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A leading innovation and marketing blog from Braden Kelley of Business Strategy Innovation

Monday, September 10, 2007

Will iPod Touch Drive iPhone Innovation?

The iPod Touch has the potential to be the most under-appreciated product launch of 2007. Largely viewed as underwhelming in the wake of the June launch of the iPhone, the iPod Touch has the potential to be the Trojan Horse for future iPhone enhancements. This could instead position it as one of the most important product launches of 2007.

The iPod Touch is essentially an iPhone without cellular capabilities. It ships with the same applications and MacOS operating system as the iPhone, the same touch interface, plays music/video/games, and has WiFi capability but no phone capabilities.

Given this, Apple would be smart to leave the "back door" open on the iPod Touch to allow developers to build applications to install on it in a way that won't neccessarily work with the iPhone. This would allow developers to build all kinds of "unauthorized" applications for the iPod Touch for users to use. Apple could then sit back and see which rise to the top, maybe build some of their own, and then lobby for AT&T to accept the shining stars for "official" use on the iPhone and their network after they've proven themselves.

Does anyone really think that Apple doesn't have the capability or intention to add other applications to the iPhone down the road?

Given that they have locked the platform down to only allow web application development, allowing iPod Touch application development would serve as the perfect beta testing environment for these future applications.

Final question, does anyone think that Apple will bid in the upcoming wireless spectrum auction to reduce its reliance on AT&T going forward?

Please feel free to let me know your thoughts. ;-)

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1 Comments:

Blogger Katie Konrath said...

I think it's to Apple's advantage to reduce their dependency on AT&T. As long as they are stuck to only one carrier, many people will not be willing to purchase the iPhone, and AT&T is not forced to keep improving in order to retain their customers.

Not everyone was delighted to have to switch to AT&T for their iPhone--as evidenced by the many people trying to crack the network lock.

12:05 PM  

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