Why iPhone will Never Beat Blackberry

Perhaps I’m just getting old, but I still don’t get the fascination with the iPhone (new or old). Maybe someone can help me out? I just read the cool story at Engadget (love their site – bookmark them!). Apparently the whole universe has become star-struck again as Apple plans to release its next version – cuter, cooler, whatever – of the iPhone. And they’re about to release a software development kit so people can write software apps for it. Just about the only thing I can say about these two moves is: It’s about time. Apple must have learned its lesson about releasing the SDK, because it’s lock-down on hardware/software in the Mac personal computer end of things prevented it from dominating the universe. Remember, a “better” product can only be better if a) more people can put it to good use than competing products and b) more people can afford it. Those two things aren’t something Apple has ever been really able to do for a) business people in general and b) in terms of economy of scale (price) compared to Microsoft, HP, etc.

And that’s why I still don’t get why anyone is excited about the iPhone. Correction: Anyone over the age of 25. Look, it’s a fantastic multimedia device. Surfs the web very nice. It even makes decent phone calls. But there’s just no way that Joe Average is going to find it “easier” to manage email and corporate data (calendar, tasks, etc) with a “virtual” keyboard. Admittedly, there are 45 million Gen Y babies out there – but not all are in line to (afford) get a new iPhone. What’s more certain, however, is that hardly any business people – whose lives revolve around managing client communications on a near-instant basis – are waiting in line for the new version.

Yes, yes, it’ will now sync up with Microsoft Exchange. Woo hoo. Can someone tell me how any new “Smartphone” could possibly ever be released today that doesn’t do this in the “beta” version? Most business people have already “mentally” written off the iPhone because version one couldn’t do their corporate email (or even SMS, if I remember???)

Even if you lines up every “coolness” feature of the iPhone – and I’ll admit there are many – there’s one part of the equation that is missing: A fundamental understanding of the customer who uses a Blackberry today. And I don’t care what engineers and geeks think are cool – it’s what the customer thinks is cool. Remember, once Apple found out how quickly they ran out of young kids who could shell out $600 for their phone (and it was fast!) and then saw how many business people said, “What? A smartphone without a keyboard for five times the cost of a trust old Blackberry (or even a scratchy old Treo)?)” And that’s why no matter what else they jam into the iPhone – and how heavily AT&T subsidizes the price – it’s not going to catch on with mainstream business people.

Because it lacks a keyboard.

Look, the world today is run by 45-65 year olds (at least in business). Whether we’re selling encyclopedias or cars or computers or real estate, the money is made by Baby Boomers and late Gen X’ers. Now Boomers still can’t correctly use the right-click on the mouse (and I have 20,000 tech calls to our call center a month to prove it) and Gen X’ers (who learned to use PC’s with DOS) still hope the Function-keys will make a comeback. So Boomers “need” the keyboard – because it makes them feel safe, as in the “good old typewriter days” and Gen X’ers are SO keyboard oriented that we still use the Alt- and Ctrl-key shortcuts combinations in Microsoft Office rather than click the damn mouse. Both generations hate the touchpad (and the eraserpoint some pencil-neck created at IBM (I always wanted to write that line!)). We grudgingly use the mouse. We buried the Palm “stylus” and their bizarre hieroglyphics writing scheme. The ONLY things we like to be touch-screen are our ATM machines and navigation systems in our cars.

There’s just no way the Boomer/Xer generation is going to start smudging their way through an email reply on the cool surface of an iPhone. No matter how sensitive it is. It just doesn’t compare to the ability to click-out a quick reply one-handed with our Blackberry Pearl while maintaining the lane at 90 mph on the interstate (and drinking a cappuccino at the same time).

No keyboard means no Baby Boomers. Maybe a few “late” Gen X’ers. Just Gen Y’ers – who will be hard pressed to shell out another $200 for the new iPhone when so many others are “giving away” their Smartphones – Samsung, Nokia, Motorola (does Motorola even have a Smartphone? Oh well…)

In the end, it’s just another story of the Geeks in Love with their Gadgets. But it’s also why Apple might find itself never able to really break through the Blackberry barrier. Motorola’s Q hasn’t made a dent; and even the “first to market” Treo has slipped because their phones are bigger than a breadbox. The lesson, as usual, is to focus on the customer. Not the device. If you want to make a work of art, then you can focus on anything you like: People will look at it and say, “That’s nice.” If you want them to buy it, however, you better find out what they like – and build it from there.

And Apple has never really learned this lesson. Their superior product design (and they are admittedly wonderful) became arrogance – which isn’t necessarily a bad thing, but has clearly kept them from understanding how to bring a product to market, dominate that sector, and change the game. We can all say that Blackberries are “more quaint” with their keyboards – but as long as the customer prefers them, it’s a done deal. It’s much easier for Blackberry to add some multimedia, improve their camera, add stereo Bluetooth and all that stuff – to compete with the gadget-coolness of the iPhone – than it is for iPhone to add a keyboard. Maybe that’s why AT&T also sells Blackberries - like the new 8120 with many iPhone-like features.

The question is: What does the customer want to buy? If it’s the business sector (which dwarfs the spending power of the college grads) then someone at Apple better start doing some market research.

- PS: I typed this entire entry out on my Blackberry. With its keyboard.