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A couple weeks ago, I posted Separating advertising’s wheat and chaff, contrasting privacy-respecting brand advertising (the wheat) with privacy-offending tracking-based advertising (the chaff), better known in the industry as “adtech.”

Apple pushes both, through its own advertising business, called iAd. The company is also taking sides against both — especially adtech — by supporting Content Blocking in a new breed of mobile phone apps we can expect to see in iOS 9, Apple’s next mobile operating system, due next month.

In Apple’s Content Blocking is chemo for the cancer of adtech, which I posted a few days ago, I visited the likely effects of content blocking. Since then a number of readers have pointed to posts about iAd and the opt-out choices Apple provides for advertising on iPhones and iPads.

Both iAd and the opt-outs reveal that Apple is as much in the adtech business as any other company that tracks people around the Net and blasts personalized advertising at them.

Apple also appears to be taking sides against adtech with its privacy policy, which has lately become more public and positioned clearly against the big tracking-based advertising companies (notably Google and Facebook). In September of last year, for example, Apple put up a new — that contained this paragraph:

Our business model is very straightforward: We sell great products. We don’t build a profile based on your email content or web browsing habits to sell to advertisers. We don’t “monetize” the information you store on your iPhone or in iCloud. And we don’t read your email or your messages to get information to market to you. Our software and services are designed to make our devices better. Plain and simple.

What we have here, then, is Apple’s massive B2C business in conflict with one of its B2B businesses. Since there is a lot of history here, let’s review it.

On 8 July 2010, Engadget published iAds uses iTunes history, location information to target advertising. It begins,

We’ve heard about this before, but now that it’s up and running, this is probably worth a revisit. Apple’s iAds system actually uses lots of your information, including your iTunes purchasing history, location data, and any other download or library information it can suss out about you, to determine what ads you see. So say a few marketing firms working with the large companies now buying and selling iAds.

A recent series of ads for soap was able to target “married men who are in their late 30s and have children.” That’s very specific, and when Apple rolls out the full program, it’ll even be able to use things like iBooks purchases and iTunes movie and TV downloads to target you with advertising.

On 15 October 2014, Digiday published Apple revamps mobile ads with retargeting options. It begins,

Apple’s release of its new mobile operating system last month came with an overlooked gift for marketers: the ability to retarget ads based on users’ in-app browsing behaviors.

According to ad agencies, Apple is actively pitching the new capability as a way to effectively solve the mobile cookie problem.

Say, for example, a visitor to a retailer’s iPhone app adds a pair of shoes to his cart but ultimately decide not to buy it. In this scenario, the retailer will now be able to retarget that user with an ad for that exact pair — even in another app on his iPad. When tapped, the ad would direct him back to his abandoned checkout page and automatically add the shoes to his online shopping cart.

That was when iAd was new. Since then it has come to be regarded, at least by the online press, as something of a failure. On 16 Ocbober 2014, Business Insider published Here’s Apple’s Plan To Turn Around iAd, One Of Its Biggest Flops. The gist:

Several sources have confirmed to Business Insider that Apple is currently visiting mobile specialists at the top media agencies in New York City to push the new function. (Cross-device retargeting.)

Cross-device retargeting is of most use to retailers: if a customer spends some time looking at a dress on their iPad app but decides not to buy it, that same retailer can “retarget” them with an ad displaying an image of that dress, options to buy, or directions to the store when they next pick up their iPhone.

On 19 November 2014, AdExchanger published iAd starts selling programmatically, and explains how it works:

iAd has more than 400 targeting options for advertisers. Its audience is also validated, since users must create an iTunes account in order to download apps. With the release of iOS 8, Apple announced that those Apple IDs could be used by iAds advertisers to retarget users across their devices. Those capabilities make it a good fit for advertisers doing audience-based targeting, who often prefer transacting in programmatic channels.

iAd has scale: “Apple iAd’s sell-side SDK is one of the most penetrated SDKs in the industry,” said Michael Oiknine, CEO of Apsalar. “They now have added iTunes radio inventory, so it’s a smart yield maximization strategy for Apple and is akin to Facebook strategy, which maximizes inventory sales via FBX and PMDs.”

On 21 November 2014, Venturebeat published Apple and AdRoll enable iOS ad retargeting — with extra data from iTunes and the App Store. It begins,

In a significant move for the mobile advertising industry, Apple and retargeting leader AdRoll have announced a partnership that will see AdRoll providing its retargeting and programmatic buying capability for iAd. In addition, Apple will enable advertisers to target potential customers via access to its proprietary data sets from iTunes and the app store.

On 21 November 2014, AdWeek published Get Ready for More Mobile Ads on Your iPhones as Apple Launches New iAds. The gist:

Today, Apple is unveiling partnerships with companies like AdRoll, which will flip a switch and start serving iAds through its automated marketing platforms. This turn toward programmatic mobile advertising has been in the works for at least a year. Last year, the company stopped treating iAd like a high-end marketing platform for only the top brands with the most cash.

Apple wanted to build a self-serve mobile advertising system in house, and it bought Quattro Wireless to help. Sources said that effort faltered, and Apple decided to partner with ad tech companies like AdRoll and The Rubicon Project to compete with mobile ad giants like Facebook, Google and Twitter.

AdRoll is a retargeting specialty firm that lets marketers use their own consumer data profiles to deliver ads across such platforms. And Rubicon unexpectedly leaked word earlier this week that it was partnering with Apple.

On 22 January 2015, ExchangeWire asked What will Apple’s Ad Tech Play look like? They say,

Apple’s renewed designs on the advertising business were revealed when it was announced it was to start selling its iAd inventory on a programmatic basis, with several firms including MediaMath, Rubicon Project, among others, over four years after its iAd unit was initially launched, asking advertisers for (the then audacious sum of) $1m per campaign on its iOS devices.

Since launch, Apple’s presence in the advertising business has been largely underwhelming (apart from its own spend). But the revelation it had chosen several supply-side platforms (SSP) to sell programmatic guaranteed opportunities on behalf of the 250,000-plus App Store developers indicated its renewed designs on the sector.

The announcement itself made waves, not least because of the bungled nature of the announcement,which itself raises a number of issues to debated about Apple’s influence in the ad tech sector (more on that later).

The initial announcement read: “Apple’s iAd provides 400-plus targeting options to advertisers, based on hundreds of millions of validated iTunes accounts worldwide. This rich first-party data asset makes it easy for buyers to target the specific mobile audiences of their choice.”

The move represented, for the first time, that Apple is willing to loosen control over its first-party iTunes data with advertisers expected to be willing to pay top dollar for the access.

They add,

Apple has since started to advertise for roles within its iAd business, requesting applications for UK candidates to join its iAd Marketplace Sales Organisation.

Among the skills requested are: “Apple’s customers on the various products iAd has to offer as well as how to leverage iAd’s self service buying platform, iAd Workbench.”

In addition: “Third-party tags familiarity a plus.”

What is clear, from all these pieces and many others like them, is that Apple’s adtech business is little if any different from the rest of them — meaning just as creepy and privacy-abusing — and notable as well for failing to live up to its original ambitions, which were both huge and (via Business Insider) outlined by Saint Steve himself:

At launch, Jobs set out the bold ambition that iAd would capture 50% of the mobile ad market. Apple marketed iAd as a best-in-class solution for advertisers because it owns both the hardware and operating system the ads ride on and gains valuable data when people sign up for Apple ID to register for iTunes accounts. That means it can target ads by age, gender, home address, iTunes purchases and App Store downloads.

However, it’s still somewhat behind that lofty 50% target. iAd made up just 2.5% of the mobile ad revenue booked in the US last year, according to eMarketer, behind Google which takes the lion’s share (37.7%) and Facebook (17.9%). The most recent data from IDC states Apple generated $125 million in mobile ad sales in 2012.

Apple’s total sales in FY 2012 were $125 billion, or 1000x its mobile ad sales that year. Put another way, iAd contributed 0.01% to Apple’s sales.

Meanwhile, does any Apple customer want advertising on their iPhone or iPad?

Apple knows the answer to that question, which is why Apple provides ways for you to “limit ad tracking on your iPhone, iPad, or iPod touch” and “ads based on your interests.”* (Just go to Settings > Privacy > Advertising to “Limit Ad Tracking,” and to Settings > Privacy > Location Services > System Services. to turn off “Location Based iAds.”) And soon we’ll have Content Blocking as well.

Sacrificing its adtech business would position Apple in full alignment with three things:

  1. Tim Cook’s privacy statement. It would take the loopholes out of that thing.
  2. Market demand. People are fed up with losing their privacy online — almost all of it to the tracking-based advertising business. (Sources: Pew, TRUSTe, Customer Commons, Wharton.)
  3. The moral high ground called simple human decency. Most people don’t want to be tracked in the online world any more than they want to be tracked in the physical one. Nor do they want information about them known by first parties to be sold to third parties, or to anybody, with our without their knowledge, no matter how normative that practice has become.

Dropping adtech would also be good for iAd, which could then concentrate on placing non-tracking-based brand ads, which are more valuable anyway: to brands, to publishers and to the marketplace. Also to Apple itself, because they would be selling wheat, rather than chaff.

Until then, the loopholes persist in Tim Cook’s privacy statement, and Apple retains major conflicts between its massive B2C businesses and its struggling B2B adtech business.

It will be interesting to see what the company does once the Content Blocking chemo hits the App Store bloodstream.

* “Based on your interests” (aka “interest based advertising“) is a delusional conceit by both adtech (examples here , here and here) and online retailing (prime example: Amazon). Neither visiting sites nor buying are measures of interests. All they show are actions that could mean anything — or nothing.

The interest-based advertisers say our interests are “inferred” by what we do (and they like to observe, constantly and everywhere). And yet those inferences are weakened by another assumption that is flat-out wrong, nearly all the time: that we are always in a shopping mode. In fact we are not.

We are, in fact, always in an owning mode, which is why I think that’s the real greenfield for e-commerce. If companies shifted a third of what they spend on adtech over to customer service, they would vastly increase both customer loyalty and brand value.

By the way, Apple knows this, possibly better than any other technology company. That’s one more reason why I think their B2C smarts will correct the adtech crowd-following errors of their B2B ways.

[Later…] @JamesDempsey tweets,

iOS 9 content blocking is in Safari. iAds appear in apps—not web pages: iAds not blocked.

Good to know. Apple’s iAd site doesn’t make that clear (to me, at least). What this tells me is that iAd is in the chaff business while Content Blocking encourages wheat on Safari. Doesn’t change the point of this post, or the earlier ones.

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The longer view

We have two iPhones in our family. Yesterday we traded in the older one — my wife’s first-generation model, bought in 2007 — at Radio Shack. They gave us $72.94 for the phone and charger, against $199 for a new 16Gb iPhone 4. We’ll probably trade our other iPhone, my second-generation 3g one, pretty soon too.

Apple doesn’t have the same offer. I’m not sure who else does. I wouldn’t have known about it if I hadn’t stopped in a Radio Shack to buy an ethernet cable a few days ago, when the kid behind the counter told me about it. Turns out Radio Shack will take a lot of stuff in trade. Since my iPhone 3g is brand new (I replaced it at an Apple store last month for $79, before I knew about this deal), I can get $116.13 for it, according to the online appraisal system at that last link.

Yes, it bothers me that we’re staying inside Apple and AT&T’s joint silo. It also bothers me that Fake Steve Jobs is right about Android fragmentation. I also see a serious risk that Real Steve Jobs might succeed at repositioning closed systems as “integrated”. Just because, well, he’s Steve. We’re all in his reality distortion field now.

Speaking of which, Apple is now bigger than Microsoft, and the iPhone is now bigger than Rim.

I still see this as a phase, and not a bad one. Apple and Google have together cracked open the unholy death grip that phone makers and carriers have long had on the mobile world. At some point those two halves will come completely apart.

Until they do, we won’t have ambient connectivity, or what I call the Frankston Threshold.

But we’ll get there. It’s inevitable.

[Later…] If you do trade in an old iPhone, be sure to erase it before handing it over. Do that under Settings/General/Reset/Erase all content and settings.

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When  reported on the next-generation iPhone that had come into its hands, I was as curious as the next geek about what they’d found. But I didn’t think the ends justified the means.

The story begins,

You are looking at Apple’s next iPhone. It was found lost in a bar in Redwood City, camouflaged to look like an iPhone 3GS. We got it. We disassembled it. It’s the real thing, and here are all the details.

“We got it,” they said. How?

There was much speculation about that, but obviously — if the phone was a real prototype — it must have been lost by an Apple employee. That’s why I tweeted, “Some employee is in very deep shit for letting this happen:” But others wondered. Was it planted by Apple? That’s what, for example, Howard Stern guessed on his show yesterday morning. He thought it was a brilliant marketing move by Apple.

But Gizmodo set their record straight, through a much-updated piece titled How Apple lost the next iPhone. After telling the story, at length, of how Gray Powell, an Apple employee, had left it at a restaurant (“The Gourmet Haus Staudt. A nice place to enjoy good German lagers”), Gizmodo unpacks the means by which the phone came into their possession:

There it was, a shiny thing, completely different from everything that came before.

He reached for a phone and called a lot of Apple numbers and tried to find someone who was at least willing to transfer his call to the right person, but no luck. No one took him seriously and all he got for his troubles was a ticket number.

He thought that eventually the ticket would move up high enough and that he would receive a call back, but his phone never rang. What should he be expected to do then? Walk into an Apple store and give the shiny, new device to a 20-year-old who might just end up selling it on eBay?
The Aftermath
Weeks later, Gizmodo got it for $5,000 in cash. At the time, we didn’t know if it was the real thing or not. It didn’t even get past the Apple logo screen. Once we saw it inside and out, however, there was no doubt about it. It was the real thing, so we started to work on documenting it before returning it to Apple. We had the phone, but we didn’t know the owner. Later, we learnt about this story, but we didn’t know for sure it was Powell’s phone until today, when we contacted him via his phone.

The apparent purpose of the story is to save Gary Powell’s ass, as well as to cover some of Gizmodo’s as well. It concludes,

He sounded tired and broken. But at least he’s alive, and apparently may still be working at Apple—as he should be. After all, it’s just a stupid iPhone and mistakes can happen to everyone—Gray Powell, Phil Schiller, you, me, and Steve Jobs.

The only real mistake would be to fire Gray in the name of Apple’s legendary impenetrable security, breached by the power of German beer and one single human error.

Additional reporting by John Herrman; extra thanks to Kyle VanHemert, Matt Buchanan, and Arianna Reiche

Update 2: I have added the bit on the $5,000 (in italics) and how we acquired the iPhone, as Gawker has disclosed to every media outlet that asked.

Yesterday the New York Times ran iPhonegate: Lost, Stolen Or A Conspiracy?, by Nick Bilton. The gist:

One big question is how much Gizmodo paid for the phone, and whether keeping it was legal. Nick Denton, chief executive of Gawker Media, which owns Gizmodo, told The Times the site paid $5,000 for the phone. But still bloggers wondered if it had really paid $10,000.

On Monday, Charles Arthur, Technology blogger for The Guardian, said paying for the phone could mean that Gizmodo was knowingly receiving stolen goods; on Tuesday, citing the Economic Espionage Act of 1996, Mr. Arthur expanded on his theory.

This helped the debate move on to more serious matters: whether the phone was “lost,” or “stolen.” John Gruber, blogger for Daring Fireball, pointed outthat in the eyes of  California law, there isn’t a difference. The law states:

One who finds lost property under circumstances which give him knowledge of or means of inquiry as to the true owner, and who appropriates such property to his own use, or to the use of another person not entitled thereto, without first making reasonable and just efforts to find the owner and to restore the property to him, is guilty of theft.

The next big question — whether Gizmodo would turn over the phone to Apple — was answered after a long day of speculation on Monday over itsauthenticity.  Gizmodo has reported that it received a letter from Apple’s legal counsel…

Gizmodo complied and returned the phone. Yesterday I tweeted, “Re: If you found a next-gen iPhone, would you return it — or use it to pull the owner’s pants down?” Thus far, two responses:

Of course, what Gizmodo did was an example of investigative journalism at work. Mainstream journals and broadcasters sometimes pay for stories, leads, video and audio recordings, photographs. That’s not unusual. But, as Charles Arthur writes, “As a reporter – and make no doubt, Gizmodo is reporting here, actually doing journalism red in tooth and claw – you inevitably end up walking close to the edge of what’s legal every now and then. Whether it’s being in receipt of confidential information, publishing something that’s potentially defamatory, or standing closer to the front line of a protest than the police would like, you occasionally have to put yourself in some legally-risky positions.”

Many thousands of years ago on the time scale of both the Internet and journalistic practices, specifically in 1971, I wrote a story for a New Jersey newspaper about rural poverty, illustrated by a photo I took of somebody’s snow-covered yard filled with discarded appliances and half-disassembled old cars sitting on cinder blocks. I thought at the time that the photo was sufficiently generic to protect the anonymity of the home’s occupier. I was wrong. The owner called me up and let me have it. I was still a kid myself — just 22 years old — and it was a lesson that stuck with me.

A couple decades later that lesson was enlarged by “Notes Toward a Journalism of Consciousness,” by D. Patrick Miller, in The Sun, a magazine for which I had once been a regular contributor. (No links to the story, but its table of contents is here.) In it Miller recalled his work as an investigative reporter in the Bay Area, and how sometimes he had to cross a moral line. In his case it was gaining the confidence of sources he would later, in some ways, betray — for the Greater Good of the story’s own moral purposes.

Gizmodo poses the moral goodness of its own story against the backdrop of Apple’s fanatical secrecy:

And hidden in every corner, the Apple secret police, a team of people with a single mission: To make sure nobody speaks. And if there’s a leak, hunt down the traitor, and escort him out of the building. Using lockdowns and other fear tactics, these men in black are the last line of defense against any sneaky eyes. The Gran Jefe Steve trusts them to avoid Apple’s worst nightmare: The leak of a strategic product that could cost them millions of dollars in free marketing promotion. One that would make them losecontrol of the product news cycle.

But the fact is that there’s no perfect security. Not when humans are involved. Humans that can lose things. You know, like the next generation iPhone.

Thus the second wrong makes a write, but not a right.

Two years ago, in this post here, I wrote,

Still, I think distinctions matter. There is a difference in kind between writing to produce understanding and writing to produce money, even when they overlap. There are matters of purpose to consider, and how one drives (or even corrupts) the other.

Two additional points.

One is about chilling out. Blogging doesn’t need to be a race. Really.

The other is about scoops. They’re overrated. Winning in too many cases is a badge of self-satisfaction one pins on oneself. I submit that’s true even if Memeorandum or Digg pins it on you first. In the larger scheme of things, even if the larger scheme is making money, it doesn’t matter as much as it might seem at the time.

What really matters is … Well, you decide.

Gizmodo was acting in character here. That character is traditional journalism itself, which is no stranger to moral compromises.

I’m not saying that one must not sometimes make those compromises. We all often do, regardless of our professions. What makes journalism a special case is its own moral calling.

How high a calling is it to expose the innards of an iPhone prototype?

To help decide, I recommend the movie Absence of Malice.

Was malice absent in Gizmodo’s case? And, even if it was, is the story worth what it cost to everybody else involved — including whatever dollar amount Gizmodo paid to its source?

I submit that it wasn’t. But then, I’m not in Gizmodo’s business. I also don’t think that business is journalism of the sort we continue to idealize, even though journalism never has been as ideal as we veterans of the trade like to think it is.

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I was just interviewed for a BBC television feature that will run around the same time the iPad is launched. I’ll be a talking head, basically. For what it’s worth, here’s what I provided as background for where I’d be coming from in the interview:

  1. The iPad will arrive in the market with an advantage no other completely new computing device for the mass market has ever enjoyed: the ability to run a 100,000-app portfolio that’s already developed, in this case for the iPhone. Unless the iPad is an outright lemon, this alone should assure its success.
  2. The iPad will launch a category within which it will be far from the only player. Apple’s feudal market-control methods (all developers and customers are trapped within its walled garden) will encourage competitors that lack the same limitations. We should expect other hardware companies to launch pads running on open source operating systems, especially Android and Symbian. (Disclosure: I consult Symbian.) These can support much larger markets than Apple’s closed and private platforms alone will allow.
  3. The first versions of unique hardware designs tend to be imperfect and get old fast. Such was the case with the first iPods and iPhones, and will surely be the case with the first iPads as well. The ones being introduced next week will seem antique one year from now.
  4. Warning to competitors: copying Apple is always a bad idea. The company is an example only of itself. There is only one Steve Jobs, and nobody else can do what he does. Fortunately, he only does what he can control. The rest of the market will be out of his control, and it will be a lot bigger than what fits inside Apple’s beautiful garden.

I covered some of that, and added a few things, which I’ll enlarge with a quick brain dump:

  1. The iPad brings to market a whole new form factor that has a number of major use advantages over smartphones, laptops and netbooks, the largest of which is this: it fits in a purse or any small bag — where it doesn’t act just like any of those other devices. (Aside from running all those iPhone apps.) It’s easy and welcoming to use — and its uses are not subordinated, by form, to computing or telephony. It’s an accessory to your own intentions. This is an advantage that gets lost amidst all the talk about how it’s little more than a new display system for “content.”
  2. My own fantasy for tablets is interactivity with the everyday world. Take retailing for example. Let’s say you syndicate your shopping list, but only to trusted retailers, perhaps through a fourth party (one that works to carry out your intentions, rather than sellers’ — though it can help you engage with them). You go into Target and it gives you a map of the store, where the goods you want are, and what’s in stock, what’s not, and how to get what’s mising, if they’re in a position to help you with that. You can turn their promotions on or off, and you can choose, using your own personal terms of service, what data to share with them, what data not to, and conditions of that data’s use. Then you can go to Costco, the tire store, and the university library and do the same. I know it’s hard to imagine a world in which customers don’t have to belong to loyalty programs and submit to coercive and opaque terms of data use, but it will happen, and it has a much better chance of happening faster if customers are independent and have their own tools for engagement. Which are being built. Check out what Phil Windley says here about one approach.
  3. Apple works vertically. Android, Symbian, Linux and other open OSes, with the open hardware they support, work horizonally. There is a limit to how high Apple can build its walled garden, nice as it will surely be. There is no limit to how wide everybody else can make the rest of the marketplace. For help imagining this, see Dave Winer’s iPad as a Coral Reef.
  4. Content is not king, wrote Andrew Oldyzko in 2001. And he’s right. Naturally big publishers (New York Times, Wall Street Journal, the New Yorker, Condé Nast, the Book People) think so. Their fantasy is the iPad as a hand-held newsstand (where, as with real-world newsstands, you have to pay for the goods). Same goes for the TV and movie people, who see the iPad as a replacement for their old distribution systems (also for pay). No doubt these are Very Big Deals. But how the rest of us use iPads (and other tablets) is a much bigger deal. Have you thought about how you’ll blog, or whatever comes next, on an iPad? Or on any tablet? Does it only have to be in a browser? What about using a tablet as a production device, and not just an instrument of consumption? I don’t think Apple has put much thought into this, but others will, outside Apple’s walled garden. You should too. That’s because we’re at a juncture here. A fork in the road. Do we want the Internet to be broadcasting 2.0 — run by a few content companies and their allied distributors? Or do we want it to be the wide open marketplace it was meant to be in the first place, and is good for everybody? (This is where you should pause and read what Cory Doctorow and Dave Winer say about it.)
  5. We’re going to see a huge strain on the mobile data system as iPads and other tablets flood the world. Here too it will matter whether the mobile phone companies want to be a rising tide that lifts all boats, or just conduits for their broadcasting and content production partners. (Or worse, old fashioned phone companies, treating and billing data in the same awful ways they bill voice.) There’s more money in the former than the latter, but the latter are their easy pickings. It’ll be interesting to see where this goes.

I also deal with all this in a longer post that will go up elsewhere. I’ll point to it here when it comes up. Meanwhile, dig this post by Dave Winer and this one by Jeff Jarvis.

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In response to Dave‘s Reading tea leaves in advance of Apple’s announcements, I added this comment:

Steve loves to uncork constipated categories with the world’s slickest laxative. So I’m guessing this new box will expand Apple’s retail shelf space to include newspapers, journals and books as well as sound recordings, movies and TV shows. It will be the best showcase “content” ever had, and will be a wholly owned proprietary channel. A year from now, half the people on planes will be watching these things.

It would be cool if it also helped any of us to become movie producers, and to share and mash up our own HD creations. But I think Steve is more interested in hacking Hollywood (entertainment) and New York (publishing).

I’ve thought for years that Apple’s real enemy is Sony. Or vice versa. But Sony got lame, becoming a Hollywood company with an equipment maker on the side. So think instead of the old Sony — the inventive one that owned the high-gloss/high-margin end of the entertainment gear business, the Sony of Walkmen and Trinitrons. That’s the vacuum Apple’s filling. Only, unlike Sony, Apple won’t have 50,000 SKUs to throw like spaghetti at the market’s wall. They’ll have the fewest number of SKUs possible. And will continue to invent or expand whole new categories with each.

And there will be something missing to piss people off too. Maybe it’ll be absent ports (like you said). Maybe it’s no multi-tasking, or skimpy memory, or bad battery life, or an unholy deal with some “partner.”

Whatever it is, the verities persist. Meaning items 1 through 6 from this 1997 document still apply:…

At that last link I wrote,

These things I can guarantee about whatever Apple makes from this point forward:

  1. It will be original.
  2. It will be innovative.
  3. It will be exclusive.
  4. It will be expensive.
  5. It’s aesthetics will be impeccable.
  6. The influence of developers, even influential developers like you, will be minimal. The influence of customers and users will be held in even higher contempt.

So now the iPad has been announced, Steve has left the building, and the commentariat is weighing in.

The absence of multi-tasking might be the biggest bummer. (Makes me wonder if mono-tasking is a Jobsian “feature”, kinda like the one-button mouse.) Adam Frucci of Gizmodo lists mono-tasking among eight things that suck” about the iPad, including no cameras, no HDMI out, no Flash, 3×4 (rather than wide) screen and a “Big, Ugly Bezel”. (That last one is off base, methinks. You need the wide bezel so you can hold the device without your hot fingertips doing wrong things with the touchscreen.)

Elswehere at Gizmodo, Joel Johnson says “PCs will be around as expert devices for the long haul, but it’s clear that Apple, coasting on the deserved success of the iPhone, sees simple, closed internet devices as the future of computing. (Or at the very least, portable computing.) And for the average consumer, it could be.”

The Engadgeteers mostly panned it. Unimaginative… underwhelming… one of Apple’s biggest misses.

MG Sigler at Techcrunch says, “The thing is beautiful and fast. Really fast. If you’ll excuse my hyperbole, it felt like I was holding the future. But is it a must-have?” Then answers,

Most people won’t yet, but as long as Apple has its base that will buy and use the iPad, they have plenty of time for either themselves or third-party developers to create the killer uses that make the iPad a must-have product for a broader range of people. We already saw that happen with the App Store and the iPhone/iPod touch. And at $499 (for the low-end version), there will be no shortage of people willing to splurge on the device just to see what all the fuss is about. They’ll get hooked too.

That’s getting close, but it’s not quite there.

First, the base Apple wants is consumers. Literally. We’re talking newspaper and magazine readers, buyers and users of cameras and camcorders, and (especially) TV and movie watchers. To some degree these people produce (mostly home video and photos), but to a greater degree they are still potatoes that metablolize “content”. This thing is priced like a television, with many improvements on the original. Call it Apple’s Trinitron. They are, like I said, after Sony’s abandoned position here, without the burden of a zillion SKUs.

Second, there will be a mountain of apps for this thing, and more than a few killer ones.

What depressed me, though I expected it, was the big pile of what are clearly verticalized Apple apps, which I am sure enjoy privileged positions in the iPad’s app portfolio, no matter how big that gets. It’s full of customer lock-in. I’m a photographer, and the only use for iPhoto I have is getting shots off the iPhone. Apple’s calendar on the iPhone and computer (iCal) is, while useful, still lame. Maybe it’ll be better on the iPad, but I doubt it. And the hugely sphinctered iTunes/Store system also remains irritating, though I understand why Apple does it.

What you have to appreciate, even admire, is how well Apple plays the vertical game. It’s really amazing.

What you also have to appreciate is how much we also need the horizontal one. The iPad needs an open alternative, soon. There should be for the iPad what Google’s Nexus One is for the iPhone.

I got a ride home tonight from Bob Frankston, who was guided by a Nexus One, serving as a better GPS than my dashboard’s Garmin. Earlier in the evening Bob used the Nexus One to do a bunch of other stuff the iPhone doesn’t do as well, if at all. More importantly, he didn’t need to get his apps only from Google’s (or anybody’s) “store”. And if somebody else wants to make a better Android phone than this one, they can. And Google, I’m sure, hopes they do. That’s because Google is playing a horizontal game here, broadening the new market that Apple pioneered with its highly vertical iPhone.

So a big lesson here is that the market’s ecosystem includes both the vertical silos and the horizontal landscapes on which those silos stand, and where all kinds of other things can grow. Joel may be right that “the average consumer” will have no trouble being locked inside Apple’s silo of “simple, closed Internet devices”. But there are plenty of other people who are neither average nor content with that prospect. There are also plenty of developers who prefer independence to dependence, and a free market to a captive one.

Captivity has its charms, and an argument can be made that tech categories are best pioneered by companies like Apple and Sony, which succeed both by inventing new stuff that primes the pump of demand, and by locking both developers and customers inside their silos. But truly free markets are not restricted to choices among silos, no matter how cushy the accomodations may be. Nor are they restricted to the non-choice of just one silo, as is currently the case with the iPad. Free markets are wide open spaces where anybody can make — and buy — anything.

There’s more to fear from heights than widths.

Bonus link: Dave weighs in. This is just a jumbo Oreo cookie.

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Why is Steve Jobs taller than Eric Schmidt in this picture? 0114_mz_cover

I’ve met both guys, and I’m sure Eric is taller than Steve. But maybe I’m wrong.

I’m having trouble (must be my night for that) finding believable height information on either of them. (WikiAnswers says Steve is 6’2″, which seems high to me. Still can’t find anything on Eric.)

The reason I bring this up is that photographs and illustrations tell their own stories.

Ever notice how photos in sports stories always show the winner making a great move or looking happy and the loser making a lame move or looking all dejected? The story is often more complicated than that, but this is how default journalistic story-telling goes. You match the photo to the story. It’s an illustration. A picture to match the thousand words.

This  picture, on the cover of this week’s issue of BusinessWeek, shows several things at once: how Apple currently has more stature than Google in the phone business. How these two former colleagues (Eric was for years on Apple’s board) are now competitors. Maybe there’s some back to back stuff.

Anyway, it’s a story. Vendor sports, of course.

Just saying. Maybe there’s some fodder here for Jay & Dave at NYU.

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I dunno why the New York Times appeared on my doorstep this morning, along with our usual Boston Globe (Sox lost, plus other news) — while our Wall Street Journal did not. (Was it a promo? There was no response envelope or anything. And none of the neighbors gets a paper at all, so it wasn’t a stray, I’m pretty sure.) Anyway, while I was paging through the Times over breakfast, I was thinking, “It’s good, but I’m not missing much here–” when I hit Hot Story to Has-Been: Tracking News via Cyberspace, by Patricia Cohen, on the front page of the Arts section. It’s about MediaCloud, a Berkman Center project, and features quotage from Ethan Zuckerman and Yochai Benkler


(pictured above at last year’s Berkman@10).

The home page of MediaCloud explains,

The Internet is fundamentally altering the way that news is produced and distributed, but there are few comprehensive approaches to understanding the nature of these changes. Media Cloud automatically builds an archive of news stories and blog posts from the web, applies language processing, and gives you ways to analyze and visualize the data.

This is a cool thing. It also raises the same question that is asked far too often in other contexts: Why doesn’t Google do that? Here’s the short answer: Because the money’s not there. For Google, the money is in advertising.

Plain enough, but let’s go deeper.

It’s an interesting fact that Google’s index covers the present, but not the past. When somebody updates their home page, Google doesn’t remember the old one, except in cache, which gets wiped out after a period of time. It doesn’t remember the one before that, or the one before that. If it did it might look, at least conceptually, like Apple’s Time Machine:


If Google were a time machine, you could not only see what happened in the past, but do research against it. You could search for what’s changed. Not on Google’s terms, as you can, say, with Google Trends, but on your own, with an infinite variety of queries.

I don’t know if Google archives everything. I suspect not. I think they archive search and traffic histories (or they wouldn’t be able to do stuff like this), and other metadata. (Mabye a Googler can fill us in here.)

I do know that Technorati keeps (or used to keep) an archive of all blogs (or everything with an RSS feed). This was made possible by the nature of blogging, which is part of the Live Web. It comes time-stamped, and with the assumption that past posts will accumulate in a self-archiving way. Every blog has a virtual directory path that goes domainname/year/month/day/post. Stuff on the Static Web of sites (a real estate term) were self-replacing and didn’t keep archives on the Web. Not by design, anyway.

I used to be on the Technorati advisory board and talked with the company quite a bit about what to do with those archives. I thought there should be money to be found through making them searchable in some way, but I never got anywhere with that.

If there isn’t an advertising play, or a traffic-attraction play (same thing in most cases), what’s the point? So goes the common thinking about site monetization. And Google is in the middle of that.

So this got me to thinking about research vs. advertising.

If research wants to look back through time (and usually it does), it needs data from the past. That means the past has to be kept as a source. This is what MediaCloud does. For research on news topics, it does one of the may things I had hoped Technorati would do.

Advertising cares only about the future. It wants you to buy something, or to know about something so you can act on it at some future time.

So, while research’s time scope tends to start in present and look back, advertising’s time scope tends to start in the present and look forward.

To be fair, I commend Google for all the stuff it does that is not advertising-related or -supported, and it’s plenty. And I commend Technorati for keeping archives, just in case some business model does finally show up.

But in the meantime I’m also wondering if advertising doesn’t have some influence on our sense of how much the past matters. And my preliminary response is, Yes, it does. It’s an accessory to forgetfulness. (Except, of course, to the degree it drives us to remember — through “branding” and other techniques — the name of a company or product.)

Just something to think about. And maybe research as well. If you can find the data.

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Apple has the best taste in the world. It also has the tightest sphincter. This isn’t much of a problem as long as they keep it in their pants, for example by scaring employees away from saying anything about anything that has even the slightest chance of bringing down the Wrath of Steve or his factota. (How many bloggers does Apple have?)  But they drop trow every time they squeeze down—you know, like China—on an iPhone application they think might be “objectionable”.

I see by Jack Schofield that they’ve done it again, but this time they pissed off (or on) the wrong candidate: an app (from Exact Magic) that flows RSS feeds form the EFF. Sez Corynne McSherry in an EFF post, “… this morning Apple rejected the app. Why? Because it claims EFF’s content runs afoul of the iTune’s App Store’s policy against ‘objectionable’ content. Apparently, Apple objects to a blog post that linked to a ‘Downfall‘ parody video created by EFF Board Chairman Brad Templeton.”

Brad’s a funny guy. (He created rec.humor.funny back in the Net’s precambrian age.) He has also forgotten more about the Internet than most of us will ever learn. Check out The Internet: What is it really for? It was accurate and prophetic out the wazoo. Brad wrote it 1994, while Apple was busy failing to ape AOL with a walled garden called eWorld.

Apple’s App Store is an eWorld that succeeded. A nice big walled garden. Problem is, censorship isn’t good gardening. It is, says Corynne, “not just anti-competitive, discriminatory, censorial, and arbitrary, but downright absurd.” Or, as my very tasteful wife puts it, unattractive.

Also kinda prickly, if you pick on a porcupine like the EFF. Hence, to contine with Corynne’s post,

iPhone owners who don’t want Apple playing the role of language police for their software should have the freedom to go elsewhere. This is precisely why EFF has asked the Copyright Office to grant an exemption to the DMCA for jailbreaking iPhones. It’s none of Apple’s business if I want an app on my phone that lets me read EFF’s RSS feed, use Sling Player over 3G, or read the Kama Sutra.

Not surprisingly this followed, on the same post:

UPDATE: Apparently, Apple has changed its mind and has now approved the EFF Updates app. This despite the fact that the very same material is still linked in various EFF posts (including this one!). Just one more example of the arbitrary nature of Apple’s app approval process.

There’s a limit to how long (much less well, or poorly) Apple can keep sphinctering App Store choices. I’m betting it’ll stop when the iPhone gets serious competition from equally appealing phones that can run applications that come from anywhere, rather than just from some controlling BigCo’s walled garden.

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