Apple’s App-roval process

I wrote earlier about AT&T’s responses to FCC’s questions concerning the iPhone App Store and Google Voice.

Now Apple has posted its responses to the same questions, which are basically the same as AT&T’s. Among the differences are that Apple’s responses contain some hard numbers on its controversial App Store approval process:

  • 80% of applications are approved as originally submitted.
  • 95% of applications are approved within 14 days of submission.
  • 65,000 applications have been approved.
  • 200,000 submissions and re-submissions have been made.
  • 8,500 submissions are coming in each week.
  • Each submission is reviewed by two reviewers.
  • There are 40 reviewers.

These numbers don’t really add up. So what Apple probably means is that 95% of the applications that have been approved were approved within 14 days of their final submission. Even so, each reviewer must look at an average of 425 submissions per week (8,500*2/40), which is 10 per hour per reviewer – an average of 12 minutes of reviewer time per submission, which doesn’t seem to justify the terms “comprehensive” and “rigorous” used in Apple’s description of the process:

Apple developed a comprehensive review process that looks at every iPhone application that is submitted to Apple. Applications and marketing text are submitted through a web interface. Submitted applications undergo a rigorous review process that tests for vulnerabilities such as software bugs, instability on the iPhone platform, and the use of unauthorized protocols. Applications are also reviewed to try to prevent privacy issues, safeguard children from exposure to inappropriate content, and avoid applications that degrade the core experience of the iPhone. There are more than 40 full-time trained reviewers, and at least two different reviewers study each application so that the review process is applied uniformly. Apple also established an App Store executive review board that determines procedures and sets policy for the review process, as well as reviews applications that are escalated to the board because they raise new or complex issues. The review board meets weekly and is comprised of senior management with responsibilities for the App Store. 95% of applications are approved within 14 days of being submitted.

Of course much of this might be automated, which would explain both the superhuman productivity of the reviewers and the alleged mindlessness of the decision-making.

AT&T, Apple and VoIP on the iPhone

The phone OEMs are customer-driven, and I mean that in a bad way. They view service providers rather than consumers as their customers, and therefore have historically tended to be relatively uninterested in ease of use or performance, concentrating on packing in long checklists of features, many of which went unused by baffled consumers. Nokia seemed to have factions that were more user-oriented, but it took the chutzpah of Steve Jobs to really change the game.

A recent FCC inquiry has provoked a fascinating letter from AT&T on the background of the iPhone and AT&T’s relationship with Apple, including Voice over IP on the iPhone. On the topic of VoIP, the letter says that AT&T bound Apple to not create a VoIP capability for the iPhone, but Apple did not commit to prevent third parties from doing so. AT&T says that it never had any objection to iPhone VoIP applications that run over Wi-Fi, and that it is currently reconsidering its opposition to VoIP applications that run over the 3G data connection. Since the argument that AT&T presents in the letter in favor of restrictions on VoIP is weak, such a reconsideration seems in order.

The argument goes as follows: the explosion of the mobile Internet led by the iPhone was catalyzed by cheap iPhones. iPhones are cheap because of massive subsidies. The subsidies are paid for by the voice services. Therefore, AT&T is justified in protecting its voice service revenues because the subsidies they allow had such a great result: the flourishing of the mobile Internet. The reason this argument is weak is that voice service revenues are not the only way to recoup subsidies. AT&T has discovered that it can charge for the mobile Internet directly, and recoup its subsidies that way. It will not sell a subsidized iPhone without an unlimited data plan, and it increased the price of that mandatory plan by 50% last year. Even with this price increase iPhone sales continued to burgeon. In other words, AT&T may be able to recoup lost voice revenues by charging more for its data services.

This is exactly what the “dumb pipes” crowd has been advocating for over a decade now: connectivity providers should charge a realistic price for connectivity, and not try to subsidize it with unrealistic charges for other services.

Tsera, LLC v. Apple Inc. et al. Patent troll?

Here’s a little fairy-tale about what might have happened: Chuang Li took an idea to his boss at Actiontec who determined that it wasn’t of interest to the company and told him the idea was all his if he wanted to pursue it. Chuang ultimately refined the idea into the user interface that would become ubiquitous on MP3 players. The Patent Office rejected his application on a technicality. Chuang labored for years patiently jumping through hoops for the patent examiner while educating him on the validity of his claims. When the patent was finally issued, Chuang took it to Apple and requested a reasonable compensation for his idea. Unable to reach agreement with Apple after five years of effort, Chuang found a reputable firm of New York lawyers who were willing to take the case on a contingency basis.

Now here are some facts: the slashdotscape is alive with outrage about another patent lawsuit, this time filed by a company called Tsera LLC against Apple and 18 other companies over a touchpad interface to personal media player type devices (iPods).

Tsera was formed a couple of weeks ago on July 10th, and has filed no ownership or officer information with the Texas Secretary of State. Its registered agent is National Registered Agents, Inc. of New Jersey. Five days after the company was formed, Chuang Li, the inventor of US patent number 6,639,584 assigned that patent to Tsera. That same day Tsera filed suit in the notorious U.S. District Court for the Eastern District of Texas. Tsera’s attorneys are Kaye Scholer LLP of New York (specifically James S. Blank, Patricia A. Carson, Leora Ben-Ami, Oliver C. Bennett and Tsung-Lin Fu.) Tsera’s local counsel are Jack Wesley Hill and Otis W. Carroll of Ireland, Carroll and Kelley, P.C. of Tyler Texas.

The complaint reveals that Tsera has no parent corporation, and that no public company owns 10% or more of its stock.

The original application for patent 6,639,584 was made exactly ten years ago, on July 29, 1999. At that time (and still) the inventor, Chuang Li was apparently working for Actiontec Electronics, Inc. of Sunnyvale, CA. Chuang Li did not assign the patent to Actiontec, although other patents he applied for around that time were assigned to Actiontec. Companies like Actiontec normally require their workers to assign all the intellectual property they generate, especially when it is relevant to their business. Actiontec makes an MP3 player called the PocketRave.

Chuang Li’s application was rejected on October 9, 2001, just two weeks before Apple launched the first iPod (which did not have a touch-sensitive interface.) Three months later, on 28th January 2002, Chuang Li submitted an amended application, which was again rejected, in November 2002. In May of 2003 Chuang Li appealed the rejection and submitted another amendment. The appeal was ultimately successful, and the patent was issued on the 9th of October, 2003.

Looking at this chronology, you can see that the patent application was amended after the July 2002 launch of the touch-wheel iPod. Numerous rejections and resubmissions are common in the patent process, but they can be symptomatic of a “submarine patent,” where an inventor (famously Jerome H. Lemelson) files a vague patent and tweaks it over the course of several years to make it apply to some successful product that has appeared in the interim. The most egregious type of patent trolling is when the patent at issue is meritless, but the troll demands a settlement that the defending company determines is cheaper to pay than to go to court over.

The Tsera patent doesn’t cite as prior art Xerox’s US Patent 5596656, filed in 1995 and issued in January 1997. The basic idea of the Xerox patent is to replace a keyboard by forming strokes on a touch-pad, while the basic idea of the Tsera patent is to replace buttons and knobs on a portable electronic device by forming strokes on a touch-pad. The Xerox patent has a system of “unistrokes” on a touch-sensitive surface that can be performed “eyes free” and in which unistroke symbols can “correlate with user invokeable control functions.” The Tsera patent has a “device controlled by a user tracing a command pattern on the touch-sensitive surface with a finger,” “without requiring the user to view the portable electronic device,” with each of the “patterns corresponding to a predefined function of the portable electronic device.”

These descriptions actually apply better to the iPhone and the iPod Touch than they do to the canonical iPod touch-wheel, where the annular touch sensitive surface doesn’t really accommodate free-form strokes.

The Xerox patent was the subject of extensively reported litigation running from 1997 to 2006.

The Xerox patent, which is prior art to the Tsera patent, includes free-form touchpad strokes used as control functions. I am not a lawyer, but it seems to me that application of this same idea to portable devices would have to be non-obvious or the term “control functions” would have to be narrowly defined in order for the Tsera patent to be valid.

Is Tsera acting as a patent troll? You be the judge.

Skype for iPhone

Well, that last post on the likely deficiencies of VoIP on iPhones may turn out to have been overly pessimistic. It looks as though Hell is beginning to freeze over. Skype is now running on iPhones over the Wi-Fi connection, and for a new release it’s running relatively well. AT&T deserves props for letting it happen – unlike T-Mobile, which isn’t letting it happen and therefore deserves whatever the opposite of props is.

6 hours after it was released Skype became the highest-volume download on Apple’s AppStore. In keeping with Skype’s reputation for ease of use, it downloads and installs with no problems, though as one expects with first revisions it has some bugs.

My brief experience with it has included several crashes – twice when I hung up a call and once when a calendar alarm went off in the middle of a call. Another interesting quirk is that when I called a friend on a PC Skype client from my iPhone, I heard him answer twice, about 3 seconds apart. Presumably a revision will be out soon to fix these problems.

Other quirky behaviour is a by-product of the iPhone architecture rather than bugs, and will have to be fixed with changes to the way the iPhone works. The biggest issue of this kind is that it is relatively hard to receive calls, since the Skype application has to be running in the foreground to receive a call. This is because the iPhone architecture preserves battery life by not allowing programs to run in the background.

Similar system design characteristics mean that when a cellular call comes in a Skype call in progress is instantly bumped off rather than offering the usual call waiting options. I couldn’t get my Bluetooth headset to work with Skype, so either it can’t be done, or the method to do it doesn’t reach Skype’s exemplary ease of use standards.

Now for the good news. It’s free. It’s free to call from anywhere in the world to anywhere in the world. And the sound quality is very good for a cell phone, even though the codec is only G.729. I expect future revisions to add SILK wideband audio support to deliver sound quality better than anything ever heard on a cell phone before. The chat works beautifully, and it is synchronized with the chat window on your PC, so everything typed by either party appears on both your iPhone and PC screen, with less than a second of lag.

After a half-hour Skype to Skype conversation on the iPhone I looked at my AT&T bill. No voice minutes and no data minutes had been charged, so there appear to be no gotchas in that department. A friend used an iPod Touch to make Skype Wi-Fi calls from an airport hot-spot in Germany – he reports the call quality was fine.

The New York Times review is here

AT&T to deploy Voice over Wi-Fi on iPhones

Don’t get too excited by Apple’s announcement of a Voice over IP service on the iPhone 3.0. It strains credulity that AT&T would open up the iPhone to work on third party VoIP networks, so presumably the iPhone’s VoIP service will be locked down to AT&T.

AT&T has a large network of Wi-Fi hotspots where iPhone users can get free Wi-Fi service. The iPhone VoIP announcement indicates that AT&T may be rolling out voice over Wi-Fi service for the iPhone. It will probably be SIP, rather than UMA, the technology that T-Mobile uses for this type of service. It is likely to be based on some flavor of IMS, especially since AT&T has recently been rumored to be spinning up its IMS efforts for its U-verse service, which happens to include VoIP. AT&T is talking about a June launch.

An advantage of the SIP flavor of Voice over Wi-Fi is that unlike UMA it can theoretically negotiate any codec, allowing HD Voice conversations between subscribers when they are both on Wi-Fi; wouldn’t that be great? The reference to the “Voice over IP service” in the announcement is too cryptic to determine what’s involved. It may not even include seamless roaming of a call between the cellular and Wi-Fi networks (VCC).

AT&T has several Wi-Fi smartphones in addition to the iPhone. They are mostly based on Windows Mobile, so they can probably be enabled for this service with a software download. The same goes for Blackberries. Actually, RIM may be ahead of the game, since it already has FMC products in the field with T-Mobile, albeit on UMA rather than SIP, while Windows Mobile phones are generally ill-suited to VoIP.

A not so perfect Storm

The Verizon Storm may be heading for failure in more than one way. A raft of reviewers, led by David Pogue of the New York Times are trashing its usability. This means that even with the marketing might of Verizon behind it it may not fulfill its goal of being a bulwark against the iPhone in the enterprise.

But the Storm was an experiment in another way by Verizon. The other three major American mobile network operators have capitulated to Wi-Fi in smartphones. Against the new conventional wisdom, Verizon decided to launch a new flagship smartphone without Wi-Fi. The Storm looks like a trial balloon to see whether Wi-Fi is optional in modern smartphones. If the Storm is a success, it will demonstrate that it is possible to have credible business smartphones without Wi-Fi. But if it turns out to be a flop because of other factors, it will not be a proof point for Wi-Fi either way.

But Wi-Fi is a closed issue by now for all the network operators, perhaps even including Verizon. Phones have lead times of the order of a year or so, and controversies active back then may now be resolved. Verizon covered its bets by launching three other smartphones around the same time as the Storm, all with Wi-Fi (HTC Touch Pro, Samsung Omnia, Samsung Saga).

Before its launch, AT&T hoped that the iPhone would stimulate use of the cellular data network. It succeeded in this, so far beyond AT&T’s hopes that it revealed a potential problem with the concept of 3G (and 4G) data. The network slows to a crawl if enough subscribers use data intensively in small areas like airports and conferences. Mobile network operators used to fear that if phones had Wi-Fi subscribers would use it instead of the cellular data network, causing a revenue leak. AT&T solved that problem with the iPhone by making a subscription to the data service obligatory. T-Mobile followed suit with the Google phone. So no revenue leak. With the data subscription in hand, Wi-Fi is a good thing for the network operators because it offloads the 3G network. In residences and businesses all the data that goes through Wi-Fi is a reduction in the potential load on the network. In other words, a savings in infrastructure investment, which translates to profit. This may be some of the thinking behind AT&T’s recent acquisition of Wayport. The bandwidth acquired with Wayport offloads the AT&T network relatively cheaply. AT&T’s enthusiasm for Wi-Fi is such that it is selling some new Wi-Fi phones without requiring a data subscription.

The enterprise market is one that mobile network operators have long neglected. It is small relative to the consumer market, and harder to fit into a one-size-fits-all model. Even so, in these times of scraping for revenue in every corner, and with the steady rise of the Blackberry, the network operators are taking a serious look at the enterprise market.

The device manufacturers are way ahead of the network operators on this issue: the iPhone now comes with a lot of enterprise readiness Kool-Aid; Windows Mobile makes manageability representations, as does Nokia with its Eseries handsets. RIM, the current king of the enterprise smartphone vendors also pitches its IT-friendliness.

Wi-Fi in smartphones has benefits and drawbacks for enterprises. One benefit is that you have another smart device on the corporate LAN to enhance productivity. A drawback is that you have another smart device on the corporate LAN ripe for viruses and other security breaches. But that issue is mitigated to some extent if smartphones don’t have Wi-Fi. So it’s arguable that the Storm may be more enterprise-friendly as a result of its lack of Wi-Fi. Again, if the Storm becomes a hit in enterprises that argument will turn out to hold water. If the Storm is a flop for other reasons, we still won’t know, and it will have failed as a trial balloon for Wi-Fi-less enterprise smartphones.

Broadcom connectivity chip reaches the market

Back in July Broadcom announced that it had started production shipments of its BCM4325 chip.

Yesterday iFixit.com found one in the new Apple iPod Touch. This is the first published instance of a device containing this chip but many more will follow. Broadcom has scored a coup with this device; it contains Wi-Fi, Bluetooth and FM, all on a single die fabricated on a 65nm process.

This is the most highly integrated connectivity chip (the term refers to all the non-cellular radios in a phone) yet to reach the market. Previous combo connectivity chips have combined Bluetooth with FM, and in one instance (from Marvell) Bluetooth with Wi-Fi. But the BCM4325 is the first to market with three radios. TI has announced, but not yet shipped, a similar chip with even more impressive specifications: the TI Wi-Fi will include 802.11n and the TI FM will include transmit as well as receive.

Connectivity technology in cell phones is evolving very rapidly, as the phone manufacturers accelerate their competition on the feature treadmill. Next will be GPS, driven this time by the network operators, who see location-based services as a potential goldmine. Two chip manufacturers have announced, but not yet shipped, combo Bluetooth, FM and GPS chips.

Connectivity chips were the subject of a report I wrote last year with the Linley Group; we will deliver an update with expanded coverage later this year.

Ask and ye shall receive

Ken Dulaney, Gartner VP distinguished analyst and general mobile device guru, told the crowd at the Gartner Mobile & Wireless Summit today that he still can’t recommend businesses adopt the iPhone — even with an SDK. Dulaney said that he recently wrote Apple a letter in which he outlined several things Apple would need to do with the iPhone before Gartner could change its mind about it. The directives included:
– Permit the device to be wiped remotely if lost or stolen
– Require strong passwords
– Stop using iTunes for syncing with a computer
– Implement full over-the-air sync for calendar and PIM

Jason Hiner, TechRepublic March 5th, 2008

On the same day Dulaney said this in Chicago, Phil Schiller of Apple was holding a news conference in Santa Clara granting some of these wishes, and many more:

  • Microsoft Exchange support with built-in ActiveSync.
  • Push email
  • Push calendar
  • Push contacts
  • Global address lists
  • Additional VPN types, including Cisco IPsec VPN
  • Two-factor authentication, certificates and identities
  • Enterprise-class Wi-Fi, with WPA2/802.1x
  • Tools to enforce security policies
  • Tools to help configure thousands of iPhones and set them up automatically
  • Remote device wiping

At the news conference Apple wheeled out several corporate endorsers: Genentech, Stanford University, Nike and Disney.

At first blush, the new enterprise-oriented capabilities of the iPhone appear to be an IT manager’s dream come true (though it will be a while before the dream is a reality.) Even this contrarian post concedes that it will make the iPhone more competitive with the Blackberry, while faulting Apple for not having a comprehensive enterprise strategy.

Apple is clearly serious about the enterprise smartphone market, and this strategy is sound. The business market supports price points that easily accommodate the iPhone, and this strategy spills over to the business PC market in two ways: today by acting as a door-opener for Mac sales, tomorrow by evolving the iPhone into a PC replacement for many users.

iPhone 3G, SDK, enterprise orientation

UBS thinks that the 3G iPhone will be released mid-year. iLounge reports that the much-anticipated iPhone SDK will be delivered in June, at Apple’s Worldwide Developer Conference. A beta version will be released at an announcement event on March 6th.

There are several reports that Apple intends to target business users with the iPhone, competing with Blackberries, Nokia’s Eseries and Windows Mobile devices. Since the SDK reportedly will expose interfaces to the phone and Wi-Fi, developers of Wi-Fi soft-phones and enterprise Fixed-Mobile Convergence systems will presumably add iPhone support to their existing Symbian and Windows-supporting products. It remains to be seen how easy it will be for developers to actually get their software “officially” onto the iPhone. Apple can choose their degree of open-ness from a variety of options discussed here.

For Apple to aim at the business market makes a lot of sense. With the successful transition to Intel processors Macs already run Windows natively, and iPhones are supposedly making inroads among executives. According to ChangeWave, summarized here, the iPhone has a 5% share of corporate smartphones already, with astronomical ratings for satisfaction.

To make enterprise IT departments happy, though, Apple will have to make the iPhone more manageable; either by building in OMA DM like Nokia with the Eseries, or by letting third parties develop enterprise manageability clients using the iPhone SDK.

Competitors aren’t sitting still for this. The October 2007 announcement of “Microsoft System Center Mobile Device Manager” was a step forward for Windows Mobile in the enterprise. Microsoft is also leaking stories about how when Windows Mobile 7 is released in 2009 it is going to be more of a pleasure to use than the iPhone. It is conceivable, I suppose, but Microsoft’s track record on usability is pretty consistent. The fundamental part that they invariably seem to get wrong is instant response to user input.

iPhone thirty to fifty times better than other phones?

Owners of iPhones know that web browsing on the iPhone is a completely different animal than on any other cell phone. How different? Well, it would appear to be thirty to fifty times different.

Thirty times is difference in data usage between iPhone users and others on the T-Mobile network in Germany, according to Unstrung.

Fifty times is the difference in the number of Google searches by iPhone users compared to others according to Google.