Apple iPhone Launch by Steve Jobs

Apple (NASDAQ: AAPL) rose to dizzy heights, with the stock price going up 8.31%, on key new innovations announced today, the biggest of which to shake up the entire wireless phone industry: iPhone. Apple is one of the top 20 innovators in The Innovation Index.

iPhone combines "three products-a revolutionary mobile phone, a widescreen iPod(R) with touch controls, and a breakthrough Internet communications device with desktop-class email, web browsing, searching and maps-into one small and lightweight handheld device. iPhone introduces an entirely new user interface based on a large multi-touch display and pioneering new software, letting users control iPhone with just their fingers."
"iPhone is a revolutionary and magical product that is literally five years ahead of any other mobile phone," said Steve Jobs, Apple's CEO in the press release. "We are all born with the ultimate pointing device -- our fingers -- and iPhone uses them to create the most revolutionary user interface since the mouse."

What are the new innovations that iPhone introduces that will essentially change and re-define the way consumers and professionals make their wireless calls?

What are the Top Ten iPhone innovations introduced by Apple's creativity? Apple has essentially worked with all types of users of cell phones and music players, and really understood their habits, their likes, their needs, what really makes them want to use their cell phones and music players more frequently, all the time. Apple knows how to transform the user behavior - making and receiving calls, text messaging, listening to music, browsing the web - into viable technology that is innovative and intuitive, easy to use and addictive. This is what makes Apple an Innovation Leader.

Here are the top ten innovations introduced in iPhone by Apple:

1. Make calls by "simply pointing at a name or number." Get out of here... no buttons to click. No clicking umpteen times before you find the number you want to call. Point and Call. Welcome to the new touchscreen interface of iPhone. If you love the iPod interface, iPhone will only make it better.

2. Visual Voicemail, is definitely an industry first, that "lets users look at a listing of their voicemails, decide which messages to listen to, then go directly to those messages without listening to the prior messages." How useful is this? How often and how long you have to wait to hear that all important message from your very important friend, or boss until all the messages before are heard? If you are a frequent cell phone user, the answer is all the time. Apple understands the users' frustration as they check their voice mails, and Visual Voicemail will change the way you listen to your voice messages, and even save you minutes spent in waiting to hear that all important message. Oh, and you can even ignore earlier messages.

3. SMS move over. No more clicking 3 or 4 or more times to get to that letter that you want to type now. How about a touch keyboard that is predictive, full QWERT, and even prevents mistakes. Oh my. Finally, SMS will become easier, simpler, faster, friendlier, and bigger!! If you love SMS, iPhone is it.

4. A handy 2 megapixel camera, with that all important photo management software. Finally. Now you can organize the photos you take and use them for wallpapers, emails, upload and download them to your PC or MAC, and watch them on a 3.5-inch widescreen.

5. A widescreen iPod. How wide? 3.5-inch wide. You love iPod. You would love iPhone even more. It takes iPod to the next level. Literally. iPhone promises that you will now "touch" your music, videos, photos, songs, artists, albums, playlists - all at the click of a finger. And now you can enjoy all those TV shows in cool landscape mode.

6. Cover Flow in iPhone introduces a new way to "browse music library by album cover artwork, for the first time." When navigating your music library on iPhone, you are automatically switched into Cover Flow by simply rotating iPhone into its landscape position. Now, you can enjoy the album in the same way as you buy it from the music store.

7. iPhone brings your rich email with the graphics, photos and visuals along with text from your friends, family or work to the phone. The emails are downloaded in the background while you work, browse, message or call, and will work on most POP3 and IMAP services. And to top it off, Yahoo! Mail is integrated and readily available for the iPhone.

8. Web Browsing as good as computer. This could be a stretch. Although iPhone comes with the Safari (TM) web browser which provides all the features of web browsing for the computer on the iPhone. Could this be the last straw that finally breaks the camel's back, and brings the hordes of wireless phone users to web browsing? Not only you can see a web page as it was designed to be seen, iPhone allows you to "easily zoom in to expand any section by simply tapping on iPhone's multi- touch display with their finger." And with the Quad-Band GSM technology along with EDGE and Wi-Fi means "you can surf the web from just about anywhere," and even "automatically sync bookmarks from their PC or Mac."

9. Google Maps. On iPhone. No way. Yes way. Google's groundbreaking maps service and iPhone's amazing maps application tied together "offering the best maps experience by far on any pocket device." Easily and conveniently view maps, satellite images, traffic information and even get directions.

10. Artificial Intelligence. iPhone that thinks and senses and becomes one with what you do. iPhone has "advanced built-in sensors -- an accelerometer, a proximity sensor and an ambient light sensor" that "detects when the user has rotated the device from portrait to landscape, then automatically changes the contents of the display accordingly, with users immediately seeing the entire width of a web page, or a photo in its proper landscape aspect ratio." Are you kidding me? No wait. There's more. iPhone also has "proximity sensor detects when you lift iPhone to your ear and immediately turns off the display to save power and prevent inadvertent touches until iPhone is moved away." Wait a moment. Finally, "iPhone's built-in ambient light sensor automatically adjusts the display's brightness to the appropriate level for the current ambient light, thereby enhancing the user experience and saving power at the same time."

What does this mean to the rest of the wireless phone industry? Major phone makers including Nokia, Motorola, Palm and Research In Motion were all down today on the news of Apple's iPhone. The biggest blow was taken by Research In Motion (NASDAQ: RIMM) down about 8% on the news. Perhaps RIMM will bounce back since it caters to the professionals. And RIMM has plans to go after the consumer audience as well with new phones in 2007. Research In Motion is also one of the top 20 innovators in The Innovation Index. For now, Apple has served notice.

Bottomline:

Perhaps the only chink in Apple's iPhone is the price. Apple has priced the iPhones in two models at $499 and $599. This is prohibitively high for most consumers. Perhaps the pricing and business model strategy was to ensure that the iPod business does not get compromised or cannibalized. Perhaps the rationale was to only target the high end consumers initially and test the market. Knowing Apple though, lower priced iPhones are quite possibly already in the works, and may be announced within one year of introduction. The higher price could give some breathing room to Nokia, Motorola, Palm and Research In Motion. However, not for long. Remember the initial iPod. It was also priced high. Now, we have iPods ranging from under $100 to over $400. It's only a matter of time. One thing is certain: iPhone is poised to become the best thing to happen since sliced bread to wireless phones.

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