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Yesterday, Apple pulled an application named Podcaster from the iPhone App Store. With Podcaster, iPhone/iPod Touch users could “update podcasts directly on the device over wifi.” Apple rejected the application because

Podcaster assists in the distribution of podcasts, it duplicates the functionality of the Podcast section of iTunes.

This is about as anti-competitive as it gets – applications that threaten iTunes’s monopoly over loading content to/from iPhone/iPod Touch will not be allowed on to Apple’s iPhone App Store. John Gruber of Daring Fireball fame has more to say about Apple’s exclusionary policies.

So some apps are banned. So what?

This is a big deal because App Stores are becoming an important way (and for iPhone/iPod Touch, the only way) to add functionality to a mobile device – whether it’s from Apple or Nokia or Android. Installing applications on your mobile phone is tricky at best and throw-your-hands-up-it’s-impossible at worst, which is why such App Stores (which make the job much simpler) will gain a lot of traction in the months to come. This places enormous power in the hands of App Store owner – either the handset or mobile OS manufacturer.

Simultaneously, as mobile devices become ubiquitous, more capable and more functional (because of these apps), an application ecosystem will begin to form – there are already over 3000 applications for iPhone/iPod Touch on Apple’s App Store, with small startups entirely dependent on the money they make from sales through the Store. Indeed, Kleiner Perkins has set up an iFund to invest in startups that make apps for iPhone, and there’s a RIM-backed Blackberry Fund too. How much longer before we start seeing the same interest in Nokia/Android application startups?

But this rosy picture could be in jeopardy if such rejections – either arbitrary or anti-competitive – become more commonplace. It’ll scare application developers, and drive away investors. And a multi-billion dollar (because of the sheer numbers of mobile devices) global opportunity could be lost, lost even to the party behind the App Store itself.

What are mobile app startups and users likely to do?

There are two things, both of which are likely to happen:

1.) Web apps that try to offer the same functionality will pick up speed. No App Store will be able to restrict what web-based applications users choose to use. Tomorrow, the Twitter client Twitterrific might be in the soup (because it has a built-in browser and mimics the functionality of Apple’s own Mobile Safari browser – you never know),  but the web-based Hahlo twitter client for iPhone/iPod Touch will face no such problems because Apple has nothing to do with it (and vice versa).

Ordinarily, I’m a strong proponent of native applications for mobile devices (at this stage of the industry). But circumstances are going to push app developers harder to write Good Web Apps.

2.) More jailbroken iPhones. Ironically, this warranty-voiding way of installing third-party applications is also the most open, offering several more native applications with fewer Apple-enforced restrictions. Developers will work harder to make it easier for customers to jailbreak their iPhones and iPods Touch.

Both these trends will represent a move away from the App Store.

Conclusion

As the technology industry becomes more open than ever (open software and hardware standards, community-based platforms for communication, convergence of desktop and mobile), this move towards closed application ecosystems is an anachronism.

More restrictions will mean more effotrs to circumvent (or just abandon) the App Store – whether from Apple or Nokia or Google’s Android. From the App Store owner’s ponit of view, this will be killing the golden goose – and the loss of possibly billions of dollars in revenue.

At the outset, I’d like to clarify I’m no iPhone or Apple zealot. My interest in mobile touchscreen interfaces has been piqued by my recent purchase of an iPod Touch.

I was playing around with a colleague’s HTC Touch Cruise the other day. The Touch runs Windows Mobile 6.1, and, in summary, is a full-featured smartphone with decent multimedia capabilities. That’s not what this post about though.

It’s about two clear observations I made – that we’re stuck in the late 90s when it comes to mobile touch-based input devices, and that UI designers still use the desktop paradigm when designing for mobile touch screens. While Windows Mobile is what triggered this post, with PalmOS, and UIQ too.

Poke, poke

Turns out that it’s a huge pain navigating the WinMobile interface on the 2.8″ touchscreen with your fingers. The buttons are tiny, the menu options are awkward, and it’s next to impossible to grab and drag a scrollbar. I gave up.  It’s clear – the best way to navigate a Windows Mobile is using the accompanying stylus. 

But a stylus is a hopelessly outdated tool. Along with the physical QWERTY keyboard for desktops/laptops, the stylus is a tool for mobiles that stubbornly refuses to die. Perhaps it’s easier – and commercially attractive – for touchscreen phone manufacturers to add applications and features than to rework a familiar, though suboptimal interface.

iPhone/iPod Touch have changed that. iPhone may not pack the sheer number of applications the HTC Touch Cruise does, but its interface is revolutionary. It lost the stylus. In fact, with multitouch – flicking, pinching, dragging with multiple fingertips – your hand is more effective than a stylus. You may not agree with iPhone the device (I don’t) – but you have to admit iPhone’s set the benchmark for all touchscreen interfaces.

Honey, I shrunk the desktop

Windows Mobile 6.1 has a task bar, a system tray, a Start button and a drop-down Start Menu. With nested menus. On that tiny 240×320 pixel screen.  

After spending a while with the device, I realized that Windows Mobile is essentially a shrunk-down version of the desktop Windows interface. The widgets are smaller, but the paradigm is the same. The result is a cluttered interface and a frustrating navigation experience.

Someone’s psyched the WinMobile team into believing that their biggest strength is that their mobile interface looks just like their desktop interface. That may have been true when mobile applications were very simple, but it doesn’t hold true any longer. It’s hurting usability and innovation.

There have been several calls for this, and I’m going to say it here again – the WinMobile team will do themselves and their legions of developers and enterprise customers a world of good if they rethink their interface. 
 

Note: I think Samsung and LG also have very good touchscreen interfaces. But this is merely an observation from Google Image Search results. Haven’t tried them out first-hand, so no comparisons.

A while ago I wrote about why it did not make sense for me to buy an iPhone 3G in India, and why I purchased a Nokia N82 instead. However, a combination of the N82 and the iPod Touch is a different matter altogether. It costs about the same as the iPhone in India and offers a far, far better overall experience.

In a nutshell, iPod Touch is iPhone without the phone, SMS, camera and Bluetooth. Which is great, because those were the very features that iPhone was criticized for. Fortunately, the N82 excels at all of these. Here’s my take on using the 16GB iPod Touch and the Nokia N82.

Price

8GB iPod Touch + 2GB Nokia N82 = Rs. 17000 + Rs. 19000 = Rs. 36000. 8GB iPhone = Rs. 31000.
16GB iPod Touch + 2GB Nokia N82 = Rs. 22000 + Rs. 19000 = Rs. 41000. 16GB iPhone = Rs. 36000.

So the combination costs Rs. 5000 more than the equivalent iPhone. We’ll see what you get in return for that amount of extra money.

Connecting the iPod Touch to the Internet via the N82

The chief difference between the Touch and its iPod predecessors is Wifi. This transforms the Touch from a music and video player into a full-fledged Internet access device that also happens to do music and video. In fact, there’s evidence to show that iPod Touch owners rarely use the device for music. The corollary is that if you don’t have a Wifi signal, your iPod Touch is little more than a very expensive iPod with (comparatively) tiny amounts of storage.

Enter Joikuspot. This marvelous application converts your GPRS/EDGE/3G-capable Nokia phone into a WiFi hotspot. Most recent Nseries and Eseries phones have Wifi capability, including the N82. This means that I can connect to the Internet by simply selecting the N82 Wifi hotspot from my iPod Touch.

This give your iPod Touch a whole new lease of life. No mobile device matches the Internet experience on an iPhone/iPod Touch. I can’t quantify this, but mobile Safari renders pages in a way that makes the Internet connection seem faster than on the N82 browser.

Finally, the $9.95 iPod Touch software upgrade gives you access to the iPhone App Store, where you can install anything ranging from the Twitterific twitter client to the New York Times news reader app, to iPhone Wordpress client to literally hundreds of free and paid applications and games.

What’s better on the N82

The N82 does a splendid job at whatever the iPhone is poor at. The best example is the superb 5MP camera with autofocus, Carl Zeiss optics and Xenon flash. The camera can also record videos at up to 30 frames per second. Check out the quality of photos and videos from the N82 on my Flickr stream.

I can use Bluetooth on the N82 to transfer files, sync with my PC over the air and pair with hands-free headsets. The crippled iPhone Bluetooth implementation only does headset pairing. Nothing else. The N82 can be used as a modem for my PC. For reasons unknown, iPhone cannot do this. The only third-party app that could do this was pulled from the App Store within a day. The N82 also supports copy-and-paste and can forward text messages, features inexplicably left out of iPhone.

There are thousands of S60 applications that aren’t part of the iPhone App Store. Nokia’s Sports Tracker and Nokia’s Map Loader come immediately to mind, as does Fring (which only runs on jailbroken iPhones/iPods Touch).

Finally, there have been no reported performance issues with the N82 3G chip. Not so for iPhone, that has had issues so severe with the onboard 3G chip that it has spawned rumors of a handset recall.

What’s better on the iPod Touch

Internet Experience, iPhone App Store – I’ve already spoken about this earlier. Once you’ve experienced the Internet on iPhone/iPod Touch, nothing – nothing – will make you go back to any other mobile device. Its crisp colors, smooth fonts, elegant multi-touch controls are streets ahead of the competition.

The iPod Touch is also a very elegant, capable PDA, comprising Contacts, Calendar (with support for multiple calendars), Tasks and a Mail client capable of displaying rich text/HTML. The Contacts and Calendar sync with Outlook. The Mail client, in addition to supporting POP3 and IMAP accounts, can also connect to a corporate Microsoft Exchange setup.

Lest we forget, the iPod Touch is also an iPod. With 8GB or 16GB of storage, it can hold a big chunk of most music collections. Because of the high-quality display, video playback is exquisite – you forget you’re using a mobile device. Videos also begin playing from the point you left off last time. And yes, almost as a footnote, it’s great for viewing large photo collections too. The iPod Touch multimedia experience is a generation ahead of what the N82 offers.

Conclusion

For Rs. 5000 and one gadget extra, you a great camera, video recording, functional Bluetooth, functional SMS, 2GB extra storage, ability to use your GPRS/EDGE/3G connection from your computer, access to thousands of S60 apps and reliable 3G. As with the iPhone you also get a top-of-the-line PDA and a gorgeous multimedia device.

Sounds like a good deal? To me, it was a no-brainer. What do you think?

Arrington on Techcrunch talks about the possibility of Amazon licensing its Kindle ebook reader hardware specs and trademark to third-party manufacturers:

…a licensing program that gave hardware manufacturers the ability to build Kindle clones, along with an incentive to sell them at near-zero margins. Amazon would give those manufacturers access to the core Kindle hardware specs (there’s no real magic there anyway) and the right to call it a Kindle device so long as they also put the core Kindle software on the device. That software links the device to Amazon’s store, meaning downloads revenue flows through Amazon.

Amazon would then share a percentage of net margin generated from downloads with the hardware manufacturers.

Techcrunch has put into words what I’ve felt since the day the Kindle was announced. After all, Amazon isn’t in the hardware business at all; it’s in the product and content retail business. I can imagine that in the initial days of the Kindle launch, Amazon needed its own device to build a strong association between Amazon’s brand and the mobile ebook model. Now that that purpose is served, manufacturing and selling the Kindle hardware is an overhead that Amazon could avoid.

Just like Associates?

This isn’t very different from the masterstroke that Amazon played years ago with its Associates affiliate program. Before Affiliate Marketing became the wild jungle that it is today, Amazon launched a series of innovative tools – aStore, Omakase Links, Product Previews – to let publishers (people who owned websites/blogs/suchlike) add links to Amazon’s content onto their web pages. These publishers then earned a cut of the sale generated by clicks from the links on their web pages.

Kindle is Associates all over again, except instead of web-based tools, we’re talking hardware specs.

For instance, Amazon’s aStore let developers build their own focused online “stores” (which displayed Amazon’s books). (A religion-focused website would be able to draw viewers and sell that category of books better than Amazon.com itself.) In the same vein, a student version of Kindle with access to e-textbooks and additional bookmarking features would be better marketed and sold by a third party which is focused on only that market.

With such an Affiliate/Franchise/Licensing model, manufacturers would fall over themselves for a chance to access Amazon’s massive ebook and newspapers database – and a cut of the subsequent revenues.

The Mobile Opportunity

Once third party manufacturers have licensed the Kindle specs, they are no longer restricted to building anything that looks like the Kindle today. I can readily think of well-designed iPhone/iPod Touch ebook applications like the New York Times app. This fits in with American universities doling out iPods Touch and iPhones to their incoming freshmen.  A market for Nokia’s S60 devices would be many times larger.

What do you think? Would you purchase a Kindle application for your mobile device?

Aside: Of course, manufacturers would then be free to choose the carrier of their choice for wireless content delivery. That sure isn’t going to make Sprint-Nextel happy.