iPhone 4S

While we were all expecting a new iPhone 5 (especially me) from Apple yesterday, there were three updates that could be relevant to our industry.

1. 1. Siri: No, not the sorry Siri app that’s been around for a while now, the new (Apple perfected) Siri voice-activated functionality built right into the phone.  Watch the demo on Apple’s site – you’ll be inspired.  It works flawlessly and understands common vernacular not just commands.  Voice-activated promotions anyone? “Say “(brand)” into your iPhone to find out more”
2. 2. Cards: A new application that allows you to create a card using photos from your phone or tablet and send via snail-mail.  The fee is only $2.99 to send within the US.
3. 3. Free iPhone 3GS: Perhaps the most overlooked, but most important part of the presentation.  The iPhone 3GS will now be FREE with a 2-year contract.  That will open up a whole new market for Apple and the smartphone industry.  More people with smartphones = more marketing possibilities.

Other noteworthy, previously announced updates with iOS 5:

• Notification Center: Don’t we all hate getting ShopKick alerts when we’re in the middle of an important phone call.  No more.  Notifications and alerts will now be organized in a menu that quietly pops up at the top of the screen without disturbing your current task.  This is in response to the plethora of alerts that you get throughout the day from all of your notification-enabled apps.  The implication for us is that notifications and alerts from marketing apps will likely go ignored by more users as they won’t have to actively respond to them
• iCloud: Users will now be able to store all of their content in the cloud and access them across devices.  Will make alternating between laptop, phone, and tablet that much easier

Apple Fifth Avenue Store, New York City

The threat from Android devices is great, they have more distribution channels, more devices and thus higher market share.  However, most experts agree that the Android OS is inferior to Apple’s iOS.  Sure, there are features that some Android devices support that iOS does not, but on a whole, the operating system and ecosystem of content are inferior.  Apple will close the gap on some of those features and other advantages today with three key strategies:

1. Increased distribution: Apple devices will be available at Sprint this month and T-Mobile either through the AT&T acquisition or through a deal between T-Mobile and Apple either in Q4 2011 or Q1 2012
2. More devices: A much wider gap to fill, but Apple will try with the introduction of at least one additional device today.  No, not just a price drop on the old model as is, but an update to the old model, a price drop and a new name (like 4Gs)
3. Strengthened loyalty across Apple devices: Apple has already announced its iCloud service and it is expected to launch this month.  This does two things:  1) allows the consumer to manage their content more efficiently across devices; 2) strengthens Apple’s grip on those consumers and gives them even more of a reason to purchase all Apple devices–MacBook, iPad, iPhone, iPod–rather than a competitive product in any of those categories.