Mac news from outside the reality distortion field
Type Size  -  +
January 10, 2008, 9:07 am

A must read: The iPhone’s ‘Untold Story’

picture-6.jpgLots of freshly reported detail in Fred Vogelstein’s 3,336 word “Untold Story” of Apple’s (AAPL) iPhone in Wired — better than the 9 to 1 chaff-to-wheat ratio suggested by Valleywag, which boils the piece down to 378 words. Among the highlights:

  • An iPhone demo a few months before Macworld that goes so badly that Steve Jobs affixes the staff with a stare and says “We don’t have a product yet”—his silence reportedly even more terrifying than his trademark tantrums.
  • A scene in which a frustrated iPhone product manager slams her door so hard she locks herself in and has to be freed with a well-aimed whack with an aluminum bat.
  • An estimate that the iPhone has tripled the volume of AT&T’s data traffic in New York and San Francisco.
  • An insider’s claim that that the iPhone’s development cost Apple $150 million.
  • The assertion that Apple gets roughly $10 from AT&T for every iPhone sold and $10 off the top of every subscriber’s monthly bill. (A detail that doesn’t quite jibe with estimates that put Apple’s monthly cut as high as $18.)
  • A claim that when Jobs finally unveiled the iPhone at Macworld, only 30 or so of the most senior people had seen it.

Vogelstein’s main point is that as important as the iPhone is for Apple and AT&T, its real significance lies in how it has upended the structure of the $11 billion U.S. mobile phone industry. Not an earth-shatteringly new thesis, but a must-read nonetheless. Click here.

Vogelstein is an arse. Why does Valleywag have to shorten the article? Because the article is crap. And the 378 words that are left over reek even more. “…his silence reportedly even more terrifying than his trademark tantrums.” Please. Reportedly? Name one successful product that was created without some kind of “reported” difficulty. Wow… Apple spent money to make money. Unheard of!! The only way to satisfy an insatiable consumer appetite is to work your ass off, and produce produce produce. Tell me you’ve never heard a publisher or editor at Wired yell at their staff on a deadline. Dude, do you get paid to write this garbage? That’s the real travesty here! Get an ilife, get a Mac, and be happy.

Posted By Andrew Paul, El Paso, Texas : January 15, 2008 4:05 pm

The difference between Steve Jobs and Bill Gates is that Steve didn’t ship it anyway - and then let the consumers debug it.

Posted By John Kantor, St. Petersburg, FL : January 14, 2008 9:50 am

“Slam doors, yell, take off for days”, and that is what…bad? You people need a life, get into the real world, that happens and because it happens good things result. Jobs is the perfect example of what can occur when you challenge people to do their best, they make the best. The iPod, iPhone, Mac computers, OS 10.5, iTunes, iMovie, iDVD, etc…etc…etc…you don’t get quality products like that by babying your people, if you can’t take the heat, get out of the kitchen!!!

Posted By Mike from Cleveland : January 12, 2008 8:25 am

Look at how the iPhone changed the meaning of cool in cellphones:

http://humanvoice.wordpress.com/2008/01/10/iphone-changes-everything/

Posted By tomob : January 11, 2008 9:25 am

Yah…it’s an overpriced stock…yah right. One of the only stocks that actually has a PRODUCT(S) that everyone and their mother is buying. Look around LEN, and see how much Apple is EVERYWHERE, from every laptop, to MP3 player at the gym, to phones being used.
QUOTE!!!!!!!!

um, what planet are you from. nobody uses apple. every laptop every mp3 player, every phone??? what are you smoking. your less than 5% of anything and in this case including reality. and your really just a trend brought on by rich kids living an mtv dream.

on another note im smiling knowing i just built a super computer for about 1000 dollars, and you got an apple piece of crap for same price with 512mb of ram for probably same amount.

And for the guys that will argue better programming doesnt need more power. wake up. even if something sounds right, doesnt mean its true. As i become more capable of multi tasking and doing more with my pc, i demand more of my pc and as much as you apple people can keep it idiot proof and so simple my grandma can do it. truth is WE NEED POWER. and how come noone makes games for mac, cause nobodies using them. and sure bring up 5 examples of compatible games, ill bring up the million title library that isnt.

Yeah let apple keep telling you what a computer should do and how to do it. and by the way you can get an apple with similar specs to my pc. i think apple has one with similar specs in the 4 to 5 grand range. What a great company huh. i guess that means apples OS is worth about 4grand, yeah right. the only logical place I can see apples OS is for like refrigerators or like washing machine interfaces. when you seriously dont want to think its the perfect OS

and as a computer technician myself, i have to say fixing an apple, is 100 times harder than windows. once again apple would rather you replaced, they know you can afford it, since you already spent insane amounts on your first one. dont ever have an error, cause noone on earth will know what to do.

Posted By NY NY : January 10, 2008 10:38 pm

At it again “Elmer”? What is your point about $18t vs. $10…? That companies shouldn’t make a profit??? You work for FORTUNE magazine…and Gates???? He has been swimming in the sweat and blood of so many underpaid, undervalued, software engineers for years now, only to the detriment of the market for that career! Give us a break, go buy a Porche and get it overwith! :)

ex ped: You misunderstand me. I have no agenda here. I’m merely pointing out a discrepancy between Piper Jaffray’s analysis and Wired’s reporting. And if I worked for Microsoft and not a Time Inc. publication, maybe I could afford a Porche.

Posted By Frank Johnston, Lafayette, CA : January 10, 2008 1:58 pm

What a great story! Insightful, well-written and best of all, very interesting. Congratulations.

Don’t know if you are interested but Bill Gates, some time well before the advent of the iPod or iPhone called Apple “that tiny little market share company.” I have often wondered if that incensed Jobs enough to push him over the edge and into development of these new products. If so, this would also make a great story.

Posted By Duncan Grant, Columbia SC : January 10, 2008 1:22 pm

With a few exceptions, Vogelstein avoids the oohing and aahing so familiar to legions of Apple fanboys. Instead, with energy and enthusiasm he weaves a story of secret meetings, slamming doors, and the mad rush to deliver a working iPhone, first for the folks at Cingular (now AT&T), then for public at the annual Apple love-fest, Macworld. “Untold” may be a stretch, but Vogelstein’s conclusion that Steve Jobs “has given all the power to consumers, developers, and manufacturers,” and that the carriers will benefit as people “spend more time on devices … racking up bigger bills,” is pretty compelling.

Posted By JeremyB, Washington, DC : January 10, 2008 12:54 pm

Your title, “Must Read” got me to read it. Congradulations.

Interesting antedotes about a gizmo that the consumers are going ga-ga over. All the Iphone needs is a knife blade and it would be the ultimate Swiss Army knife.

Posted By Robert Hobkirk, Elk Grove, CA : January 10, 2008 11:50 am

As an undergrad I bought an Italian scooter from an old Shriner. It was fast and zippy. I rode it everywhere.
At the same time my best friend bought a Jeep. He liked to make fun of my choice of transportation. His jeep had 4 wheel drive and more power, and where would I be if it rained?, etc.
His jeep was always in the shop or belching blue smoke and it sucked down gas.
A cute girl at a party explained to him that she would rather ride home on the back of my scooter. “it’s so fun!”
I have used a pc for years at work. Now I have a Mac. I use it for everything. It’s fun.
Apple stock will do just fine.

Posted By Steve Mertz, Boulder, Colorado : January 10, 2008 11:37 am

The article should end with, “So with all of that behind them, the iPhone now works nearly flawlessly with routine updates from iTunes and wonderful warranty help from Apple store associates and as the last few remaining complaining owners of iPhones still whine about their problems, they are probably the same people who kick and yell and scream at their computers when they act up and simply dont know how to restart or reset them either”. - I’m glad this article means nothing.

Posted By Rich, Baltimore MD : January 10, 2008 10:57 am

In the last paragraph you write “… its real significance lays in how…”

The word is LIES not lays!

I am not a nit picker about typos, but this is ….. (I won’t say)

ex ped: You are correct. Fixed. Thanks.

Posted By jmmx, Portland Oriegon : January 10, 2008 10:51 am

For over 18 years I have been an Apple/Mac product user. All the while, listening to friends cry, rant and rave about the lackluster performance, virus-acquiring, and plain and ugly as hell PCs they use. Now, nearly 90% of my friends have discovered the ease of use, performance and beauty of Macs and Apples. When I rec’d an iPhone as a gift for Christmas, all of my PC-user/Apple-Mac-once-hater friends (now converts) remarked: Damn, I have got to get one of those! And yes, it performs and works BRILLIANTLY. And yes, I own AAPL stock (only since 2005 at $39p/ share; should have bought in earlier)… and I bought more at 61, 69, 81, 83, 87, 126, 183, and 178. Why? I am in it for the LONG haul. Face it: AAPL is a PIONEER and leads the technology sector w/ superior products that WORK. So, if ya wanna bash AAPL and MACs go ahead. You know it’s jealousy cuz ya don’t use a MAC everyday like I do for WORK and have an iPhone. At least not yet. PS: this comment was sent from my iPhone. : )

Posted By Matti Touchard New Orleans, LA : January 10, 2008 10:50 am

Yah…it’s an overpriced stock…yah right. One of the only stocks that actually has a PRODUCT(S) that everyone and their mother is buying. Look around LEN, and see how much Apple is EVERYWHERE, from every laptop, to MP3 player at the gym, to phones being used.

You want an overpriced stock, go check out GOOGLE. That facade can only stay for so long.

Posted By James, Arlington, VA : January 10, 2008 10:33 am

Why is this a must read?

Headline should read SPAM: ANOTHER STORY TO SHORE UP AN OVERPRICE STOCK

Posted By Len : January 10, 2008 10:02 am

I’ve so many problems with my Iphone, it’s a joke, now today the touch screen is locked so I can not dial out or acess email.

Posted By Donna, Louisville, KY : January 10, 2008 9:56 am

Is your opening paragraph even a complete sentence? Your title is overly sensational for an article that says NOTHING new. Is the news really that slow? Try a little harder next time to come up with unique content and to write it in complete sentences.

Posted By Powergirl, Houston,TX : January 10, 2008 9:34 am

I knew the iPhone was going to be huge when Andy Ikhnatko (tech columnist for Chicago Sun Times) said that he’d spent a half hour with it last January and it did actually work. Apple tends to underpromise and over-deliver, but it was great to get independent assessment from a highly-trusted reviewer. I added more AAPL to my existing portfolio at $85. People have recession worries now, but AAPL hit $200 recently and will likely hit $300 in 1-2 years. And, don’t forget, the iPod and iPhone are all about getting people into the Apple Stores, so they can see Macintosh computers in action.

Posted By Tom Barta Durham,NC : January 10, 2008 9:33 am

so what is the point of this? to bring apple down? so rumored mishaps along the way, a botched demonstration–all before the fact of the product launch and the phenomenal change iphone will render on its target markets. after all the hedda hopper style nothingness, we are told vogelstein’s point is how iphone will upend the industry—maybe vogelstein would like to tell us something else we all know!

Posted By new york new york : January 10, 2008 9:25 am
CNNMoney.com Comment Policy: CNNMoney.com encourages you to add a comment to this discussion. You may not post any unlawful, threatening, libelous, defamatory, obscene, pornographic or other material that would violate the law. Please note that CNNMoney.com may edit comments for clarity or to keep out questionable or off-topic material. All comments should be relevant to the post and remain respectful of other authors and commenters. By submitting your comment, you hereby give CNNMoney.com the right, but not the obligation, to post, air, edit, exhibit, telecast, cablecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comment(s) and accompanying personal identifying information via all forms of media now known or hereafter devised, worldwide, in perpetuity. CNNMoney.com Privacy Statement.
Philip Elmer-DeWittSilicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
Subscribe to Apple 2.0: RSS feed | email newsletter
* : Time reflects local markets trading time.† - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges.• Disclaimer
Powered by WordPress.com.