2nd UPDATE: Apple iPhone Gets Major Upgrade: Apple
March 17 2009 - 1:57PM
Dow Jones News
Apple Inc. (AAPL) unveiled the first major upgrade to its iPhone
operating system in nine months, introducing software that allows
the popular smartphone to perform some of the functions its
competitors already can.
The Cupertino, Calif.-based company also rolled out new
development tools for companies that build and sell iPhone
programs, and revamped its App Store, which sells iPhone software
downloads.
Most of the 100 new iPhone features Apple announced included
items like "cut and paste" to capture and transfer text, and the
ability to send emails with attached voice recordings, photos or
contact files, as well as the addition of "Spotlight" for searching
the iPhone's contents. These features, in various forms, can
already be found on competing smartphones based on software from
Research In Motion Ltd. (RIMM), Microsoft (MSFT) and Palm Inc.
(PALM).
The biggest change Apple disclosed is the addition of something
called "push," which solves a major issue slowing adoption of
iPhone instant messaging and other applications that need to run
when the iPhone is off. Apple's workaround involves automatically
updating software programs once the phone is turned back on, as
well as letting the software retrieve updates automatically when
running.
Apple Senior Vice President Scott Forstall said Tuesday that
Apple, which had promised "push" some time ago, was "late" in
delivering it. "We had to rebuild the software to do it," he added.
"Here it finally is."
Apple also said its iPhone App Store, which sells iPhone
software, will also soon let developers sell subscription-based
software products. This would allow, for instance, a game maker to
sell updated scenarios, or an e-book reader to include a library of
books as well.
The new iPhone operating system also now supports peer-to-peer
connections, which lets users easily swap files with each
other.
Apple said it was giving third-party accessory makers and
developers even greater control over the iPhone's functions.
Meanwhile, accessories now being built allow control of the iPhone
from the accessory itself. For example, one pair of third-party
headphones can find the iPhone wirelessly and one manufacturer is
making a blood-pressure cuff that works with the phone.
Apple's iPhone announcements underscore how competition in the
smartphone market is increasingly shifting to software and
interface issues, as opposed to design or specification of the
hardware. Since the iPhone first went on sale about 18 months ago,
Palm Inc. has improved its Pre smartphone and Research In Motion
has upgraded its Blackberry line to close the gap on hardware.
Apple is now trying to use its software to maintain its edge.
Apple said users had downloaded 800,000 programs from its App
Store, the online software bazaar for the iPhone. It also said it
was selling roughly 25,000 titles on the mobile platform.
Apple and other smartphone makers face a tough 2009. Market
research firm IDC recently cut its growth forecast for global
smartphone sales to 3.4% from 8.7%.
Apple had a 10.7% share of the worldwide smartphone market at
the end of 2008 after nearly doubling its market share from a year
ago, according to Gartner Inc., another research firm. Ahead of
Apple were No. 1 smartphone seller Nokia Inc. (NOK), whose 40.8%
share is more than double that of Research in Motion, the No. 2
manufacturer.
Apple shares were recently up 1.5% at $96.91.
-By Ben Charny, Dow Jones Newswires; 415-765-8230;
ben.charny@dowjones.com