Will iPod Development enter a new phase?

The following is (almost) purely speculational.

Considering all the hype spinning around the new Apple iPhone, I find it interesting that no one is discussing it's most spectacular feature combo. It's not news that the iPhone's foundation is the Mac OS; neither is it news that the iPhone is an iPod. Question: Could this mean that future iPods will be based on the Mac OS?

It's probably true that most iPod users don't know, and don't care, about the OS inside their iPod. "It just works!", is probably enough for them. On the other hand, for those of you wondering what's next for the iPod, an iPod running the Mac OS should boggle the mind. Today's Apple rumor is that an iPhone Development Kit (SDK) will be previewed or released at Apple's World Wide Developer's Conference (WWDC) in two weeks. If next generation iPods are based on the Mac OS, then the iPhone SDK could also be an iPod SDK!

While Apple is (rightly?) concerned that third party applications could compromise the security of an iPhone, they probably have fewer concerns about the iPod. A Chinese iPod manufacturer has already demonstrated that an iPod can be used to spread Windows based viruses; Apple will need to use some caution, but not much. It's not as if the iPod has the Zune-like capability to transmit viruses wirelessly to every other iPod it meets on the street. Truth: I don't know if the Zune can do that either; that's purely speculational! Actually, my understanding is that MicroSoft's Digital Rights Management (DRM) won't let your Zune upload files received "socially" onto your PC. Kudo for that, Microsoft.

I imagine that the first fruits of an iPod SDK will be games. I also imagine that an iPod SDK could create an industry comparable to the rest of the iPod accessory market.

Release the hounds!

Will Apple and AT&T reinvent Cellular?

The current paradigm in American cellular seems to be to hook a customer on a service plan with a subsidized phone, and then profit by selling extras - minutes, text messages, ring tones, music, &c. AT&T will soon be offering cellular service with an "unlimited" data plan, and an unsubsidized iPhone. Not subsidizing the phone means AT&T makes a bigger profit from the service plan, without the need to sell extras.

There's no need for a bewildering array of service plans with complex rules and gimmicks if the basic plan is profitable. If the basic plan is profitable, then the way to increase profits is to increase market share. The way to increase market share is to offer a killer plan. The key to profiting from the killer plan is the unsubsidized phone. The key to the unsubsidized phone is a killer feature set. Enter the iPhone.

Verizon makes a good point. A service plan can only be as good as the service - coverage, reliability, customer support, &c. Both Apple and AT&T know how to do those. They just have to execute.

I'm not going to predict a price for this plan, as I don't know what the "sweet spot" is. I do know that most prognosticators were wrong - and Apple was right - about "sweet spot" pricing for the iPod and iTunes. That's why I'm betting on another solid hit with the iPhone. I expect Apple and AT&T to reinvent Cellular.

Wait! There's more....