical tactic for Apple to attract and service an older demographic of users that may not be as comfortable with touch-based technologies.
• The numbers did not account for the  upcoming product introduction of a tablet-like device. This highly anticipated announcement is expected tomorrow but the value of this news is that Apple will give marketers yet another device that will support mobile applications. The segment of the users that select and use this device is still unknown but it is potentially a new group of untapped users.
• Lastly, Apple has completed two recent acquisitions: music streaming service Lala and mobile advertising platform Quattro. Both represent the company’s continued future-looking view on revenue generation and demands.

Apple seems to be benefiting from a positive feedback loop. While the iPhone does have its flaws (it is not a perfect mobile device!), Apple has built an elegant smartphone unit that is extremely user-friendly. Additionally, iPhone users regularly promote their smartphone to other non-users in their social circles so the masses are choosing iPhone when deciding to go mobile (source). For brands that are still on the sidelines or ones that are only focused on the alternatives (which is a mistake; source), there’s no better time than now to jump on the iPhone platform bandwagon.

A rumor started to circulate early yesterday that Apple and Microsoft are engaged in discussions over the displacement of Google search on the iPhone. According to BusinessWeek (source), Apple is considering using Bing as the search engine on the iPhone. The reasons that the authors gave for this move included:

• This was a financially motivated decision. Microsoft was offering Apple a bigger revenue slice of the advertising pie for incorporate Bing than Google.
• This was an effort to thwart Google’s recent jump into mobile. It seemed that Google was moving in on Apple’s territory with their introduction of the Nexus One device.

While some may buy into this rumor, there’s very little reason to believe it. Here’s why:

Apple is in the business of designing beautiful devices with exceptional user-experience for the consumer market. Google has dominant position in the web search market. Google reached this point by creating a simple, user-friendly search engine so having Google Search on the iPhone makes for a perfect match. While Google may not want to share more of their search revenue, they’ve bowed to the pressure of News Corp owner Rupert Murdoch when he proclaimed in November 2009 that Google was stealing his paid content (source) and that he would switch to Bing if he had no other option.

Regarding the competitive threat, there are two reasons that Apple may not be worried. First, John Paczkowski of AllThingsDigital wrote about a rumor that Microsoft is planning to release a Zune Phone in the next couple of months (source). In case you’re wondering, this rumor originally surfaced back in late 2008 (source) but this is the FIRST time that there’s thought that the phone will be pink. Currently, there’s no proof that Microsoft or any other phone/mobile OS marker is going to magically recapture Apple’s market share with their mobile offering. This rings true considering that Nexus One sales estimates reached a paltry 20,000 in the first week of offering according to mobile analytics service Flurry (source). If the Zune rumor is taken as fact, then Microsoft is a rival to Apple as much as is Google so there’s no real rush/need to switch.

In my opinion, it feels more like Apple is playing a good game of chicken with Google and Microsoft is just caught in between.

From the very start, Google established itself as the leader in web search and user experience. And over the years, Google has also become known as a big proponent of open-source development. Open-source developers love Google — Google provides stipends to students to extend open-source projects, like Joomla, provide API’s through Google Code for developers to integrate Google services and host world-wide coding competitions to recognize top developers (see Google Code Jam). If you’re an open-source developer, why wouldn’t you embrace Google?

Yesterday, a new mobile app called Google Goggles was made available for the Android mobile platform (not be confused with beer goggles). The app allows mobile users to snap a picture as a means of starting a search (see video here). It is a revolutionary concept that is only made possible by the fact that more than half of all mobile phones have cameras (see Wikipedia). This announcement comes on the heels of annother annoucement made just two months ago for another Google app for the Android that provides turn-by-turn directions, which many predicted will kill GPS devices (see Engadget). Clearly, Google’s army of internal developers have been hard at work beefing up the capabilities of their mobile platform.

While it is wonderful to see Google pushing the envelope, it is disappointing that they’re also leaving the open-source community out in the cold to fend promote their own apps. It is interesting strategy when one considers that Apple promotes the heck of out of apps built by other developers (see see the “There’s an App for That” video below) and Apple has proven their model. Even though competition is fierce on the iPhone platform and Apple takes a 30% cut on my app, Apple won’t compete with me — Apple has my back!

If I’m a developer, I’d think twice before jumping on the Android bandwagon.

Last week, Google rolled out a new service called Google Dashboard. The service was designed to help users better understand what information Google collects about them:

The dashboard is a welcomed service for two reasons:

It is an initial privacy control mechanism. While Google remains heavily dependent on search, Google continues to expand their services offering. In reviewing these services, it has become clear that Google controls every medium of communication with the exception of fax and snail mail:

NOTE: Google has Gmail (Email), Google Chrome (Web Browser), Google Wave and Google Talk (Chat/IM/Video), and Android and Google Voice (Mobile, Phone).

If Google decides to continue their acquisition streak, Google may find themselves in the eyesight of privacy advocates that are worried about Google owning too much information about you. If Google sits on the sidelines, Google may be forced eventually to disclose personal information to their end users or to limit the information that they can collect. The Google Dashboard gives Google leverage over privacy advocates in that they give you control over your information.

It prepares users for Google Chrome OS. A few months ago, Google announced the development of an OS for netbooks (source). Additionally, Google is known for their exceptional user experience. It seems that the Google Dashboard makes an initial attempt at consolidating account preferences into a single view, a feature that one would expect when Google releases their OS.

While the Google Dashboard is by no means perfect, it is a fine start.