Wired has published an article discussing the trials and tribulations of Apple on the long road from the iPod to the iPhone. Some juicy details lurk inside, including a revalation that I didn’t think Apple would have considered.
The article goes into detail in how Jobs first realized he would need a iPod/phone hybrid.
The two most striking revalations to me is that Apple had both considered becoming an MVNO (Mobile Virtual Network Operator, like Virgin UK) and that Apple gave up a thin slice of their iTunes revenue to AT&T as part of the deal.
The first idea about Apple becoming an MVNO had crossed my mind, however I just thought it would be too messy. Apple was equipped in terms of retail stores to handle becoming an MVNO, but the back end customer service infrastructure as well as billing systems, etc. would have needed to be built from the ground up. Also, their hands would have been tied when it comes to innovation on the network side – whatever their network operator provided would have to be sufficient. And features like unlimited data would have been tougher from a financial aspect if the carrier insisted on pay-per-bit.
The second item I’m skeptical about, even coming from a magazine like Wired (well, especially Wired). I find it odd that Apple would give up a slice of their iTunes revenue, especially considering that they’re paying full price for the hardware in terms of software development, parts, assembly, etc. The argument that AT&T is doing anything to get me to purchase more music is rediculous. You cant even use their EDGE network to purchase music – you have to connect to a WiFi access point. Part is a bandwidth issue (EDGE is slooooow) and part is possibly because AT&T would want a larger (and less profitable for Apple) cut of the iTunes music sold over the cellular network.
The article is an interesting read, especially for those who haven’t been following the iPhone with a fine toothed comb.
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