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Thoughts on iPhone (Parody to “Thoughts on Music”) – Shortened Version

Edouard Lauer
July 4, 2008

With the stunning global success of Apple’s iPhone, some have called for Apple to “open” the iPhone system that Apple uses to gain money on behalf users by forcing users to buy an iPhone with a specific mobile network provider in every country. Let’s examine the current situation and how we got here, then look at two possible alternatives for the future.

To begin, it is useful to remember that all iPhones can be used with every mobile network providing that you get to unlock it. On the other side your unlocked phone can no more be updated or you can’t use it with some integrated functionality anymore.

The right to give iPhones to specific mobile networks comes, primarily from the “big one”computer and software companies: Apple. This company controls over 100% of the iPhone distribution to mobile network companies. When “Users” approached Apple to distribute the iPhone without contract and having the right to acquire a legal unlocked iPhone without a specific contract Apple was extremely cautious and required to protect his iPhone from legally being unlocked. The solution was to tie the iPhone to a specific mobile network provider so that a sustainable gain in money is expected.

Until now noone was able to negotiate with Apple to get the iPhone legally without contract and in every country worldwide. Obtaining that right from Apple is unprecedented at the time.

With this background, let’s now explore two different alternatives for the future.

The first alternative is to continue on the current course, with each manufacturer competing freely with their own “top to bottom” proprietary systems for selling mobile phones. It is a very competitive market, with major global companies making large investments to develop new mobile phones and new services associated with the specific mobile phone. What’s more is that how Apple does this remembers us that there was a time “not so far away” where another company tied software like media player and web browser to its operating system making it difficult for other companies to distribute their own solution.

The second alternative is for Apple to open the market for the iPhones without users being tied to a specific mobile network provider However, when we look a bit deeper, problems begin to emerge as Apple would loose a big sum of money that they get from the mobile network provider actually. On the other side, a lot of people would by an iPhone worldwide if they could choose the mobile network provider for it freely. This would also be a profitable market since Apple would make good business of every iPhone sold.

Convincing Apple worldwide will make it possible to have the iPhone legally for every mobile network provider. Apple will embrace this wholeheartedly.