Apple’s iPhone 3.0 update: the good, the bad and the still missing

iphone_3-0Apple held its iPhone 3.0 event today and unveiled a slew of new features, but no real surprises. Cut and paste is finally here, Flash is still not, and Push Notifications are apparently here for real this time.

Perhaps the biggest news — or at least the news with the most far-reaching consequences — is related to commerce. The iApp store will now have support for “in-App” purchases along with subscriptions. That means you can buy new furniture within The Sims, buy new books within an eReader app, or subscribe to a magazine or online financial service. The “one-and-done” method of purchasing iPhone apps could well be over. As I “semi-live-Tweeted” the event, I called iPhone 3.0 the “Monetization” update and noted that it would be interesting to see how the inevitable attempts by developers to “nickel and dime” the iApp buying process would fly in the face of the existing 99¢ per app mentality that seems to be dominating the market.

According to Apple’s numbers, both the iPhone and iApp store are performing very well. A good part of the event was devoted to citing statistics that back up that statement. As they say on the TV law programs, we’ll stipulate to that and waive reading.

In addition to the changes in App store commerce, Apple said it was also opening up 1,000 Application Programing Interfaces (APIs), including some that were previously there but unavailable, to allow for things like email within an application and turn-by-turn directions. (Map-using app developers will have to provide their own maps, however — Google’s are covered by a separate license and not available through the APIs.) These newly opened APIs will also allow accessory developers to explore new territories by creating devices that talk to the iPhone through its dock interface. Apple demonstrated a blood pressure application that used a cuff connected to the phone and another app that measured insulin levels for diabetics. Also new: peer-to-peer connectivity with other iPhones and a more robust Bluetooth, including support for stereo headphones.

For those keeping score with our iPhone 3.0 wishlist, we got the Cut and Paste we hoped for, in a seemingly well-thought-out implementation. We also got the long-promised push notification service that Apple hopes will serve as a suitable alternative to background processes. Apple explained the delay by saying that developer response to the iPhone was much bigger than they expected and that they needed the extra time to ensure they had a scalable solution.

We did not get the video recording we hoped for, although Apple has opened the door to more methods of video streaming. The company also says it’s been working hard on improving performance. And although application management doesn’t appear to have changed, the new iPhone OS will gain Spotlight, a system-wide search tool accessed by “swiping” the home page to the left. Another system-wide (or at least system wid-er) enhancements is landscape view in almost all Apple-bundled applications.

As for the continued absence of Flash, I’m becoming more and more convinced that it’s not so much a technical issue as it is Apple’s wariness of losing control over the platform. Flash would enable the iPhone to do a lot of things, whether Apple wanted them to or not. And some of those things could bypass Apple’s ability to charge for, or at least get a cut from them. Those capabilities, once in the wild, could be a very difficult genie to stuff back in the bottle.

You want more, you say? OK, there’s also support for MMS messages, Voice Memos, the ability to email multiple photos, “automatic” login at WiFi hotspots, and support for tethering — using your iPhone’s connectivity to allow your computer to connect to the Internet. Tethering still requires support from the phone carrier, which Apple says “it’s working on.”

Apple says the iPhone 3.0 beta will be available today for developers and “this summer” for the rest of us. Those familiar with Apple’s history of reading the calendar will note that summer lasts until September 19th (and a few hours into the 20th if needed.) Cost? Free for all iPhone users, which came as a surprise to me: I speculated that original iPhone owners would probably have to pay something for the update, due to Apple’s use of subscription-based accounting for the iPhone. The update will set iPod touch owners back $9.95. Also of note: older iPhone and iPod touch owners will miss out on some functionality, due to limitations in the hardware. For first-generation iPhone owners, that means no MMS or stereo Bluetooth; owners of older iPod touch devices will not get Bluetooth.

If you’re hungry for more of my take on the subject, I’ll be taking part in a MacJury podcast panel where I expect to say “monetize” a lot.

This article can also be read on The Mac/iPod Observer.

2 Comments

  1. Chuck,

    It’s a really interesting changes that Apple seem to be adding to OS3.0, yes lots of people have been looking for copy and paste and great to finally see MMS. But, I have no idea about “in-App” and was not 100% clear how this works thank you for the information enjoyed your article.

    Regards
    Mark

  2. I enjoy the cut and paste, but I am still very frustrated about Flash. If Apple would release a Flash plugin in one of their $10 updates, that would definatley make me a happy customer.

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