Ben and Mayor's "Apple Building the Blackberry Killer?" Blog entry

[iWonIt]

I think an "iPhone Pro" is a good way to target the business market, but does Apple really want to start targeting this group? Of course, they'll steal market share if they can by adding email capabilities, etc., but keep in mind that across the board, Apple dominates the consumer market, not the business market. There are several reasons for this. First, there's fierce competition in the business market, especially the Blackberry. Not only was Blackberry first to market (which is a huge advantage Apple usually tries to leverage), but they also support their phones with the Blackberry server. This service, along with the phones, are usually purchased by companies. We all know how difficult it can be to convince companies to switch because of high costs involved. Also, why would they? You can get a Blackberry now for $100 or less and it does all the things a business person needs it to. Also, business customers are tougher sells than consumers. Furthermore, Apple would have to change the look of the phone to make it appeal more to the business market instead of the consumer. The "cool' factor doesn't resinate as well within the business community...

[webwise]

What??? I strongly disagree. The reason Apple is getting into the business market was because of the overwhelming DEMAND/REQUEST of people who love the device and want to use it in their corporate environments. Oh, and don't forget that there are millions of "business users" who are not in big, corporate environments who want it too...there's a huge market for the iPhone JUST in the small business sector alone, of which there are millions in the U.S.. As far as competition, Apple is already blowing it away with all the hype around the phone, enterprise features and the app store service.

And where do you get that Apple "should" only target consumers? Professionals who use their hardware and software swear by them, and it's only going to grow...particularly in light of all the bad press Vista is getting...

It's all about the user experience. Make it great, and you'll create demand.

[iWonIt]

For the business market, it's all about cost and speed. Right now you can buy a Blackberry for far less than an iPhone, and can service it through several different carriers, instead of just at&t. In terms of speed, Blackberry has the fastest servers (BES) for relaying emails and other messages as quickly as possible.

I do agree with you about the user experience though. This is one key advantage for the iPhone. However, there are several new phones entering the market this year that offer similar features, including touch screens. Apple's main advantage is its momentum, as you mentioned in an earlier posting. However, this is not a sustainable competitive advantage. They'll have to continue to focus on innovating for the consumer market, so crossing over to the business market will be more difficult than you might think. It'd be easier for Blackberry to cross over into the consumer market. Matter of fact, they already are.

I'm not saying they shouldn't enter the business market. If there's low hanging fruit, go after it. But I think their potential is far more limited than you think it is.

[webwise]

I understand your point. But I think while the current phone manufacturers are busy worrying about cost and speed for businesses, Apple will (and has already) differentiate(d) itself by offering the best user experience along with the features business users want (referring to iPhone 2.0 software). While it may not takeover that market - even a small share can result in success for Apple since it's products are so desirable and can sustain a higher price.

Maybe it's just me, but I haven't read a single review of competitive touchscreen devices that come close to offering what the iPhone offers in terms of user experience. Functionality - maybe - but not user experience. And if I can define your mention of the word "cool" to mean "desirable and fun to use", then I think that will also propel the iPhone to success in the business arena.

Lastly, think about this incredible framework called the App Store. It will empower businesses to create custom applications for their employees and clients. No other phone manufacturer has this kind of "ecosystem" that has created incredible opportunity and flexibility.

The potential it offers is staggering to think about, not "limited".


Here is yet another business convert:
Why I'm Getting Rid of My Blackberry for an iPhone

[chadaw]

I agree that Apple definitely wins the user friendly part. The only thing I see as discouraging to business-focused people is no ability to edit or create Microsoft Office docs. I believe you can view them in email but not edit.

[iWonIt]

Great points, and good article. Where we differ in opinion I think revolves around who we believe benefits from these features. In my opinion, it's mainly the consumer. Of course there are business folks who will convert to the iphone, but there are also those who dislike the new 3G iphone and don't think it's worth the money. Regarding the article, many of the top 10 reasons to get an iphone aren't applicable to the business environment. His #1 reason to buy an iphone was because he's a mac user. How many businesses use Macs? Very few. Even with an increase in market share of 20% (most of which comes from the consumer segment), they still only have about 2% or 3% of the worldwide market.

My definition of "cool" had to do with the look and feel of the phone. Businesses don't care if the phone is "fun to use". They care about it being easy to use, having the functionality they need, and making sure it sends information as quickly as possible. As I already mentioned, cost is also a huge issue. According to these metrics, the Blackberry is still superior. Regarding the App Store, I believe this will primarily benefit the consumer, not the professional. You also mentioned user experience. Right now, you are right that the iPhone is dominant in this category. Apple does a great job at this on most of its products. However, it's also because touch screen cell phones are so new to the market. With the recently launched and upcoming launches, the gap will shrink. Consider the garmin nuvifone, or the Instinct, or even the LG Vu. The iPhone is dominant in the consumer market, but I think it will come up short for businesses.

[webwise]

Likewise, you have made some compelling arguments - I guess time will tell if Apple's foray into the business markets proves to be effective...

Refreshing to have some intelligent conversation in here!

[iWonIt]

Likewise webwise! Certainly the most interesting convo I've had on here yet...