Easily the quote of the night at Palm’s Developer gathering in San Francisco came from Katie Mitic, Palm’s senior vice president of product marketing. “We want to leave it all out there. You know, ‘The Full Monty‘,” she emphatically said when noting that Palm’s goal was to be more open.
Anyone who has seen the 1997 British film of the same name will realize that such an act would certainly be more open. But will it work?
Open Apple
If there has ever been any question as to who Palm sees as its main rival in the quest for next generation smartphone domination, just look at its ranks. The company is filled with ex-Apple employees, all the way up to the top with CEO Jon Rubinstein (who was in attendance tonight), who is the man often credited for being instrumental in the creation of the iPod for Apple. And if that’s not enough, just listen to the rhetoric:
“Open, open, open, open.”
The reason Palm kept repeating that tonight is because it’s the one sure weakness it perceives in Apple’s currently dominating mobile application model. And Palm is hardly alone. Everyone from Microsoft to Google have taken subtle, and some not-so-subtle, shots at Apple’s system.
The problem with this, of course, is that Apple’s system keeps growing at an ever-increasing pace. The number of apps in the App Store (85,000) is growing at a rapid rate, while the overall downloads (2 billion) are speeding up. Rubinstein announced tonight that Palm had somewhere around 125 or 127 apps available for webOS right now. And those apps have been downloaded some 7.5 million times. It’s not exactly fair to compare the two stores since Palm’s app store is much newer. But um, those are pretty big gaps regardless of start times.
Open Web
We learned tonight what Palm believes is its solution going forward: Be more open than any other platform. And do things like utilize the web for distribution outside of its own App Catalog. Given that webOS is an entirely web-based language, this seems like it could be a smart play, and lends synergy to Palm’s overall goals for the OS.
Oddly, Palm seems to be betting on the web as the future of development more than even Google is, which has its Android platform that runs Java-coded apps.
And that’s why it was also wise of Palm to bring in two Mozilla veterans, Ben Galbraith and Dion Almaer, to run its developer relations team. As anyone who has ever read Ajaxian will know, these two have been drinking that Kool-Aid for a long, long time. And now it’s their task to preach their Kool-Aid to a development community that has been drunk on native apps for the past couple of years.
And Palm is also appealing to the open source community by allowing them to develop and distribute apps for free. But when you open up your system on multiple fronts, things can get confusing. So let’s review what Palm’s new strategy (which will start in December) really is:
- If you wish to develop for webOS, you must pay a $99 yearly fee.
- But if you use code that is open-sourced, Palm will waive that $99 fee.
- If you wish to then distribute your app in Palm’s App Catalog, there will be a $50 per-application fee.
- But if you distribute via the web, you can do so for free.
So depending on how you mix and match those, development for webOS can range from free to roughly $150 a year.
But there are also rules with regard to the screening of the apps:
- If you want to distribute your app in Palm’s App Catalog, it is subject to review by Palm.
- But if you do web distribution, there is a “fast” self-certification process.
So why put your app in the store at all? Well first, unless you have your own advertising means, Palm’s store will undoubtedly be a better place for discovery on a large scale. Second, with apps that are sold in the App Catalog, Palm offers a 70/30 cut, with 70 percent of the gross revenues going to developers. (Which is the same deal that Apple offers). And third, apps in the Catalog will also get access to detailed analytics (stats, ratings, etc) that will be shared with the rest of the community.
The Hardware
Here’s what it appears that Palm’s hope is: That the development community will begin to rally around this idea of openness, and that will in turn also feed its not-so-open App Catalog system. Palm, like Apple, sells its own hardware, so the 30 percent cut is not as vital as growing the development community to move more hardware units. But Palm, unlike Apple, is not awash with cash, and any little bit will help.
But with so many ex-Apple employees and a firm eye always on its rival, Palm has to know the key to their ultimate success does reside with the hardware sales. The Pre is good, but it’s not great. From a sheer hardware perspective, it’s not the iPhone. And it hasn’t sold well compared to the iPhone (despite investor Roger McNamee’s ridiculous quote from several months ago), and it’s no stretch to think now that it never will in its current form.
And I believe Palm agrees with me. Tonight, Rubinstein and the others made several remarks indicating that Palm’s position was a long-term strategy based around webOS, not around any one phone. Again, that’s similar to Apple’s position, it just so happens that all of Apple’s phones bare the same name.
The Palm Pixi might be slightly better, but it really just seems like the same phone as the Pre in a different form factor. If that’s the case, that won’t be good enough either. They need better, faster, stronger hardware to match the software.
The Software
WebOS is impressive in a number of ways, but the hardware does not do it justice right now. All the Palm employees tonight seemed well-versed on the key talking point of “multi-tasking,” which, of course, is another jab at the iPhone which cannot run third-party applications in the background. But the truth is that given the relatively slow speed at which the Pre handles multi-tasking, the iPhone 3GS’ application switching system is actually faster in many situations.
Of course, you can’t argue with things like instant messaging running in the background, but relying on that argument is not a sound long-term strategy: Eventually Apple will offer that too.
Palm is pitting webOS versus the iPhone OS, and that could well be a fair fight, but the hardware side is skewing that right now. That needs to change.
The Network
Also skewing the fight is the carrier limitation. We all complain about AT&T, but the fact is that it’s a much larger network than Sprint. The Pre has undoubtedly helped Sprint gain some customers, but it has not been the same as the iPhone with AT&T. And one reason for that may be a reluctance to sign up with a network that is smaller.
If Palm is able to work out a deal to get a device on Verizon’s network, that would be a huge win. But most indications lately seem to be that Verizon is still demanding control over various aspects of the device, like any app store — and it may have something to say about this new open idea. We may realize that such a move is silly on Verizon’s end because its own app store sounds like more carrier BS, but as the nation’s largest network, they are in a position of power.
Apple Marches On
Meanwhile, Apple is busy talking up the iPhone as the new gaming platform. Given webOS’s web-based nature, that’s an area Palm is going to have a hard time matching Apple in. And don’t think that Apple doesn’t realize it.
Remember, Apple originally envisioned development on the iPhone as being entirely web-based (for third-parties). But the community wanted something different, and so Apple relented. Now, because of that, it can take advantage of doing things like gaming.
Palm had better hope that Adobe’s new Flash plans play out in a way that allows some sort of better gaming experience on its devices.
The Gamble
While it’s hard to argue with open, there is a real potential problem with Palm’s position: While this all sounds great to us in the press who have been covering some of Apple’s shadier app dealings, and also to a number of developers who are fed up, the public at large simply doesn’t seem to care. As we already stated, Apple has huge numbers with regard to the iPhone and the App Store, and amazingly, they’re still accelerating. And that has happened in the middle of situations like this whole Google Voice fiasco.
The fact is that most users simply have no idea about any of this stuff. They see a sexy phone, with 85,000 apps to choose from, and they want it.
Now, maybe public perception of Apple will change, but unless they make an iPhone that’s a dud, that seems unlikely. And where the people are, the developers follow. In an ideal world, these developers might forgo the idea of potential riches in the App Store, to embrace a more open environment, but we don’t live in that world.
The Right Stuff
To be honest, I was surprised by how well Palm’s presentation went off tonight. There is absolutely no doubt that they are saying the right things. And I think Mitic, Rubinstein, Galbraith, and Almaer all laid out a vision for a mobile platform that we all want to see.
The problem is that if their own goal is to topple Apple, I just don’t see it happening. And between some of what they said tonight and some of the silly stuff, like iTunes syncing, I’m concerned they are too hung up on just one rival. One would hope they see the reality: They don’t have to topple Apple to win. Rubinstein himself noted that we’re in the middle of a fundamental shift to a post-PC world where mobile devices are king. And in such a world, there is definitely room for many players.
That said, Palm does have some financial issues that it needs to be concerned about if it doesn’t start moving units. In my mind, the key to that is to get better phones, and to get on more networks. Obviously, that’s easier said than done. webOS is pretty intriguing in a number of regards, but it needs some room to spread its wings. Or to throw open its jacket. The full monty.
“Palm had somewhere between 125 and 127 apps”
That’d be 126.
nope, he just wasn’t sure.
but fair enough, cleaned that up to be more clear.
Windows Mobile 6.5 doesnt deserve a hyperlink in this post? launched just a day before..
I recently saw a post that said the palm syncing took Palm a grand total of two hours for one programmer to change.
so hopefully that means they are more for pushing the vision (that we all want to see) than the rivalry.
scratch that – I meant iTunes syncing not palm syncing
I am now torn what to buy. I have held off on the iphone… thoughts guys?
really depends on what you’re looking for. iphone still the phone to beat in my book. mike and others disagree.
You know when thing I really don’t think is mentioned off about the appstore, is the advantages of having a closed and validated appstore (as long as its popular).
The fact is, I think for the majority of iPhone users the fact that apple validates to some extent all the applications that get submitted through the appstore is wonderful.
There are already so many apps that its impossible to go through all of them, imagine having to worry about some of them being coded badly, or being malicious. This is of course the problem with the PC’s and its the reason why I prefer downloads to come from CNET, or some other such site.
I know that there are SOME apps that might be malicious in nature (taking some info from your phone you did not want to give), but certainly there are less because of apples validation scheme.
The fact is you can’t really download apps which will break your iphone, and that is a great thing for the general public.
Sure apples policies may be a pain in the ass to the developers, but the public don’t see that, and as long as the public likes the iphone, the developers will make do. Developers want people to use their apps, and there won’t be a mass of devs going to develop for the palm os just because its more “open”. That b***c***.
“…the developers will make do. Developers want people to use their apps, and there won’t be a mass of devs going to develop for the palm os just because its more ‘open’.”
developers will seek a balance. we do want users, but we also want a platform that is easy to develop for. more importantly, we want to know that our apps will be published. apple makes no such guarantee.
i understand that you find value in apple being the gatekeeper. however, extend your logic: imagine if apple had to approve every web page before it was published to the web. sure, malware would be less rampant, and all sites would be pretty, but at what cost? there probably wouldn’t be a wikipedia or a facebook in that scenario.
From experience when a someone or something becomes too focused on being better than a rival it always fails due to the preoccupation with the rivalry and not with the process of delivering what is better.
i don’t think they’re too focused on being better than a rival. they’ve isolated a weakness in a competitor and are attempting to exploit it. palm is trying to establish a competitive advantage.
“While this all sounds great to us …. the public at large simply doesn’t seem to care.”
if you haven’t read geoffrey moore’s ‘crossing the chasm’, you should. palm’s strategy right now is not on winning over the mainstream; they’re still focused on the early adopters. specifically, they are targeting the visionaries who can help turn their young platform into a mature ecosystem.
once the apps are there, palm can then go after the mainstream audience. right now, however, every review of webOS includes the caveat, ‘their app catalog doesn’t compare with apple.’ palm is rightly trying to remove that caveat and this is a great first step.
+1
True that this works in the early adopter phase, but I don’t think of the smartphone market in that phase. Palm may be in that phase, but not the market. So, if they’re going after the early adopters in a rapidly accelerating market, then how does the strategy work????
indeed, it was a great quote… worthy of making it your headline. nice job
thanks dave.
I’ve been putting off upgrading my phone, as I’m out of contract, but am going to stay with Sprint…
…but no matter when I do it, a webOS phone looks like my best option.
The rivalry between Palm and Apple is stupid. As long as Palm has access to iTunes, Apple makes additional money with sold media…
What I would demand is a “normal” sync between the Pre and Outlook with no need of sending data over the internet.
By the way I wonder why Palm hasn’t just used the iTunes-API to create a legal sync-solution with iTunes??? It shouldn’t be a huge challenge, should it?
BTW – here in Germany the Pre will be released on Tuesday next week (exclusively by O2 – but with no SIM/Provider-Lock for 481,-EUR) – so I will have a look on it!!!
Second paragraph;
Anyone who has seen the 1997 British film of the same name will realize that such an act would certainly “be” more open. But will it work?
4th paragraph;
Everyone from Microsoft to Google have taken subtle, and some not-so-subtle, shots a”t” Apple’s system.
And a few others.
Just saying.
Your second paragraph doesn’t make sense as written. I’m guessing you meant to write “..would certainly BE more open.”
yep, sorry that was last minute change.
I’ve used both the Pre and iPhone 3GS and I find this sentence to be utterly false:
“But the truth is that give the relatively slow speed at which the Pre handles multi-tasking, the iPhone 3GS’ application switching system is actually faster in many situations.”
Have you actually tried this? Let’s say you’re in Pandora and want to go the maps app. Try this experiment on both devices and then tell us which one is faster (and which one will stop your music streaming while doing this).
yes, many times. not all situations, but plenty of them. and i already noted that tasks running in the background (like Pandora music playing) if of course superior on the Pre.
Apple may have 85,000 apps, but how many tip calculators to we really need?
I don’t think they have 85,000 tip calculators. I also don’t think that a store providing things that no one needs would be as successful as they are.
“But the truth is that given the relatively slow speed at which the Pre handles multi-tasking, the iPhone 3GS’ application switching system is actually faster in many situations.”
Which tasks would those be? I’m curious because I’ve not come across any where my Pre’s multi-tasking wasn’t superior in terms of speed. That said, I haven’t used the iPhone as extensively as you have MG.
And frankly, this is my own personal opinion, but I think that the Pre hardware issue has been overblown by the echo chamber that is the internet. I personally like the hardware of the Pre a lot more than the iPhone. The ergonomics are superior to me and the slider mechanism has been rock solid on my launch day Pre, so *shrug*
plenty of apps you can quit on the iphone and launch a new one before you are able to launch a new one on the pre with often takes a few seconds – caveat: i mean the iPhone 3GS.
Oh, ok, yeah, I guess I’ll concede that to you, but the benefit of being able to check 3 different windows for relevant information in order to send an email (that is open in the background as you gather information) is huge.
MG – You always have the best photos for your articles.
thx ben.
oh and “…Eventually Apple will offer that too.” remains to be seen. You say that, and its basically inevitable I suppose, but how long did it take them to introduce Copy+Paste? How long do you think it will take for them to decide on multitasking? I honestly wouldn’t put it past them to decide “you don’t need to multitask” *coughOneButtonMousecough*
You don’t think that Palm will have cooked up something else in the half decade (exaggeration, I know) it takes for Apple to decide on a good way (for them) to implement multitasking? And you’re conveniently leaving out Synergy, the other huge benefit that webOS has over iPhone.
Anyway, all my bitching aside, I think that this was a good article, hehe.
thx. yeah. it’s just inevitable once battery life improves. though agreed, apple does take its time.
It’s ALL about the network.
No really, it is.
I love doing web development. I was and still am very excited about WebOS.
But I’m not going to sign up with sprint just so I can develop for the platform.
Likewise the vast majority of people are never going to switch to sprint, even if the hardware and software are ten times better than the iPhone.
They really need to get their phone on ALL networks. It has to be their #1 priority.
Great article! This gave a really nice overview of the situation Palm finds itself and how these factors could all play out.
I do think no company should try and topple Apple. It’s a crazy proposition right now. Being second best would definitely not be a bad place to find yourself!
I actually think Palm’s hardware is marginally better than the iPhone. To me the real differentiator today is the network and the app store. I think is Sprint is better than ATT (+1 Pre), but the Apple App Store is better than Palm’s (+2 Apple… the gap is just too big).
But if you ignore the app store and just use the two phones out the box. I think the Pre is slightly better than the 3GS… at least it feels better. Palm does need to do a better job of exposing some of the hardware though to developers.
I think this is a good move by Palm. If they can hit 1,000 apps in a month or two, that will be a great sign for them. Once they have 1/3 the apps that Apple has then I think the app debate is a wash.
Great roundup MG, with one clarification.
“And that’s why it was also wise of Palm to bring in two Mozilla veterans, Ben Galbraith and Dion Almaer, to run its developer relations team.”
They are two very talented industry/web veterans who will be a key asset to Palm’s strategy, but not exactly Mozilla veterans after 1 year stints.
I still think Palm changed it’s tune due to the JWZ fiasco. This made a loud noise in the dev community.
No. Post Hoc Ergo Propter Hoc = Argument Fail. You really think that they set up this whole big developer announcement AFTER JWZ raised his stink less than (or around) a week ago? Seriously?
WHAT THE F???! ! ! !
If you are a developer or want to be a developer and you have 10 Apps you want on Palm’s catalog, it will cost you *** $650 ***, not $150 as this article says, to have your Apps on Palm’s catalog.
This is a huge cost barrier for the kids, the mom-and-pop developers. This is a NO-GO as far as development on Palm.
This is a HUGE DISINCENTIVE to develop for Palm. I can’t believe Plam is killing of development on Palm from day one like this.
Palm will always be a distant runner up to Apple at this rate.
>If you are a developer or want to be a developer and you have 10 Apps you want on Palm’s catalog, it will cost you *** $650 ***, not $150 as this article says, to have your Apps on Palm’s catalog.
cost is: 10 * 50 + 99
I think this is brilliant and will prevent much garbage in the store.
Peter
If Palm can get on the Verizon network – I’m sold.