“Bigger than the Personal Computer.” Those were the words John Doerr used to describe iPhone 2.0 yesterday at the Apple (AAPL) SDK conference. I agree. I highly recommend you watch the video yourself and not allow 3rd parties to interpret this monumental event. Apple’s iPhone, SDK, application business model and enterprise integration provides a hardware and software platform so revolutionary that it will dominate the mobile computing space just as Microsoft (MSFT) owns the desktop: well north of 90%.
In the past this might have seemed like Apple fanboy hyperbole, but the event yesterday provided convincing evidence that there is no real competition for the iPhone. The SDK is extremely powerful and a fully featured version of OS X the most advanced desktop OS in the world. Furthermore, the SDK tools for developers provides an iPhone simulator and development environment so easy and intuitive, software developers and entrepreneurs will produce thousand of great applications. The Application Store (App Store) that Apple provides to those entrepreneurs with its 70/30 revenue split will more than compensate for their hard work and get content in the hands of owners.
The enterprise email, calendar and contact features that integrate with Microsoft Exchange are simpler and more convenient than any process on the market as it removes intermediate server and proprietary NOC steps. Trials with Genentec and Disney (DIS) have been impressive and proven its viability in the corporate space. No need to carry a Blackberry (RIMM) and an iPhone. Salesforce.com (CRM) and Epocrates demonstrated vertical business applications built in two weeks with the new SDK, clearly only scratching the surface for the future.
For entertainment, Apple, Electronic Arts (ERTS) and Sega demonstrated games that featured impressive 3D graphics and an accelerometer based interface (think Wii (NTDOY.PK)) that allowed for a more immersive environment than Sony (SNE) PSP. AOL (TWX) showed some great capabilities for its AIM messenger assuring that the social networking space will have unrivaled functionality on the platform.
Finally, the iFund announced by Kleiner Perkins, the famous Silicon Valley venture capital fund, will provide $100m in VC funding for new companies exploiting the iPhone environment. I am sure they will be joined by many other VC funds.
Not mentioned is how American business will use this platform for their own ends. Starbucks (SBUX) and Apple have already announced a cashless payment system for iPhone and I am sure we will see more of this. Given its location aware capability with cellular triangulation and the inevitable GPS integration in the next year or so (just speculation), business will be able to provide coupons and incentives in numerous ways for iPhone users.
John Doerr was right; the iPhone/iTouch will be bigger than the PC. Apple is years ahead of the competition with this June release of 2.0. Like the early 80s with the PC and 90s with the internet, the next few years promise to be exciting and exhilarating as one new application after another comes to the iPhone and it the platform becomes part of our daily lives.
Disclosure: Author has a long position in AAPL
