Apple Adds Multitasking and Enables Mobile Ads with iPhone 4.0 Update

Event Summary

April 8, 2010 -- Apple previewed its iPhone OS 4 software and released a beta version to developers. The beta release includes an updated SDK with over 1,500 new APIs and over 100 new features, including multitasking for third-party apps, folders to better organize apps, a unified inbox with threaded messages, enhanced enterprise support, iBooks, and Apple’s new iAd mobile advertising platform. The software will be available for the iPhone and iPod touch this summer and on the iPad this fall.

Quick Take

Analytical Summary

• Current Perspective: Very positive on Apple’s iPhone 4.0 software launch, as it addresses multitasking – a core disadvantage relative to most of its competition – and the company may have leapfrogged ahead of Google and Microsoft in mobile advertising and gaming, respectively.

• Vendor Importance: Very High to Apple, which has repositioned itself as a mobile devices company; the iPhone software runs across its three mobile device platforms: iPhone, iPod touch, and iPad. However, with success comes increased competition, from both traditional phone vendors whose market Apple has invaded and other industry players, such as Google, looking to grow in the hot mobile devices market.

• Market Impact: High on the enterprise mobility market, because multitasking has been a feature poorly lacking on the iPhone and iPod touch, and it is perhaps more important for the iPad, where it significantly improves the tablet’s suitability for computing tasks rather than just media consumption. Lack of multitasking has also made it difficult to secure iPhones, as background processes such as anti-spyware/anti-virus cannot be run.

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