Whenever Microsoft says anything negative about Apple, it's enough to keep Mac fans talking for months (Diggers should have a field day with this one). This time, Microsoft is weighing in on the iPhone. According to the Big-M, Apple faces some hurdles.
Apple now faces a number of challenges with its much-talked about mobile phone. At least, that is what Microsoft's president of entertainment and devices division, Robbie Bach, said
in a recent interview.
The iPhone is one of the most anticipated products of the year, and before Macworld's official announcement, the rumour mill was generating enough power to light a small city.
That is because the cellphone industry is a technology goldmine, where almost one billion cellphones are shipped every year, making the 70 million iPods Apple has sold over the past five years look like peanuts.
And so enters Microsoft's Bach, eager to make the industry sing to a different Zune. Bach is in charge of Microsoft's Zune business and the company's video game division. He says the Microsoft is also considering launching a mobile phone based on the platform of the Zune, but the launch is not the company's top priority. "It's probably on the table of things for us to look at, but not the number one thing we are focused on," Bach told analysts at the Consumer Electronics Show (CES) in Las Vegas.
The Zune is Microsoft's competitor to the iPod, and currently only sells in the United States. Microsoft plans to come out with more models later in 2007, however no word yet on when Canadians can expect the iPod alternative.
But the iPhone's release has the whole industry watching and waiting to see how the Mac giant will impact the industry. The release was so highly anticipated that even Microsoft found itself wrapped up in rumours: Before the official release, Bach said, "The latest rumor we hear is that it is going to be a MVNO phone and there hasn't been a lot of successes in that MVNO space for a lot of different reasons."
Bach is referring to word that Apple could release the phone through a Mobile Virtual Network Operator (MVNO) and then lease more capacity from other carriers. Apple is also rumoured to be considering selling the phone "unlocked" so that buyers can hook up with any carrier they choose. Sources close to the
Wall Street Journal say
Apple will be partnering with Cingular for the launch of their phone (which could be announced as early as next Tuesday).
Microsoft says Apple could face a difficult road ahead if it goes the MVNO route, as "MVNO phones often have difficult relationships with the mobile operators," as Reuters describes. One such example: Virgin Mobile.
Bach did give Apple credit for one thing, however: It's ability to partner and develop a strong brand. "Historically, working with partners hasn't been a strong point for Apple, so maybe it will find a way to work around those relationships," Bach said from CES.
But getting there wont' be easy. Bach said the design challenges are a lot to consider, including everything from decidiing on the number of inputs the phone should have, to its screen size and battery life. Before the phone was announced, Bach thought it could be a lot for Apple to handle. "You have to find out what it's great at," Bach said. "Is it great as a phone or is it great as music player? If it's great as a music player, then it's just another iPod trying to be a phone."
CES is a common battlefield in which companies always work to undermine the value of their competitors, so Microsoft's stab at Apple doesn't come as a surprise. In fact, for one of the main tech events of the year, I'm surprised that Microsoft would decentralize and talk about other brands.
More importantly to note, is the fact that Microsoft feels the need to undermine Apple's phone release, suggesting the company is either A) attempting to get name-dropped at Macworld by reporters covering the iPhone or B) waiting to see if the phone actually sells before launching a competitor (like it did with the Zune), yet downplaying it to begin with.
Whatever the tactic, the rift between Apple and Microsoft will likely heat up in 2007, as both companies battle in the music industry, wage war over operating systems, challenge each other with possible entries into the cellphone market and gear up to take each other on in the quest to dominate consumers' living rooms with movies and streaming media.
Let's get it on.
UPDATE: Apple announced the iPhone at MacWorld. For in-depth news as it breaks, and to see photos check out: http://www.digitaljournal.com/article/88096
