iPhone – Great phone, lousy app.

 

 

 

 

 

 

 

  • The volumes look like they have been the strongest ever at 10m in the opening weekend but don’t forget that the user base is at its biggest and there has been substantial pent up demand.
  • I am being mean. Despite the nay-sayers, its still the best launch of any device in Apple’s history and the company deserves credit for that.
  • However, the mapping application that has replaced Google Maps looks to be very poor indeed.
  • The phone has been warmly welcomed with its new screen, a big increase in reparability and only a $9 increase in its BOM to $197 compared to the iPhone 4S (IHS).
  • I think this increase is pretty good taking into account the larger screen and first time inclusion of LTE.
  • The map application is another story where my favourite gaff is the relocation of Berlin to Antarctica.
  • This has produced rounds and rounds of speculation about why has Apple hobbled its own user experience so badly creating a little cottage industry of workarounds and hacks to get Google maps running on the iPhone 5.
  • I suspect that the real answer is twofold. 1) The map is becoming critical and Apple simply can’t have its arch-rival controlling that aspect of its user experience. 2) It looks like Google refused to make the turn by turn functionality available on its iOS application.
  • The reasoning is pretty simple. If the iOS mapping functionality is sub-par then iOS users might become Android users over time.
  • This is the one thing that both Apple and Google seem to agree on and I think a major reason behind Apple’s decision to move to its own mapping application.
  • This is a dangerous juncture for Apple as it is at risk of seriously damaging its pristine reputation in the user experience world.
  • If people begin to believe that Apple maps is a poor experience, they won’t use it meaning that they will not notice even when it begins to improve.
  • I don’t think for a second that Apple users are as fickle as Android users but this could change unless the mapping issue is fixed and fast.
  • Time is of the essence and Apple will need to deploy cash and bodies to escape unscathed.

 

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.