At yesterday's Apple Worldwide Developer Conference, where Steve Jobs unveiled the iPhone 3G and numerous other initiatives, it became very clear that the coming battle among smartphones will be largely decided on the basis of who gets the best applications. Applications built with the upcoming iPhone 2.0 SDK looked very mature, and there were many demonstrations showing how easy they were to create. What does this mean for Google's Linux-based Android mobile platform and the wave of Linux-based phones expected later this year?
At the Worldwide Developer Conference, guests invited on stage showed numerous very impressive applications built with the iPhone 2.0 SDK, which will be officially released in July. These included:
It certainly looks like there will be active application building going on for the iPhone, which already has 20 percent of the U.S. smartphone market, according to NPD Research. However, there is also active application building going on for Google's Android platform, as evidenced by the impressive applications that won cash prizes in Google's Android Developer Challenge.
Furthermore, a wave of Linux-based phones, along with applications built for them, will arrive later this year. Can these alternative platforms carve out market share, given the smartphone dominance of players like Nokia and Apple?
I think the key to the answer there lies in financing good applications. Google was smart to offer cash prizes to the best developers in the Android Developer Challenge, and should continue to fund open source efforts to make good applications for its mobile platform. Apple has more than $100 million dollars in its fund to seed iPhone applications, and RIM--which makes the Blackberry--has more than that in a similar fund. Check out some of the applications that won cash prizes in Google's Android Developer Challenge:
Given the quality of next-generation iPhone applications shown this week, it appears essential for Google and other big backers to spend money on the Linux- and open source-based mobile efforts that are going on. For a very interesting interview on the implications of the 3G iPhone with AT&T's mobility chief (AT&T is the service provider for the iPhone), see GigaOm.