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Back to the Future: How Apple is Becoming More Like a Carrier Every Day
by Guest Author on Feb 8, 2010

Editor’s note: Is Apple going too far with its restrictions on developers? Alistair Goodman thinks so and explains why in this guest post. He is the CEO of 1020 Placecast, a location-based mobile advertising startup.

Apple’s recent behavior bears an increasing resemblance to carriers with respect to the walled garden they are creating around the iPhone. Restricting applications, restricting the use of location on the device, blocking Flash, and now potentially taking advertising in house—these moves are taken from the carrier’s playbook with the hope of locking out meaningful competition. Ironically, Apple may very well become the barrier to open innovation in mobile in much the same way as carriers have been before the iPhone came along.

What is clear from the announcement to developers last week about plans to deny some apps that deliver location-based advertising is that Apple intends to control the flow of marketing dollars on the iPhone. Less clear are their plans for sharing the wealth with the ecosystem—but if you look closely at acquisitions like Placebase, key hires and patent filings, what emerges is a potentially more ominous view of a company that can only compete in the direct advertising business head-to-head with Google by seizing control of location-based advertising.

Location is now widely understood to be the key to successful mobile advertising because where a consumer is in the physical world and at what the time they are there is such a strong predictor of consumer behavior and intent. “If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user’s location, your app will be returned to you by the App Store Review Team for modification before it can be posted to the App Store,” says Apple. While they have yet to entirely exclude developers and ad networks from the equation, their broader strategy around location-based programs certainly has the potential to do just that.

Consider the following:

  1. Apple’s acquisition of Placebase was not just about replacing Google Maps (with their Pushpin product). Placebase also is an aggregator of location-based content like neighborhood boundaries, census data and business listings, just like Navteq. These are the initial building blocks of a platform that indicates points-of-interest to a consumer when they are on their iPhone in a specific location. (Apple, like Google, has not yet cracked the problem of “location intelligence” – but this is just a starting point… more on that later in this piece)
  2. Apple’s $275 million acquisition and staffing up at Quattro is a clear signal that they are ramping up mobile advertising sales to go head-to-head with Google. In Europe, for example, Apple has just hired former Microsoft sales manager Theo Theodorou to lead their sales effort, and Todd Tran, previously a senior executive at WPP’s Group M, to be general manager. Integrating Quattro into Apple gives it the ability to target audiences and deliver mobile ads, and provide the analytics to media buyers about the effectiveness of their programs.
  3. Apple has filed (and widely publicized) patent applications in location-based marketing which are clearly designed to stake a claim in the space. Several patents are particularly interesting indicators of their strategic intent. This one, Location-Based Services, is like Google Goggles, which enables visual search based on a picture, and covers a host of location-based use cases such as understanding the proximity of businesses to enable the ability to trigger messages via “…information corresponding to one or more relevant businesses in a vicinity of the determined current geographic location.” A second one covers proximity-based ads, and a third is quite specific, “Graphical User Interface with Location-Specific Interface Elements,” covers the ability to monetize mobile messaging by enabling consumers to make purchases based on promoted items nearby. (Note to both Apple and Google beginning to stake out their ground in the future patent war: you will likely need this patent and others as well which were actually issued years ago.)

So what is missing from Apple’s strategy? Location intelligence —meaning the ability to return content (and advertising) on a consumer’s iPhone that is always correct, and always relevant for where they are and when they are there. As others have noted, just because a phone has a GPS on it that can locate a user does not mean that what is returned to them is meaningful. Location intelligence is the problem of returning relevant information based on place and time.  It is actually pretty complex—this is something that both Apple and Google are only discovering as they begin distributing their apps to millions of consumers. And doing it at scale—meaning always returning customized content and advertising to millions of consumers in real time—is an extraordinary challenge because it requires managing location data and content at a level of accuracy that today’s online search algorithms are just beginning to grasp.

Apple’s continued march down the path of the walled garden will become harder and harder as Google’s open Android ecosystem grows and the mobile ecosystem as a whole moves towards the more open Internet-like model. Meanwhile carriers will continue to use SMS to deliver location-based marketing across any open smartphone device or any feature phone. If Apple thinks the carriers are going to lie-down and settle for nothing from a new revenue stream in location-based advertising, they should think long and hard about the implications of this choice. Because as much as they are acting like the new carriers, they don’t actually own any wireless bandwidth or cell towers to carry all that data going to and from their phones.

Photo credit: Flickr/Paul Englefield.

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  • no one’s forcing you to use Apple products

    • I agree with you !

      I love apple

      of course ,the price is higher than other

      if the price

      http://www.udtek.com/universal-power-c-8.html

    • Yes, but the point is, our social-norm is using apple like their personal handy-dandy tool — the pressure is building up — that’s why in somewhat, strange way, you felt like buying apple products as well.

      I guess the next bet will be up for the iPad if it can protrude this cycle: http://bit.ly/apple-ipad-under-fire

      • If Apple becomes the ‘barrier to open innovation’ (?!) and stops giving consumers what they want, then consumer will go elsewhere.

        This move to block advertising looks like giving consumers what they want to me, not pandering to business at the expense of the user experience.

        • What is supposed to do ? leave all the advs business to the Google monopoly ??
          If you had a web site you will see how happy you are about the Google monopoly ..
          Apple is welcome in advs business and probably the only one able to cause some thoughts to Google..

      • I don’t think “protruded” means what you think it means.

    • And the only thing Apple says about this is that you should not use the users location for advertising if your app doesn’t offer any location-related functionality other than ads.

      It keeps the litter out of the ‘walled’ garden…

      • Exactly! Everybody seems to be missing out on this. Apple have no problem with location-based ads provided that is not the primary purpose of location in your app. I welcome the move. I hate opening apps and being asked for my location when there is no obvious reason the app should need it (other than ads).

      • That’s not true. Here’s exactly what it says…

        “If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user’s location, your app will be returned to you by the App Store Review Team for modification…”

        Notice the legalese keyword “primarily”. That is deliberately left open for interpretation. So I make a cool game that uses a user’s location but also displays an ad – so I can feed my kids. Jobs can shut me down any time he wants.

        As a Developer – I say no thanks. I’ll write it in Flash, distribute the app via a Web address to every smart phone in the World (except the iPad / iPhone) and let The People decide if my app is worthy or not.

        • I think the word primarily signifies that targeted ads cannot be the main reason your app asks for a users location. If you create a turn-by-turn nav app that also displays targeted ads that is fine. If you create a flashlight app and display targeted ads that is not ok as they are the only reason your app uses location.

          • OK – That’s YOUR Interpretation…

            But it IS open for interpretation. And that’s the entire point. Why would I leave myself open to Jobs’ team of cut-throat lawyers?

            Do you actually think if I create a hit game that competes with one of Jobs’ money makers, that he would hesitate to clobber me?

            Look what he’s trying to do to Flash – a direct competitor to his apps store. So – he BANS it.
            And please don’t parrot Jobs’ tripe about how Flash is going to make my computer explode and all my hair fall out.

          • @Joel Fiser

            Then you should get an Android phone and experience the total freedom of every Tom, Dick and Corporation bombarding you with the digital equivalent of road side bill boards.( actually I think google will draw the line here too, after all, this is their ad turf monopoly we are talking about here)

            Freedom my friend is a two edged sword! There is FREEDOM TO and FREEDOM FROM.

            If you are simple enough to focus only on absolute rights, where every citizen has unlimited FREEDOM TO do what ever they wish, then be prepared to put up with other peoples right to run rough shoot over what you might want, when ever it suits them.

            If you are simple enough to focus only on absolute rights, where every citizen had unlimited FREEDOM FROM the negative behavior of others, then be prepared to living in a stifling maze of social constraints.

            Most modern societies are populated with educated citizens who realize the futility of such simplistic black and white polemics. Modern democratic societies are constantly working the the balance point between the FREEDOM TO and the FREEDOM FROM, between the RIGHTS OF THE INDIVIDUAL and RIGHTS OF THE GROUP!

            This is why most people like to live in democracies. In theory, at least, democracies offers us the opportunity to focus the will of the majority, via admittedly somewhat imperfect democratic governance models, to debate where we want to place that ever so important tipping point between:
            THE INTERESTS/RIGHTS/FREEDOMS
            OF THE INDIVIDUAL
            and
            THE INTERESTS/RIGHTS/FREEDOMS
            OF THE GROUP.

            Apple to must struggle with this complexity of balancing between the interests of it’s commercial partners, itself and it’s customers. Apple is not a democracy. It is a corporation and like all corporations it’s first priority is to it’s shareholders. This requires that Apple make a business decision and commit to setting a balance or tipping point between
            THE INTERESTS/RIGHTS/FREEDOMS
            OF IT’S INDIVIDUAL DEVELOPERS
            and
            THE INTERESTS/RIGHTS/FREEDOMS
            OF IT’S CUSTOMERS AS A GROUP.

            This tipping point is a corporate judgement call. Each company consciously or unconsciously sets this tipping point. Apples is keenly aware of the importance that this process has on the over all customer experience. Apple has chosen, rightly or wrongly, to set this tipping point where it will be most comfortable and beneficial to the average DIGITAL APPLIANCE consumer. Unfortunately this is out side the comfort zone for most of the digital geek, gadget loving, pocket protector crowds that tend to populate most tech blog comment dungeons.

      • And another thing…

        Maarten, are you actually espousing “the walled garden” as something that is good?

        Well, as Josey Wales said: “A man’s got to know his limitations”.

  • Crazy – why didn’t Apple purchase AdMob when they had the chance? Has the Google/AdMob deal closed yet?

  • The wireless oligarchy is Orwelian and awful. Somebody has to take them on, why not Apple.

    • Was 1020 Placecast’s App rejected by Apple?
      Great write up nevertheless.

      • Indeed – while this article is interesting speculation, it’s still speculation, only, until we start seeing which apps are rejected and why.

        If Apple’s working to preëmptively weed out apps that do nothing or little but show location-aware ads, I’m all for these rules. If the geo-aware ads are part of a larger whole, g*d bless the app developers for turning a better buck and – with hope – these apps make it through the gauntlet.

        If apple’s also “reserving” a chunk of the mobile ad space for itself, these are part of “encumbants’ advantage:” if they become too onerous to where the developer ecosystem feels wronged, other players will build a better mousetrap.

        Until we see the kinds of apps that get through – and don’t – it’s mostly whinging.

    • dave "the Apple fanboy" - February 9th, 2010 at 1:21 am UTC

      The carriers, Google, Apple, Amazon…these all are businesses.

      They try to grow and make profits, leveraging their strenghts and positions.

      Apple is not a monopoly in any form.
      If it would be the case you could argue the same of Google for Advertising, etc.

      Dominance is different from Monopoly, indeed the first one is governed by the Market Laws, that means the power is in the hands of consumers.

      From a consumer point of view I like the Competition and I like Apple, because so far they were able to provide the best User Experience.

      I also think they are taking a risky way, playing the role of the Gatekeeper : by limiting too much developers, publishers and finally Users their are weakening thier fundamental strenght.

      Google is much more Orwelian to me, they dominate without taking any responsibility, using Opennes as their shield.

    • if ur worried about orwellian society then u should be more worried about the amount of info google holds.

    • It’s Apple who is becoming Orwellian. We clearly never realized that in the iconic 1984 Apple commercial it was actually Apple ON the screen – not freeing the masses…

  • Great write up.

    The moves Apple is making these days makes me sick. They are becoming a very large and abusive monopoly. I’ve been saying this for years with the way that iTunes purchases only work with iPods/iPhones and how Apple refuses to license the encryption to allow other players in (and updating iTunes to prevent fix “hacks” like what Palm Pre was doing).

    If it was anyone but Apple doing this, people would be crying for blood. But instead, because everyone seems to have such a hard-on for Apple and somehow convince themselves that they can do no wrong, they’ve become completely blind to what Apple is becoming.

    The original iPhone was the last Apple product I purchased, and I’m going to make sure that it stays that way. Apple is never getting another cent of my money.

    • No offense, but you’re showing how little you know of what’s going on. Google is far more dangerous than Apple because they intend to have a bigger walled-garden. They already dominate the early stages of location-based advertising and if you believe in the “do no evil” motto, then are as naive as the average customer.

      What Apple and Google are doing is both dangerous (Google moreso) bcause they’re looking to create an end to end solution for their OS in all areas.

      • It’s hardly appropriate to compare Apple to Google in terms of advertising. Google dominates the advertising market through strategic positioning and good planning. With that domination, healthy competition and underdogs work to undercut their success and take their place as a dominate ad network. That’s how a free and open market is supposed to work. Google will not indefinably retain its control over advertising, and nothing is preventing the content owners from moving to a different ad network.

        Apple, by using their iron fist control over the iPhone platform to prevent competition in a market they intend to enter, is both irresponsible and highlights the problem with the closed Mobile OS X platform.

        Comparatively, Google’s mobile operating system is both open source and has no anti-competitive restrictions associated with the platform. So you tell me, which one is more dangerous?

        • Google’s is no less a walled garden. The difference is that we can’t see its walls.

          Google’s all pervasive presence on the web has become _the_ atmosphere surrounding everything on the web. It exists without your thinking twice about it. Google disarms your scrutiny with a fuzzy idea of ‘do no evil’, expecting that your paralysis will last long enough to allow them to become the de facto monopoly of information and advertising.

          What search alternatives to Google are there? What advertising alternatives to Google’s ads on the web are there?

          None to speak of.

          As for the iPhone. I chose to use an iPhone. It’s my decision, not Steve Jobs or yours. Alternatives to the iPhone abound. Pick yours and learn to tolerate others for their choices.

          • Every company quotes the mantra of “Do No Evil”, its the foundation of public relations. The same could be said of the mystique and “Can do no wrong” of Steve Jobs. If you are truly disarmed by such a statements than that is your problem.

            There is a competitor to Google in every market that they compete in. From search to advertising, there are always alternatives specially where money is the driving force. The fact that Google remains the market leader through such ruthless competition speaks volumes to the quality and trust their brand brings with it.

    • Sean wrote: “I’ve been saying this for years with the way that iTunes purchases only work with iPods/iPhones”

      Urm – they sell standard AAC files without DRM, you know.

      And the Palm Pre comment? WTFAYTA!

      Ignorance is bad. Fix it.

    • iTunes purchases don’t only work with iPods. You can move the MP3 files anywhere. I do it all the time. And most MP3 downloads I buy, I buy from Amazon and not from iTunes. And they work just fine with my iPod. Calling Apple a “monopoly” is just plain wrong.

    • Uh, check your facts. All iTunes downloads, regardless of DRM or not, are quite easily moved onto any device imaginable. It’s like falling off a log to get around the DRM, and it was APPLE, and not ANY other company that argued it should be removed altogether. All the subscription sites required DRM (and still do).

  • I am not amazed at the need to Apple bash, MS bash, Google bash or whatever.

    Get real folk. They are businesses. They do what business is expected to do- separate customers from their money.

    The fact that Apple closely manage that process to ensure good end-user experience and exclude those that do not support the consistency they demand – that is a business decision. I miss Apple Hypercard – but I know why Jobs dropped it.

    iTunes has high volume for a good reason – the total Apple music consumption experience is very good for customers.

    • But businesses have rules and boundaries. Its one thing to use a process to ensure the quality of a product, its another thing to use that control as a means to prevent competition.

      The iTunes volume has nothing to do with the actual user experience. There are a number of offerings both online and desktop that provide superior and more consumer friendly options. The issue is content locking and DRM. Apple started it with Music, and they have continued it with Video and soon Books. The first time you purchase something from Apple, you cannot leave iTunes without abandoning your purchase. Of course this isn’t isolated to Apple, all DRM locks you to a content provider, and as long as content locks exist, piracy will spread like a plague upon the internet.

      • Nonsense, and Apple’s DRM is nothing compared to the Windows lock-in, where Microsoft doesn’t even provide the necessary tools to get around the lock-in except in it’s own OS. Luckily, Apple has literally programmed around all the Microsoft limitations. Office formats are all supported, Outlook proprietary EMAIL (of all things) is now fully supported (across iPod, iPhone, Mac, etc…)

        Apple doesn’t lock you into anything, they do a fantastic job of supporting their products, this is why people love the company so much. Contrast this to Microsoft, the only ones that love them are the ones that benefit from the lock down (requiring tech support for trivial tasks and setup is job security for the Microsoft fans.)

        • No, you definitely get locked in. An illustrative example – my girlfriend would like to get a smartphone, but has an iPod and has purchased a lot of DRM-riddled music. She feels very locked in.

          Look at the iPhone another way – what if you bought a PC from Dell, but then were told you can only use Dell-sponsored programs. Consumers wouldn’t tolerate that in a computer, but do in a smartphone.

          If Microsoft gets in trouble for pushing IE, I suspect it will only be a matter of time before there are actions and fines for Apple for completely locking down the operating system, particularly from the European Union

        • Wow that’s a load of Apple inspired ignorance.

          If you going to spout anti-Microsoft bull, look at the facts. Off the shelf Windows-DRM works on any hardware that licenses the encryption technology. Apple does not license their encryption DRM to anyone, period and legally attacks anyone that attempts to circumvent it, even if done legally.

          Why would they do that? Money. So long as the only thing that can play your music, videos from iTunes is an iPod, the consumer is screwed and has no choice but to purchase their hardware at what ever price point they decides earns them the greatest amount of profit.

      • Nonsense, and Apple’s DRM is nothing compared to the Windows lock-in, where Microsoft doesn’t even provide the necessary tools to get around the lock-in except in it’s own OS. Luckily, Apple has literally programmed around all the Microsoft limitations. Office formats are all supported, Outlook proprietary EMAIL (of all things) is now fully supported (across iPod, iPhone, Mac, etc…)

        Apple doesn’t lock you into anything, they do a fantastic job of supporting their products, this is why people love the company so much. Contrast this to Microsoft, the only ones that love them are the ones that benefit from the lock down (requiring tech support for trivial tasks and setup is job security for the Microsoft fans.)

  • Apple is not, even in the slightest bit, a monopoly. This is their device and their software. They aren’t stopping others from making music software or phones or mobile OS platforms or app stores or ebookstores or anything else. Nor are they forcing anyone to buy it.

    They are allowed to do what they please with their software and hardware and the systems they have created for their devices and their customers. If we don’t like it, we can choose not to buy it.

    Personally, I like that Apple monitors the app store and has restrictions and policies and all that stuff. I like that my phone is ‘locked’ down and I don’t have to worry about it’s safety. Are there downsides to it? Yep. But I’m okay with them.

  • “Google’s open Android ecosystem…”

    Do you really think people reading this factual nonsense can be this stupid?

    What distinguishes ALL Android-based phones today? Google Apps. Take away those apps, Android phones would be jokes.

    Are Google apps ‘open’? Right.

    What drives Google and its bank account? Search and advertising. Are Google search and advertising ‘open’?

    C’mon, stop drinking the Google ‘Open’ Kool Aid and grow up.

  • So do we buy GOOG or AAPL?

  • An article about Apple’s location-based advertising rules written by the CEO of a location-based advertising startup! Keeping in mind the recent decision by Apple to disallow ‘some’ apps to use location-based advertising, it is but natural for location-based advertising agencies to be pissed about this. So, the anger and the resulting bias is expected. But, I must say the author tried his best to hide a ‘clear case of bias’.

    There is nothing exceptionally ‘new’ in this article. We all know that Apple has created what come call a ‘walled garden’. I call it an ‘easy-to-use ecosystem’.

    As for location-based advertising, Apple did the right thing. Why should apps (that do not need location info for their major use) be allowed to use my location info and thereby make revenue? Though I do not always stand by Apple’s every decision, I stand by this one.

    May be Mr. Goodman is pissed coz Apple didn’t buy 1020? Will Mr. Goodman stand by his words if/when Apple buys 1020?

    And trying to show Google as the good guy here, it’s lame and illogical. Everyone knows what Google has done and is capable of doing.

  • Apple has a monopoly on the Apple made hardware and software…. Just like Lego has a monopoly on Lego made Legos….. SHOCKING!

    • They can do whatever they like within their own eco-system (or as you say walled-garden. If you want to vilify Apple even more you can call it the Apple Prison/Dungeon/whatever).

  • “Apple’s continued march down the path of the walled garden will become harder and harder as Google’s open Android ecosystem grows and the mobile ecosystem as a whole moves towards the more open Internet-like model.”

    Yes, the open internet. You mean, like facebook?

    Wow, talk about clueless.

  • The location move was arguably about privacy.

    I’m not particularly upset that your company has lost the option to track my location and burn up my battery doing so.

  • Alistair, I am surprised that you are so worried about Apple, I would have thought Google was the 300 pound gorilla in your midst?

    Things might change in the future but at the moment Apple, Rim and Palm are delivering more coherent user experiences.

    Currently Android is a fragmented mess and if Google was being honest they would simply admit that Android is still in beta

    So put yourself in the consumers shoes for a moment
    If I buy the handset can I upgrade the OS?
    Who do I go to for support?
    Where do I get Apps that are malware free?

    Draw up the matrix:
    OS Version/Carrier/Manufacturer.

    OS version alone, currently there are options for 1.5, 1.6, 2.0, & 2.1. !!

    Don’t expect consumers to wade into this mess anytime soon.

    • I agree… most mobile device consumers feel a sense of calm having Apple automatically update their devices and approve their apps. Meanwhile there are rogue Android apps available that will put spyware onto your mobile Android device… forcing users of such devices to be more careful about what they install.

      I wonder how much of Apple’s paternal attitude about apps comes down to covering their butts legally? When it comes to desktop computer malware identity theft is bad enough. With mobile devices spyware can also track your physical whereabouts. Imagine the potential lawsuits!

      • Care to point out exactly what spyware there is on Android?

        The iPhone and Android take very different approaches to security, and I don’t think it is nearly so clear which one is actually better. With the iPhone, most security is enforced via Apple reviewing apps; with Android, there is a significant amount of rigid security in the system requiring applications to declare any significant thing they may do so you as a user will know the extent of its operation on your device before you install it.

        The Android approach is certainly not perfect: as a user you may not care about the permissions you see when installing, you may not understand them, or there may be a bug in the platform that allows an app to get around them in some way.

        But Apple’s approach is in no way perfect either. Consider your concern about Android spyware. What about the iPhone? Apple doesn’t have the source to the apps they review; the only thing they can do with them is run them to see what they do and use static analysis to try to see what APIs they call. Both of these are trivial to defeat, by delays in when the malicious behavior starts and tricks in hiding any suspicious OS call points.

        In contrast, consider spyware on Android:

        (1) The Android security design is extremely rigid just to prevent this kind of stuff. Applications have no way at all to get user input events when they are not in focus, nor can they send input events to other applications. (We have developers complain about these restrictions regularly, but as with most such things in the platform they are there to provide an environment where users can install apps without fear.)

        (2) There may always be bugs in a platform, which malicious developers figure out a way to exploit. There have been a number of security updates to Android, as with any OS, that have fixed holes people have discovered. I am not aware of any found security holes that were actively being exploited by an application; these were all found because the Android source is open, and both individuals and companies using the platform are always combing through it looking for problems.

        Location-based advertising is another illustrative point here: on Android, you know up-front if an application is going to use your location data. Currently there are advertising facilities that developers embed in applications (like they do on the iPhone) that need location data, so their applications need to tell the user about these. These developers sometimes complain because some users say they won’t install their apps due to their use of location. Thus you as a user have the power in your hands to decide if you are okay with this or not, even before you install the app.

        On the iPhone, I don’t think this is nearly as nice. Apple can set policies like the one here “to protect users.” But how protected are you? How is Apple to protect you from an app that, a month from when it is given to them for review, turns on code that starts collecting your data every time you run it and silently sends it to a server?

        So I would understand people thinking the iPhone model is so significantly better than Android if Android worked like a traditional desktop. But those aren’t the only alternatives, and Android doesn’t work that way; it has a fairly novel approach to security, which I think has some significant advantages over these others.

  • You know what ? I for one am quite happy with Apple not allowing location based ads on every friggin app.

    “If your app uses location-based information primarily to enable mobile advertisers to deliver targeted ads based on a user’s location … ”

    I understand if the developer wants to know my location PRIMARILY to serve me location based ads he´s not gonna get his app into the appstore. and my personal user expirience will be better.
    I love it !

  • Great Article-

    This is a Chess game but there are multiple games being played simultaneously and this is not Highlander where than can be “Only One” and everyone is locked out forever.

    Browser Based offering will keep things in check and over 200 million people in US have feature rich phones and are not part of the 40 million who have a smart phone so therefore the developers will be looking for new fertile ground that does not include Apple.

    Apple will have to deal with a myriad of patent partners with their location based offers- coupons, Barcodes, loyalty, tracking, tagging, check in, numerous payment solutions and on and on. It will not be simple.

    Location based applications are great and not to be the alarmist or attorney in crowd let me throw this this out into realm- (Michael A. may offer an article on this one).

    You are at a party, people are smoking some of that happy tobacco, you aren’t and have nothing to do with it, someone who smoked drives and kills someone. Who supplied it at the party? Well, Law Enforcement pulls out a subpoena on the Carrier for triangulation, GPS or app data companies are requested to supply and Law Enforcement tracks every user’s phone in real time and is called, text, twittered and location ID’d at any given time to bring you in for questioning. If you don’t comply what are your rights and options and what do you say? Ooops, alarm bells will go off with the always on Location based service.

    Just saying there will be ongoing chapters but Apple is making their hay now- who can blame them?

    • Should have added- Law Enforcement do this now with triangulation. Consumers will become alarmed what is actually being transmitted by their phones just as they are learning about their IP address.

      Apple and Google tracking the world-online and Phones!

  • Eventually Apple will lose its market share due to Google’s more open source apps and then Apple will be forced to add flash and make its apps more open source.
    If Apple makes its app advertising in house, then it will be end of Apple App developers

    • Just because Google’s platform is open source does not mean it will eventually win. For example Linux is open source – not leading (nowhere close). GIMP is open source – most people still pirate photoshop.

      If Apple forces devs to use its own ad platform there are always ways around that. For example displaying your own ad from a webpage in your app.

  • Jobs is a device maker. He doesn’t understand the Internet yet.

    The main argument I hear from Apple heads is that Non-techies ~want~ lock-in because they have some pre-defined list of things they want to do with The Internet and the iPad will provide all of them and lock the user in a warm, safe cocoon.

    Seems to me this notion misunderstands the very essence of what the Internet is…

    The beauty of The Internet lies in infinite possibilities… Jobs and Apple are going in the opposite direction. I may be wrong… But I don’t think many will join him.

    • Steve Jobs “doesn’t understand the internet.” We should all be so stupid.

    • Most people (IMHO) are trying to get something done, not navel-gaze (apple-gaze?) into the infinite oblivion of the internets. Though many people may do many things, nobody does everything. Apple products are devices designed to appeal to people who actually want to accomplish some particular things, rather than spending (hours, days, months) learning a ricockulously complex OS.

  • Apple is becoming evil and greedy. It happens when it gets to your head I guess.

  • If Apple were a country, it will be called ‘China’..

  • Becoming? Becoming? They’re already there, up with the worst of the egregious carrier behaviour of 10 years ago.

  • If I am being fed quality, why return the plate?

    People have this misconception that open source is the best thing on Earth. Hey, why not open source cars and allow my ex-felon neighbor Jim–who learned electronics in prison–to reprogram the firmware on my Prius? Furthermore, allow him to upload his deltas onto a Torrent server so everyone in the world (it’s open to all!) can enhance their Prius’ braking performance.

    Hey, gated communities are closed for a reason. Who want riff-raff walking around when you can have peace and quiet? And nobody is keeping you out, per se. Buy a house and you’re in.

  • This is a replay of the 80s. Apple came up with a well designed but closed device. Microsoft copied most of the Mac’s UI, provided a more open, cheaper ecosystem and ate Apples lunch. Google are doing the same today with Android. Jobs is a genius but he has to learn to share his toys.

  • By being so involved in the app process, Apple gets to brag about their 140,000 apps. Microsoft needs to respond with “Windows: An Infinite Number of Programs”.

  • It’s a profit maximizing move. That’s how capitalists do it and that’s a good thing. I’m not sure what everyone is complaining about, Apple has been delivering better products and experiences than Microsoft ever has.

  • Using Guest Author’s logic, he/she should tear down the fence on his property and open the front and back doors to his house/apt. so that others, who are all trustworthy and honorable, can have free access to the use of his fridge, bed, tv, computer, car/truck, wife/husband, etc.

    According to the faulty logic of some commenters, should he/she not do this, he is running his property like a monopoly, maybe even an abusive one.

    What’s next, trotting out angry Teabaggers to protest in front of the house against the gub’ment’s interference that prevents their access to the lot and home?

  • I for one would love to see Apple get right in Google’s face. I’ve never seen a company that’s put out so much crap like Google has get mention so much as an innovator.

    I say Apple leads and Google follows.

    Some time this year Apple will jump into mobile ads and start eating Google’s lunch too.

  • That’s way I’m moving all my development to Nokia Symbian devices, they don’t restrict anything and they have way more devices around the globe than Iphone, big opportunity here!!!

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