By Hayley Tsukayama
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Wish a happy birthday to your iPhone! June 29 marks the fifth anniversary of the day the first iPhone hit store shelves and Apple began its climb in the mobile market.
The first iPhone may have sported a metal and plastic back, but the general look of the smartphone hasn't changed all that much in the past five years -- new materials here, a nip or tuck there -- and has kept to its same general size.
What has changed, dramatically, is what the phone can do. At launch, it sported a 2 MP camera, ran on the EDGE network and touted its visual voicemail. It came in a $499 4GB version or a $699 8GB version. Users couldn't download programs from other developers, but the introduction of a more complete Web browser on a smartphone was enough to impress reviewers.
While it's hard to separate the iPhone and the App Store in our minds now, the iPhone didn't have its app ecosystem until a year after launch, in July 2008. Four years later, there are over 650,000 apps in the App Store, and the marketplace has 400 million accounts.
Looking back at Apple's press release for the original phone's debut, we're reminded that the tech giant mostly promoted the smartphone's connection to the iPod -- Apple even called it a "widescreen iPod" in its January 2007 product announcement.
At the time, there was skepticism about whether the iPhone could really take on market leaders Research in Motion and Nokia -- companies that are now struggling to hold on to their shrinking slices of the market. Both have announced job cuts: Nokia is set to cut 10,000 of its staff by the end of 2013, and Research in Motion said Thursday that it will drop 5,000 jobs.
The iPhone, however, hasn't stopped climbing -- though it has occasionally slowed -- even as Android-based competitors have crowded the field and taken the majority of the smartphone market. Demand for Apple's ubiquitous smartphone is still red-hot: It took the first iPhone 74 days to hit 1 million sales; the latest version of the iPhone hit 1 million pre-orders in its first 24 hours.
To date, Apple has sold over 217 million iPhones and has expanded to more networks and countries. According to the company's last earnings call, the iPhone is now on 230 carriers in 105 countries.
It will be interesting to see how the device evolves over the next five years, particularly with the advent of prepaid iPhones from Virgin and Cricket and the company's push for overseas expansion.
And, of course, it's almost a given that Apple fans will keep watching excitedly for any hint of what Apple plans for the iPhone's next incarnation. Top wishlist items include a bigger screen and support for 4G networks.
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iPhone anniversary marks triumph over crisis
By Robert Cyran
NEW YORK, June 29 (Reuters Breakingviews) - Apple (AAPL.O) rolled out its iconic iPhone five years ago, just as Bear Stearns subprime hedge funds sounded the alarm on a systemic trauma. Financial woe often impedes development. But the iPhone is proof that innovation can defy the odds and overcome hard times.
The advance of technology is hard to stop. R&D budgets do get slashed in downturns. The growth rate of patent filings has slowed during the recent crisis. But companies that don't invest, or that do so poorly, can suffer. Research In Motion (RIM.TO) and Nokia (NOK1V.HE) learned the lesson all too well. Their market values have plummeted over 90 percent since mid-2007.
More importantly, desired products, whether new plastics in the 1930s or smartphones now, tend to thrive regardless of the economic climate. About 40 percent of Dupont's revenue in 1937 came from products introduced during the Great Depression. Almost 60 percent of Apple's sales are now generated by the iPhone.
Apple's focus on high-end customers hasn't hurt. Even reduced disposable income at a certain level still leaves plenty left over for a new bauble. But the iPhone offers value for the considerably less affluent, too. It replaces digital cameras, personal organizers, guidebooks, dictionaries, satellite navigation systems and music players. That list isn't inclusive and is bound to grow.
The contrast with the financial crisis is a stark one. Apple's market value has increased by about $430 billion since the iPhone was introduced. The device represents a majority of the company's sales and an even greater proportion of profit, and has contributed greatly to the popularity of the iPad. That makes it safe to ascribe a healthy amount of the gain to the iPhone.
By comparison, Apple's increased capitalization isn't far off the $470 billion that was required from the U.S. Treasury's Troubled Asset Relief Program to bail out Citigroup (C.N), AIG (AIG.N), General Motors (GM.N) and others. Real estate crashes reverse themselves and debt hangovers get worked off. In the meantime, technology relentlessly marches on and provides fresh stepping stones for the eventual recovery. That makes the iPhone a hopeful reminder for a world stewing in another five-year anniversary that isn't much worth celebrating.
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Birthday 5 for iPhone: The Device That Changed Everything
By Adam Dickter
Commenting on the iPhone's 5th birthday and the impact the iPhone has had, analyst Ken Dulaney said, "Marketing consumer electronics has changed, industrial design has reached a new level of importance, and traditional suppliers have been challenged as never before." Regarding the iPhone 5 years ago: "Easy to use reached a whole new level."
It exploded onto the scene with a burst of fanfare, a revolutionary device that, it can objectively be said, changed everything.
Five years ago today the first iPhone went on sale, six months after Apple CEO Steve Jobs introduced the touchscreen device, essentially a computer in the palm of your hand that displaced voice calls as the primary reason for carrying a mobile device.
"Apple's version of the iPhone is a mobile phone that combines the wizardry of smartphones with the music- and movie-playing features of the iPod," is how NewsFactor reported the story on January 9, 2007. "It features a large, 3.5" touchscreen, a 2-megapixel camera, and integrates fully with Apple's iTunes music store . It's less than half an inch wide, works on a pared-down version of Apple's OS X (which in full form powers Apple notebooks and desktops), sports WiFi, Bluetooth, and EDGE (a type of mobile broadband ), and runs on Cingular's network ."
What, No 3G ?
It took six months, however, for the much-hyped device to get into consumers' hands. Just before the consumer launch, we reported analysts' views that the phone set a new standard, but not without a few shortcomings.
Analysts at the time pointed out that the iPhone "lacked 3G capabilities and could only use the much slower EDGE technology. The compensation for this shortcoming [was] that the iPhone could automatically switch to Wi-Fi networks, when available, for Internet browsing." On Wi-Fi, it was reported, the iPhone "flies."
The original iPhone was followed in turn by the 3G, 3GS, 4 and 4S models. Today's 5-year anniversary comes as Apple is soon expected to release the sixth version of the device. While the original device was strictly tied to AT&T , the current incarnation is available via AT&T, Verizon Wireless, Sprint Nextel and a few regional carriers, with worldwide sales estimated at more than 35 million.
That number makes the iPhone by far the single most popular device. However, over the past year, devices powered by Google's Android operating system -- and offered by different manufacturers -- have seized a larger share of the market as measured by operating system.
The iPhone "has made the consumer king," Gartner analyst Ken Dulaney told us on Friday. "No longer is the [mobile] phone considered [just] a business tool. Data usage has exploded and it has revolutionized the distribution of software ."
Dulaney also noted that the iPhone's app-centric touchscreen experience dramatically increased user interface expectations.
"Easy to use has reached a new level," he said.
Among other impact attributed to the iPhone: "Marketing consumer electronics has changed, industrial design has reached a new level of importance, and traditional suppliers such as Intel and Microsoft, RIM and Nokia have been challenged as never before."
Challenges Overcome
In addition to the above-mentioned shortcomings, Apple also had to deal with reception issues early on, as AT&T, its sole initial carrier, struggled to keep up with the demand on its network. Later, the iPhone 4 faced a backlash over signal problems resulting from contact with its external antenna. Although these issues may have caused some to be wary about being early-adopters, they never seriously hurt sales.
"One reason the iPhone was able to push beyond these issues was because, up to that point, nobody had really launched a smartphone with a true immersive Internet experience," said Weston Henderek, principal wireless analyst for research firm Current Analysis.
Although Research In Motion's BlackBerry devices and some Nokia smartphones were out, they were taking users to abridged mobile versions of Web sites that were difficult to navigate. "The biggest reason [the iPhone] was a revolutionary device is that it put the power of a PC -like Internet experience in your hand and it was really the first device to pull that off."
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Google Gives iPhone Users Browser Choice For Phone's Fifth Birthday
Apple‘s iPhone, the iconic device from that revolutionized smart phones, turned five on Friday, June 29.
There has been no other device like iPhone in history. Thousands of developers have written thousands of apps to organize the lives of iPhone users in a manner previously scarcely imaginable.
iPhone left its competitors like Research in Motion (RIMM) and Nokia (NOK) in the dust. The mobile platform for Microsoft (MSFT) was not at all competitive. Google (GOOG) came up from nowhere to mount a serious challenge with its Android operating system.
There continues to be a bitter rivalry between Apple and Google. The late Steve Jobs accused Google of copying iPhone; he called Android a stolen system and pledged to spend his last dollar to rectify the situation.
On the fifth birthday of iPhone Google has given a surprise present. Google has announced that it is launching a new version of its Chrome browser to run on iPhone and iPad. The new Chrome app will allow users to sync all of their credentials, bookmarks, and tabs on all of their devices.
The app may gain traction as Apple users will be able to sync easily with non-Apple devices. Moreover those tired of Safari, the browser from Apple, now have a great alternative.
From an investment perspective, there should be no material impact in the short-term on the stock prices of Google or Apple.
The introduction of Chrome for Apple opens a new battle front in the war between the two companies. Google is sending a clear signal that it will do whatever it takes to keep a major presence on the Apple platform. Recently Apple ditched Google Maps. Clearly Apple does not want to share the success of its platform with Google. Let another battle begin.
About Me: I am an engineer and nuclear physicist by background. I founded two Inc. 500 companies, and have been involved in over 50 entrepreneurial ventures. I am the chief investment officer at The Arora Report, which publishes four newsletters to help investors profit from change. Follow me here and get email notification when I publish a new article.
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Why the iPhone Was Truly a Disruptive Product
Chances are, the smartphone in your pocket bears little resemblance to the cell phone you were carrying 5 years ago. That's largely because of what happened on June 29, 2007, the day the iPhone was released in North America.
As I wrote on the anniversary last year, "every major smartphone that has gone into production since the iPhone's release has, in some way, been a response to the iPhone itself."
Since 2007, I've written hundreds of thousands of words about the iPhone, iOS and the modern smartphone ecosystem. I have chronicled the impact the iPhone has had not just on Apple, but on the telecom industry, the smartphone market and computing as we know it.
Now, on the fifth anniversary, I want to home in on a few specific examples of companies and individuals that the iPhone has profoundly changed.
Rarus Technologies Inc. Receives Approval from Apple for Zngle's Version 1.1 iPhone App and will release version 1.2 with Video and VoIP Calling in July
HENDERSON, Nev., June 29, 2012 /PRNewswire via COMTEX/ -- Rarus Technologies Inc. (otcqb:RARS) ("Rarus") announced today its newly enhanced version 1.1 of the Zngle iPhone App is now available at the Apple iTunes Store.
Rarus Technologies' Zngle social media network released its first Zngle iPhone App on June 1st 2012 in the iTunes Store and then moved quickly to produce and submit version 1.1 with added features and improvements. Zngle's development team has continued gathering member feedback and this data has now been incorporated into version 1.2 which includes new and improved features like Video and VoIP calling. These two features will be free for Zngle members and users will also be able to buy the additional required storage for Video and VoIP messages through the iTunes Store.
"We're very pleased to have received great suggestions through feedback from our members and have used their suggestions in the development of Zngle version 1.2 which now includes features such as Video and VoIP calling. These features will be free for Zngle members, however due to bandwidth and addition server requirements, there will be an in-App purchase requirement in order for members to acquire additional message storage. If members redeem proximity coupons they will also receive Zngle credits which they can use to acquire additional features. Due to the complexity of these features, which will set us apart from other social media companies, we have also delayed development of the Android App. We are planning to resume development of this parallel product once we receive feedback from beta testers of the Apple version 1.2," stated Mr. Manfred Ruf, CEO of Rarus.
About Rarus Technologies Inc. and Zngle, Inc.
Rarus Technologies Inc. was incorporated in 2010 and is an emerging technology company focused on establishing an innovative business model intended to bridge cutting-edge social media and e-commerce into a marketplace that connects friends, family, consumers, and vendors in new and exciting ways. In May, 2012, Rarus Technologies Inc. incorporated Zngle, Inc. as the primary subsidiary and operations base for licensed internet platform. We are designed to be a centralized Internet portal and next-generation social media website that incorporates voice/text messaging, video email, and mobile technologies to allow consumers to access real-time information about various products and services through augmented proximity reality search features.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain information contained in this press release, including any information as to our strategy, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements." All statements, other than statements of historical fact, are forward-looking statements. The words "believe," "expect," "will," "anticipate," "contemplate," "target," "plan," "continue," "budget," "may," "intend," "estimate," "project" and similar expressions identify forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to its plans or operations. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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Apple Loop: A Hardware Update, Friending Google (Sort of) And Other News
Keeping you in the loop on some of the things happening around Apple this past week.
Bob Mansfield, Apple's head of hardware engineering, says so long.
+ Hardware update. Apple announced that the head of hardware engineering, Bob Mansfield, is going to retire and that he'll be replaced by Dan Riccio, vice president of iPad hardware engineering, in several months. The hardware engineering team is going to keep reporting to Mansfield until he leaves. Mansfield joined Apple in 1999, when it acquired Raycer Graphics, where he was VP of engineering, Apple said. He's led Mac hardware engineering since 2005, iPhone and iPod hardware engineering since 2010, and iPad hardware engineering since the tablet was introduced -- which makes him kind of an important person at the company. However, Apple CEO Tim Cook made a point of noting that his replacement, Riccio, who joined Apple in 1998 as VP of product design, has contributed to most of Apple's hardware during his tenure. "Dan has been one of Bob's key lieutenants for a very long time and is very well respected within Apple and by the industry," added Cook. "Our hardware engineering team is the best engineering team on earth and will not miss a beat during the transition."
Google Brings Chrome Web Browser To Apple iPhones, iPads
Tomio Geron
+ Thermonuclear war on hiatus? Remember how Steve Jobs' told biographer Walter Isaacson that he thought Google was guilty of "grand theft" when it released the Android mobile operating system to challenge Apple's iOS for the iPhone and iPad? And how Apple was ready to launch a "thermonuclear war" to defend its patents against smartphone makers like HTC, Samsung and Google? While Apple CEO Tim Cook has said repeatedly the company will continue to fight to protect its intellectual property, it seems like it can play nice too. That's why iPhone and iPad users will now find Google's Chrome browser -- a rival to Apple's Safari browser -- at Apple's App Store. (And as of this writing, Chrome is the top free app on the App Store.) Google is also offering a version of Google Drive -- its cloud-based service for storing documents, photos, music, videos etc. and a rival to Apple's iCloud -- for iOS users. Frenemies?
+ Podcasts go out on their own. Delivering on some recent rumors, Apple released a standalone Podcasts app that makes it easier to subscribe and listen to podcasts (instead of having to access them out of iTunes). Podcasts are prerecorded audio and video shows you can subscribe to and stream episodes or download and listen to them offline. Here's how Apple describes the new app in iTunes: Podcasts app is the easiest way to discover, subscribe to, and play your favorite podcasts on your iPhone, iPad, and iPod Touch. Explore hundreds of thousands of free audio and video podcasts from the Podcasts Catalog, and play the most popular podcasts, organized for you by topic, with the all-new Top Stations feature. Another new feature: a Sleep Timer to "automatically stop playing a podcast while listening in bed."
+ iTunes Plays in Asia. You couldn't tell it from the press release, but Apple's news that it was opening a dozen new iTunes stores in Asia was notable because it's the first major push in the region since it opened its iTunes stores in Japan in 2005. The new iTunes stores -- selling music and movies for the most part -- are in Hong Kong, Singapore, Taiwan, Brunei, Cambodia, Laos, Macau, Malaysia, Philippines, Thailand, Sri Lanka and Vietnam. Of course, Apple fans in those countries already have access to the App Store, which offers more than 650,000 apps in 155 countries. How many countries does iTunes operate in? Apple couldn't tell me (why, I don't know). By my count, it's about 50. Still no word on iTunes in China, Apple's largest market. And in case you're wondering, sales of music-related products and services accounted for about 6 percent of Apple's sales in 2011 -- or about $6 billion.
+ Apple to take another gamble on Reno. Apple is looking to build a data center for its iCloud service and set up a purchasing center in Reno, Nevada, as part of a $1 billion investment it is making there over the next decade, according to the Reno Gazette Journal. (Reno, the paper noted, is also home to Apple's Braeburn Capital subsidiary, which does investments and is part of its tax planning strategy, as the New York Times reported in April.) While Apple has plans to build data centers in other states, including Oregon, Steve Hill, the director of the Nevada Office on Economic Development, said Apple "wanted to come to the Silver State to diversify its locations as well as to capitalize on Reno's vicinity to Cupertino, Calif., the home of Apple's headquarters -- about a four-hour drive away." Nevada also lured the company with $89 million in tax breaks, including an 85 percent drop in the personal property tax for 10 to 30 years, which if approved, will make Apple's effective sales tax rate will be less than 1 percent, according to the Reno Gazette Journal.
+ Apple retail employees, by the numbers. As part of its iEconomy series, the New York Times took a deep dive into Apple's retail stores. All sorts of interesting numbers to be found -- including that the average tenure of a retail employee is 2.5 years, that they make about $25,00 a year and that store employees each brought in $473,000 in sales for the company last year. Should Apple pay its employees more since Apple is making so much thanks to their efforts? Should retail employees expect that working in retail will give them a career path to corporate jobs at Apple? Should they get an annual bonus (since they don't get commissions) for selling so much stuff? Apple said it's recently given retail employees a raise, though it declined to provide specifics. As for overall working conditions in its retail ops, here's what Apple had to say: "Thousands of incredibly talented professionals work behind the Genius Bar and deliver the best customer service in the world. The annual retention rate for Geniuses is almost 90%, which is unheard-of in the retail industry, and shows how passionate they are about their customers and their careers at Apple." Here's a question for Tim Cook: would you recommend your family or friends work at the retail store? And if yes, for how long?
+ It's not the iPad 3, but still. Apple didn't name the third iteration of the iPad the iPad 3 -- instead calling it simply ‘iPad.' But that hasn't stopped the company from claiming that it should be the owner of the domain, according to Domain Name Wire. Apple has filed a case with the World Intellectual Property Organization asking that the domain name be transferred to it from its current owner, a company called Global Access in Isle of Man which was registered in Jan. 2010.
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