How the iPhone 4S Was a Letdown and Why It Doesn’t Matter

To the disappointment of many, Apple announced the upcoming release of the iPhone 4S, the next iteration of the iPhone line. It wasn’t that people didn’t want a new iPhone. It was that nearly everyone expected the iPhone 5.

Sunny Skies for Apple

Is Apple becoming a victim of its own success? The last few months and weeks have been marked by a frenzy of iPhone 5 rumors and speculations. Without a single word from Apple, the media jumped on screenshots of purported iPhone prototypes, exhibiting everything from new bevels, stretched display screens, and redesigned home buttons. There were rumors of carrier deals, including a last minute $20 billion Sprint-iPhone 5 exclusivity deal that sent blogs and analysts to a fury up until the final minutes leading up to the keynote. And like internet fan fiction, stories have circulated throughout the web on a dream iPhone 5 – replete with NFC, a larger display, and 4G functionality – none of which materialized. As Apple continues to hold the title as the leader in smartphones, the public has come to expect nothing but the very most from the Cupertino giant. It’s challenged the market with leaps and bounds with the initial iPod, iPhone, and even the iPad. Yet to expect groundbreaking changes in each yearly product iteration may be a feat too big for even Apple to tackle.

Still, despite downtrodden consumers taking to the web in protest post-announcement, Tuesday’s “disappointment” is expected to be but a blip on Apple’s continued dominance of the smartphone market. iPhone 4 owners who were hoping to upgrade will simply wait out to what will now be next year’s anticipated iPhone 5. Sprint users and those looking for a new phone will still have a solid option with the iPhone 4S. The real question is, despite the “failure” to deliver the iPhone 5, will Apple truly lose any consumers? No, in fact, their consumer base is expected to continue to grow, especially as the US smartphone penetration is only at around 33% according to a July comScore report. There’s still plenty of new fish for Apple.

So lesson of the year? Rumors are only rumors until it’s official. Despite all the speculations from every analyst, website, and blog out there, nearly all but a few of the rumors ended up true. It seemed like every website, news channel, and blog labeled yesterday as an iPhone 5 event – a pretty big miss on everyone’s part. As it turns out, Apple tends to play things rather conservatively. We saw the iPhone 3G move to the 3GS, now the 4 is followed with the 4S. So we’ll probably see the 5 next year, with some sort of 5″S” model the year after. Molly Wood of CNET actually has a pretty good theory to that pattern – it comes down to carriers. Plus Apple doesn’t need to rush – it’s got the top selling phone in the market.

And so now what? Well, my suggestion, if you have an older iPhone (not iPhone 4) and your contract is up, it might be worthwhile to look into the 4S. It’s still among the best smartphones in the market and the upgrades are still quite substantial (dual-code A5 chip, Siri voice commands, improved camera). For current iPhone 4 users, you might want to wait. It’s pretty likely the iPhone 5 will be released sometime next year, with substantial upgrades to the hardware – you don’t want to lock yourself into a two year contract at this point. And for the rest of us, enjoy the 24-48 hours of rest before the next batch of iPhone rumors start cropping up. Oh wait, too late.

Wireless Service in NYC Subways

Hate losing that signal when you walk down to take the subway? Good news for smartphone users looking to stream their music or update their Twitter feeds as they wait for the train. NYC has begun rolling out wireless voice and data services in their subway platforms.

The service is powered by AT&T and T-Mobile, providing commutes with access to the mobile network on the subway platforms. While currently installed in only four of the most trafficked areas (14th Street, 23rd Street), the city plans to install the service across the rest of its 271 stations in the next four years.

[CBS News]

Saved by the App!

Losing  a phone –  it’s happened to many, if not most. For those on iOS (iPhones, iPads, iPod Touches), the solution is simple. Subscribe to MobileMe. It’s a free service from Apple, that’ll allow you to track the location of your devices, based on GPS, cell signals, or Wi-Fi. Of course, it only works if you set it up before you lose your device, but there’s really no reason why you shouldn’t install it as soon as you first open the box. (Hint: If you haven’t yet, do it now!)

For Android, it’s just as simple, and perhaps even better. After leaving my phone in a taxi cab one night, I was able to go online and do a remote installation of a location app, called Plan B. That’s definitely one great perk of Android phones – the ability to install apps remotely from a different computer. So long as my phone was still on and had a 3G signal, I’d be able to get this app up and running. Did I forget to mention that it’s free? Once installed, the phone starts using cell signals and GPS to determine its location, sending periodic email updates. Within minutes, I was able to confirm that my phone was in Queens, and to my luck, at the cab company, where I was able to pick it up right away.

PlanB Emailed Map

While getting a lost phone back is still somewhat based on luck (having the right person find it, having enough battery power left, etc.), it’s still good to know that gone are the days where you’re completely out of options. So if you have an Android phone, or perhaps more accurately, without your Android phone, definitely check out Plan B on the Android Market.

Are Hulu’s Days Numbered?

While only a year or two ago, dreams of a cable cut and personalized video viewing future tantalized users across the web, that future may be in doubt. This past weekend, several networks, including NBC, TNT, and TBS have released dedicated apps that would deliver content, including full episodes to mobile devices including the iPad and the iPhone. This follows in the footsteps of ESPN and HBO, which were among the first to officially sanction and replicate the TV viewing experience on a portable device.

The big question is, where does this leave Hulu? Hulu, the unwanted child of NBC, FOX, and ABC, was created by these networks to address the matter of online piracy. Yet, despite its successes, the networks seem to do all they can do to handicap the service. Mobile (non-desktop browsers) is restricted to the paid Hulu Plus model. A month ago, FOX announced plans to implement an eight day delay on new episodes. Other networks are expected to follow suit. It seems like Hulu is being made to look less appealing by the day. Now the next nail on the coffin has been placed.

Hulu Plus: Payment Required

As of this weekend, NBC has done what it’s denied Hulu for years – a free mobile viewing experience. While networks have historically seen broadband and mobile as a threat to their established video models (traditional television), they are starting to see the opportunities. Now it’s just a matter of gaining full control. With a dedicated app, NBC once again regains control of all advertising (and profits) to their content. It may only be a matter of time before the other broadcast networks (FOX, ABC, CBS) follow suit.

NBC in full control

While viewers may rejoice in the free content NBC is providing, the cable networks, including Turner (TNT/TBS), have restricted mobile access to verified users only. In short, video is only available to those who subscribe to cable. There goes the thought of cord-cutting. ESPN and HBO have already done the same. One interesting note – Time Warner Cable is not among the options for verification for the Turner app – could this be a response to Time Warner’s first move of their streaming video app? If so, this could strike a blow perhaps to both parties, as consumers have already started complaining on the lack of access (While the NBC app has a full five star rating, the TNT and TBS apps are barely halfway). Still, the bigger issue is – that initial hope of cord cutting, at least for the moment, may have just been dashed.

All about leverage

Until cable companies find a way to monetize individual content and feel secure about offering a streaming-only option apart from any traditional TV subscription models, consumers will remain stuck to their cords and contracts. If anything, in the past few years, media, whether TV, print, or even gaming, has slowly shifted back from free and unrestricted to those traditional subscription models so many have hoped to move away from. So for now, that dream of a network-less future, where one builds a personalized channel based on favorite shows and programs will have to wait just a bit longer. Maybe much longer.

Lesson from HP: Non-Apple Tablets, It’s About Price!

In the past 12 hours, I’ve seen more friends buy HP Touchpads than all the days leading up. In fact, I personally didn’t know a single person who bought a HP Touchpad ’til now. What made all the difference? The price dropped, to $99.

HP Touchpad Now $99

Competition needs to be in price

The irony is that for the days leading up to HP’s announcement on the Touchpad (and the subsequent price drop/fire sale), HP had spent millions of dollars on advertising, hiring celebrities like Lea Michelle and Manny Pacquiao. What’s become evident now is that consumers weren’t moved by the branding or the messaging. It all came down to the price point. The HP Touchpad is now selling out. Had HP utilized those advertising dollars on price cuts or offers, the TouchPad may have lived on.

What HP has provided though, is a valuable insight into the tablet market. Lately, several analysts have suggested that the tablet market doesn’t truly exist – that consumers weren’t looking for tablets per se, they just wanted the iPad. Perhaps that’s not entirely true either though. With this rush for TouchPads, there definitely is interest. It’s more a question of value and worth. How much is a consumer willing to pay for a non-Apple tablet.

In all other devices including smartphones, laptops, computers, etc., nearly every competitor of Apple is priced much lower than the Cupertino giant. Strangely, despite coming in much later to tablet market, companies like Motorola, HP, Toshiba, RIM, and HTC have been pitting their tablets directly against the iPad, even when it comes to price, with prices in the $500+ range. However, they fail to recognize that Apple (and the iPad) carries an additional brand value that no other tablet maker has been able to replicate. Thus, when you stack these tablets against one another, Apple wins out. The key, perhaps, is to mark down the pricing, even if it means taking an inital loss.

Android smartphones have been able to dominate the market by becoming a low cost alternative to the iPhone. Same can be said of the Blackberry of the last few years. Tablets, whether of Android, RIM, or WebOS origin needs to consider this strategy. Forget the branding, multi-million dollar ad campaigns, or trying to “be” the iPad. Instead, offer users with a similar experience for half the cost of the iPad. It’s not the prettiest thing to hear, but it can potentially save other tablets from going down the same route as the Touchpad.

Skype for iPad On The Way

An iPad optimized version of Skype was accidentally found its way to the iTunes App Store before being pulled. Working across both WiFi and 3G, this version of Skype makes use of the extra real estate on the tablet, allowing users to chat, swap apps, and change statuses while in chat.

The video chat on the iPhone version works pretty well already on the iPad, though it’ll be great to have a dedicated app that’ll work in landscape mode as well. Though the app was pulled down, expect to see the official release soon.

Nintendo Drops 3DS Price to $170

With sales of the 3DS far below expectations, Nintendo will slash the price of the handheld system down to $169 – $80 down from the initial price of $249 starting August 12. For current owners of the 3DS, ten NES and ten Game Boy Advance games, twenty total, will be free, given that they use the Nintendo eShop before August 12.

The push in 3DS sales should help to push Nintendo’s slate of triple-A titles including Kid Icarus, Mario Kart, and Super Mario 3DS, all slated for later this year.

Still, the bigger question remains, are dedicated portable gaming consoles still a viable business? With the Playstation Vita release looming, both Nintendo and Sony need to convince gamers in that $170-$250 investment (for just the console itself), while $1 games continue to flood the iOS and Android marketplace.

FOX Rebuilds the Wall on Hulu

Big fan of streaming your favorite shows on Hulu? Bad news might be on the horizon. FOX has announced their plans to restrict online streaming of their latest shows to Hulu+ or verification of a subscription with a cable provider, such as Dish Network. If not, you’ll have to wait eight days before you can catch up on your missed episode.

So if you missed this week’s episode, there’s no way of catching up (without being a paid subscriber) to watch the next week’s episode back on TV. Will this really curb FOX’s fears of cord cutters or will it simply drive users back to illegal downloads and streams? While FOX is the first broadcast network to implement such a policy, it may not be the last. This could be the start of a very walled future.

Google+

Taking cues from the failures of Wave and Buzz, Google is once again stepping into the social networking front with their latest product: Google+.

Features include:

  • Circles: Group friends and contacts to allow for greater control in sharing
  • Group Video Chat: “Hangout” allows you to video chat with multiple contacts
  • Expanded Privacy Control: In contrast to Facebook, Google seeks to give users detailed control in what they share
  • Instant Upload: Photos (from mobile devices) can be instantly uploaded for easy access (for sharing)

Currently in beta, access is limited to invitation only to allow for a steadier trial run among the public . Though it’s unlikely that Google+ will be a Facebook-killer, this new platform may establish itself (and chip away) at competitors, including Facebook, Twitter, and Foursquare.

iOS Holiday Sale

Several publishers including EA and Gameloft offered heavily reduced pricing for their iOS games for the July 4th weekend. The drop in price can be linked to the immediate jump in ranking among paid apps on the iTunes Store.

This week also marks the release of Capcom’s Street Fighter IV Volt, a sequel to the popular iOS port of Street Fighter IV. This latest release included an interesting pricing model; the game started off at $0.99, increasing by a dollar each day until the final price of $5.99. While this tactic may prove to be useful in driving downloads and increasing game ranking (in the iTunes Store), the massive surge in purchases for pre-existing games for the holiday weekend may have negatively impacted results.