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New iPhone OS still lacks Flash, but improves ad capabilities

After much speculation, Apple has officially unveiled plans for the iAd platform and the iPhone OS 4, releasing a beta version of the software to its Developer Program members.

The iPhone OS 4 beta release includes an updated Software Development Kit with more than 1,500 new Application Programming Interfaces and about 100 new features that will be available to iPhone and iPod touch users this summer. New features include multitasking for third-party applications, folders to better organize and access applications, improved mail with a unified inbox and enhanced enterprise support.

?From multitasking to folders, the new functionality Apple previewed for the upcoming version of the 4.0 OS addresses many of the features loyal iPhone users have demanded since the device?s launch,? said Dominique Jodoin, president/CEO of Bluestreak Technology, Montreal, Quebec.

Flash support, which is a feature that surveys indicate consistently remains one of the top items consumers would like to have on the next generation of iPhones, is glaringly missing.

Per Bluestreak, Flash is used on more than 85 percent of the top 100 Web sites and 75 percent of all Web videos.

?Until the iPhone supports Flash technology, like most other wireless devices do, and, specifically, many competitive Android-powered devices, it will never offer a complete data services experience to consumers,? Ms. Jodoin said.

Multitasking
On a brighter note, iPhone OS 4?s new multitasking feature offers users a new way to quickly move between applications. It provides developers seven new services to easily add multitasking features to their applications as well.

New services include background audio, so applications such as Pandora can play music in the background.

Additionally, the VoIP service lets applications receive a VoIP call even when the iPhone is asleep or the user is running other applications.

"Apple's iPhone OS upgrade is going to make some people happy and some people angry,? said Charles Golvin, principal analyst at Forrester Research, Cambridge, MA. ?Apple delivered on what people wanted the most: multitasking [and] that will make some iPhone customers happy.

?Developers will love the compendium of new features ranging from multitasking to the ad network to the social gaming enhancements,? he said.

Rotten Apple?
Who is Apple not making happy?

Per Mr. Golvin, the millions of iPhone 3G customers who will not get access to the new multitasking features are certain to be unhappy.

?Short-term, a minority of iPhone users will get excited about the upgraded features, but [the] announcement is really about the long-term implications for developers and the power Apple has just bestowed upon them,? Mr. Golvin said.

The new folders feature will help users better organize and quickly access their applications. Consumers need to just drag one application icon onto another and a new folder is automatically created.

The folder is then given a name based on the App Store category of that application, such as ?Games,? which the user can rename.

Using folders, consumers can now organize and access more than 2,000 applications on their iPhone.

IPhone OS 4 delivers an improved mail experience on a mobile phone with its new Unified Inbox, allowing users to see messages from all of their email accounts displayed together in a single inbox.

With just a few taps, users can quickly switch between inboxes to see messages from any single account.

In addition, users can thread their messages by conversation, making it easier to stay on top of email discussions, as well as open email attachments with compatible applications from the App Store.  

The iAd platform
IAd, Apple?s new mobile advertising platform, lets advertisers serve full-screen video and interactive ad content without the consumer ever leaving the application.

IPhone OS 4 lets developers easily embed iAd opportunities within their applications and the ads are dynamically and wirelessly delivered to the device.

Apple will sell and serve the ads. Developers will receive an industry-standard 60 percent of iAd revenue.

"Beyond developers, Apple is continuing their focus on the consumer experience,? said Julie Ask, San Francisco-based vice president and principal analyst at Forrester Research. ?They are looking to protect the quality of the user experience by controlling the ad experience.

?Steve [Jobs] has raised the bar on quality of mobile ads by keeping consumers within their existing application or experience,? she said. ?He anticipates that the ads will be engaging enough to be considered entertainment."

Availability
The iPhone OS 4 beta software and SDK are available immediately for iPhone Developer Program members at http://www.developer.apple.com.

IPhone OS 4 will be available as a software update to iPhone and iPod touch users this summer. A version of iPhone OS 4 will be coming to the iPad in the fall.

"We are optimistic about Apple's announcement around mobile advertising and multitasking,? said Alistair Goodman, CEO of 1020 Placecast, San Francisco. ?One of the current constraints of location-based services on the iPhone has been the lack of run-in-background functionality for applications using their location API.

?[Yesterday?s] announcement indicates that they will continue to foster the ecosystem of creating relevant LBS services,? he said. ?We are also excited at the prospect of improving the consumer experience for mobile ads, and having Apple committed to this is a win for consumers and marketers, as well as the larger location-based ecosystem.?