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Since the dawn of the computing era, developers and manufacturers of technology have striven for and succeeded

in making thei r products smaller, to the point of portability. In recent years, mobile computing has become a way of life for many the world over. The world has come a long-way from the days of the first truly portable computer, the abacus. For people worldwide, mobile phones, personal laptop computers, and personal digital assistants have become familiar, everyday tools. A leading mobile communications company, Nokia predicted in 2006 that there would be over three billion mobile phone users worldwide by 2009. More recent research indicates that laptop computers are now outselling desktop models in the United States. Mobile computers have become even smaller with the emergence of the PDA or Personal Digital Assistant. PDAs are handheld or palmtop computers. They have become an indispensible tool for science, business, government, and ordinary people throughout the world. The handheld computer/mobile phone promises to be the worlds new technological tool for the unlimited exchange of information. Todays PDA isthe ultimate synthesis of the most relied on features of the computer, paired with the compactness and convenience of a built in mobile phone. The culminations of the latest innovations in mobile telecommunications and portable computing have become household names such as Blackberry, and Palm. As demand for these products rises a number of newer players have also begun to enter this market. Their plans have revealed a newbreed of mobile devices that contain the full functionality of a standard laptop computer and a mobile phone in a handheld package. This paper will look at two of the latest ventures in the area of PDA phones and attempt to analyze the bourgeoning mobile industry as a whole. Before detailing the status quo of the mobile communications and computing industry, it is necessary to understand a brief overall history of it. For the most part, the mobile computing industry and the mobile communications industry have evolved independently of each other. Most recently we have seen them unite due to technological advancement in both industries. The inspiration for the first laptops as we know them today is most commonly thought to have come from the mind of Alan Kay, a researcher at the now famous Xerox PARC (Palo Alto Research Center) in the 1970s. The project was called the Dynabook and was to be marketed as a $100 educational tool aimed at children. However, the technology at the time proved too poor to achieve a finished product and it was abandoned. The Osborne 1 by Osborne Computer Corporation is most widely regarded as the first commercially available portable computer. Appearing in 1981, it was the size of a suitcase and weighed as much as a oneyear-old child (12kg). It had a tiny monochrome CRT (Cathode Ray Tube) screen and a fold-down keyboard that doubled as the machines lid, two 5.25in floppy disk drives, ran on the CP/M operating system. The Osborne 1 was the only commercially available portable computer at this time. The first true, laptop, however, was built in 1979 by Bill Moggridge and was called the GRID Compass 1101. This was the first portable computer with todays clamshell design and was originally built exclusively for the United States military and NASA. It was remarkably advanced for the time, and even incorporated a thin plasma screen. The GRID Compass 1101 inspired numerous clones, which would eventually evolve into todays laptop computer. Two major problems plagued these early portable computers. First, they had little to no internal storage capabilities. Second their batteries were extremely heavy and had a short-lived capacity. IBMs first portable computer, the Convertible was released in 1986. It had twin 3.5 floppy disk drives but no internal hard-drive. That wouldnt come until 1989 when Compaq would release the LTE 286 with a 20-megabyte internal hard disk drive. Apple Computers, ever the innovator, built a 40 megabyte SCSI hard drive into their first portable later that year. The Macintosh Portable was much sleeker and more compact than the Compaqs suitcase like design. In the absence of any other available technologies, simple, everyday alkaline batteries powered many early laptops. Some, like the Compaq LTE 286 had NiCad (nickel cadmium) battery packs, and very few, like the Macintosh Portable, were even powered by sealed lead acid batteries, like the ones found in automobiles. Battery technology was far behind and wouldnt catch up until the end of the nineties with the development of the lithium ion battery. These batteries where considerably smaller and lighter so they could be directly incorporated into the body of the machine. They were also able to hold a much longer charge with ability to be recharged over a much longer life. As battery problems plagued the first major portable computers, developments in processing and other hardware continued to move forward at a steady pace. In the late eighties, battery limitations on processor power were severe enough to cause laptop processors to hit a glass ceiling. As desktop computers raced ahead into the realm of Intels 386 and 486 processors, laptops were stuck with the much slower 286 processor. After 1999 however, laptops would become increasingly lighter, thinner, smaller, faster, and, most importantly, wireless in nature. Wireless was the concept that had also been the driving force behind another burgeoning tech industry with which mobile computers were destined to eventually collide with. Mobile phones have been around in some form or another since the late 1940s. The technology that would later be used in todays cell phones was first implemented by the United States military in World War II, and was also used early on by the police, emergency services, and taxi, and trucking firms. The worlds first mobile telephone system was built and operated by AT&T in St. Louis Missouri in 1946. Equipment was bulky, heavy, expensive, and restricted to vehicles. Transmission quality was uneven and often poor. In 1970, a Bell Labs engineer in the United States named Amos E. Joel Jr. developed an automatic call-handoff system, which made mobile phone service possible when moving between multiple cells or signal areas. The First Generation or 1G mobile telephone came on the market in 1983 and used analog technology. In this era phones became small enough to be used free of a vehicle or battery pack. During the 1990s, great improvements were made in both shrinking and improving the quality of mobile phones. This trend marks the Second Generation (2G) of mobile phones and the birth of the digital mobile network. In this era high quality digital networks, such as GSM (Global System for Mobile communications), became the norm. As with the portable computing industry, lithium-ion battery technology contributed to making devices much lighter, smaller, and longer lasting. The 3G (Third Generation) of mobile telecommunications is the current era. This latest technology enables mobile phones to handle both voice and data transmissions. This means Internet access, email and the ability to send SMS and MMS messages to other wireless handsets. Now that the mobile phone and the handheld computer have become integrated, the world is witnessing a transition into a Fourth Generation mobile device. Many of these smartphones, such as the Palm, Blackberry and most recently, the Apple iPhone, run on scaled down versions of popular computer operating systems, such as Microsoft Windows, and MAC OS X. Apples iPhone has proven to the most revolutionary device to date in successfully integrating computer and mobile phone technology. The iPhone essentially solved the problem of interfacing with such a small device. Until the iPhone, smart phones have traditionally been difficult to operate because of their small size. Manufacturer designs have traditionally included a small QWERTY keyboard, track ball or wheel, a touch screen, or some combination of the three. The problem is that these buttons take up valuable screen space and are notoriously hard to type on. By perfecting an intuitive and strictly touch screen based interface called multitouch, in which keyboards only appear when you need them, Apple has simplified both the hardware design and software functionality of the handheld computer. Multitouch technology is a human-computer interaction technology, in which the screen responds to a number of different gestures or sequenced of finger motions from the user. For example, one may scroll through selections on the iPhone with the flick of a finger or zoom in or out on web pages, pictures, or documents by pinching in and out on the screen. This technology was originally developed at the University of Toronto and Bell Labs developed a multitouch interface that could manipulate images in 1984. However, multitouch has not seen any widespread product implementation until the iPhone. Apple has also recently applied multitouch to the touchpads on all their latest laptops. The integration of Apples iPhone based version of their OS X computer operating system with a device originally based on their iPod platform has produced a sleek, amazingly powerful and user friendly pocket computer and mobile phone. In addition to multitouch, the iPhone contains a personal digital assistant, with fully functional web browser, mobile phone, email client, iPod digital audio and video player, and digital camera. The device can connect directly to the worldwide web via a high-speed wireless Internet connection, if one is available, or through an EDGE (Enhanced Data Rates for GSM Evolution) data connection, which is essentially a digital mobile phone signal for receiving data. For storing data, such as digital pictures, audio or video files, email, contacts, calendars, documents or even third party programs, an iPhone purchaser can choose between an eight or sixteen gigabyte model. For viewing or interfacing with any of these things, the user is provided with a high-resolution 3.5-inch glass touch screen. One of the most recent software upgrades for the iPhone (1.1.3) has turned the Google Maps application into a GPS locator that works by triangulating distance between GSM cell towers or wireless internet hotspots. Since the iPhones release in June of 2007, Apple has emerged as a first mover the integration of the mobile communications and mobile computing industry. There are currently only a couple of devices commercially available that can match the iPhone in both hardware and software capabilities. However, iPhones success has made it much more prolific in terms of global demand, allowing Apple to currently hold monopolistic power with their product. The iPhone is available through exclusive service contracts with one of the following mobile providers in the following countries, AT&T in The United States, O2 in Great Britain, Orange in France, T-Mobile in Germany. Apple reported sales figures of over 4 million iPhones worldwide in January and hopes to hit theirtarget of 9 million sometime in 2008. Since its release, Apple has kept a close eye on sales and has attempted to restrict region specific sales data from being released by its partnering service providers. iPhone sales are heavily monitored and are tied to both the devices serial number and telephone number assigned. In April 2008, Apple announced that all iPhone purchases must be in credit

or debit card and restricted sales to two per customer. Many have surmised this is so they can keep more accurate data on just how many iPhones are out there and restrict the possibility of resale. In addition, Apple designed the iPhone to be both activated with, updated through, and synchronized with a personal computer using their iTunes music software and online media store. The one-year limited warranty for the device states that any software or hardware alterations or additions not directly distributed by Apple or Apples iTunes store would cause it to be voided. Apples strategy seems to be following its traditional strategy, to ensure that each iPhone sold will be a continuing source of revenue for the company by its dependence on Apple for its software and media. Another one of the latest software updates for the iPhone points to this Apple trend. That is the addition of an iTunes store application directly onto the device, making it possible to browse, purchase and download digital media from Apple wherever your iPhone can connect to a high speed wireless network. Despite Apples efforts to both keep tabs on both the iPhones quantity and quality, many computer savvy iPhone users have begun to unlock and or jailbreak their devices for use with third-party software and other GSM service providers. Simple to use programs have already been developed and are available for download on the Internet, which can easily crack the iPhone for use with third party programs and multiple GSM service providers. This, of course, voids the iPhones one-year warranty, but then again, so will even one video or ring tone on the device not purchased through Apples iTunes. The fact remains, however that the iPhone is far too capable a computer to be locked down to Apples sole development. Even Apples strongest efforts to do so have been foiled relatively early in the life of the product. Third party application developers have already begun to make small profits out of useful third party applications, which can provide features not originally offered on the iPhone such as a video camera function or a MMS (Multimedia Messaging) program. This independent development seems to be directly related to Apples efforts to restrict the open-source environment in the first place. In other words, third party developers have been given incentive to improve the iPhone because of Apples efforts to restrict the exchange of non-Apple material. Apple has been extremely successful in its first-mover venture, thus far. They have created a revolutionary device for which there is high demand andsuccessfully locked up a large portion of the PDA phone market. Furthermore they have locked-in iPhone owners with two-year service agreements, and software restrictions that limit them to Apples sole development and therefore profit. However, a much stronger force than a relatively small community of independent software developers is challenging Apples restrictive model for the iPhone. The entire mobile computing and mobile communications industry is now quickly working to develop products that can not only compete with the iPhones success, but beat it.The largest venture in this area so far is being undertaken by the search engine giant Google and promises to produce thetipping point against Apples first-mover success with the iPhone. Google has announced plans to release its new mobile phone operating system called Android in the second half of 2008. The first rumors of their plan spoke of a gPhone, but Google has explained that not only may there be a Google branded mobile device, but also, an intuitive Google mobile operating system that can turn almost any Smartphone into a gPhone. Unlike the iPhone, however, Android, which looks and operates similarly to Apples OS X iPhone operating system, (including the multitouch interface support on capable devices) will be able to work on a broad spectrum of smartphones. In another interesting move, Google has offered $2 million a piece to any independent software developers who can write programs that Google deems good enough to purchase and integrate into the Android system. This decision is part of the broad initiative of the open source software community, of which Google is one of the strongest supporters. Google has recently instituted the Open Handset Alliance, which to apply and build support for the open source ideals in the mobile phone and computing industry. According to Googles Android website,Each member of the Open Handset Alliance is strongly committed to greater openness in the mobile ecosystemour first joint project as a new Alliance is Android. Members of the Open Handset Alliance believe it is this increased opennessthat will enable everyone in the mobile industry to innovate more rapidly and respond better to consumers' demands. Android was built from the ground up with the explicit goal to be the first open, complete, and free platform created specifically for mobile devices. The open source movement seeks an environment where the free exchangeof technology, in this case, mobile phone software, reigns. The Open Source Initiative, a non-profit corporationformed to educate about and advocate for the benefits of open source and to build bridges among different constituencies in the open-source community defines open source as,a development method for software that harnesses the power of distributed peer review and transparency of process. The promise of open source is better quality, higher reliability, more flexibility, lower cost, and an end to predatory vendor lock-in. This is exactly the atmosphere that threatens to overturn Apples first mover success and give Google a second mover advantage in the mobile computing and communications market. Googles foundational open source model in this pursuit poses a direct threat to Apple for many reasons. Most notably, by embracing the open source software platform, Google threatens to thwart any attempts by Apple to strictly control the content and capabilities of the iPhone if they want to remain competitive. In staying true to open source ideals, Google has also decided to make its new software compatible and widely available for multiple devices spanning numerous handheld producers, whereas Apples iPhone is currently the only commercially available mobile device capable of running Apples OS X. Secondly, Android promises to enable certain devices far beyond the current abilities of the iPhone. Googles final and, perhaps strongest leverage against Apple is their goal to eventually provide their own premium mobile network service, which promises to utilize the full capabilities of the latest mobile hardware, software, and wireless network technologies in existence. Another direct threat to Apple from Googles venture into the mobile communications and computing market is Googles plan to eventually become their own service provider. Google, in order to ensure the best possible service for Android devices wants to use its revenue, resources and advertising incentive to provide mobile telephone service that would not be restricted to any one digital wireless phone carrier. In other words, just as wireless phone signals are handed off to different signal towers on the same network, with the same carrier, the gPhone would be capable of jumping between service providers and network types based on quality and strength of signal. By purchasing bandwidth from major service providers worldwide and offering them advertising incentives, Google can increase the quality, reliability and functionality of mobile devices beyond anything currently being offered. In March, Google announced its partnership with a Taiwanese firm called HTC (High Tech Computer Corporation) in developing and testing Android and their plans to debut the new operating system on a new HTC device. HTC is one of the worlds forerunners in the mobile computing and communications market and produce hardware devices, currently based on Microsoft Windows operating systems. Their product line currently spans from fully functional palmtop computers that run full versions of Windows new Vista operating system to PDA phones that run Windows Mobile. Most of their handhelds have also implemented either touch-screen or multitouch technology into their screens. Although, Android would by no means be restricted for use on any HTC device, Google has decided to release Android on a HTC device in order to demonstrate how it will be able to utilize the full power and features of a top of the line handheld computer. Most certainly Android HTC, which has been dubbed Dream, will be far more powerful and capable than the current iPhone. Features, not offered on the iPhone will most likely include 3G to 4G broadband internet transfer rates even when not connected to a high-speed wireless network; fully functional, satellite based GPS integrated into the devices Google Maps application with real-time 3-D street views; almost no restrictions on software or media type transferred to or from the device; Adobe Java Flash support, the most widespread program for streaming internet video; video recording support; a fold out QWERTY keyboard for those who cant do without a physical keyboard; and most importantly, the possibility of buying the device through multiple vendors and, or choosing between multiple service providers. Although Google had initially remained tight-lipped about its developments in mobile computing and communications, its recent announcements have already prompted Apple to make reactionary decisions regarding open-source initiatives. Most notably, Apple has opened up the iPhone to outside software developers, like Android. Not without a price, however. Whereas Google is graciously promising to reward successful outside software developers with millions of dollars, Apple is charging a minimal fee in order to download its Beta iPhone application development platform and once again seeking profit conducive to its original business plan of charging for its software. A more recent development by Apple and obvious response to Googles latest announcements is their announcement that they will implement multi-operating system capability into the iPhone in the near future. This would allow the iPhone to run an alternative mobile operating system such as Windows Mobile, or possibly Android, in addition to MAC OS X. There is word of OS X ever being offered for compatibility with any other device, however. In the long-run, Apple has once again poised itself to be eclipsed by second and third movers in the mobile computing and communications market as they were in the original PDA market. The iPhone is not Apples first experiment as an innovator in the mobile computing market. With their release of the Newton PDA in, Apple opened the market door for the modern handheld computer. Like the iPhone, the Newton was the most technologically advanced handheld computer of its time. The Newtons lack of financial success was due mainly to developers favoring the open source community, such as Palm, which almost immediately improved upon its technology and offered it on a more widely compatible platform. Although the iPhone has not been as much of

financial failure as the Newton, it seems to be poised to relinquish its success to open source development supporters, just like the Newton. As the text states, Apple hardly dominates the PC (or PDA) market today, but there remains the presumption that Apple initially dominated the early market because it created the product category. If Apple continues to behave as a PDA monopoly once it is eclipsed by Google, they run the risk of losing any advantages gained by entering the market first. Apples best strategy in the face of Googles second mover threat would be to keep its focus on the known technology, while all the time refining and upgrading it. For this, Apple already has an efficient system in place for the iPhone (iTunes), based on its core competencies. Ultimately, for Apple to continue to be successful through in the computing industry as a whole, they must not only continue innovate but adapt proactively to the technological response spurred by their own innovation. Bibliography 1. "Breakthrough for Mobile Telephony. The History of Ericsson. http://www.ericssonhistory.com/templates/Ericsson/Article.aspx?id=2095&ArticleID=1385&CatID=363&epslanguage=EN 2. Buxton, Bill. Multitouch Systems that I Have Known and Loved. http://www.billbuxton.com/multitouchOverview.html 3. Gasch, Scott. Alan Kay. http://ei.cs.vt.edu/~history/GASCH.KAY.HTML 4. Grid Compass 1101. http://home.total.net/~hrothgar/museum/Compass/

5. Maxcer, Chris. T-Mobile, Orange, O2, Snag European iPhone Deals. MacNewsWorld. August 22, 2007. http://www.macnewsworld.com/story/58973.html 6. Miller, Paul. Google and HTCs Dream Phone Protype Semi-revealed. Engaget. November 5, 2007. http://www.engadget.com/2007/11/05/google-and-htcs-dream-phone-prototype-semi-revealed/ 7. Nokia Expects 3 Billion Mobile Phone Users by 2008. Telecommunications Industry News. December 27, 2005. http://www.teleclick.ca/2005/12/nokia-expects-3-billion-mobile-phone-users-by-2008/ 8. OldComputers.net. http://oldcomputers.net/osborne.html 9. Orantia, Jenneth. Make Your iPhone Work for You. Web Worker Daily. April 22, 2008. http://webworkerdaily.com/2008/04/22/make-your-iphonework-for-you/ 10. Sandoval, Greg. Laptops Outsell Desktops for First Time. USA Today. June 6, 2005. http://www.usatoday.com/tech/news/2005-06-06laptops-outsell_x.htm 11. Shepler, John. 1G, 2G, 3G, 4G. SearchMobileComputing.com. April 11, 2005. http://searchmobilecomputing.techtarget.com/generic/0,295582,sid40_gci1078079,00.html 12. What Would it Take to Build a Better Mobile Phone?. Open Handset Alliance. http://www.openhandsetalliance.com/ 13. Woyke, Elizabeth. Eee! A New Cellphone!. Forbes.com. April, 22, 2008. http://www.forbes.com/technology/2008/04/21/cellphone-eee-asustech-wire-cx_ew_0422asus.html