iPhone Owners, Beware! (Of Iffy iPhone Studies)

BREAKING NEWS: Your Apple iPhone is bound to break! At least, if you believe a new study by an electronics warranty company that, by pure coincidence, happens to be promoting an iPhone warranty plan on its home page right now. Breaking news? Broken news might be more like it, as far as I'm concerned.

The report, conducted by warranty seller SquareTrade, made its way into the blogosphere this week and has been steadily building buzz on Twitter ever since. It claims that Apple's iPhone is "prone to accidental damage," seemingly implying (though never directly asserting) that the iPhone may be more likely to break than its smartphone competitors.

Don't fall for the attention-grabbing headline, though: There's far more to this "resea
rch" than meets the eye.

When iPhones Fail

The SquareTrade study (PDF) starts, soundly enough, by comparing the iPhone 3G to the BlackBerry and the Palm Treo. The company claims that, over a 22-month period, the iPhones it tracked experienced far fewer hardware failures than the other mobile devices. Only 9.9 percent of iPhones malfunctioned during that initial two-year timeframe, SquareTrade says, while 15.3 percent of BlackBerrys and nearly 20 percent of Palm Treos had hardware issues.

That sets the stage for the remainder of the sales pitch -- er, sorry...study. Brace yourself.

When iPhone Research Fails

SquareTrade goes on to claim that "while the iPhone hardware experienced relatively few malfunctions, the real problem with iPhones [are their] susceptibility to failures from accidents." More than 20 percent of all iPhone users, the company says, experience some sort of accidental damage to their device -- leading to a "projection" of any iPhone owner having a 33 percent chance that their device will die within two years of its purchase.

Oddly, the comparisons to other devices end here; SquareTrade doesn't actually ever say how the BlackBerry or Palm Treo fared when it came to "susceptibility to failures from accidents." Sure, the iPhone is "especially susceptible to dying from drops, whether on hard surfaces or into liquids" -- but is it any more so than any other small, sleek electronic device with a glass screen? Could other phones be dropped or watered without incident?

This omission, I'm sure, has nothing with to do with the fact that the iPhone is the only smartphone prominently featured on SquareTrade's home page for warranty sales. It also, I'd imagine, has no relation to the following highly scientific conclusion of the company's "research":

"As the cost to replace iPhones is high, prospective iPhone owners should consider this potentially hidden cost before they buy, or seek other ways to alleviate the cost of replacement, such as buying an extended warranty that covers drops and water immersion."

SquareTrade, according to its home page, is the only company offering an iPhone warranty that covers handling-related accidents. You know, things like drops and water immersion.

Intel and Nokia to Rattle Mobile Landscape

Plenty of questions linger regarding Intel and Nokia's partnership, but one thing we can count on is the two powerful tech players will rattle the mobile landscape. The Intel and Nokia partnership, announced yesterday, was slim on specifics but brimming with potential as both announced they would collaborate on a mobile-computing partnership.

The duo has the very real potential to shower consumers with dozens of shiny new Nokia and Intel products from super-smart smartphones that transmit voice and data at lightning speed and efficiency or something like a hybrid netbook/notebook that fits in your shirt pocket.

We will have to wait and see what becomes of the partnership because both executives from Intel and Nokia were mum on what type of gizmos we will be seeing and when. While the brunt of the announcement focused on explaining how both would deliver a new mobile platform, such as Mobile Internet Devices (MIDs), it's what was not said that may generate the most interest and should have Apple, AMD, and other mobile players interested.

Intel Partners Scratch Heads

While Intel and Nokia skimped on specifics, left dangling in the wind are questions about how this announcement will impact Intel's relationships with other companies it has longstanding relationships with. For example, Intel has made significant inroads with Apple, where many of its Macintosh computers are based upon Intel CPUs - will an Intel powered Nokia iPhone competitor strain Apple's relationship with Intel? Concerns should also surround Intel's relationship with Microsoft - will an Intel powered Nokia MID running Android or Linux impact Microsoft's sales of Windows Mobile?

Nokia, Intel Marriage: Jealous?

One thing is certain: Intel may be taking a big risk with its dive into the mobile wireless device market with Nokia. Intel has to be careful not to upset its current partners, yet still work with Nokia to deliver new and impressive devices to consumers. Perhaps, the biggest winner here will be AMD, which has already made inroads with Gateway into the netbook market and is poised to challenge Intel in the low cost computing arena.

If They Were Smart . . .

Still more questions remain about WiMax and alternative operating systems (Android and Linux). The smart move for both companies would be to quickly introduce a MID that shouts innovation. That innovation could come in the form of integrating WiMax into an Android based tablet, which can switch between various wireless modes, while providing the features of a Kindle and iPhone combined, add Bluetooth for a headset and viola, the companies would have something that could compete against netbooks, Kindles and iPods.

Together Intel and Nokia have the technology to make this happen. Nokia has already unsuccessfully dabbled with tablets and Intel already has experimented with cellular phone technology, so both companies have the background to make something happen quickly, and to become masters of the wireless market. Unfortunately, both companies may have to tick off some of their existing partners, at least a little, to seize the day and make this new relationship deliver something significant.

Is a $99 Palm 'Eos' in the Works to Challenge Apple?

Here's a blurry rendering of the Palm Eos from the guys over at Engadget
The Palm Pre may have just debuted at $199 (after rebate), but a cheaper, smaller Palm smartphone may be just around the corner. According to Mike Abramsky, an analyst for RBC Capital Markets, Palm will launch its $99 Pixie -- or perhaps it'll be named the Eos -- as early as Q4 2009.

Rumors of the Pixie/EOS have been circulating for months, and some reports predict the phone will resemble the popular Palm Centro with a touchscreen and a physical keyboard. A shrunken version of the Pre is unlikely, however, without some major design changes. In her review of the Pre, PC World's Ginny Miles praised the phone's interface and touchscreen, but was less than thrilled with its physical keyboard:

"Unfortunately, Palm seems to have sacrificed keyboard usability in the interest of compactness. While I appreciated having a physical keyboard, I disliked the design . . .The keys weren't too tiny for my small hands, but some of my colleagues found them quite cramped."

Another option for a future Pre: Palm could ditch the slide-out keyboard and replace it with a touchscreen version, a la the Apple iPhone. (Today's Pre lacks a touch keyboard.) Certainly, the Pre's best feature is its webOS operating system, which Palm will likely port to other Web-enabled devices next year, Abramsky believes.

Whatever Palm has up its sleeve, it definitely needs a webOS-enabled smartphone to compete with the iPhone 3G. Aggressively priced at $99 and featuring Apple's slick iPhone 3.0 software update, the 3G is arguably the best smartphone value on the market today.

Go to jbertolucci.blogspot.com for links to Jeff Bertolucci's PC World blog posts.