Tag Archives | iPhone

iPhone On Track to Become #1 Smartphone in US

Future iPhoneApple’s iPhone continues it’s march toward market dominance, a survey released by ChangeWave Research on Tuesday indicates. From June to September, Apple’s share of the market jumped from 25 to 30 percent, while competitors RIM and Palm basically stayed unchanged over the same period.

RIM’s share fell 1 percent to 40 percent, while Palm’s share remained unchanged at 7 percent. It’s clear from these figures that the Pre has done little to fix the company’s woes, adding weight to the calls of “failure” from some industry watchers.

(It could also be due to the fact that the lady on those commercials is just creepy looking, but I do digress.)

The news gets even better for Apple: Over the next 90 days, 36 percent of those surveyed said they plan to purchase an iPhone in that period, compared with 27 percent for RIM and 8 percent for Palm. In other words, the iPhone’s share isn’t done growing yet.

Part of this success may also have a lot to do with customer satisfaction: Apple completely kills the competition here. 74 percent report being satisfied with their devices, with the next closest, RIM, coming in at 43 percent. You have to go to sixth spot to find Palm, with only a third satisfied — behind competiors LG, Sanyo, and HTC.

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How Much Should iPhone Microtransactions Cost? (Answer: A Little)

Falling iPhoneGood news for game developers and people who hate “Lite” iPhone apps: Apple is now allowing purchases directly from within free apps. This feature was previously allowed only for paid apps.

Certainly the decision will affect anyone who develops a “Lite” app that has less features than the paid version, as it’ll let them combine both into a single download. But my mind jumps straight to gaming, which could see a rush of apps with paid microtransactions to unlock extra content or features.

Consider, for example, an MMORPG. Apple’s decision will allow developers to adopt a free-to-play model, charging players for extra items or abilities. Some games, such as Mafia Wars, were already doing this by having players purchase entirely new app for their upgrades, with their stats preserved. But the new solution is much more elegant, as it allows people to keep playing with minimal interruption, and without scrapping the app they already have.

That makes me wonder, what will the economy of iPhone microtransactions look like? If buying small bits of content is going to be a lot easier, I’d expect there to be a lot more of it, except for one snag: The iPhone economy is already dirt-cheap. The majority of iPhone apps are free, and the average price of a paid game, according to a recent study, is $2.50. People aren’t exactly throwing around fistfulls of money on the App Store, so even a handful of $1 microtransactions in a single game could be a tough sell.

I doubt that transactions for less than $1 would be allowed, but I think the cleverest free-to-play game developers will find a way to break it down. Perhaps they could sell credits, $1 at a time, that let you download a handful of in-game items. However they work it out, microtransactions will have to get extremely micro to thrive in the App Store.

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It’s On! Nintendo Prez Knocks iPod Touch

nintendo_ds_liteAs the iPhone and iPod Touch look more like portable gaming platforms, I haven’t tired of watching Sony and Nintendo flail. They’re like two incumbent political parties having identity crises in the face of a new competitor who’s hogging the spotlight.

The latest round of this partisan bickering comes from Nintendo of America President Reggie Fils-Aime, who in an interview with the Washington Post argued that the Nintendo DS does things the iPod Touch does not. As proof, he pointed to the DS’s two screens, Nintendo’s franchise titles such as Mario Kart DS and New Super Mario Bros and innovative games like the recent Scribblenauts, which lets players type out virtually any PG-13 noun and have the object literally appear on the screen.

“All of these experiences are very unique and very different and what you cannot find on their App Store,” Fils-Aime said.

It’s a weak argument. Half the games Fils-Aime mentions use the DS’s second screen to provide superfluous information, and there’s nothing in Apple’s technology that precludes a title like Scribblenauts. But the major problem here is Fils-Aime’s “our console is different” mentality.

Guess what? Every console is unique in some way. Check out Dan Terdiman’s CNet article today on a new breed of iPhone games that integrate your phone and contacts. That’s unique. Or just visit the App Store and pick up a free chess app, a free tower defense game and the entirety of Wolfenstein 3D for $2. That user experience is unique.

The real question is whether one console’s unique experience is better than the competition’s. I’ll concede that Nintendo has powerful franchises in Mario and Zelda, et al, but that doesn’t make up for how Apple is capturing the casual gaming market that Nintendo covets. Nintendo needs to find a solution to that problem, and Fils-Aime needs better talking points.

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AT&T’s A-List Leaves Out Its A-List Customers

att_header_logoExpanding unlimited calling to off-network phone numbers is one of the wireless industry’s newest ways to attract customers. Alltel was one of the first major carriers with its My Circle (which now has been rolled over to Verizon Wireless with the merger, called “Friends & Family”), then T-Mobile followed with myFaves. Sprint’s also doing something with “Any Mobile, Anytime” on select plans.

Now AT&T is getting into the game with a service called A-List. Like its competitors, the gist is the same: customers add their five most frequently called numbers. These are then treated like mobile-to-mobile calls, which are typically unlimited.

I will give kudos though. AT&T does not mess with the rest of the plan when you use the service. Neither your normal mobile to mobile or rollover minutes will be affected.

There is a catch. Like Verizon Wireless, you must have a $59.99/mo. or greater voice plan in order to use the service. This is somewhat troubling to me, as a large segment of AT&T’s growing iPhone population is from the get go excluded from the service.

Almost all of my iPhone-equipped friends are on the $39.99 monthly voice plan. The reasoning for this is simple: on top of that, a $39.99 $30 monthly data plan is required, already pushing the bill to nearly $70 a month. Add the fact most of us are texters, so we’re already now pushing that bill to near $90 a month even before taxes and fees, or any other service we might be inclined to add.

If we’d bump up to the next plan, there’s a good chance our monthly wireless bill would exceed $110, which in most cases is just too much to justify for. But through AT&T’s policies, none of us would qualify for A-List.

This seems rotten to me. I’m willing to place money on the fact that the average iPhone users bill is probably on the order of 50% or so higher than that of a non iPhone user. Look at AT&T’s ARPU (Average Revenue Per User) for the second quarter: $60. That is already about $10 below the base cost of owning an iPhone, without texting or anything else added.

Yes, iPhone users put a strain on the AT&T network. But at the same time, they are the basis of the company’s bottom line. The least the company could do here was include its “A-List” customers in on the deal.

Hopefully, the carrier reconsiders the requirements and allows for iPhone users who are already paying a lot every month to benefit from this new feature.

Update: I had the data plan cost wrong here, as well as T-Mobile putting back M2M with myFaves now (it wasn’t at first) so I’ve tweaked our math and wording here. Thanks to commenters for catching this.

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AT&T Manages a Successful iPhone MMS Launch

att_header_logoI will eat my words, somewhat at least. After launching MMS for the iPhone on Friday, it appears AT&T has managed to launch the functionality without much of a problem after all. Yes, there were some hiccups and glitches, but nothing widespread from what we can gather.

My own personal experience with MMS has been positive. Friday was bumpy from time to time, including one or two messages that seemed to take minutes to send. But none of them failed, and to my knowledge every one of them made it to their destination. I could complain about Apple’s implementation of MMS, but hey that isn’t AT&T’s fault.

I’ve received some reports from my Twitter followers (shameless plug: @edoswald) which reported some problems early on:

User @CanonThom:

“An MMS message sent to a non-updated iPhone disappears. Sent to a non-iPhone but still AT&T seems to work. Non MMS texts work fine”

User @walter_theman:

“my signal is fading in and out, mms will send on occations and others get the red !”

AT&T’s Facebook page is also abuzz with some problem reports, but nothing that seems overly serious, here’s a roundup of the most common issues:

– Problems with receiving MMS from Verizon
– Problems sending MMS to Verizon (I have received/sent fine here)
– Intermittent failure to receive or send MMS
– Slowness in sending (I’ve seen this)

In the interest of fairness, AT&T contacted us shortly after my initial post asking to be able to respond. I have been in contact, however I haven’t received any official response as of yet. When it comes I’ll be sure to update this post.

I’ve also asked for some idea on the added strain on the network, which was apparently one of AT&T’s chief concerns when MMS was first announced for the iPhone earlier this summer.

Are you having problems at all? Have they been resolved? Let us know in the comments.

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Apple: Hey Sony, Nintendo, Bring It

iphonepspdsMan, we’re getting so close to having Apple as a real contender in the handheld game console wars, I can feel it.

As Gamespot points out, Apple’s music-themed event marked the first time that the company publicly argued why the iPhone and iPod Touch are better gaming options than Sony’s PSP and the Nintendo DS. Phil Schiller, Apple’s senior vice president of worldwide product marketing, went so far as to say those other two consoles are “not a lot of fun.”

Now, we can debate ad nauseum the merits of iPhone and iPod Touch gaming vs. the PSP and the DS. We can argue which device is the most successful, has the best games or has the greatest chance of survival. But that’s boring. What’s really great about the console wars is all the bickering and spin that goes along with it. In that regard, Apple showed that it’s ready to play hardball.

At yesterday’s event, one of Apple’s slides touted a catalog of 21,178 “Games & Entertainment Titles,” compared to 3,680 DS games and 607 PSP titles. Of course, it’s totally bogus for Apple to include “Entertainment” in the mix, as we’re strictly comparing gaming devices here. A quick check of Apptism shows 14,657 games on file.

If Apple’s still ahead, why fudge the stats? Because that’s what you do in the console wars. I’m reminded of when Sony argued last January that it’s a better value than the Xbox 360, assuming that you bought the basic Xbox 360 Arcade, then purchased the most expensive hard drive available and threw in an optional Wi-Fi adapter. Sure, the argument is valid, but the math is fuzzy.

And then, there’s all the trash talk. Back in February, I looked on with delight at the way Microsoft and Sony were sniping at each other. Yesterday, Schiller argued that “once you play a game on the iPod touch, you think ‘hey, [the DS and PSP] aren’t so cool any more…'” Burn!

Sony and Nintendo haven’t fired back yet (in fact, Sony’s been unbelievably timid on the matter), but if Apple keeps up this rhetoric, it’s only a matter of time until the sparks fly. I can’t wait to watch.

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Loopt Does Background Functions on the iPhone. What’s Next?

looptIt’s not full-fledged multitasking, but Loopt will be the first third-party app to send out information even when you’re not actively using it.

The location services program, which tells friends where you are and finds nearby points of interest, has announced an “Always-On” service that continues to update your whereabouts in the background. Here’s the catch: Loopt itself is free, but Always-On will cost an extra $4 per month on your AT&T bill.

Business Insider’s Dan Frommer writes that Loopt struck a deal with AT&T, allowing the iPhone to beam out its location even though Loopt itself is not actually running. As Daring Fireball’s John Gruber writes, this is a server-to-server system, not an app that functions in the background.

The implications of the deal depend on what’s happening behind the scenes. If AT&T is simply providing a workaround for apps that want to send out information in the background, all this means is that other apps — more location services, mostly — could strike similar deals, as long as the app itself doesn’t need to function at the same time.

But let’s just speculate that AT&T has some sway over the iPhone’s inability to multitask. After all, any application that constantly sends and receives information equates to more strain on AT&T’s already inadequate network, so maybe the no backgrounding rule was a way to cut down on traffic. If that’s the case, we might eventually start seeing real multitasking, on the condition that iPhone users pay an additional charge when there’s a data exchange involved.

Given the uproar that would occur if customers started getting nickled and dimed on more monthly charges, I’m inclined to think deals like the one between Loopt and AT&T will be few and far between. But as much as it would irk me, I’d pay a little extra every month to listen to Slacker Radio while playing games or surfing the ‘net.

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Okay, Sony, Now You’re Definitely Competing With the iPhone

gtaRemember in March, when Sony Senior Marketing Vice President Peter Dille dismissed the iPhone? “The iPhone games and apps are largely diversionary, whereas we’re a gaming company and we make games for people who want to carry a gaming device and play a game that offers a satisfying 20+ hours of gameplay,” he said in an interview with GameDaily.

I’d love to hear what Dille thinks now that Grand Theft Auto: Chinatown Wars is coming to the iPhone. The game, originally released for Nintendo DS in March, was announced for Sony’s PSP in June and will arrive on October 20. The iPhone version is scheduled for release some time this fall, 1UP reports.

This is the inverse of Sony’s recent announcement of PSP Minis, a set of small-scale, inexpensive games targeted at the upcoming PSP Go. While that move represented an attack on the iPhone’s cheap gaming marketplace (though Sony wouldn’t admit it), GTA’s migration to the iPhone is a counter-assault on the PSP’s 20-hour experience.

The announcement partly suggests that game developers and publishers are getting confident in the iPhone as a serious gaming platform. More importantly, if the iPhone version of GTA proves equal to its PSP and Nintendo DS counterparts, it opens the door for more ports of dedicated handheld console games.

I’m not simply talking about a paring down of big franchise games, such as Assassin’s Creed and Metal Gear Solid, because that’s already happening. What I’m wondering is, how long will it be before the same handheld video game is simultaneously announced and released for Nintendo DS, PSP and iPhone?

And if that happens, how long will it be before Sony finally acknowledges that there’s a third enemy in its midst?

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Yes, Sony, You Are Competing With the iPhone

iphone-vs-sony-pspSony continues to insist that it’s not competing with the iPhone on gaming, even though the opposite is increasingly becoming true.

Tucked into Sony’s impressively newsworthy GamesCom press conference yesterday was an announcement for “PSP Minis,” a line of low-price, small-scale video games aimed at the upcoming PSP Go handheld. The list of planned games, including Air Hockey, Bowling and Pac-Man Championship Edition, sound a lot like what you’d find in the iPhone’s App Store.

This is a major about-face for Sony. In March, the company’s marketing VP Peter Dille derided the iPhone as a “separate business” that hosts “largely diversionary” games. He further explained that Sony is a gaming company that makes handheld games with 20-hour experiences. I guess Sony realized there’s also room for cheap and simple.

Still, the company won’t admit that it’s taking Apple on with PSP Minis. Here’s Gamasutra’s Leigh Alexander on follow-up with Playstation Network operations director Eric Lempel, who says Sony isn’t after Apple’s market share.

“It’s totally different,” Lempel told Gamasutra. “… It’s not open to users; these are professional developers, it’s not like what you’re seeing on that other platform.”

Someone needs to remind Sony’s handlers that “competition” doesn’t mean “approaching the market in the exact same way, warts and all.” This should be an opportunity for Sony to say “Yes, we are competing with Apple for handheld gamers’ money, and here’s how we’re going to take it.” Instead, Lempel seems unwilling to confront the truth head-on.

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The iPhone Outpowers the Wii? Who Cares.

iphonewiiA game programmer is getting mouthy about the Wii, saying that an iPhone is more powerful for gaming.

This argument transpired at the forums (via GameZine) for TellTale, which developed Tales of Monkey Island as a downloadable title from the WiiWare online store. A programmer with the handle “Yare” explained that the Wii is just not meaty enough to address all of the issues players are having, including blurry textures and choppy framerates.

“Frame rate issues will probably get sorted out eventually, but keep in mind that the Wii is just not a powerful console,” Yare wrote. “An iPhone is much more powerful than a Wii, even.”

A boisterous claim, no doubt, but does it hold water? It’s hard to say given that neither Apple nor Nintendo freely discusses hardware specs. You can take a look at the leaked specs for both the Wii and the iPhone and be the judge, but even then you’d have a hard time making a direct comparison.

In any case, I don’t think it really matters. One of the things I like about WiiWare is how it forces simplicity. The console space is so otherwise littered with face-melting graphics that a space for constraint in game design and visual aesthetics is welcome. To that end, a couple of my favorite games for this generation of consoles — World of Goo and Bit.Trip Beat — are downloadable WiiWare titles. Both games have simple foundations, but they manage to create complex challenges without relying on technical muscle.

I understand some of Yare’s concerns, particularly that WiiWare titles can be no larger than 40 MB in size (Nintendo has not explicitly confirmed this, but has said the company encourages smaller games). With Nintendo now allowing access to games directly from an SD card, there’s room to relax those constraints, but that doesn’t mean the floodgates should open for games of all sizes. I don’t want WiiWare to become musclebound.

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