Apple’s recent decision to amend the terms of its software development licensing agreement for the iPhone and related platforms caught many by surprise. The move prevents developers from using a raft of software programming tools. On the surface, the change appears to be aimed primarily at Adobe yet the furore that it has created serves to mask another aspect that has been largely overlooked. That is Apple’s imperative move into the mobile advertising arena. The irony is that Apple’s decision may inadvertently deliver a boost to rival Google and its Android platform by alienating the very people that have been such loyal supporters – the developer community.
As one of a number of software companies affected by the move, one might assume that we have an axe to grind. Far from it. We enjoy a good relationship with Apple, based partly on the fact that one of the original investors in Apple is one of our main backers. This gives us an extraordinary insight into some of the thinking and rationale and is the reason why I believe that Apple’s decision is a smokescreen. What is clear is that the business of application development and the application development business are becoming two very different things. The former is centred around the software tools whilst the latter is increasingly focused on identifying future revenue-generation.
Apple’s acquisition of Quattro for $275 million earlier this year is testament to a strategy designed to take-on Google in the mobile advertising space. Apple’s recent decision is, in my opinion, a further extension of this strategy. Steve Jobs believes that locking down the platform will ensure Apple can keep moving their iAds service in exactly the right direction without having another platform vendor stand in the way. The fear is that should a third party platform fail to support new innovations on the ad platform, it could cost Apple serious revenue by slowing down their ability to remain competitive in this space.
By contrast, Google’s ‘open’ approach to Android seeds innovation amongst devices and developers alike and helps drive new business. We’re starting to see that already amongst our own user community. By effectively limiting what appears on the Apps Store platform, Apple is shutting out a wider group of enthusiasts and professional developers from designing new applications for the iPhone. Apple claims the issue is about ‘openness’ reliability, security and performance yet Apple’s response to our submission suggests it is fundamentally about control and growth.
Our offer to create an iPhone-only product was rejected by Apple. What struck me throughout our discussions was how much Apple’s decision is anchored in the trauma of events in the 1980s. Microsoft was the main competition then and it stole a march on Apple. Google is the main competition today and the stakes are much higher. Having launched the iPod, iPhone & iPad, Apple needs to create new revenue streams that are not wholly dependent on hardware sales of new classes of device. iAds has the potential to deliver just that, but at what price?
William London | Published: 15:20 GMT, 04 June 2010
You sure hear a few people making a lot of complaints these days, but do you ever hear them from end users? No. The reason is that Apple is putting the users above all others. I as a user am thrilled. This latest decision, which this article decries, is a great thing for the user. It ensures that when Apple releases new hardware that the software written for it isn't bound to the least common denominator of some other handset, and new functionality is utilised. The products are about me not you.
Scott McDonald | Published: 04:02 GMT, 04 June 2010
One part of our business is desktop based applications. As it happened, a core product has been re-written in Revolution and RunRevPlanet components. Given that RunRev had an iPhone Dev environment getting ready for release, now seemed to be that "right time" to enter the mobile market. Significant saving in development time and costs would have be achieved by using one language for the desktop and mobile platforms. To say that we are disappointed with Apple's new policy is an understatement.