Summary
I have owned an iPhone since the very first one was available in June 2007. I have experienced a tremendous amount of improved productivity but most importantly using a phone has become intuitive. The latest iPhone 3.1 software update shows Apple's challenge is to maintain tight control over hardware and software in a more complex and global environment.
Analysis
Apple has a big problem: 30 million frustrated iPhone users. My iPhone with the 3.1 update does not exhibit a lot of problems mentioned in The Register article but it does act up some times: from time to time, after I put it to sleep, it doesn't respond to my wake up requests. The iPhone will simply take its time and then respond whenever it feels like. This has happened several times since the update. I am lucky that this is the only problem that I am experiencing. There are millions of others who are quite a bit frustrated than I am. Apple must respond quickly and decisively and come out with 3.2.
Multiple iPhone Versions One of the difficulties for Apple in providing single global software patches might be multiple iPhone versions. Some iPhones that are available in Hong Kong come officially unlocked. MMS and tethering is available to iPhone users the world over except for AT&T. The iPhones going to China don't have WiFi capabilities. There are rumors there will be an iPhone that works on the CDMA network. The iPhone platform is becoming more complex and therefore more difficult to patch with a single global software update. But should this complexity pose a problem for Apple, a company that has experience providing software patches for millions of its Mac computers on a global basis?
Cellular Network Experience The main difference between a Mac and an iPhone is that the iPhone is connected to a cellular network. The Mac on the other hand simply needs to be able to work with global wireless connectivity standards such as WiFi and Bluetooth out of the box. What Apple lacks is experience working with computers that have built-in capability to connect to cellular networks. Apple has accomplished in two years what phone companies who have been in the business for decades have not: a computer-on-a-phone that is easy-to-use and widely accepted as one of the most capable phones in the world. But with that success comes the burden of making sure the iPhone continues to perform as a cellular-network-connected device. Apple will probably need to hire some smart engineers from Samsung, LG, Nokia and Motorola.
I do not doubt that Apple will soon come forth with an update for the iPhone. The iPhone 3.1 software update shows that Apple's challenge is to maintain tight control over device and software at a time when the devices themselves are becoming more complex, are being used in larger numbers and on a global basis.
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.