News from 'The Apple Blog'

One of the first disappointments a brand new iPad owner often faces is the fact they can’t use their magic new toy right out of the box. New iPad users turn on their device and what greets their eyes? An iTunes activation screen; the same screen iPod touch and iPhone users see. To setup an iOS device, whether iPad, iPod Touch, or iPhone, you need a computer running a compatible version of iTunes.

But why?

Other smartphones, tablets, and media players don’t require a connection to a computer before you can use them. Moreover, iPad users learned recently what iPhone and iPod touch users already know: to upgrade their device’s OS, they again need a computer. Other devices can do updates over the air. Software updates on a Mac or PC don’t require a second computer, so why should iOS devices?

The initially obvious answer is the fact you need an account with iTunes to fully use an iDevice. That account manages the purchases you make on your iOS device. Since many users already have an iTunes account, this argument doesn’t make sense. A new iOS device owner should simply be able to enter their account info (or create an account on the spot) when turning on the device for the first time. Instead, new owners have to hook up to a “real” computer.

Again, why?

Of course, having a computer synced with your iOS device is handy. You can back up your data and quickly sync data from your computer. Documents, music, movies, pictures, calendars and contacts all easily get transferred from the desktop. However, with our lives existing more and more in the cloud these days, transferring this data via a computer running iTunes seems to defeat the independence of the iPad. With the camera connector kit, the argument has even less relevance. We can use the iPad anywhere, but we have to race to a computer with an Internet connection to do updates or move content back and forth.

Why? Why? Why?

Cynics would say that it’s about making sure that iPad sales don’t cannibalize traditional computer sales. With Apple’s market share though, sales shifting from desktops and laptops over to iPads is actually a benefit to Apple as evidenced by the recent earnings conference call when this issue was discussed.

There are probably a lot of PC users with older Windows machines who would be happy to replace their old PC with an iPad, which would handle almost all their computer needs. Apple’s “walled garden” approach really shines through for these users. No worries about competing browsers and email clients, downloading and installing software (even in the Mac universe, how many times do you see people running apps off the disk image rather than dragging it to the Applications folder?) Malware isn’t currently a concern, and the parental controls are quite handy. The price helps bridge the digital divide, making powerful computing accessible to everyone. That goal was one the motivators of the netbook movement. Apple changed the rules and added a new one: this magical and revolutionary device still needs a traditional and mainstream copy of iTunes running somewhere for setup and maintenance.  Again…why?

Because Steve said so, that’s why!

Ultimately the iPad will probably gain independence. But for now, regardless of logic, market conditions, or technology, Steve Jobs sees the iPad as a companion rather than a replacement for the traditional desktop or laptop. It’s both something more and something less than the typical computer. Will we see the day when the umbilical cord between traditional operating systems and the iOS devices is cut? One can dream.

Do you think iOS devices should require a separate computer? Why or why not?

Related GigaOM Pro Research (subscription required): Can Anyone Compete With the iPad?

News from 'The Apple Blog'

An ongoing digital strategy by the European Union (EU) could force Apple into allowing Adobe’s Flash to run on the iPhone.

The incomplete plans, known as the Digital Agenda, not only aim to redefine how antitrust rules are practiced, but also hope to see an overall improved digital economy in place by 2020. In order to reach this goal, the EU plans to work with a number of individual companies, relevant organizations and governments. The efforts carried out with these various groups will involve working through seven key points. The second point of this seven-part plan is one which may be of concern to Apple.

Point two of the Digital Agenda highlights the need for set standards and interoperability between devices. It specifically states:

The internet is a great example of interoperability — numerous devices and applications working together anywhere in the world. Europe must ensure that new IT devices, applications, data repositories and services interact seamlessly anywhere — just like the internet. The Digital Agenda identifies improved standard-setting procedures and increased interoperability as the keys to success

How This Could Affect Apple

It’s no secret that the European Union isn’t shy to flex its muscle when it comes to competition rules. In the past, it has fined various industry heavyweights including Intel and Microsoft. In fact Microsoft has found itself in the firing line on multiple occasions.

But what could the Digital Agenda truly mean for Apple? Comments from European Union commissioner Neelie Kroes hint that she is giving Apple’s business practices a serious review. According to a report from Rethink Wireless, the commissioner has concerns that the current smartphone market is too closed, detailing that consumers are currently limited when coming to choose what software is present on their selected handset.

With the Digital Agenda in place, dominant market figures, such as RIM and Nokia, will not be the only ones to receive official practice reviews. Figures that are deemed significant, such as Apple, will also be called upon. Kroes detailed that:

“…significant market players cannot just choose to deny interoperability with their product. This is particularly important in cases where standards don’t exist. This is not just about Microsoft or any big company like Apple, IBM or Intel. The main challenge is that consumers need choice when it comes to software or hardware products.”

With Kroes’ comments in mind, it seems that Apple’s banning of Flash could come under serious investigation from the EU. Other blogs have speculated on how the Digital Agenda’s rules may apply beyond Apple’s Flash ban. Some have suggested that this digital strategy could be applied to change the closed nature of iPhone development via Xcode, whereas others have expressed thoughts on how iTunes’ restrictive style could be an issue — especially considering the whole Palm Pre syncing drama.

With the U.S. Fair Trade Commission looking into Apple’s ban on Flash and the European Union also casting an authoritative eye over the issue, it will be interesting to see how Apple would handle the Flash ban if any official body were to make a move.

Whatever happens, with both Apple and Adobe picking and choosing both open and closed formats and practices, one thing is clear: nobody’s perfect.

Related GigaOM Pro Research (subscription required): A Brighter Week Ahead for Flash

News from 'The Apple Blog'

Amazon has announced a new Kindle that most bloggers are calling Kindle 3. The new device seems pretty awesome, both in features and price. It’s important that we declare both devices as winners in their own right and set some things straight for anyone calling iPad a Kindle killer or the other way around.

Kindle as a service

Kindle is a service that allows consumers to buy books from anywhere in the world as long as there is an Internet connection. Books can be purchased via any device with a modern web browser and you can read those books on any device that supports Kindle software like your Mac, PC, iPhone, iPad, Android and Amazon’s own Kindle hardware.

Amazon’s strategy is different from Apple’s. Apple developed the iTunes Store as a service to drive the sales of its hardware. Kindle software and hardware was created to drive the sale of books and other downloadable content. Kindle is huge for Amazon because going digital isn’t just convenient to the consumer. It’s great for Amazon because it doesn’t have to keep a stock of books and worry about paying to ship those books and the consumer wins by having that book accessible across multiple devices instantly. All Amazon has to do is ensure its selection of books is higher and its price is lower than the competition.

Kindle and iPad finally coexisting

Until today’s announcement, Kindle as a device was scrutinized against the Apple iPad, because while you could read books on both, the iPad was only $150 more than the smaller Kindle and a few bucks more than the larger Kindle DX.

Amazon aggressively slashed prices on the device in a way that made everyone think they were just being defensive and fearful of iPad but today, that all changed.

Kindle 3 is priced at $139 (Wi-Fi only) and an International version with 3G is only $189 (3G via GSM). TechCrunch Reports:

In addition to the price and screen change, the redesigned body is 21% smaller and 15% lighter, down to about 8.5oz. If their press release is to be believed, it’s also got twice the storage (4GB) and significantly improved battery life over the old Kindle.

Kindle is priced so aggressively that true book lovers can buy the new Kindle at a price that’s simply a no brainer considering that Kindle books cost considerably less than real books and you’re saving on shipping and the pesky 3-7 days it takes for a book to arrive at your door. No longer is there a decision to make between buying a Kindle device or simply paying $150 more and having an iPad that does books and so much more.

Amazon is finally showing the industry that it doesn’t want to make millions selling Kindles. It’s about the sale of digital books.

Apple and Amazon are both winners

When you’re just talking hardware, Apple will continue to sell millions of iPads to people who want books, games, movies, apps and the web and the Kindle will continue to sell in the millions for book lovers. This is a huge win for consumers because our decision is made for us and bloggers can stop comparing both devices like they’re the same. I’ll be buying a Kindle for my sister who reads books every day and an Amazon gift card so she can buy a few books to get started. It’s a much easier gift than paying $499 for an iPad that she’ll mostly be using for books, anyway.

So who are the losers?

Basically, everyone that’s not Apple or Amazon. For now and the foreseeable future, Amazon has done a phenomenal job getting Kindle on millions of computers, phones and other handheld devices. Its goal of selling books by the truck load is working well as it just announced Kindle books are now outselling physical books after only three years. The losers are Barnes & Noble’s Nook, Sony’s E-Reader, and any other devices that don’t either work with Amazon or have their own book store. B&N has a fighting chance but Amazon’s user base of passionate book buyers will stay true to Amazon and Apple has over 100 million accounts with credit cards who will dive right in to iBooks. Sorry, but it’s clear who the winners are in the digital book sales space.

What about iBooks?

Amazon and Apple may not be competing when it comes to Kindle hardware versus iPad but they’re still competing in the book sales space. I’ve been meaning to write this for a while but I won’t buy a book via iBooks outside of the free section. The reason is that Apple hasn’t convinced me that my digital DRMed books are safe with them. In the same way that my iTunes movies and music (prior to iTunes Plus) are not playable on other hardware other than Apple’s. Amazon has displayed the right strategy that any device or platform that comes out in the future will eventually get Kindle software and those digital books I bought in 2007 will sync to that device without fail and Amazon is a large company that I trust. iBooks may win me over eventually but for price, selection and compatibility, Kindle (the service) has me hooked.

Kindle versus iPad is a dead argument. You’re both winners. No one is arguing the iPad isn’t better hardware for much more than books but that comes at a price and, even on the iPad, Kindle is just one tap away via its own app.

Related GigaOM Pro Content (subscription required): Evolution of the e-Book Market