Of iPhone Docks and Lesser Things
Yesterday a silent cheer echoed around the world when a consortium of cell phone makers and service providers proposed a new standard that would make possible, of all things, a universal cell phone charger. But it did not take long for critics to point out that the plan will not work because of the conspicuous absence of some major players: Apple, Palm, and RIM.
Personally, I think the fact that these companies did not agree to have this plan “mostly” implemented until January 2012 calls its feasibility into question more than anything else, but that’s another story. What I find most interesting is speculation as to whether Apple will participate.
The answer to that is a resounding no, but not for the reasons that most give. Contrary to popular belief, Apple is not going to snub this effort just because they can. Rather, I see the announcement as an effort on the part of some of the weaker players (“Hello, Moto”) to put in place a program that they can use as leverage against the companies (Apple, RIM) that are looking the strongest at the moment.
Let’s consider the history here. Apple’s iPhone connector is really just an iPod connector — the same one they introduced way back in 2001. In other words, for the past eight years, Apple has had a “universal” charger for all of its models of iPod and iPhone. By contrast, it seems that virtually every phone from the other manufacturers has a proprietary charger that differs from every other model supplied by the same manufacturer. Now, that does seem ridiculous. Unless your goal is to sell the public a lot of cheap car chargers at $35 a pop with an 80% gross profit margin, in which case it makes a lot of sense. [sigh]
The fact is, there have been several Windows Mobile smartphones which have offered a “universal charger based on the mini-USB connector interface” for some time. Which makes it all the more ludicrous that it will take until 2012 for the rest of these guys to catch up.
The real issue here is that while most of these phone companies are talking about chargers – dumb electrical connections that provide only power to the device – the smartphone connectors tend to carry data, as well. For example, those Windows Mobile mini-USB connectors allow syncing of data (calendars, contacts, music, applications, etc) between the phone and a PC.
Among these “smart connectors,” Apple’s 30-pin dock is much more sophisticated than anything else on the market. In addition to syncing data to a PC, it also allows robust access to the music library on your iPod or iPhone, which is the primary reason why there is such a thriving market of iPod accessories today. What would the world of the iPod be without speaker docks, clock radios, DJ mixing tables, video projectors, and a host of other accessories that all communicate using the 30-pin connector?
Personally, I think the success of the iPod (and by extension, the iPhone) is largely a result of the accessory market. Think about it: if you buy an iPod today for a couple hundred dollars, and then you spend a couple hundred more on an good speaker dock, what is your next MP3 player going to be? A Zune? A Walkman? Every time someone buys an accessory for her iPod or iPhone, the switching cost of moving to another platform increases – it’s a built-in customer loyalty program.
It seems that Apple has successfully done with iPod accessory makers what Microsoft did with Windows developers two decades ago. They have built up an ecosystem of supporting players. The iPod/iPhone market is strong today because of these companies. Many of the products they sell address niches too small for Apple to serve. But rather than forgo those opportunities altogether, Apple has licensed their connector technology to these companies and then sat back and watched while a thousand flowers bloomed. They are doing the same thing today with iPhone apps.
Finally, Apple’s competitors seem to be realizing that there is a solid business strategy here. Rather than stiffing their customers in order to sell a few extra car chargers, they could have built cohesive product lines and attracted a cottage industry of accessory manufacturers and application developers. Everyone from Microsoft to Nokia is trying to get on board with the program now. But it may be too late – Apple is way ahead of them.