Scott Berry

The Downside to iPhone Success

Wow, I haven't made so many friends since I suggested maybe WiMax wasn't the savior of mankind after all...

Good feedback from a few here. Others maybe ought to more carefully read what I read, and take off your AAPL-tinted shades. I'm not attacking the brilliance of Jobs or his engineers. Though I'm continually dismayed at the thin skins on some of his fans.

Frankly, I have nothing but respect for Apple's design and usability. In fact I said that. The point remains that no matter how good it is, they are now a MUCH bigger target (the iPhone, not Macs). And hackers aren't only interested in kudos or in attacking "affluent" markets. Just ask any of the many whose PCs have been co-opted to become spam generators.

Nowhere did I say hacking iPhones would be as easy as Windows, nor did I say it would be easy at all. Only that it would happen.

I also didn't state that anyone would be attacking the App store directly (though I suppose I did imply it, and am happy to be educated here) . There could be other entry points, particularly as people start using "non-certified" apps on unlocked phones. Regardless, there *will* be viruses striking iPhones. How frequent, how damaging, and how easy all remain to be seen. To suggest otherwise just isn't sensible.

And last, I'm not "pro-RIM" or "pro-Android" and "anti-Apple". Reread what I said. I expect Android to be much more vulnerable to viruses for the exact reason many commenters said--lack of central control of the market. However, there is no scale in either RIM or Android (yet).

I do believe strongly that there are disadvantages to Apple's closed ecosystem(s), but most of them accrue to users and to the device market, not so much to Apple's business. If the iPhone continues on the growth track that is making my thesis more likely, that can't help but improve AAPL's stock price, despite fallout from any virus issues.