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Dvorak to Apple - Stop The iPhone

eldavojohn writes "John Dvorak is advising Apple to cease all efforts on the iPhone, citing the mobile handset business as a 'buzz saw waiting to chop up newbies.' With Apple's image as a 'hot company that can do no wrong' on the line, Dvorak warns that the extremely fad-prone marketplace for cell phones will quickly turn the 'hot' iPhone passe'. Unless the company has several new models in the pipeline to release after the original offering, he says, they're likely to fail. 'If it's smart it will call the iPhone a "reference design" and pass it to some suckers to build with someone else's marketing budget. Then it can wash its hands of any marketplace failures.'"

20 of 409 comments (clear)

  1. 3G by omeomi · · Score: 2, Interesting

    I think the biggest stumbling block for the iPhone is going to be the fact that it's not a 3G phone at a time when the trend is going toward 3G phones. Cingular is even giving 3G phones away free, now...

    1. Re:3G by Thumper_SVX · · Score: 2, Interesting

      As a user of 3G, I have to say that my recent change to an HTC TyTN based phone was based primarily on its ability to do 3G. If I need to, I can use it as a modem for my laptop (which I do, daily) when not in range of a wireless access point. Hell, I can do it via Bluetooth, which makes it almost insanely easy with my Macbook Pro to get online and actually get work done. Or not. :)

      I agree though, the iPhone lacking 3G was definitely a big hit in my opinion. Most of the major cities have Cingular's flavor of 3G now, and there'll be more by the time the iPhone is released. To me it seemed dumb to pass up that portion of the market that actually needs the bandwidth. I was initially impressed by the iPhone, and I make up the prime target market for a device like this, but when it came down to a solid comparison the iPhone only had the "cool" factor above what the HTC TyTN could provide. In every other respect, the TyTN won.

      Now, granted this is based upon my needs... but having used GPRS/EDGE for years and having just gone to a 3G device, I have to say that I am completely sold on the tech. It works... plain and simple. The bandwidth isn't as good as my DSL at home, but damned if it's not good enough to get real work done. For what I do, the unlimited data plans are reasonably priced, too. Yes, I've had my arguments with Cingular... but generally their 3G rollout coverage at least in the areas I frequent (Dallas, St. Louis and Chicago being the three cities I work in periodically) is good enough for my tastes.

  2. My idea for a cell phone. Someone steal it by CrazyJim1 · · Score: 4, Interesting

    The phone has GPS. The GPS continually updates every minute and stores in cache on phone. Every so many hours, its uploaded to your home account so you can review where you were the days before. It also has a 1 touch blog. You can then record voice/text/pictures/video to your site and it will be formatted nicely. You can let family members or friends view this website. It would be a living diary for you, and would take no effort. Just 1 button and all the complex web work is done automatically. Hey and if someone wants to implement this, maybe you can hire me :)

  3. Competition makes everyone better. by zerofoo · · Score: 4, Interesting

    The cell phone market is filled with phones that are difficult to use, unstable, and generally crap.

    I have a Motorola Q and it SUCKS. Sure, it hooks up to exchange, and it is nice and small, but battery life sucks, voice recognition sucks, and it crashes more than Eddie Griffin driving an Enzo.

    I can't tell you how many times I've looked at phone interfaces from LG, Samsung, Motorola and Nokia and thought the designers were all on crack.

    Apple NEEDS to show the world how to make a phone. God help us if they don't.

    -ted

  4. Phones vs IPods by rueger · · Score: 2, Interesting

    Apple may have lucked out with the iPod - let's face it, any new product launch is a gamble, especially into a product for which you have no previous background.

    I have to think though that trying to break into the already pretty mature cel phone market is an entirely different thing.

    The market for iPods was largely wide open - most people who bought were moving over from CD or cassette players, and represented a pretty much untapped population.

    The iPhone though will have to convince existing cel phone owners to change hardware, and in some case change service providers. That's a much tougher sell, especially when you're charging up front for a phone when most providers offer a phone for "free."

    If I were marketing this thing I'd sell it as an upgrade for existing iPod owners, a newer better iPod that just happens to also include a phone.

  5. Shut up... by 7Prime · · Score: 4, Interesting

    Ya know, like how the iPod was going to destroy the prestine image of Apple back in 2001? What a fucking idiot this guy always seems to be. Sure the iPhone isn't going to break any records out of the gate, but its something to grow on. It's the way things have to work: the first adopters are always going to be techies, who want the most features possible... this subsidizes the marketing of lower-end models which target the mainstream consumer. It's a good business strategy when trying to bring out a new type of gadget.

    The Zune failed because it tried to copy something that was already on the market, but started with the high end. The opposite would have been better, here, they should have started with really low-end models and worked their way up, because Microsoft wasn't really aiming to establish a new kind of device. The iPhone, on the other hand, is really pushing to try and bring a fairly unique kind of device into the mainstream market place, so they have to start at the top.

    There's a reason Dvorak never gets hired for consulting work, he has no idea what goes into a good business strategy. I don't know why we even post his fluff on here any more. I say slashdot just ignore him from now on, and he'll eventually go away.

    --
    Multiplayer Gaming (defined): Sitting around, discussing single-player games with my friends, at the bar.
  6. I'll give him this by Jaeph · · Score: 2, Interesting

    Having read the article (omg, ban him from slashdot!), I will give Dvorak this: the cell phone market is nothing like the mp3 market that Apple helped to create. The situations are very different, so you can't expect a success like the ipod. Of course, you almost never get successes like the ipod in business, so that really isn't saying much.

    -Jeff

    P.S. The rest of what he said regarding fashion, etc, I have no idea. Personally I think price tag, batteries, memory, calling plan, and the 3G aspect will tell the tale more than fashion. So JD and I may come to the same conclusion, but from completely different logic chains.

    --
    Please learn the difference between a dissenting opinion and a troll before you moderate.
  7. Re:More advice for Apple by shmlco · · Score: 4, Interesting

    Excerpts:

    While a 2% share of the entire world's PCs wouldn't suggest much of a reason to target Macs for software development, having 8% of the active US installed base certainly does.

    Since more than half of all PCs are used in business, Apple owns an even larger portion of the consumer market's installed base, where Apple choses to compete. Pulling out business PCs, Apple's share of the consumer PC installed base is above 15%, which correlates with the software available for the Mac.

    In education, Apple has a 23% share of all new sales in the US, and around 15% in Europe. (Walk around a college campus and tell me how many Macs you see. Now realize that Macs are probably going to be their platform of choice going forward.)

    NPD just reported figures that report Apple took 10% of January's billion dollar laptop sales in the retail channels it monitors; recall that NPD only reports on big box retailers, not Apple Stores or any online sales.

    In the final quarter of 2007, Apple earned $7.1 billion in revenue, compared to Microsoft's $12.5 billion in total revenue. Yes, that's right, Apple brought in more than half as much money as Microsoft, despite Windows owning 98% of the PC market.

    Even stripping Apple of its iPod revenues, which PC pundits love to do, the company still earned $4.4 billion on its Macintosh business, over a third as much Microsoft brought in from its entire Windows, Office, and server operations combined. Apple's 2% of the PC market doesn't seem so small anymore.

    Of course, Microsoft actually lost a lot of money on all of its consumer electronics products, so looking at profits, Apple earned $1 billion compared to Microsoft's total $3.4 billion in profit.

    Yeah, Apple's a non-payer alright...

    --
    Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
  8. Re:Defining the market by devinhedge · · Score: 2, Interesting

    I have to concur with you. The cell phone market has reached a lull in the U.S. in terms of pushing forward with new ideas. I don't see EVDO or EDGE as new ideas, just an extension of an existing idea. The same can be said of almost all of the features of the iPhone itself. (Not withstanding the use of OS-X on an embedded platform: where's my Apple iTablet?)

    The biggest thing Jobs and Co. is revolutionizing with the iPhone isn't the phone itself, it is how the consumer purchases services from the service provider. If we recall, Verizon Wireless was offered exclusive rights to sell the iPhone but turn the offer down when Apple required that the iPhone purchaser could not be bound by a contract and that no promotional offers tied to a contract were allowed. VZW, using the age-old telco mantra of "rest of your contract and recurring monthly revenues (RMR) generated by locking in customers" model, was reluctant to take on a new business model. Now that Verizon's largest competitor, AT&T, has taken on the mantle of contractless RMR, there is a potential that the US cell phone market will finally be liberated from the US cell phone service contract.

    Separating the sale of a cell phone from the service contract in the US is nothing short of revolutionary: a war VZW has been reluctant to fight and one they will ultimately lose to AT&T

  9. Re:It's what was left out that counts. by frdmfghtr · · Score: 2, Interesting

    The ipod is a very successful product. Part of that comes down to not so much what features it has, but what was left out.

    "Just pack it full of features" is a very easy and lazy way to define products. Add too much detail and you gunk up the UI. It is way harder and more important to figure out what to leave out to make it easier to use and "cleaner" for the target user base. There are huge numbers of features that could have been added to ipod, but some of its appeal comes from relative simplicity.

    iPhone does not need huge numbers of features to be successful. So long as it does the functions that the target audience expects, it should do well.


    True, true. I'll also toss this little tidbit in:

    Even if it is left by the wayside as far as phones go, remember it is also a widescreen iPod. A widescreen, touchscreen iPod. If the phone flops as a phone, just pull the phone features from the firmware and hardware, add storage capacity, and it's still a widescreen iPod. No need to change the form factor.

    In a way, by making it an iPod as well as a phone, Apple has hedged its bet regarding success in the cellular phone market.
    --
    Government's idea of a balanced budget: take money from the right pocket to balance...oh who am I kidding?
  10. Re:Well if Dvorak doesn't like it... by cbreaker · · Score: 4, Interesting

    He's wrong on occasion - but that doesn't mean he's ALWAYS wrong. I happen to agree with him here, although I don't think that it will ruin Apple or anything. I think they will release the iPhone, it will be a big seller for a little while and a status symbol (kinda like the $600 razr phone, which is now $50 or free with a plan.) But, the margins are very slim, the phone is kinda big and fragile in comparison to a flip-phone (big screen, like the PSP.. with a very shiny surface) and expensive as all hell. In the long term, I don't see Apple producing too many phones.

    To top it all off, they aren't really introducing anything new that would be a "even if they fail, at least they brought us ..xyz." Touch screen on a portable phone is novel, but not necessary in any way. The device is still locked down to all hell.

    I wish them luck, and I think they're going to need it.

    --
    - It's not the Macs I hate. It's Digg users. -
  11. mobile phone rant by roman_mir · · Score: 3, Interesting

    man I hate the modern mobile phones.

    I would like to have a phone with large buttons, these can be either raised or sunken buttons, but I want to feel them, I want tactile response, a 'click' sort of feeling. I want to be able to push them without looking, so I want a large enough phone to put these large enough buttons. I want the phone to be made of metal, something that needs a screwdriver to be taken appart, I want it to be waterproof. Better yet it should be able to float, but that's asking too much for something made of metal. In any case I want to be able to drop the f.cking thing into a bucket full of soap water, pull it out after 3 hours and still be able to use it without any problems. I want this phone to have a nice screw on clip, which won't break off. I want this phone to have a power socket, that doesn't break after 3 weeks of use. Not like those f.cking Motorolla power sockets that are completely useless garbage. I want a power socket that can be closed (waterproof, remember?) and the kind that doesn't break even if the power cord is shoved in sideways (well, if there is an attempt, anyway.) I want the battery to last for a month (too much to ask,) ok, if it lasts for 5 days without recharging that would already be a miracle. I want the reception on this phone to be exceptional. I don't want this phone to do anything fancy. I don't want a camera or an mp3 player. However an AM radio would be awesomely appreciated. Not the useless FM radio, but the useful AM, that's where all the best talk shows are in Toronto. I don't want any musical cacophony as a ring tone, I don't care, but a single purpose rotary volume control would be freaking awesome, with a single purpose VERY HARD TO PUSH, BUT A LARGE button to switch from Loud to Soft to Vibrate and back.

    I do not mind paying up to $300 for a phone like that. If it has an AM radio, 350. If it has a built in GPS receiver then 500.

    No cameras, no mp3s, no fancy programming except for very basic features. I want a freaking phone that works and cannot be easily destroyed. It has to be a quad band so I can take it with me anywhere, and it has to have a detachable SIM card (f.ck you, Telus.)

    I can't get anything like this, I may just build my own.

  12. We agree and disagree. by StarKruzr · · Score: 3, Interesting

    I think the iPhone has potential. As a device, it's extremely well-designed. The multitouch interface is certainly something new and could redefine the way people interact with mobile devices. They've clearly put a lot of top-of-the-line hardware into it; the demo Jobs gave of things like Cover Flow on the iTunes portion of it is proof enough of that, and every smartphone -- or product that pretends to be a smartphone, anyway -- should have 802.11 these days.

    As a product, ehhhh. Who are they selling to? Certainly not Joe Consumer -- who has $499 to throw away on a 4GB iPod, even if it also happens to be a cellphone and web browser? For $499, I want a device that matches up to what the iPhone ACTUALLY is -- a handheld OS X device. But no, Apple had to go and lock the machine down and give a bunch of phony excuses for it, when all it really comes down to is "Jobs wants to be emperor of 'his' product." So all of the potential that it had as a handheld OS X machine -- the potential that they actually touted with all of the talk about it "running OS X" and "having Cocoa" -- will go to waste. No GNU tools. No open-source software. Bah.

    OK, maybe we agree more than disagree. :)

    --

    +++ATH0
    1. Re:We agree and disagree. by MoxFulder · · Score: 2, Interesting

      I think the iPhone has potential. As a device, it's extremely well-designed. The multitouch interface is certainly something new and could redefine the way people interact with mobile devices. They've clearly put a lot of top-of-the-line hardware into it; the demo Jobs gave of things like Cover Flow on the iTunes portion of it is proof enough of that, and every smartphone -- or product that pretends to be a smartphone, anyway -- should have 802.11 these days.

      As a product, ehhhh. Who are they selling to? Certainly not Joe Consumer -- who has $499 to throw away on a 4GB iPod, even if it also happens to be a cellphone and web browser? For $499, I want a device that matches up to what the iPhone ACTUALLY is -- a handheld OS X device. But no, Apple had to go and lock the machine down and give a bunch of phony excuses for it, when all it really comes down to is "Jobs wants to be emperor of 'his' product." So all of the potential that it had as a handheld OS X machine -- the potential that they actually touted with all of the talk about it "running OS X" and "having Cocoa" -- will go to waste. No GNU tools. No open-source software. Bah.

      OK, maybe we agree more than disagree. :)

      I think so!

      I mean... I'd love to have an attractive handheld computer/media/communications device with a touchscreen and expertly-designed user interface. $500? Maybe if I wasn't a grad student anymore, yeah I'd pay that.

      But the closed-source thing just squanders its potential *completely*. When are consumer electronics makers gonna pull their heads out of their asses and notice that hardware sells BETTER when it's open??? Why do Linksys routers sell so well? Because people change the open source Linux firmware and add all kinds of nifty things to use them as web servers, robotics controllers, home automation, etc.

      My cell phone is totally locked down, and as a result I use it only as a phone. I'll never pay for a better phone, because it will similarly be locked down. No matter how cool a phone I get, Verizon will still want to charge me $2.50 for a ringtone. WTF? I'd rather buy a better PC, where I can use the hardware to its full potential with Linux.

      What I'm excited about is the OpenMoko. Now THAT will be a revolutionary phone. I expect the US carriers will try to keep it off their networks. There will be a back-and-forth game between the carriers and the hackers, à la PSP or Xbox. Wheee, what fun :-)
    2. Re:We agree and disagree. by RogerWilco · · Score: 2, Interesting

      I bought a Nokia N70 in may last year, it is in a similar price range without plan. Even it's successor the N73, in stores today has nowhere near the functionality of the iPhone. I bought Nokia over Sony or Samsung mainly because I have very poor experiences with usability problems on those two other brands. If the Apply history is anything to go by, it will be even easier to use as the Nokia.
      My current plan for the N70 will run out in early 2008, when the iPhone will be available here in Europe, so I will certainly consider it by then. It will be interesting to see what competition for the iPhone has arrived by then. Currently there is nothing in the mobile phone market I would want more.

      I don't need the things you find missing, like OSS, or a fully fledged OSX. I don't want to mess around with my phone, I want it to "just work" and be easy to use. I like the iPod for that, but I run Linux instead of OS X on my desktop, because I do need and want to fiddle with things there.

      --
      RogerWilco the Adventurous Janitor
  13. The RAZR is what will sell the iphone by Sgt_Jake · · Score: 2, Interesting

    I got suckered with the RAZR, and you're dead right - it sucks. It's worse than any phone I've owned. But I'm saving my money for an iphone for that very reason. Yes, you heard me right - I'm saving my money for an iphone because the RAZR and every other cell phone I've had since the nokia something-circa-1998 has sucked big time.
    The iphone was built by people that think current cell phones suck in both design and function (if I remember it right, Jobs himself started this crusade for a usable cell phone after some lousy offering with motorola in '05?). Apple built the iphone without the input of the cell phone companies, and as I understand it, in some cases, in spite of them - verizon dumped it because apple wouldn't use verizon's web browser (or some such quibble) - that really had nothing to do with the device itself. Verizon and every other phone company wanted to tack their own little piece of crapware to the device, and apple said no. Oh thank GOD.
    APPLE built a *phone* from the hardware to the software, without the 'help' or input from the very same companies that have flooded the market with cool LOOKING garbage like the RAZR. I've never owned a mac, but from what I understand they're pretty good at the whole 'designed' for people thing. I own an ipod (hate itunes, but love the device), and I'm happy to bet $600 that I'll be using an iphone for the next 5 years.

    Of course... if it sucks too, I'm just going back to screaming really loud. Or maybe just suck it up and get a land line.

  14. Even if he's right, he's wrong... by podperson · · Score: 3, Interesting
    Even if Dvorak is right about the cellphone market being a bad market for Apple to be in, it would be far worse for Apple to pull the plug on iPhone than to ship it and fail. Anyone can fail with a good product. Only a really boneheaded company will lose nerve after wasting a ton of money on R&D, advertising, and strategic partnerships. Maybe AT&T wants Apple to bug out, but if so I don't think they'd be making press releases about the record number of inquiries they've received for a product they can't sell yet.

    In any event, I think he's wrong on all counts simply because the iPhone doesn't represent a dead end for Apple even if the iPhone product itself fails. Eventually, Apple will want advanced touchscreen products, MacOS X running on very small low-powered systems, cellular internet access, and so forth and so on built into its products. iPhone may not be The Killer Product, but each of the technologies in it is core to Apple and important in the long term.

    Strategically, the iPhone represents:
    • A touchscreen Mac
    • The unification of OSX and iPod
    • A solid-state ultraportable Mac OS X device
    • Apple's re-entry into the digital camera market (which it helped create)*
    • Oh and a really nice phone. A phone so nice most hardened Blackberry users drool when it's mentioned.


    * Gee doesn't shipping the first consumer digital cameras count as a new product Mr. Dvorak?
    1. Re:Even if he's right, he's wrong... by cbreaker · · Score: 3, Interesting

      Counterpoints:

      - A touchscreen mac. A Macintosh actually runs free/paid for apps you can download from the Internet. The iPhone will only have limited software available via "approved" (and paid for) apple online cell phone store. Expect to pay for each and every little utility, app, or game on that phone.
      - Again, it's not a Mac, and it's only a 4G iPod.
      - I could be running Windows, for all it matters. It's locked down. You can't put your own software on it. Ever.
      - Camera function is a "me too" function. It would certainly fail without it. What it won't do is anything special. You'll need a real digital camera to take anything good.
      - Unless they introduce group-ware integration (aka Exchange/Groupwise/Notes integration) then Blackberry people won't drool over anything.

      It will be a neat phone, no doubt about it, but because of the locked down nature of it, it's just a glorified SideKick if you ask me.

      I don't think Apple should pull out with the iPhone - I agree that it's too late. But this IS NOT a computer, it is only a cell phone, and the big difference is that it is a completely closed system. I don't mean that it's closed source (which it is) I mean nobody can develop openly for it.

      --
      - It's not the Macs I hate. It's Digg users. -
  15. Re:Well if Dvorak doesn't like it... by Mr.+Flibble · · Score: 2, Interesting

    I wish them luck, and I think they're going to need it.


    I doubt that. I don't think that the iPhone is a Newton. New revisions of the iPhone will certainly come out, and I expect to see one with a 60 GB hard drive sometime in the near future. Currently, it competes with a nano in terms of storage, and any other cell phone around for ease of use.

    It DOES bring new stuff to the table. It has the ipod brand for one, second, it changes how the phone itself works to make it easy. Finally, it, like the razr and the ipod will be the sexy thing to have. I got a Razr through work, and even though it is apparently "no longer" the sexy phone, I still get comments about it "ooh! A razr!".

    As a Apple brings in new models, this thing will be hotter than the iPod. I have little doubt of that. Because it will have all the sexiness of the ipod, and the razr, and actually be easy to use. My Razr is a POS for ease of use. IMO, it BLOWS from an interface perspective. From what I have seen of the iPhone, it is going to be a knockout blow. And no, I am no apple fanboi.

    Apple has thought this through, and done this right, and they are going to sell tons of these things.
    --
    Try to hack my 31337 firewall!
  16. Re:Well if Dvorak doesn't like it... by naasking · · Score: 2, Interesting

    To top it all off, they aren't really introducing anything new that would be a "even if they fail, at least they brought us ..xyz." Touch screen on a portable phone is novel, but not necessary in any way.

    The interface is novel as all hell. Have you seen it in operation? Compared to ordinary cell phones, it's the Second Coming. In particular, the browser experience is quite novel. I have a Nokia 770, and while browsing is adequate, the zoom in/out features are definitely not as good as the iPhone. Before I saw the iPhone, I thought the technique was decent, but as soon as I saw the multitouch-based zoom, I knew that it was The Right Way (TM).

    The other novel (and yet not) feature is: no partitioned storage! I currently have a cell with 128 MB of storage, but only 150 texts allowed! Only 32MB of pictures via the built-in phone! What kind of stupidity is that? The iPhone brings computer-like storage management. Thank God.

    And this is just basic phone stuff. I won't even go into the other novel stuff which people have mentioned (random access voicemail, etc.).

    To be honest, I don't think the iPhone can flop, because it just sucks so much less than everything else.

    The device is still locked down to all hell.

    This would indeed be a serious problem IMO. However, such restrictions are not yet at all clear; phone's not out yet! So I'll reserve judgment until the final verdict is in.