iPhone Price Cut – Economics at Work

I just stumbled upon this article in Reason Magazine ( be sure to read the rest of the article):

Sure, it’s good economics—even if it’s bad PR, Apple did manage to sell 1 million iPhones in 74 days-but is it fair? Is it just? To find out, we need look no farther than question posed by rubber bracelets everywhere: WWJD? Not What Would Jobs Do?, of course, since we already know: he’d give in to the whiners and offer $100 credits good for Apple products in the future.

The parable of the workers in the vineyard is the Bible’s final word on this point, and takes a much harder line than Steve Jobs. Jesus tells the story of a group of workers looking for employment. A few are hired in the morning for one denarius. As the day drags on, more and more workers were hired, with the last batch brought to the field only at the eleventh hour. Then it comes time to cash out:

The workers who were hired about the eleventh hour came and each received a denarius. So when those came who were hired first, they expected to receive more. But each one of them also received a denarius. When they received it, they began to grumble against the landowner. ‘These men who were hired last worked only one hour,’ they said, ‘and you have made them equal to us who have borne the burden of the work and the heat of the day.’

“But he answered one of them, ‘Friend, I am not being unfair to you. Didn’t you agree to work for a denarius? Take your pay and go. I want to give the man who was hired last the same as I gave you. Don’t I have the right to do what I want with my own money?”

As one writer put it: “if you’re still upset about ‘paying too much’ for your iPhone, take it up with the man upstairs.”

Or maybe this is all just an extraordinarily elaborate PR strategy after all. Consider a customer we’ll call “Katherine.” She would never wait in line for a gadget. She’s just not quite geeky/status-seeky enough. And she doesn’t track consumer electronics prices, nor does she browse in Best Buy or the Apple store for fun. But thanks to the hullabaloo about the price drop, she now knows that Apple phones are “cheap.” Hard to imagine the fact would have penetrated her consciousness so quickly or so thoroughly as it has without a controversy to reinforce the message.

Perhaps Steve Jobs did have the parable of the workers in the vineyard in mind after all. After all, the tale wraps up with that famous phrase, certainly applicable to iPhone prices today: “So the last will be first, and the first will be last.”

Cheering up the Original iPhone Owners

Fake Steve Jobs made me laugh out loud:

Well, we’ve got a plan to restore some of that magic you felt on Day One. No, not a $200 rebate. And no, we’re not going to let you return the phone or cancel your plan with AT&T. But here’s what we’re going to do. It’s a sticker. Bring in your receipt to any Apple store or AT&T store and show that you paid full price for your iPhone, and we’ll give you a sticker that says, “Original iPhone.” Very small, very classy, black on black, made of super high quality plastic with a glossy finish. Something you’ll be proud to put on your iPhone so everyone will know that you’re not just any iPhone user; you’re one of the super smart, super cool early adopters who paid full price. You see? We’ve got you covered. I know what you want to tell me. What can I say? You’re welcome. I love you too. And you are special. I mean it.

One problem. They’re not buying it. They’re stalking el Jobso:

Damn. Last night they were out there holding a candlelight vigil and singing “We Shall Overcome.” To hell with it. I’m calling the police.

iPhone Accelerometer Tricks

Another iPhone story landed in Google Reader (via TUAW):

today, we’ve got hot off the press news about what they’re up to with the iPhone’s accelerometer. Erling has found a way to pull the raw data off of the iPhone’s LIS302DL, a 3-axis accelerometer that’s currently used for noting when you’re looking at Safari vertically or horizontally. A few hackers, like the folks behind Tilt, have been able to catch the iPhone noting the change itself, but this is the first time, I believe, that we’re seeing live data come right off of the unit at a high sampling rate, enabling Erling to pull off the magic seen above.

 

Source code is available here.

PodTech:iPhone: What We Know, What We Don\’t Know

I Quote:

From iPhoneDevCamp, this presentation by Christopher Allen (slides available). Christopher covers the various aspects of using HTML, CSS, JavaScript, different media formats, and then the human interaction methods to keep in mind when developing for the iPhone. Also, check out the community site iPhoneWebDev.

[podtech content=http://media1.podtech.net/media/2007/08/PID_012381/Podtech_iphone_known_and_unknowns.flv&postURL=http://www.podtech.net/home/3990/iphone-what-we-know-what-we-dont-know&totalTime=1987000&breadcrumb=09db1b9d189b4fd8a8892e90837044ae]

iPhone Hacks: What Will Apple Do?

Despite the clear lack of a SDK, intrepid iPhone hackers err developers haven’t stopped churning out thier stuff. Here’s a small list from todays TUAW RSS feed:

This posses an interesting dilemma for Apple. Since all this stuff clearly isn’t intended to be done, Apple can either crack down on it by having hacked iPhones simply stop working( a la Microsoft) or they can go Google’s way and turn a blind eye.

Perversely, Apple will get more consumer attention and popularity at the cost of a potential showdown with AT&T ( who are obviously the very bad guys behind the draconian lockdown of said mobile device 😉 ).

So the question is: What will Apple Do??

Update: TUAW Asks the same Question:

the iPhone apps are arriving en masse. So far the list includes tools like a working Apache we server, python, shell — and a pile of associated binaries like ls, rm, echo, csh, and tsh — and while these might not be terribly thrilling for Joe everyday user, they are a pretty kicking start. We could start to see all manner of fun stuff arriving in the coming weeks, unless, of course, Apple pulls the plug via an update. Again, we won’t link to the goods, but a wee bit of searching should get you on your way

My Take on DRM

OK, DRM is the ugly duckling of technology. No one likes it. And the reason is that it comes between us and our media.

Now I don’t mean coming between you and sharing your library over the Internet. That’s clearly a violation of copyright, among rather a lot else.  For the uninitiated in this argument, Scott Adams explains:

But obviously there has to be a limit. After I published my first best-selling book, The Dilbert Principle, within days it had been illegally scanned and was widely available on the Internet for free. Technically speaking, it wasn’t theft. But I still lost something. I (and my publisher) lost the ability to decide if, when, and how to publish as an e-book. You can’t compete with “free and immediate.”

From a legal standpoint, taking a creator’s right to control distribution of his art is not “theft.” It’s just “taking something that used to legally belong to someone else and making it your own.”

 

Fair enough? Ok.

However when media is bought (DVD’s, CD’s) its ours to watch in any way we see fit. usually this means popping a DVD into the drive to watch, either on your PC or HDTV.

For music I generally rip all my CD’s the moment I get them and keep them on my server. that way I can listen to my tracks from any TV within my house. I don’t do sharing (Scott Adams and his theory of cognitive dissonance to the contrary).

My point is that we should be able to do the same with DVD’s. Let me rip my collection to my server and watch them on any network PC.

Ahh, I hear you say, there is no guarantee that said DVD’s and music won’t find their way on to the Internet. True. This gets to the meat of my argument ,err, post.

DRM is too restrictive in the sense that it prevents even legitimate use of DVD’s. Lets change DRM from a content-oriented perspective to a network- oriented perspective. DRM should be focused on ensuring that content that has been ripped for legitimate use does not find its way out the home network.

Content owners fail to distinguish between ripping for legitimate use and ripping with malicious intent.

To implement such a network-oriented DRM, an arbitrary standard is required. The standard cannot be biased to  individual Studio’s or Record Labels.

The standard should define

  • a technical means of ensuring that copyrighted data is identified as it travels through the network
  • a technical means of determining the ultimate destination of packets of copyrighted data as they are requested over a network
  • a technical means of ensuring that copyrighted data is stopped either at the gateway or at its source (see above)
  • a technical means of identifying data across the various formats in general use

As far as an actual implementation of such a system, the technology is already there. Microsoft’s WMA format already supports allowing media to play only when there is a license installed. The licensing system simply has to be extended to cover the whole network.

How about a licensing server, then? The receiving media player simply checks the the packets of data and queries the server to ensure that its allowed to play the file/packet.

I’m sure Linksys and the rest of the router manufacturers will get in on the game and build checking routines into their gateways and routers.

As far as determining the destination at the beginning of a file copy operation, its up to Microsoft and Apple to implement this at the OS level.

Once the means to ensure that the spirit of the law is enforced is in place, then we can think about a law change (even here in the UK DVD ripping is a bit of a gray area).