IPHONE – A phone for All

March 7, 2008


Apple is pushing to meet or exceed its current target of selling 10 million Iphones this year.  However, Apple COO believes that in order to reach that target, they would have to implement some new features as well as tweak the Iphones.

Analysts claim that it is wishful thinking on Apple’s part to realize their goal of 10million units this year.  However Apple has plans to realize this target.  Apple understands its lack of penetration into the enterprise user segment and has realized in order to achieve its sales target for the year – the only possible way is to attract enterprise users.   This has caused Apple to focus on their enterprise potential customers and would address two primary areas of concern in the enterprise arena:

  • Email – Email is harder to type on an Iphone and is not compatible with Microsoft Exchange. Blackberry is the favorite of enterprise users due to the above mentioned issue.
  • 3G – There are 3G phones out in the market however Apple’s Iphone still isn’t 3G.

In order to penetrate this segment of the market, Apple would have to resolve these issues as promptly as possible.  They have already started working on the 3G model and would be out around June.  As far as the enterprise email and Apps is concerned, Steve Jobs promised that the software update to be released in June would have all the necessary additions needed by enterprise users.  This list included:

  • Push email and Calendar items from the Company’s servers to the iphone
  • synchronize contact lists
  • Enforce securities policies – Wipe out data on an iphone remotely in case it is stolen.
  • Support for Microsoft Exchange – “To meet the demand, Apple licensed Microsoft’s ActiveSync protocol for connecting the iPhone’s e-mail client directly to an Exchange server. As a result, e-mail, calendaring and contact items can be pushed directly to the smartphone”, Steve Jobs stated.
  • Move user profiles into Iphone painlessly from Blackberry – Apples competitor in the enterprise sector.

Apple is currently testing its Iphone enterprise features with Nike and Disney to attract feedback from the users before its official release in June this year.

All these additions would make one less reason of not buying the iphone which is apparently loved by all, but due to lack of enterprise features, the Iphone didn’t penetrate that segment very well.

Apple also released a Software Development Kit’s beta edition for enterprise customers to be able to write custom applications suiting their needs for their Iphones.   All of this is to gain competitive advantage over RiM’s Blackberry which is the favorite among enterprise users currently.

Another glimpse of how fiercely Apple is targeting the enterprise segment – As quoted on Silicon Alley Insiders article titled Apple/Kleiner Iphone Apps Fund.

Valley-based VC firm Kleiner Perkins Caufield & Byers has earmarked 100 million to fund companies developing apps for Apple’s iPhone and iPod touch. Companies large and small are eligible, and the fund will focus on apps including “location based services, social networking, mCommerce, communication, and entertainment.” Sounds like… everything!

More reading on this IFund at KPCB article.

Apple would keep 30% of the revenue generated through the Iphone apps while the developers would keep the rest.

This move from Apple to allow developers to develop new Apps for the Iphone would be welcomed heavily.  However Apple would have to approve every application for the Iphone – which is sort of a setback.

By researching quite a bit on this topic, it is quite evident how Steve Jobs and his team believe that in order to reach their target sales, the enterprise users would prove to be the deciding factor.  With opening their platforms for developers, I believe Apple might just about reach that target!

Video of Microsoft CEO laughing at the Iphone:

Note in the beginning how Microsoft’s CEO Steve Ballmer laughed at how the iphone did not appeal to business customers! Well Steve  – now what do you say?


3 Responses to “IPHONE – A phone for All”

  1. mellaz Says:

    Rogers is actively working with Apple to launch the iPhone in Canada as soon as possible and will be the exclusive provider of the iPhone in Canada

  2. jblaquiere Says:

    My Brother used to work for OLS “Online Support” for Apple in the industrial park. I was all excited about Rogers launching the iPhone in Canada. My brother however said not to get it, and that it was basically crap. He’s usually pretty good at techy things so I’m taking his word for it. (For now)

  3. Dave Says:

    Good post, Imran. many believe the big news here is the SDK. By opening the iPhone up to third-party developers, it stands to become a significant platform on its own. One story that captures this point well is here: http://www.readwriteweb.com/archives/why_apple_will_dominate_next_gen_computing.php


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