New iPhone Set to Continue Apple’s Quest for Dominance

Forrester Research says Apple’s iPhone strategy will help Apple further its world domination plan.

In a new report, Forrester analyst Charles Golvin says Apple’s (NASDAQ: APPL) decision to differentiate its new version via not only its new features, such as video capture and editing, but also its performance is an unusual one for the phone industry.

Forrester believes that Apple’s new iPhone 3GS, its upcoming iPhone OS 3.0 release, the enormous appeal of the platform to developers, and — more importantly in today’s economic climate — the concomitant price drop of the current iPhone 3G to $99 will maintain Apple’s astounding momentum.

Forrester believes that Apple’s latest move will maintain the iPhone’s staggering momentum because:

• The new iPhone is differentiated.
• The existing iPhone’s appeal has expanded.
• Developers’ energy will continue to focus on the iPhone rather than other platforms.
• The new iPhone is even more appealing to enterprises.

Some other analysts are not as positive, according to ComputerWorld.

The problem with the iPhone 3G S is “that you don’t have a console to enforce corporate policies across an entire group of workers,” said Kevin Burden, an analyst at ABI Research.

The iPhone 3G S also doesn’t allow processing in the background, which would let IT administrators run management tools coveted by large enterprises such as financial firms bound by strict federal regulations. - Ken Dulaney, an analyst at Gartner Inc

The iPhone does have traction in a few large businesses, such as Kraft Foods and Oracle Corp. (ORCL), but the financial services industry has been hard to attract, ComputerWorld says. Bank of America, for example, prefers to stay with Research In Motion ’s BlackBerry Enterprise Server because it includes centralized management tools.

For mor analyst commentary on Apple see Alacra StreetPulse.

Comments

[davesmall:]

Sadly most corporate IT departments are indeed control freaks. Much more important for them to be in control than for their users to have the really good stuff.

Jun 15 04:35 PM

[marv08:]

Well, the iPhone OS 3.0 (to be released in two days) does, according to the slides Mr. Forstall showed off during the iPhone OS 3.0 event, support EAS Policies. Sad that ABI Research can't read slides though... It also adds hardware encryption, additional VPN protocols, better group calendar support etc ad lib. This actually makes it on par with or even better than most phones out there (as far as enterprise features are concerned). As usual, most IT people must sound important and always find an issue with anything new. Usually they are wrong.

Jun 15 05:50 PM

[RK:]

In this day and age, people still expect companies to pay for their mobile device? Really? I know of no one who becomes phone-less after they leave a job or get laid off.

Consumers are beginning to enjoy much better computing infrastructure outside of work than at work. Think of the great mobile devices, cloud infrastructure (whether in terms of file storage, productivity software, fast broadband (DOCSIS and Fibre), and social networking tools.

Enterprises will not be the main driver of technology in the whole in the next decade. The consumer is. Apple and other companies better serve the consumers or risk losing their leadership.

Jun 15 07:39 PM

[Information...:]

3G S graphics will be better than other mobile devices and PSP even. This article explains. pfx.me/ho

Jun 15 08:27 PM

[Frank Castle:]

Actually being an IT person and having the oversight over 3k+ mobile devices the security is established by our Compliance and Security groups - it's not enforced for the heck of it and the fact is iPhone is not secure no matter the EAS policies (which were in OS 2.0 - there is nothing new with EAS in 3.0) as anyone can easily spend 15 mins and JAILBREAK the phone and circumvent any security policy!!

I'm sorry but the "encryption" policy Apple is deploying (only for the 3GS btw) is USER controlled and said users can disable the encryption if they so choose so what good is that? Why didn't they use the EAS policy to enforce it? Considering MA has a new encryption regulation set to go in force 1/1/2010 this is something enterprise has to take seriously and not assume users listen to your instruction.

You cannot compare iPhone with it's whopping handful of EAS policy support to a BES with full management of the Blackberry. If Apple wants the enterprise that have to adhere to regulatory oversight they need to step up their security.

You also touch on another issue on personal liable vs. corporate liable mobile devices - personal liable is just a nightmare and should not connect to any corporate data other then web based. Why even open that door and deal with that headache to save a on some CAL? If you ever have to provide discovery its just more work to detain as well users annoyed while they own the device the corporate data synced to it is not.

Jun 15 08:59 PM

[marv08:]

@Frank Castle: Of course there are new things concerning EAS policies in 3.0 (can't discuss them for another two days though), there is also support for encrypted profiles and OTA profiles... There is no official method for jailbreaking the 2.2.1 software and even the iPhone-dev Team is pessimistic about jailbreaking the 3GS. The argument does not really catch anyhow... if you have employees with criminal tendencies (and damaging corporate property is criminal), then the type of phone you use is your least concern. No Crackberry will help with that either.

Jun 15 09:55 PM

[Frank Castle:]

Let's hope you are right and Apple has proper EAS support for encryption. Anything user based is not going to keep compliance / regulatory guidelines. Why does Apple have to been so secretive? Works for consumers - IT needs roadmaps and planning etc.

Never seen a Blackberry hacked and the policy support cannot be removed without erasing the device at a low level so you have full control and if tampered the device ceases to function with your BES.

Jun 15 10:10 PM

[mollytjm:]

some IT departments don't want to go Apple when it comes to computers because Apple products need less support and Apple itself gives good free (for the first year) support and low cost support after that plus free classes. That's not good news for IT departments. It's human nature to want to keep your job.

the trend is continuing toward Apple products and i suspect that Apple will address any encryption issues for businesses because they want those sales. But Apple has created an environment where individuals want an iPhone. This will move the iPhone into plenty of businesses and the market share will continue to increase.
This is a great buy and hold stock. Long APPL

Jun 16 09:01 AM

[EJL:]

if there are about 1.1 billion handsets sold each year but only about 130-150 mln of those are smartphones and the segemnt is the fastest growing in the industry, doesn't it stand to reason that both blackberry and iPhone and some other players can grow massively in the coming years? of course it does.

Jun 16 09:59 AM

[LongAAPL:]

Its all about choice.

If you need a locked down, corporate controlled, limited, boring device, that supports the job security of your IT department, then buy the blackberry.

If you want a new, exciting, stimulating, and limitless platform that encourages creativity and productivity, then buy an iPhone.

The overwhelming success of Apple's App store proves most people will choose the latter.

Jun 16 10:47 AM

[Frank Castle:]

So much for the improved security

The iPhone Dev-Team (no relation) have been teasing us for a little bit now with what they've been saying is an iPhone OS 3.0-compatible version of yellowsn0w, and tonight in a video presentation they unveiled ultrasn0w, which should let you unlock any iPhone on the market, running any version of the firmware from 3.0 on down. The trick to how they're getting the jailbreak hasn't been revealed yet for fear of Apple making a fix at the eleventh hour, but if everything goes according to plan, the new hacking software should be out Friday in time for the iPhone 3G S


On Jun 15 09:55 PM marv08 wrote:

>
> @Frank Castle: Of course there are new things concerning EAS policies
> in 3.0 (can't discuss them for another two days though), there is
> also support for encrypted profiles and OTA profiles... There is
> no official method for jailbreaking the 2.2.1 software and even the
> iPhone-dev Team is pessimistic about jailbreaking the 3GS. The argument
> does not really catch anyhow... if you have employees with criminal
> tendencies (and damaging corporate property is criminal), then the
> type of phone you use is your least concern. No Crackberry will help
> with that either.

Jun 17 12:26 AM

[Uncle Miltie:]

Apparently you are unaware of the difference between Unlocking and jailbreaking a phone.

Unlocking is the process of freeing the phone from the shackles of a particular wireless provider. It involves modifying the baseband (radio) on the phone to allow it to work on another wireless carrier.

Jailbreaking is the process of opening up the operating system to allow you to run unauthorized software. it involves modifying the OS.

ultrasn0w will only unlock your iPhone, not jailbreak it. The Dev team even states that they haven't hacked it enough to jailbreak the device yet.

As for unlocking BlackBerries, it's regularly done. Heck, here's a quick link to a YouTube video that shows the process...
www.youtube.com/watch?...

Found that in less than 10 seconds with a google search for "unlcok blackberry"

@Frank Castle

> So much for the improved security
> tonight in a video presentation they unveiled ultrasn0w, which should let you unlock any iPhone on the market, running any version of the firmware from 3.0 on down.

Jun 17 09:35 AM

[RK:]

I am always amazed by how uneven IT security policies are. On the one hand, they are concerned about mobile device security. On the other hand, they are rather blase about USB devices. How many companies disable USB ports on their computers? Employees can attach a USB drive and put gigabytes of data on the drive and take the data anywhere they go. Another example: how many companies prevent employees from adding 3rd party software on their blackberry or win-mobile machines? Those can be malicious or pose security threats also. I would content that in the big picture, iphone is no worse than many other phones.


On Jun 15 08:59 PM Frank Castle wrote:

> Actually being an IT person and having the oversight over 3k+ mobile
> devices the security is established by our Compliance and Security
> groups - it's not enforced for the heck of it and the fact is iPhone
> is not secure no matter the EAS policies (which were in OS 2.0 -
> there is nothing new with EAS in 3.0) as anyone can easily spend
> 15 mins and JAILBREAK the phone and circumvent any security policy!!
>
>
> I'm sorry but the "encryption" policy Apple is deploying (only for
> the 3GS btw) is USER controlled and said users can disable the encryption
> if they so choose so what good is that? Why didn't they use the EAS
> policy to enforce it? Considering MA has a new encryption regulation
> set to go in force 1/1/2010 this is something enterprise has to take
> seriously and not assume users listen to your instruction.
>
> You cannot compare iPhone with it's whopping handful of EAS policy
> support to a BES with full management of the Blackberry. If Apple
> wants the enterprise that have to adhere to regulatory oversight
> they need to step up their security.
>
> You also touch on another issue on personal liable vs. corporate
> liable mobile devices - personal liable is just a nightmare and should
> not connect to any corporate data other then web based. Why even
> open that door and deal with that headache to save a on some CAL?
> If you ever have to provide discovery its just more work to detain
> as well users annoyed while they own the device the corporate data
> synced to it is not.

Jun 17 12:48 PM

[Frank Castle:]

I'm fully aware of both practices and have jailbreaked my iPhone all along. The dev team will have 3.0 jailbreaked by the end of the month. Do you even realize how large a market that is now?

Jun 17 09:25 PM

[Frank Castle:]

@RK

Actually that is my main pont about iPhone it's totally uneven and doesn't match the Blackberry.

We have fully deployed a USB solution and only encrypted keys with an allowed UID can connect. SEP 11 disabled it for everyone else so there is no connecting anything unless it's an approved UID.

Also all are Blackberries have AppWorld locked out, 3rd party app download disabled. Thought we do have a approved list of apps that have a BUSINESS justification that we can manage and deploy.

Apple providing that yet? Don't think so and don't think you ever will as it locks out their desired consumer based drive. But that is reality is corporate enterprise (even more so in a financial regulated business like where I work) - everything is corporate liable and paid by the company. Employees are well compensated and are free to get their own personal mobile device of their choice but if they want corporate data / email - it's Blackberry until everyone else catches up.

I'm most of you work for a Fortune 100 company and are free to bring in your own pc and install anything and everything you wish. Unfortunately I have a boatload of security and compliance concerns to deal with - do I agree with them all? Heck no. But at the end of the day I got bills to pay.


On Jun 17 12:48 PM RK wrote:

> I am always amazed by how uneven IT security policies are. On the
> one hand, they are concerned about mobile device security. On the
> other hand, they are rather blase about USB devices. How many companies
> disable USB ports on their computers? Employees can attach a USB
> drive and put gigabytes of data on the drive and take the data anywhere
> they go. Another example: how many companies prevent employees from
> adding 3rd party software on their blackberry or win-mobile machines?
> Those can be malicious or pose security threats also. I would content
> that in the big picture, iphone is no worse than many other phones.
>

Jun 17 09:32 PM

[marv08:]

In case you want to get the details, the new enterprise guide for 3.0 is now available and no longer protected by NDA: manuals.info.apple.com... (PDF, 1.1 MB)... You will see that most issues have been addressed, including password policies, encrypted profiles, etc.

On Jun 15 10:10 PM Frank Castle wrote:

> Let's hope you are right and Apple has proper EAS support for encryption.
> Anything user based is not going to keep compliance / regulatory
> guidelines. Why does Apple have to been so secretive? Works for
> consumers - IT needs roadmaps and planning etc.
>
> Never seen a Blackberry hacked and the policy support cannot be removed
> without erasing the device at a low level so you have full control
> and if tampered the device ceases to function with your BES.

Jun 18 02:53 PM

[Frank Castle:]

I downloaded this earlier and while there is some much needed Enterprise improvements they do not meet the encryption needs per the Massachuetts regulation around consumer data protection.

Likely due to the inability to run background processes or I'm guessing iPod music / media won't function properly if there is device level encryption.

Jun 18 09:35 PM