No iPhone 5: Why Apple Released iPhone 4S Instead
Apple Inc. finally unveiled a new iPhone Tuesday. The event marks the first time Tim Cook took center stage after succeeding the ailing showman and visionary Steve Jobs. It was supposed to be a photo-op showing Jobs pass his magic and charisma to the new CEO. What would follow would be record sales for the iPhone 5.
But Apple didn't unveil the iPhone 5 -- just a phone that's a replica of the iPhone 4S, although it has artificial intelligence in it and a more powerful processor.
Apple redefined the smartphone when it released the iPhone in 2007, and since then has paced the industry in terms of innovation. In June this year, Apple was expected to unveil an iPhone 5 that would have both under-the-hood and aesthetic changes that would push Apple to unprecedented levels.
Without having to release a new smartphone model in the past 15 months, Apple overtook Nokia Oyj, Research In Motion, and new force Samsung to be the world's top smartphone seller in the second quarter this year. Apple's financial statements showed that Apple delivered its best quarter ever, recording a 125 percent increase in profits to $7.31 billion. Apple didn't need to release an iPhone 5 to become the world's most valuable technology company.
After the iPhone 5 went missing at the June developers' conference (breaking tradition of a new iPhone every year), there were news and speculation that the iPhone 5 is facing endless production problems. One report said that the tear-drop shaped iPhone 5 with a larger screen and thinner, rounder body is seeing continued design and production delays. Other reports said that in addition to the iPhone 5, Apple was producing an iPhone 4S, which has the same form factor but lower memory and cheaper than the iPhone 4, in order to extend Apple's reach in emerging countries.
At the Oct. 4 event, Cook instead unveiled only the iPhone 4S, although it's not a cheap alternative to the iPhone 4. It has Siri, an app that follows a user's voice commands. It quickly searches the net when you ask it to look for a restaurant, check the weather, look for your mom, or anything that a "human" assistant would do. It also has two antennas for quicker downloading and for better voice quality. It's also a world phone, with access to both the CDMA and GSM networks.
But why release a new phone that closely resembles the previous model than something that has a teardrop or radical new design? Didn't Apple purchase equipment for processing glass for a curved screen? Apple instead just got existing parts of the iPhone 4, added extra processors that's being used for the iPad 2 tablet, and replaced the cameras with the 8-megapixel ones.
Apple releases only one new smartphone model each year. Its suppliers are earning billions from Apple. Would they put Apple parts at the end of their pipeline or last on their schedule?
The issue could probably point to Samsung, which provides the chips, the RAM and other parts for Apple's mobile devices, pursuant to a long-term contract. But this year Apple has sued Samsung in dozens of countries in three continents on accusations that Samsung devices are imitating the design and functionality of the iPhone and iPad. And Apple, according to some reports, is still looking to replace Samsung in its supply-chain. Samsung responded to the suits, accusing Apple of infringing its wireless patents, and seeking an injunction of the iPhone units in the market and the iPhone 5.
Another issue previously brought up was that the iPhone 5 was not released in June because Apple was still making final touches on iOS 5, the new platform. But iOS and its 200 new features have been completed on schedule. The iCloud, which would sync all Apple devices, is also set to be out later this month.
Cook, as CEO is known for an operations kind of guy and streamlining the supply chain. Jobs was the showman and led Apple's design and innovation. It has been widely assumed that when Cook took over as CEO in August, the iPhone 5 was already on the pipeline and is on production phase.
But note that Cook has technically been running the company since January, when Jobs took another medical leave of absence. Is it then possible that the iPhone 5 is still in the works, amid Jobs' struggles with his health? With few changes completed and amid the calls for a new iPhone, Apple probably decided to instead rename an unfinished iPhone 5 to an iPhone 4S.
Cook is focusing on day-to-day operations and growth. Apple posted record revenue of $28.57 billion and record net profit of $7.31 billion, or $7.79 per diluted share, during the quarter ended June 25, 2011. And Apple has yet to penetrate most of China and emerging countries.
At the media event Oct. 4, note that Cook talked about Apple's international expansion. Notwithstanding rivals providing smartphones with better specs, the iPhone 4 continued to be number one, selling 20 million units in the most recent quarter (despite being more than a year old). The second best-selling handset in the market, the Samsung Galaxy S 2, only sold 5 million units during that span of time.
Critics have pointed out that Apple only makes use of existing technology (as evidenced by the very few patents that it has compared to Nokia and Samsung) is only good at making devices look pretty and marketing them. Could it be that Apple is running out of ideas? Or lipstick? Or did the designers at Apple lost their aggressiveness without Jobs?
But probably Apple is still cramming new features into the iPhone 5.
Note that Nokia has yet to release its Windows phones, Research In Motion has yet to show the public is QNX-based superphones, and Samsung is preparing its quad-core touch-screen phones.
With the iPhone 4 still soaring in sales, Apple would likely let rivals take the jump first. In this way, Apple can make more significant improvements to the new iPhone 5 and add more features that would outclass the rivals' new "superphones."
Rival phones already have 4G-LTE connectivity, large 4.3-inch screens, and near field communication chips for mobile payments, among other changes. Apple needs those and a lot more to lead once again in innovation.
But with the lucrative holiday season approaching, Apple needed a new device that would make people line up at the Apple Store. And so, the Cook, who's assigned to check on the financial statements every day, has an iPhone 4S.
Is Cook a visionary like Jobs? Yes, but while Jobs' focus on innovation and blazing new trails for computing devices, Cook's vision for now is expanding into cash-rich China. But Cook the businessman will only be a showman ala Steve Jobs when he unveils the iPhone 5 months from now.
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