Comment by chungy

8 years ago

I assume the iphone was "more fancy featurephone" due to the lack of 3rd party apps?

I would have to disagree with that statement. Windows Mobile and BlackBerry allowed 3rd party apps to be installed, but they were both difficult to find and didn't usually add anything beneficial to the phones at the time. Users, for the most part, stuck to what was installed on the phone and that was it. Smartphones were defined by the fact they had an email client and a (relative to the time) high-resolution screen to read and write emails on.

It was a different market in 2007. The idea that a successful smartphone required an app ecosystem was unheard of.

I worked for a company in 2006 that was considering writing phone apps (we already had a bunch of Windows apps). At the time, each phone company wanted to "curate" the apps for their own phone stores. At least one company wanted, for each $10 app, about $11 of revenue. The result: we decided that it would be essentially impossible to ever make money from phone apps.

What the iPhone did was genius: they created demand for the phone, but would only sell through phone companies willing to let Apple control the app market. That made all the difference: all of sudden, a developer could make an app and have it show up to bazillions of people.

[disclaimer: I currently work for Microsoft, but not in the phone team. But I do have apps in the Microsoft app store!]

Don't confuse the lack of modern mobile apps with any mobile apps. There was a thriving ecosystem around mobile apps at the time. Not only Windows Mobile and Blackberry but Symbian too, which I believe was the largest, and Treo.

There were many companies living on this stuff. Mobile data was still very expensive, which didn't change for a few more years, and touchscreens were small and crappy. So the market was mostly business logic and CRM apps because they were the ones that could afford it.

That changed when mobile data and big screens became cheap enough for consumers, but I think Apple was as confused about that as everyone else given the state of early iPhones.