Apple’s recent lawsuit against handset maker HTC may have had a chilling effect on the development of so-called “iPhone killers,” according to The Wall Street Journal’s Matt Phillips, who referenced a research report from Oppenheimer analyst Yair Reiner as saying: “Our checks suggest that the combination of warnings and legal actions are having their intended effects and are causing a number of competing handset programs to be shaken off-course.”
Mr. Reiner added: “Until recently, most high-end smartphone programs were focused primarily on trying to match the iPhone’s user experience, and secondarily on avoiding any egregious violations of Apple’s patents. We believe this order of priorities has temporarily changed–along with the industry’s appreciation for how far Apple is willing to extend the fight. Few OEMs believe that simply staying clear of multi-touch can, on its own, avert Apple’s wrath. We believe a lot of software and hardware is being sent back to engineering departments for work-arounds.”
Mr. Reiner also said that an ironic side effect of this recent development is a boost for Windows 7 Mobile: “The potential de-emphasizing of Android is also likely to benefit Win7 Mobile, which appears to be gaining significant traction. Part of Win7’s appeal is its capability as an OS. No less important, however, is its strategic value as a hedge against the risk of Android’s becoming too strong–or proving too weak.”











Brad Cook 

Speed bump. This will take years to litigate. RIM and Nokia still own smart phones. Apple is on a #3 perch and will be toppled by Android soon enough. Whether it’s in 12 months or 18 months doesn’t matter too much. Android has too much momentum coming from too many players for one company to hold back. Android is also making its way into MIDs and small tablets, and could very easily jump to TVs in the under $2000 space. It’s more than just phones. It gets to a lot of places where Apple does not play and are less reachable by even the overly broad Apple patents.
So if what Reiner is saying is actually true, and not just typical analyst stock cheerleading, the handset makers are retrenching. They’re not going to concede their individual shares of a good thing (total Android share) to a belligerent Apple, especially when there is so much discontent with Apple’s policies to tap into. Give it a couple months and they’ll all be full steam ahead again.
At the same time, everyone is looking for the first person to punch schoolyard bully Apple in the mouth. Once someone draws a little blood, everyone is gonna take their turn. I’d look to Verizon with an HP or Dell tablet mocking the iPad, like their “Droid Does” commercial did with the iPhone. But a sucker punch might also come from the Apple/Nokia dispute. I just don’t think Apple has the stomach to play by schoolyard rules.