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Thu, Jul 23, 2009 12:15 EDT

Two Faces of the iPhone: Bikini Blast vs. Fortune 100

Analysts cast the iPhone in opposing lights

Topic: Applications

Blog: Apple Enterprise Now

Current Rating: 4 Comments: 2

Two analyst questions stuck out during Apple's earnings call earlier this week, in which Apple revealed its big financial quarter ($8.34 billion in revenue). The questions—and Apple's answers—cast the iPhone in opposing lights, one serious gains in the enterprise and serious silliness in the App Store.

Needham and Co. analyst Charles Wolf commented about the App Store's "race to the bottom"— that is, cheap and silly apps dragging down the overall quality of the place. Wolf asked: "Are you taking any steps to enable consumers to separate quality apps from the garbage?"

Apple COO Tim Cook responded: "We realize there's opportunity there for further improvement and are working on that."

Indeed, it's a bit sad that business iPhone owners are forced to wade through a landfill of trashy apps to find the ones they really want. In the top paid lifestyle category, for instance, one of the most popular apps has been Bikini Blast—Sexy Girls. Now the top app is Cannabis.

Need more proof? The great legal battle between iPhone apps iFart and Pull My Finger wages on, prompting the Daily Show to make fun of it. That's what happens when a store builds its reputation on cheap thrills like $1 game apps.

Meanwhile, on the serious side of the equation, the iPhone continues to infiltrate executive ranks, and CIOs are having to take it seriously. David Bailey of Goldman Sachs asked for an update on the progress Apple has made in large enterprise accounts with the iPhone. Apple responded that 20 percent of the Fortune 100 have purchased at least 10,000 iPhones, while corporations and government agencies have bought more than 25,000 units each.

"The phone is particularly doing well with small business and with large organizations that allow people to purchase the phones for individual use," says Cook, adding, "We think that we are just at the tip of the iceberg in terms of what the iPhone can do with the business customer."

Yet this merging of the personal and the business on a single device is still relatively new ground for the CIO, too. Probably, a fewCIOs will soon find Bikini Blast on an executive's personal iPhone whose AT&T data service plan is being expensed to the company. Mobile management of enterprise devices, and crafting clear policies for employees use, however, is one problem that the CIO, not Apple, has to manage. Good thing. They're probably busy responding to the Daily Show.

Are you concerned about the silliness of the App Store? Send me an email at tkaneshige@cio.com. Or follow me on Twitter @kaneshige. Follow everything from CIO.com on Twitter @CIOonline.

You do not have flash or javascript support.
Average (2 votes)
4
 
 
Sat, Jul 25, 2009 8:11 EDT
Anonymous user
Posted by: MobileAdmin
Rating:

This is the telling comment:

"large organizations that allow people to purchase the phones for individual use"

So the only growth is those corporations that allow personal liable mobile devices to connect. The majority of companies have looked at that and have decided to stay corporate liable for many reasons including as you note - why get into what questionable apps that users may install? You still govern the policy that is applied to mobile devices so do personal liable have LESS a policy? What legal / compliance concerns does that raise?

Apple has had little to no growth in enterprise that operate with a corporate liable model and they are not going to gain any ground with just announced encryption is useless and broken in minutes.

 
Thu, Jul 30, 2009 10:51 EDT
Anonymous user
Posted by: Jason David
Rating: 90

How can "GOOD IN BED" be a app thats approved.... Its also kinda sexual even though there are no bikini models.... If apps like iSutra gets rejected these apps sud also not be allowed in store....

http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewSoftware?id=313821394&mt=8

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About this Blog

Everything Apple, from the iPhone to the Mac Pro, is making its way into businesses – and tech leaders need to know how to deal with it. Tom Kaneshige reports on Apple from Silicon Valley for the latest stirrings, rumors and real-world management practices.

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