Wednesday, October 03, 2007

Analysis: Application blocking diminishes iPhone

Forget bricked iPhones. For many iPhone users, the biggest disappointment with last week’s iPhone software update wasn’t that it rendered unlocked phones inoperable but that it disabled third-party apps that have sprung up for Apple’s device. And that could lead to ongoing grief for the company, analysts say.


Released last Thursday, iPhone Software Update 1.1.1 brought security updates, improved volume for the speaker and receiver, and access to the iTunes Wi-Fi Store, among other features. But the software update also brought about two changes unwelcome to users who’ve turned to third-party hacks to add capabilities to their iPhone—it disabled phones that had been unlocked to work with other carriers (as Apple warned it would), and it wiped out applications—everything from games to ringtones—that users had installed on their phones.


It’s that last development that figures to cause Apple the biggest headache long after the initial clamor over bricked iPhones fades away.


“There is some serious frustration from people that did not unlock the phone but did use third-party applications,” said Tim Bajarin, president of high-tech consulting firm Creative Strategies. “The fact those apps have been altered has caused a big outcry. Apple is taking a significant hit because enough of people found those applications useful.”






But this is the problem with the iPhone (and now the iPod Touch): is it a computer or not? Those who want the freedom to put outside applications on their iPhones think it's a little computer that should be able to run the same kinds of applications that they can on their Macs, or at the very least applications created for other smart phones.

Apple isn't ready for that yet. It's not even willing to take an "out of sight, out of mind" approach, like TiVo did with those who added unauthorized software to their TiVos. Instead, it's taking a cue from Sony, which moved quickly to scuttle PSP hacks only to watch the behavior continue unabated.

I have to side with the developers on this one: a closed device is not going to revolutionize the smart phone market. There are too many open devices out there already and Apple simply doesn't have the manpower to create all the potentially useful applications that could drive iPhone sales. Also, these development efforts are going to happen anyway; if Apple decides it's going to remove third-party applications with each software update, people will quickly learn to simply stop applying the updates and deprive themselves of new features for the iPhone as well as the extremely important bug fixes and security updates that Apple needs to keep the iPhone stable.






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