Apple CEO Steve Jobs turned out last week to announce the much anticipated software development kit (SDK) that signals the opening up of the iPhone to third party applications, but developers remained frustrated at the tight control Apple retains. The company laid down some other gauntlets too, with a string of moves to make the iPhone more relevant to corporate users, and therefore pose a threat to BlackBerry, Palm, Nokia E-Series and, most politically significant, Windows Mobile. Jobs also reiterated his opposition to dominant rich web media technology Adobe Flash, a week after Nokia had dealt the system a blow by majoring on rival Microsoft Silverlight.
Finally, Apple and hi-tech venture capital legends Kleiner Perkins Caufield & Byers injected a shot in the arm of the iPhone ecosystem with a $100 million ‘iFund’ to support innovative applications for the device, which is widely expected to appear in a 3G version, geared to Europe, within a few months.
At a developers’ event held at Apple headquarters in California last Thursday, Jobs offered details of the forthcoming SDK and the beta is now downloadable for free, with an iPhone Simulator for the Mac. The full version of the kit will only be available in June, along with release 2.0 of the iPhone software, and possibly the expected 3G device. Until then, developers must make do with an emulator or, if US-based, apply to become part of the iPhone Developer Program, which allows participants to test code on iPhones for a fee of $99 a year ($299 for the enterprise program). Developer Program members get the SDK and development tools, plus access to pre-release iPhone software, technical support, the ability to get code onto iPhones for testing, and a distribution channel. This mirrors similar initiatives such as Nokia Forum.
Jobs also offered a preview of release 2.0, talking up its enterprise features, which include support for Microsoft Exchange ActiveSync to provide over-the-air push email, contacts and calendars, and support for the Cisco IPsec VPN for secure access to corporate networks. ActiveSync is supported by many enterprise focused device makers, including Nokia, and this move by Apple signals that it aims to balance the image of the iPhone as a consumer product with a heightened interest in corporate users. It will be taking the line that stood RIM’s BlackBerry in such good stead in its early years ‘ that if the device is unique and sufficiently appealing to powerful users within large companies, they will influence the IT departments to standardize on the handsets and support the necessary back end software.
The main downside will be the policy of signing with just one carrier per country, as corporations will not switch cellco to accommodate one device. Despite this, Apple’s move is a clear threat to BlackBerry, especially in its US heartland, but is also taking on Windows Mobile phones, which have only really gained significant traction in the enterprise space. However, Microsoft has moved away from attempts to bundle handsets and Exchange/ActiveSync to boost its client OS BlackBerry-style, and has instead gone for establishing ActiveSync as a de facto standard for the mobile enterprise, which has necessitated allowing Nokia, Apple and others onto the platform without significant discrimination.
The beta release of version 2.0, now available to selected developers and enterprises, also highlights another aspect of Apple’s extreme reluctance to embrace real openness. The new iPhone software features the App Store, an application that lets users browse, search, purchase and wirelessly download third party applications directly to their iPhone or iPod Touch. This gives developers a strongly branded channel to every iPhone user, but also ‘ like iTunes ‘ shows Apple keeping the tight link between content delivery and device, which not only allows it to retain a high measure of control in a supposedly open world, but also a good revenue stream, since it takes 30% of all applications sold (although free applications are distributed without charge).
Enterprise customers will be able to create a secure, private page on the App Store accessible only by their employees. Apple has always argued that the iPhone should not be opened up too hastily for fear of insecure, buggy or inappropriate software getting on to the platform and even within the App Store, Jobs said that some programs will be banned, including those considered by Apple to be “bandwidth hogs” . These include cellular VoIP apps, with VoIP being reserved for Wi-Fi.
Other aspects of the SDK and iPhone 2.0 frustrated developers when comparing Apple’s system to those of other mobile device makers, and particularly the (admittedly unproven) promises of Google Android. For instance, developer blogs were alight with complaints that the SDK small print says the iPhone will not run more than one app at a time, so if a user switches programs, the background one gets killed (presumably this does not apply to voice calls or texts). This is to maintain decent performance, says Apple, but developers see it as yet another restriction. They are chafing at the level of control too, particularly that all iPhone apps have to be approved by Apple and that they cannot tap into all the handset’s functions.
Blogger and developer Adam Houghton says programmers cannot access calendar appointments, iPod music and video, or phone and SMS functionality, all of which he describes as ‘glaring omissions’. The phone and SMS lockdowns are not uncommon and are generally for security reasons, but the others smack of Apple trying to keep its crown jewels to itself.
Despite its halfheartedness, Apple was putting money where its open mouth was in the shape of the $100 million iFund. The KPCB fund claims to be agnostic about size and stage of investment of its companies, and will invest in start-ups building applications, services and components, with a particular interest in location-based services, social networking, mobile commerce, communication and entertainment.
Jobs said the iPhone took 28% of the US business smartphone market in the last three months of 2007 compared with 41% by RIM, and that the iPhone accounted for 71% of US mobile browser usage.