Will the iPhone be a Serious Business Device?
by Michael Arrington on January 12, 2007

I had a long debate yesterday with James Joaquin, the former CEO of ofoto and one of the founders of When.com, about whether or not the iPhone will be just a toy or a serious business device. I think it is. He remains unconvinced.

I dug up the video below which gives a pretty good demo of some of the office type applications on the device.

From what I know so far, I think it is going to be a killer device for people who currently use Macs, with seemless integration with Mac Mail, Calendar and Contacts. The visual voicemail is a killer feature. The lack of a keyboard, though, is not. The addition of decent voice recognition software to allow for even typo-laden email responses would be very welcome.

It’s unclear if the iPhone will be such a killer business device for PC users. My recommendation is to simply throw out the PC and switch to Mac. You’ll do it eventually anyway. Might as well do it now.

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“macinshit”

we have the best comments, period.

 

…just to add there were a few more players providing “visual voicemail” much before Apple announced the “killer ???” feature.

1. Cisco Unity Express provides a rich array of messaging features
for smaller organizations. It provides affordable, productivity-enhancing voicemail and automated attendant for SMB branch offices. It provides support for up to 120 users and delivers full e-mail integration and visual voicemail support, enabling users to be even more responsive and accessible… more

2. Visual Voicemail from Traverse Networks changes all that, delivering voicemail to your mobile phone within an email-like inbox. … more

3. Citrix Visual Voicemail enables voicemail users to have a visual indication of the number of voice mail messages in the mailbox … more

 

Easy answer, no…not even close.

No Outlook syncing, no support for Exchange … that means little or no business usage.

 

You people are idiots.

Apple computers with Mac OS X is outright the best computer experience you can have on the market. Bar none. Why then aren’t Macs the dominating force in the PC world?

Because Apple is too small as a company to support nor does it care about gaining overwhelming market share.

Apple is tiny. At it’s low it’s had 12,000 employees and when Steve Jobs came back it’s been experience massive growth in the past 5 years to a magical number of… 20,000. Comparatively Dell has 60,000 while Microsoft has 71,000 and HP has 150,000. You want enterprise/corporate and SMB dominance? Wait another 10 years.

Apple thrives on innovation. They thrive on making the next big thing. Followthrough is for chumps. Making beige boxes is for losers. Making black laptops is for idiots, okay nvm, making one black laptop to compliment white laptops is kind of cool. But regardless, Apple thrives on innovation. It could care less if Joe Schmoe buys an iPod or not. It could care less if Billy Bob has an Apple TV in his deluxe double wide.

If you don’t want to buy the phone, don’t. You’re not even worth it.

 

>My recommendation is to simply throw out the PC and switch to Mac.
I use everything but I could never stand the superiority complex on either side though the problem with the cult of personality over at the mac is that a lot of their efforts go towards making people like Mike feel special.

I don’t know why you would have such a long conversation about the big business aspect - it clearly isn’t aimed there. Too bad you weren’t talking to JohnDoe – might have saved you some time. PC users already have a multitude of ways to sync their mail, calendar and contacts and a number of companies offer visual voicemail packages. RIM had started on theirs a few years ago. If this brings them out faster so much the better. Also, if Apple doesn’t support a similar seamless experience on the PC then there is no way the phone is selling 10 million units. Business friendly or not. (Note the history of the iPod.)

The funny thing is that fact that you can’t put un-Steve approved apps on the iPhone is probably the most pro big business thing about it! They would love that control. I really like apple products but, at least right now, this is a iPodPhone not the powerhouse truly do-anything-with-it iPhone I was hoping for. It is also an indication of where the company is headed and it isn’t in a consumer friendly direction unless you love totally closed systems. I agree that it can make for a great experience but it is not one everyone is comfortable with. If it is a big success it will only bring more of them which sucks for everyone. I find it funny that you cheer the death of DRM while celebrating its 2nd biggest supporter and frankly, the one probably benefiting from it the most.

Also, the no removable battery and 2 year lock in just suck. (Even if I still kind of want one.)

 

Jeremy S - just like the iPod fad? :-)

 

I expect potential iPhone design/functionality limitations will be overcome by creative after-market add-on/peripherals (docking stations, true qwerty keyboards, etc.), just as they were with the iPod …

 

From “The Real Genius of Apple’s iPhone” ( link above )

Incorporating the existing Mac OS X operating system into the unit is a major step forward, one which Adaptive Path President and usability expert Jesse James Garrett reckons will provide a major headache for competitors. “Apple has been able to work backwards from its own OS, making adjustments to work on a smaller screen,” he says. “This is not functionality that you can tack onto the existing phone operating systems out there. That has to be very troubling to the competition because it’s going to take them years to develop similar technical sophistication. Mobile-phone Web browsers are uniformly awful.” The iPhone, of course, uses Apple’s own Safari browser.

 

Michael and Jeremy, not a fad, just a failed product. Think “Lisa” or “Newton”. First in, great innovation, but the thing is way too ambitious, costs too much and doesn’t work too well so leave it up to others to get it right for the long term. Apple hit a homerun with the iPod but do we now have to believe that therefore, they will do so with every other product they release?

 

>pretty good demo of some of the office type applications on the device.

Most of the video was music and photo browsing. Just what business loves!

>It could care less if Joe Schmoe buys an iPod or not.

Apple makes most of their money from Joe buying iPods…More, in fact, than the do from selling computers.

 

NEWTON! I sold these at the Wiz in NYC - I remember going for training for them. Man everyone was like this the best thing ever.

We had an awesome display for them. I sold 2 (no one else sold any) and the display model couldn’t sell even when it went to 75% off.

Still it was way ahead of its time.

 

heck. how can they call this a serious business tool if it can’t even support third party applicaitons. Another key point already raised above is integration with my existing email systems. Why should I trust my corporate email with Macmail or Yahoo?

 

Mike - so what did you debate with this other guy? You seem unconvinced it is for business people. Most so far in the comments say the same thing.

So I guess this other guy thinks the device is a strong business player? Otherwise what was there to debate?

I am confused.

 

I’m impressed. I’ve been a PC user now for over 8 years and lately - although sometimes I hate to admit it - I’ve been deliberating the purchasing of a iBook, a Mac. I was hoping to find a PC laptop worthy of my $$ but I’ve grown bored with the PC in general, especially, in shape and form and functionality. Now with the iPhone, and with my iPod in hand, I’m even more encouraged than ever before to purchase a Mac. I never thought I’d be a Mac user, but like they say “never, say…Never.” My hats off to Apple and Mr. Jobs for a job well done. The PC market has gotten so boring that it’s pushed me to Apple. Where is the innovation in the PC world people! Why do almost all PC laptops look the same. Why? Anyway, I’m off to purchase a Mac. Cheers.

 

Throw out the PC and switch to Mac? HA HA HA HA!

Are you kidding? For the savvy tech user, those who actually WANT to get their hands dirty with hardware, the Mac is kind of a joke, let’s just be honest.

Apple makes nice mobile consumer electronics, but their desktops and notebooks are expensive fashion statements — one that I don’t want to make. As users become more savvy, they’ll realize they can get the same thing for half the price elsewhere.

Windows is yesterday, MacOS is today, Ubuntu is tomorrow.

 

Unfortunately, tomorrow never comes and today is here to stay :-) ;-)

 

Beautiful device, just beautiful.

@15 Jason, beautiful rational
@25 J, becautiful rational as well

Don’t know about coorporate America’s decision, to me, the moment Apple lowers its price in par with PC products, (or other cell phones products), My guess is average consumers will transfer, this will be particularly true for iphone, which is light years more user friendly than any other smart phone out there, and so much more better looking!

 

In case anyone cares, I did a roundup post a few minutes ago of other stories that back my theory that while the mac loyalists, celebrities and others who have freecashflow will purchase this device, the average iPod owner won’t and neither will the business community. Click my name to read it and other articles I may have missed.

 

Cool phone. But I was kind of hoping for a computer.
Someday someone will build a better handheld computer than the Psion Series 5, but it probably won’t be Steve Jobs. As Jobs said of the iPhone to the New York Times, “I don’t want people to think of this as a computer. I think of it as reinventing the phone.” That’s the problem.

 
Linus Torvalds, where are thou? - January 12th, 2007 at 6:00 pm PST

For the sake of fairness, we need to hear from Linux fan boys.

We need to hear their compelling theories that both Macs and PCs are dog doo-doo, and the fact that Linux is not used by the majority of the population is because a mysterious force so evil has made it so.

As we speak, Linux faithfuls are working on a far better device that will blow iPhone away, as it will project a 3D image of the person you’re calling right in front of you, a la “Star Wars”.

 

Just a point I have yet to see anyone bring up–the last I knew, Cingular was the cell phone company that provides service to Apple employees in the U.S, for what it’s worth.

 

Let me start by saying I just bought an iMac 20″ last week. It’s for my wife and kids. It’s nice looking and meets my family’s needs well. Now…

I own the Cingular 8525 (PocketPC) and use Microsoft Voice Command extensively. I’ve had similar PDA phones such as the Siemens SX56, SX 66, etc.

Everything iPhone does, I’ve been doing it for over 4 years…Email, Internet, Music, Video, GPS, etc. etc.

Please give me a break…iPhone is just a “thin” phone with iPod and typical PDA functionality. Yes, the multi-touch, album art and it’s thin-ness looks nice. And I’m sure it’s nice…

But can it be hooked up to a laptop via Bluetooth from my Cingular 8525, then be able to do broadband-like connection as a wireless modem?!? My phone has ultra fast 3G UMTS/HSDPA…iPhone only does GSM/GPRS/Edge.

I still can’t figure out how iPhone is 5 years ahead any other phone? I think it’s more like 5 years late into such market…

Regards,

James

 

This FAQ from David Pogue should clear up a lot.

Cingular is your only option for at least two years, it will not synch with Outlook, you will not be able to install applications, it will not open Office files, you cannot connect to chat apps, no games, no support for Flash in the browser, no video capture.

However, my Treo does all of those.

 

This iteration of the iPhone, version 1.0 is NOT a business user device.

I wrote the 5 reasons why on my blog a few days ago.

http://www.venturefiles.com/20.....an-iphone/

I am the target audience for this phone and I think they missed the mark.

The second time around with 3G and a developer base will make it worthwhile.

And BTW, it is NOT a smartphone. To be one allows you to install 3rd party apps.

 

andy abramson is one of the few that really ‘gets it’

Wi Apple?
http://andyabramson.blogs.com/.....apple.html

The question in my mind is “why was Apple able to include Wi-Fi in their phone with Cingular/AT&T and companies like Nokia with the E62 and Samsung with the Blackjack forced to castrate the phones and sell them minus Wi-Fi?”

 

Ok boys and gals - I did the math of ownership of the iPhone - the $599 is only the beginning!
http://www.centernetworks.com/.....the-iphone

 

Not with the MAC OS.

In order for the iPhone to be accepted in the business world it will need to run Windows or Linux.

Not to mention the cost. Other then the CEO who can add that as a line item to their budget.

Double

 

wow, guess i will be buying my touchpad laptop or something like this.Its really good

 

I am not throwing out my PC for a stupid overpriced cell phone. It is just a money grab with a bunch of features that only hardcores use. I feel that it is a big waste of money no one should waste their time with.

 

Would this be the same James Joaquin that was an Apple Newton evangelist many moons ago? Are you sure he doesn’t just have his panties in a bunch over the fact the Newton, which he worked hard to launch, didn’t work out?

 

I had a knee-jerk reaction to all the hype and wasn’t impressed much with what I saw of the iPhone until watching this demo. Pretty sweet. But business use? For Mac guys, sure. But it won’t get people to switch from Blackberries or Treos. It won’t get me to give up my Q until that day in the future when, as Mike Arrington says, I eventually switch to a Mac. Then it will make real sense to have the iPhone. BTW, if they could drop the i in favor of Apple for the TV, why not for the phone, especially since it was already trademarked. Does job have something against Cisco?

 

You think it will be the next big thing because you’re an apple fan. All Mac fans think that the iphone is the second coming of god. They were literally squealing when they heard about the iphone. But news flash, Mac fans will buy them, will PC users? An average user won’t fork out so much cash for a phone + mp3 player. They like a phone separate and mp3 player separate. An average user wants to keep things simple.

The iphone will definitely be overhyped. The Apple fans will snap it up as soon as it is released. But after that, no one will buy it. A trend that will soon disappear.

 

Whether this device succeeds or not depends on how it performs when it actually comes out. It might be a killer device for people who have macs but not so much for PC users considering its drawbacks right now. Rather than passing out judgement just because its Apple, wait and watch. Its not easy to replicate the iPod magic in every field.

 

To the self proclaimed “intelligent” people who keep mumbling something about “switch to a mac, you will eventually anyways” …what in the hell are you smoking and when was the last time you actually took a cold hard look at reality?

Personally, I know the day I switch (completely) to a mac will be the day hell has officially frozen over. I literally would have to be brain dead and peeing on myself before I would even consider moving to a mac. One of the primary reasons? I absolutely refuse to join the throngs of mindless arrogant users that insist on trying to convince the world to make the same mistake they did, just to make themselves feel better.

You know who you people sound like? The damn Christians, trying to convert the whole freakin world so everyone can enjoy the hell that they currently enjoy. Makes sense huh?

In summary, we get it: you made the mistake and switched. Good for you, I’ll even give you a little pat on the back, but keep your stupid ass walking right out the door. We need to your opinions and we certainly don’t need the magic koolaid that you’re drinking.

 

This post is pretty silly, in my opinion. My Treo does EVERYTHING the iPhone claims to do, except for visual voicemail, but frankly I imagine Cingular could offer that to any phone manufacturers they carry. My Treo also does a lot of business-oriented tasks the iPhone does not, and can run a lot of apps the iPhone can’t.

I won’t be switching to Mac, perioid, and even if I did it wouldn’t be for this all-flash and no substance device.

 

@Samir,

Here is a bit of info for you, It explains how Apple blatantly stole the idea of visual voicemail from Citrix as seen here:

http://www.theregister.co.uk/2.....voicemail/

So yeah, Apple crams a lot of technology into a flawed phone, a lot of stolen technology. Way to go.

 

Well, I agree to xxdesmus, only partly.

See, I do not know the reason why some like Macs and some like PC. There may be any number of reason for others to choose what they choose.

I just cannot follow your advice for just one reason.

I just cannot afford Mac. I can afford PC and it works for me.

 

@26 - chrys: We are not “evangelizing” favorites. We are debating about what will be good for the market - what is most efficient for the corporate world. The real question here is “Will the iPhone be efficient enough and better than the concurrent competitors _during its release in June_ in the corporate world?”

I firmly believe it will be a slow adopter over time, but eventually will maintain a significant, say 15 - 25% market share, and maintain it. Thats only if Apple’s prime competitors like Motorola, Blackberry, or LG doesn’t push the ball and develop a equally capable phone in a crazy, almost impossible time frame.

 

My primary machine is a MacBook Pro - I have been using Mac’s for years now but still run Windows in either Parallels or Bootcamp. Right now I am running Windows XP and Vista as virtual machines. The reasons why I have not, and probably will not make a full ’switch’:

* Exchange and Outlook. For businesses, there is no better email, organization and collaboration suite. Every few months I review the long list of ‘exchange-killers’ and come away still disappointed that there is yet no alternative to this awesome platform. Zimbra is often quoted as being close but I believe it still has a long way to go. Entourage on Mac sucks, so for email, calendar, tasks, etc. it’s still Windows for me

* Visual Studio. Fact is that 90%+ of the world still use Windows, and to build apps for those users you have to be on Windows.

* Office. I think Microsoft made office on the Mac different from the PC version on purpose to protect their OS base. For some reason, and I have tried, I just can’t switch to Office OSX

* Many popular apps lag onto OSX, a good example is Skype, which is always a version behind for OSX.

* Windows Media Player 11 is a much better product that iTunes 7 - my iTunes upgrade was dead-on-arrival and with that and many other problems I am not going back anytime soon.

This comment isn’t a queue for all of you to now post alternative Mac apps that could replace those above, but you also have to understand that a whole generation of computer users have been trained to use Windows and windows-based products. Users have picked up all the little nuances of Windows and Office and having them move away from that is an impossible task, it is like trying to change the English and Australians so that they drive on the right-hand side of the road.

But

I am not a fan of Microsoft or Apple at the moment, they are both trying to push us into their own closed silo where they can sell us everything from their OS upgrade to a movie from their own store which we can play on their own DRM-protected closed media device. In this regard, the web is going backwards and while we all argue about if Apple is better than Microsoft we fail to realize that they are the same sh*t!

 

macs users drive lime green vw bugs (the modern kind), sip lattes, and listen to indie music.

pc users drive trucks, drink whiskey, and can’t get a date (mostly due to flatulence issues).

 

No business is going to ever provide this to their employees like they do a blackberry. #1 reason its an ipod, why would you need to get your employees any of those features in a phone. Apple has always been good at making existing technology look cool, not in innovation. From the GUI, mouse, portable mp3 player, to now this phone. They play it off like they invented the wheel, when they are the guy over the creators shoulders taking notes.

 

1. Sorry, johnk, most business people use phones 98% for business. Also, calls to their ‘friends’ are probably highly business related anyway.

2. Nobody is going to buy any device so they can watch advertising on the go. The advertisers can’t be expected to support the entire glabal economy either!

3. Every high rise building now has LCD screens in the lobby pumping out advertising 24/7. When did you see anyone watching one?

4. It is not just discouraged but actually illegal in some countries now to make phone calls in cars, since the effect on accident statistics of lowered driver concentration is becoming recognised. (You won’t be able to get around this by having a hands- free one either when to do so doubles your car insurance premium).

5.Yes, the iPhone is another gizmo for bored people who buy gadgets so as not to appear to have missed a ‘trend’ (people with iPods) and a useful tool for Mac users, who will have an actual use for one.

 

Nic- You couldnt be more right, they are the same sh*t! Nobody seems to realize that when David grows up he usually becomes Goliath himself. And all his calls for evil empires and bad for business goes down the drain. Every companies goal is to crush its competition and to form as close to a monopoly without getting the dreaded moniker. Apple never got over the fact that they failed at it when it came to the personal computer.

 

Michael, I have a lot of respect for your writings, but this article made me lose some of it. I always thought of you as rather impartial, but your comments about how we all will eventually switch to Macs have a bit of a fanboy ring to them, something I don’t like, regardless of the product people are cheering for. As a result, the whole article is flawed because it neglects the fact that Mac users are a minority (even though I must admit a very vocal minority) and success of the iPhone in the business world depends on its compatibility with what the business world *is* using, not with what you think they should be using.

 

@J

“You do not look at middle America for future trends. This is why there is a fashion industry and auto shows. Future trends come from the fringe, not the center.”

Pardon me but how many Kansas state residents do you see parading around in Prada and Dolce & Gabbana? While Paris may influence colors and materials what actually hits WalMart is something quite different. Couture shows are designed for about 10% (or less) of the clothes buying world. Trends will typically come from what people are buying and finding most useful, not what a handful of designers tell people they should be wearing. I think what you meant is that fads come from the fringe. Why do you think fashion and auto shows are different every time?

While I won’t say the iPhone is a fad, I do see similarities to fashion couture. A dedicated group of Apple fans, and even some switchers, will pick up this product. But this is not the world altering device everyone claims it to be. And I certainly see no need to give up my perfectly functional (and inexpensive), Windows-run laptop, my Nano or my $100 Razr.

And yes, I’ve tried a Mac, recently, at the Apple store in town. I didn’t really see the difference outside of price. Sure, it looks pretty but I only need a computer to run programs not to impress strangers.

Personally I feel sorry for the pretentiousness that some people find in a brand. “there are definitely users that actually need Windows (I feel sorry for them)” Why do you feel sorry for 90% of the computer using population? Obviously they’ve found a product that works for them otherwise they’d be banging on Apple’s door clamoring for their product. Apple seems good at creating marketable products with high mark-up (your fashion reference again) but sales will always be highest for the Levis of the world versus the 7 for all mankinds.

Time to come down of your high-horse my friend.

and @Patrick Aievoli

“Millions of commuters traveling to and from work with their iPhones watching their morning conference with a colleague or the news, sports, tv in general.”

Let’s hope not since most commuters drive themselves in to work each morning. That’s all we need, a bunch of lousy drivers with one more distraction. Trying to flip through the iPhone’s touch screens or watching streaming media.

 

What a big yawn this is getting to be.

Please wake up y’all! If Gates didn’t have Jobs, he would have had to invent him to keep the antitrust guys off his back.

 

One last thing. Why do so many people have to get so fiercely invested in their own personal choices that they feel the need to force them on others?

PC versus Mac
McDonalds versus Burger King
Coke versus Pepsi
Christian versus everyone else

Great, you love your Mac. You think everyone should own one. Keep it to yourself. If I want to drive around in a car that you think has no get-up-and-go, it’s my right. If you want to own a computer that serves to bolster your sense of self satisfaction, that’s your right.

People will make the choices they make based upon what they can afford and what’s readily available to them. Regardless of whether it performs better than a competitor or not. If people were going to switch to an Apple computer, wouldn’t the mass exodus have happened by now?

As for the topic of whether or not businesses will adopt the iPhone. Name 3 major corporations in this country, who use 95% Apple manufactured technology products to run their day-to-day operations.

 

Holger - No, I’ve never been impartial. Just honest. There’s a difference. Journalists always talk about being impartial even though they never can be. Bloggers rarely do, but we can often attain honesty.

 

Jason, if you come here to read my opinions, don’t be surprised when I give them.

 

Obviously it won’t be taken seriously in the office until it’s Nintendo Wi integrated with open apps to develop better touch screen porn in wi net format. One of the more interesting features about the iwi/icall/idial/iphone/itel/hey steve use any of these names for your product I”ll sue you phone is the greasy cheek speed dial. An imprint that is capable of organizing all you rss feeds on the iwi/icall/idial/iphone/itel/hey steve use any of these names for your product I”ll sue you phone.

 

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