Apple Inc. (NASDAQ: AAPL) iPhone 2.0 software scores a trifecta with leading developers, enterprise customers and partners

Apple Inc. (NASDAQ: APPL) announced today the beta release of iPhone 2.0 software, and hit a trifecta with leading developers, enterprise customers and partners. Apple is one of the Top 20 Innovators of The Innovation Index, and the number one Innovator in the world. The final release of the iPhone 2.0 software is scheduled for launch in June 2008. What does the iPhone 2.0 software release include?
According to Apple press release, the iPhone 2.0 beta release includes both the iPhone Software Development Kit (SDK) as well as new enterprise features such as support for Microsoft Exchange ActiveSync to provide secure, over-the-air push email, contacts and calendars as well as remote wipe, and the addition of Cisco IPsec VPN for encrypted access to private corporate networks.

The free iPhone SDK along with the iPhone Developer Program provides developers with a rich set of Application Programming Interfaces (APIs) and tools to create innovative applications for iPhone and iPod(R) touch; a bonus is an iPhone Simulator for the Mac(R). The new App Store completes the picture providing a seamless way for developers to wirelessly deliver their applications to iPhone and iPod touch users.

The iPhone SDK provides programming interfaces for Core OS, Core Services, Media and Cocoa Touch technologies through the available APIs. Further, the iPhone SDK will allow developers to create applications that leverage the iPhone's Multi-Touch(TM) user interface, animation technology, large storage, built-in three-axis accelerometer and geographical location technology to deliver truly innovative mobile applications.
Leading developers, enterprise customers and partners are already using the new iPhone in trials, and are getting ready to launch it within their companies. Apple identified the following corporations in the press release:
AOL
"No question the powerful tools and APIs in the iPhone SDK made it easy to develop a feature-rich mobile application for the iPhone," said Kevin Conroy, executive vice president, AOL. "The rapid development cycle for this application was very intuitive, and when you add the App Store, it's an unbeatable combination for development and distribution of mobile applications."
Cisco
"As a result of this collaboration between Cisco and Apple, iPhone users will have seamless and highly secure access to mission critical information as it is needed from anywhere in the world," said Richard Palmer, senior vice president of the Security Technology Group, Cisco Systems (NASDAQ: CSCO). "The connected world is becoming more mobile and collaborative where employees need access to private business information no matter where they are."
Disney
"Apple has really done their homework, addressing issues of security, manageability and integration," said Randy Brooks, senior vice president, IT Strategy and Architecture, The Walt Disney Company. "We currently have hundreds of iPhone users and expect the demand to grow significantly with this release."
Electronic Arts
"The animation technology in the iPhone OS enables us to build awesome games," said John Riccitiello, CEO of Electronic Arts. "I think iPhone consumers are going to be blown away by the games we create for this platform."
Epocrates
"By putting so much computing power into such an elegant mobile device, Apple has opened up tremendous opportunities for application developers," said Kirk Loevner, chairman and CEO, Epocrates, Inc. "The technology and software in the iPhone OS will allow us to create new and innovative applications that help improve patient safety and provide healthcare professionals with an unsurpassed user experience."
Genentech
"I believe the iPhone is a watershed event in mobile computing for corporations," said Todd Pierce, vice president, Corporate Information Technology, Genentech, Inc. "Genentech's pilot with iPhone has shown its potential to be the most useful business mobility tool we've ever used. We now have 3,000 planned for deployment based on how easy and simple it was to integrate iPhone with our corporate email system."
Microsoft
"Licensing Exchange ActiveSync to Apple enables them to build support right into the iPhone for simple, out-of-the-box connectivity with Exchange Server," said Terry Myerson, corporate vice president, Unified Communications Group, Microsoft Corporation (NASDAQ: MSFT), another Top 20 Innovator of The Innovation Index. "Microsoft believes in building open and interoperable products, and Microsoft Exchange Server is no exception."
Nike
"With support for Exchange ActiveSync, this new iPhone release really delivers a true plug-and-play enterprise solution," said Roland Paanakker, vice president and CIO, Nike, Inc. (NYSE: NKE), another Top 20 Innovator of The Innovation Index. "We already had Nike employees using iPhones, and now look forward to deploying more iPhones to more business users."
Salesforce.com
"The opportunity to use the innovative iPhone OS platform to deliver compelling Software-as-a-Service applications to mobile users is empowering to us, and ultimately, our customers," said Marc Benioff, chairman and CEO of Salesforce.com. "They are asking us for new ways to harness the power of Force.com to access their business information on any device regardless of location."
Sega
"The iPhone OS is a robust development platform that will allow Sega to deliver mobile gaming experiences that are truly compelling," said Simon Jeffery, president and COO, Sega of America. "Using the iPhone's accelerometer to power a tilt control feature adds a whole new dimension to Super Monkey Ball, and we can't wait for gamers to try it."
In the 2007 launch of iPhone, Apple had touted Google Inc. (NASDAQ: GOOG), another Top 20 Innovator of The Innovation Index, as one of the key partner. It was interesting to note that Google's support for the new iPhone 2.0 software was missing in today's announcement. A coincidence? Perhaps Google has its own plans for the iPhone and will make a separate announcement.

Steve Jobs, Apple's CEO, was jubilant about this new release, and said: "We're excited about creating a vibrant third party developer community with potentially thousands of native applications for iPhone and iPod touch. iPhone's enterprise features combined with its revolutionary Multi-Touch user interface and advanced software architecture provide the best user experience and the most advanced software platform ever for a mobile device."

Bottomline:

1. Whereas iPhone = "best consumer smartphone" has become a reality within one year, iPhone = "best corporate smartphone" could happen - is it only a matter of time? Or will Research In Motion (NASDAQ: RIMM), another Top 20 Innovator of The Innovation Index, have its say with its fast growing Blackberry smartphones.
2. Would corporations embrace the new SDK, push email, calendar, contacts, remote wipe, security, integration and remote management functionality of iPhone 2.0? How many corporations will convert? What would this do to Blackberry loyalists? Would Apple provide a migration path from Blackberry to iPhone? According to CNBC poll announced today, 84% of the corporate users polled indicated that they would buy an iPhone (how many of the polled already own an iPhone or own an iPod) . One of the CNBC analysts said that this could be a sampling error. Either way, we could be witnessing a a huge nascent demand for the iPhone by the corporations.
3. How many more games will Sega and Electronic Arts create for the iPhone 2.0 platform? Would iPhone displace the handheld gaming market as we know it? Would it really challenge the Nintendo DS and Sony PSP? Can iPhone become the iGamePhone? Only time will tell.

The new iPhone 2.0 innovations have created an abundance of opportunities and possibilities for Apple. How many of these opportunities will Apple convert? Can iPhone really become the defining computing device that everyone wants to have (remember iPod, Apple's best innovation)? Apple definitely challenges RIM, and even the handheld gamers with this innovation. Apple has reiterated the 10 million iPhone target in 2008. However, we believe this is conservative. Apple will sell upwards of 12 million iPhones in 2008. The proof will be in the pudding.

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References:
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