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EETimes Says Apple Must Clone the iPhone

You can make statistics say anything you want, or so the saying goes, and the same is apparently true of history, at least judging by a curious column from Rick Merritt of EETimes. Mr. Merritt posits that Apple is going to end up being forced to clone the iPhone in order to compete with Google's Android platform, or wind up being an also-ran in the cell phone industry. What makes his arguments amusing is that he draws upon Mac vs. PC competition and history to make his case.

"Should Apple Inc. open up its iPhone software? It's easy enough to argue it should, given the history of the personal computer," wrote Mr. Merritt.

My question is how any rational observer could argue that this is the lesson of the computing industry of the last 30 years? If you want to analyze that industry using only selective -- highly selective -- bits, I suppose one might.

Here, I'll try: It's clear that in the early 1980s, the release of the far cheaper, though far less capable, IBM PC crushed Apple's ground-breaking Apple II product line, ripping away market share in a market that Apple had heretofore dominated. The subsequent IBM PC clone market further marginalized Apple, and we'll ignore the fact that Apple made money hand over fist for some time to come with said marginalized Apple II line.

Lemme take another stab: In the early 1990s, Windows 3.1 was good enough that when combined with the tidal wave of those same cheap PCs from the clone market, it was able to unseat the vastly superior, and much more expensive Mac product line, further and steadily eroding Apple's market share in the PC business.

One more: Starting in 1995, Windows 95 had finally reached a quality point that Apple's Mac sales went into the kind of nosedive not seen since the Battle for the Pacific in WWII. Apple almost became a footnote in the annals of computing history, and never mind that this had as much to do with missteps of Apple's management at the time as it did with so-called flaws in the closed/proprietary-system business model the company stubbornly held onto.

Oh wait, Apple tried cloning then (for which this author earned an entry into his own Apple Death Knell Counter for defending), but it didn't really help the Mac platform.

These are all good arguments, some of which Mr. Merritt alludes to in his piece, but it requires a willful disregard of the last three or four years to hold it up as some sort of evidence that a closed system can't succeed in the market place.

Three or four years ago is when Apple's Mac market share quietly reversed course and started trending steadily higher again. Ten years ago is when all those cheap PC vendors churning out the computing-equivalent of toasters found that they had managed to marginalize their own profits so much that there weren't any left. Today, even Dell's profits -- the king of toasters -- have taken a hit.

Today, Apple is once again making money hand over fist with the Macintosh, and it's still a closed system. Market share continues to trend higher, and people dig that whole "Hey, this thing actually works" aspect of using a Mac.

Which is the same case as the iPhone, the device Mr. Merritt said Apple will simply have to clone in order to stand up to the juggernaut that Android will eventually become.

That's balderdash.

Balderdash, I say!

There is plenty of room for Android in the cell phone or smartphone market, and I expect Google to do quite well with its platform. There is also plenty of room for a closed, proprietary system where people who want more than "good enough" will shell out a few extra bucks, Euros, Yen, Renminbi, and Pesos for the experience of using something that "just works."

Mr. Merritt argues, "Scroll ahead to say 2012. Apple will be struggling to roll out a broad product portfolio that matches the wealth of Android and Windows Mobile systems on the market. Once again they will lack the breadth of the backing of the open alternative, in this case Google's Android."

"More importantly," he added, "this market too will mature. Eventually, Apple will be fighting the Google hoards [sic] by rolling out a cool new feature here and there, but they will have nothing as compelling as the lower prices and greater diversity of the Android platform."

Lower prices and diversity have done wonders for making the Windows platform suck. The backing of an open alternative hasn't done much for Linux in the mainstream, either.

While I think that Google is going to be able to do a better job than the Linux community at leveraging and developing an open platform, not to mention be able to make a product more compelling than the swill known as Windows Mobile, Apple will no doubt continue to see success for whatever the iPhone evolves into.

And, they'll do it, they'll see all that success, without cloning the iPhone or the Mac, at least as long as Steve Jobs is at the helm. That is the conclusion that should be drawn from the history of the platform wars.


began using Apple computers in 1983 in a high school BASIC programming class. He started using Macs in 1990 when the Kinko's guy taught him how to use Aldus PageMaker, finally buying a Power Computing Power 100 in 1995. Today, Bryan is the Editor of The Mac Observer, and has contributed to the print versions of MacAddict and MacFormat (UK).

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ericmurphy said:

member since 01 Aug 2001 with 21 posts, unranked, send him a message or view his profile

The cost of the iPhone is in the hardware, not the software. How is an Android phone going to compete with the iPhone on price, with Apple's economies of scale? If Apple sells ten million iPhones between now and the end of the year, and 30 million next year (I walked by the Apple Store in San Francisco yesterday, four days after the iPhone 3G went on sale, and there was still a line a block long), how is any Android manufacturer going to drive its costs of production lower than Apple's, regardless of how much it has to pay for the OS to run on it? How much is Apple paying for the OS that runs on the iPhone?

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A guest said: (hide)

And has anyone seen an ANdroid phone?

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geoduck said:

member since 30 Dec 2003 with 1922 posts, unranked, send him a message or view his profile

It is very easy to think the worst of an opponent that you've never encountered.

Speculation, Opinion, Hyperbole, Leaked specs that could very well be innacuarate, that's all I've seen of Android. Until it is released and (as guest mentioned) we see an Android phone, we don't actually know how it will compete against the iPhone, if it does at all. Google may very well target a completely different part of the market. It might very well become a Kia v. BMW split. Macys and Target both do well. Android and the iPhone could very well coexist amicably. We won't actually know until it comes out.

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A guest said: (hide)

It is a myth that the PC 'crushed' the Apple ][. At the time of the PC introduction, Apple was second to the Radio Shack trash-80. Apple never 'dominated' the PC market as it never even had a plurality of the market -- ever. After the PC came out, Apple's market share 'dropped' to about a third of what it was the prior year, but they actually shipped, like, double the number of units. The PC created its own market - IBM made PCs in the office acceptable to the corporate world - so the market changed and the "market share" comparisons have alway been bogus. The PC killed off CP/M and the TRS-80.

The cloning fiasco has never been recognized by the 'popular media' as the failure it was and a major contributor to the drop in Apple market share in the 90's. You're dead on about that.

By the way, Apple ][+ owner in 1980 and actual workplace observer to all this since 1977.

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jimothy said:

member since 04 Jun 2004 with 612 posts, unranked, send him a message or view his profile

So in 4 years, Windows Mobile will dominate (along with Android), because it's "open"? Well, wait, it's been "open" for 8 years, if we count Pocket PC, and and yet all that time of "openness" didn't stop the new kid on the block, Apple, from coming in, grabbing growing market share, and nearly monopolizing mindshare. Nor did it prevent another proprietary platform, Blackberry, from swooping in and dominating the enterprise market.

The guy's full of crap, but at least he's got company.

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A guest said: (hide)

You should have a regular weekly column, "Analysts Say The Silliest Things" where you collect various analyst assumptions in one article so we can get a good laugh over the weekend.

As for the Android, I'm probably going to get it! I only get about 6 phone calls a month (half of which are wrong numbers), and make maybe 2 outgoing calls, but do like having a cell phone for the few times I travel and in case of emergency. When the Android comes out there will be very cheap plans for people like me who rarely use their phones. Right now me getting an iPhone would be like buying a porsche just to drive to the laundromat once a week.

The iTouch, on the other hand, I have and enjoy a lot! I use the wifi almost every time I'm out and about to email, check web sites, etc. Now I play games and read news as well. So I'll definitely keep buying the Touch even if I use the Android for my monthly phone call.

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Sir Harry Flashman said:

member since 08 Feb 2007 with 792 posts, unranked, send him a message or view his profile

Sounds like a protest chant

"Clone the Phone!

The whole web is watching!"

There seems to me that there is a certain type of pundit that thinks anytime there is a successful product (usually one of Apple's) that it should cloned, handed out cheaply if you will. Nothing is stopping other cell phone designers from creating an iPhone killer.

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A guest said: (hide)

Yes, a silly man with silly thoughts - but there is a "but" to everything, it seems. But, what happens when Apple grow really, really big? What if their market share in the personal computer market will reach 15-20 % and more? What if their market share of mobile phones will reach several percents? That translates into several millions of computers and even more phones. Add iPods to that and Apple TVs and servers and Airport Base stations and lots and lots of software and the OS and everything and more.

Will Apple reach a point where it simply cannot keep up the standards anymore? Is this what we see with the launch problems of late? Or can a company which produces both software and hardware just grow and grow? But if it does, will it not be necessary to spread itself more, branch out internationally, not only when it comes to the production of hardware but also research and development? Maybe even management? More than what is the case today?

I donʼt know; I am just wondering if a company can remain in one location as much as Apple does now, when it becomes real big?

Or, is one solution licensing?

What I mean to say that it is not just a question about what happened in the past, but what if the future is so bright for Apple, that they need to wear shades, looking at it? Can it all be ran from Cupertino then? Will Apple Europe be more independent in the future? Apple Asia? Etc.? Will Apple Computer be a separate company from Apple Software and Apple Phone and Apple Entertainment? And so on.

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kevinolive said:

member since 14 Nov 2003 with 8 posts, unranked, send him a message or view his profile

We could also use the evidence of history the other way round to say that cloning is a bad idea. Look at what happened with windows. With all the various hardware vendors and combinations of hardware and drivers, interactions of hardware and drivers, a windows system can become unstable. [I've had numerous problems where the fix was to remove brand X hard drive because it was incompatible with brand Y in the same machine. I have an old windows machine that frequently crashes but doesn't so much when the cd burner is disconnected.] So, assuming that this is due to the openness of the windows platform, let's open up the iPhone to anyone who wants to throw together some hardware and install iPhone OS. Some vendor will decide that more than a single home button is needed and will add an alternate home button, and various other added buttons and features until the iPhone model becomes unstable and doesn't "just work".

Now add to that openness, some sloppiness that compromises the security of your personal data. Then what...?

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A guest said: (hide)

I like some of the design ideas people submitted here: http://www.modmygphone.com/forums/showthread.php?t=21

I guess it will eventually be hacked to work on any phone..? Will there be any hardware requirements that it will have to have?

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