Apple Wants to Ruin the Mobile Business

I’m a PC guy. I’ve long been exposed to Apple computers but never saw a reason to switch. Every piece of software I needed was available for, and sometimes exclusively for, the PC. Yet, here I sit, typing this blog on a MacBook Pro. The catalyst for my Microsoft’s awful operating system, Vista. I used wanting to build iPhone applications as my excuse for getting the MBP. I’ve become a partial convert and have suggested to others that they buy Macs because “they just work” where Vista just seemed to fail. I love my MBP.

That ability to create devices that “just work” and to make them more user friendly, cooler and better looking than any other company in the world has earned Apple three years at the top of Fortune’s Most Admired Companies. Where other companies create products consumers tell them they want, Apple creates products consumers only know they want once Apple produces them. It’s an amazing business model and they do it excellently.

My problem with Apple is mobile. Without question, Apple redefined the way consumers saw phones. By offering a phenomenally usable operating system with a beautiful user experience, Apple made the cell phone as cool as an iPod. By further, creating an iPhone ecosystem via the iPhone App Store, Apple converted the device from a phone to a multi-function device that allows its users to lead a life where everything they need to do can be done from the palm of their hand.

What Apple did was not new. Palm phones had long supported color icons, touchscreen input and rather small form factors. Nokia phones pre-2006 (when the iPhone debuted) offered smartphone style functionality, Wi-Fi, downloadable applications (I know because I built an app), the ability to surf the web and view video (if you had the right software). Blackberrys from RIM have long offered an exceptional communications platform. All of this existed prior to the launch of the iPhone. Apple’s contribution was bringing it all together in a phenomenally tantalizing package that just worked.

Putting a beautiful wrapper, however, on old technology is not novel. It is exactly that lack of novelty that has me questioning Apple’s recent actions in suing HTC for patent infringement in a thinly veiled attack on Google’s Android. Engadget provides a detailed explanation of the patents involved here.

Apple has not attacked HTC because it is a cell phone manufacturer who might (or might not) infringe on their patents. In fact, Apple has attacked HTC because they are at this moment the only phone manufacturer who 1) is relatively small; 2) makes devices whose capabilities, on many levels, rival those of the iPhone; 3) creates great devices that use Google’s Android.

Android is the mobile operating system many see as the iPhone’s greatest competitor. Nokia’s Symbian and RIM’s Blackberry OSes both have greater market share than the either the iPhone OS or Android but Android has been developed much in the same way the iPhone OS was — with phenomenal speed, tremendous attention to detail and a focus on both ease of use and being easy on the eyes. Combining the Android operating system with HTC’s hardware was a shot across Apple’s bow. Their response, however, has the potential to stop the mobile business in its tracks – leaving Apple as the only company capable of creating modern smartphones.

Apple’s immediate goal is to neuter Android and HTC before they can truly challenge their leadership position. This is not about patent infringement. The broad nature of many of Apple’s patents and their questionable applicability (as well as the likelihood that prior art can be demonstrated for some) indicate that Apple is going for a shot gun approach to take out the weakest gazelle in the herd. You can be sure that if Apple is successful that they will soon go after Nokia, RIM, Samsung, Sony, Motorola and other OS and hardware manufacturers. Apple clearly wants to own the mobile business all to itself in spite of other companies having long history of mobile accomplishments long before Apple got on the field. Their goal is to decimate all competitors in a way that relies not on consumers’ demand for their products but on questionable intellectual property awards. To my mind, that borders anti-competitive and is not in the spirit of how the marketplace should operate.

Let’s be clear. Apple should absolutely have the ability to protect their intellectual property. For example, the slide to unlock a phone patent seems valid to me. I don’t know who owns the patent for the zoom in / zoom out gesture on the iPhone but if that’s Apple, then that is absolutely protectable. To want to enforce patents on multitasking or using parsed data, however, is a stretch. (Perhaps the stretch is the USPTO even awarding such a patent.)

What I’d like is for Apple to not try to hobble the mobile business buy pursuing enforcement of questionable patents. I’m sure Motorola, Nokia, RIM and other companies have similar patents that could just as simply be applied to Apple. Instead, I’d like to see the companies press each other to innovate. I like the pressure the success of the iPhone has had on the rest of the mobile business. If not for Apple, we’d still be on 20MB calling plans and Palm would have the most advanced phones. And if Apple was in the business by itself, what we’d find is that we’d be stuck using a phone that only allowed us to download applications Apple liked and doing only things Apple approved of. We’d find that even Apple would slow down innovation if no one was nipping at its tail and, most of all, we’d find that the mobile business was a whole lot more boring — except for Apple.

Let’s not let Apple ruin the mobile business…