What sort of blogger would I be if I didn’t make a bunch of predictions for the next year that you could laugh at (some now, some in 11 months). Rather than making a bunch of vague statements that can’t even be evaluated a decade from now (I’m looking at you, The Economist) I’ll try to make right-or-wrong predictions so one of us will get to stick our tongue out at the other on New Year’s Eve.
Mobile
1. The iPhone will remain solely on AT&T, much to the chagrin of iPhone users. Android and Palm will gain market share as a result, probably more the former than the latter. Customers will continue, for the most part, choosing their carrier and then their phone as they’ve done since the industry began.
My reasoning behind this is that the only network that matters to Apple is Verizon, and Verizon won’t give them much of a deal. AT&T clings to the iPhone like a drowning man to a life raft. It’s all they’ve got, and they’ll give Apple all of the control they expect in return. I wouldn’t be surprised if Randall Stephenson is washing Steve Jobs’ car every Sunday.
Verizon won’t play that game because they know that in the long-term, that means irrelevance for them, and if there is one thing Verizon has shown all along it’s that they are the mobile network most capable of thinking long-term. If Apple wants to play on their playground, they’re going to have to follow the same rules as all the other kids, and Steve Jobs won’t ever let that happen.
Verizon has been growing their business just fine without the iPhone, and for the first time they’ve got solid competition (Droid, Storm [though I hate to call that hunk of junk competition, it sells] and soon the Pre) for the consumer smart phone space. They’re looking back to 2007 when they passed on the deal the first time because Apple wanted too much money and too much control and laughing about how right they were. AT&T might have gotten themselves the hottest phone on the market, but they got it at a price that hasn’t helped them stop the bleeding, and if anything has put them in worse shape than they were then. They’ve hemorrhaged customers even despite bringing in millions with the iPhone 3G, and Verizon has gained a big chunk of them.
(Everyone is also claiming that Verizon won’t do much to market the Pre because they want the Droid to be their iPhone. I don’t believe that either. Verizon wants the hardware companies competing tooth and nail. They didn’t want to be a king maker for Apple, but doing the same thing for Motorola wouldn’t be any better for VZW in the end. They’ll put their muscle behind a new phone every couple months just as they always have. The Pre and Pixi will be up to bat pretty soon, then it will be someone else’s turn at the plate.)
The only other network I could see the iPhone landing on is Sprint. They’re CDMA and therefore can roam on Verizon’s towers. They’re just big enough to matter (because really, what’s joining up with T-Mobile going to do for Apple?) but in a bad enough position that they might give Apple more than Verizon.
2. Palm will put out a successor to the Pre that does even better. I’m not talking about the rumored Pre Plus that will be launching on Verizon shortly, I mean a second generation. If you forced me to nail down features, I’d say video (which may be on the original by then), Flash (ditto), a better keyboard (I hope) and of course the obligatory more memory.
Their ease of development (already the easiest, and going to be even more so once Ares launches) will give them the highest app count to user base ratio, though that won’t count for much in the grand scheme of things because as anyone who actually has one of these phones knows, you only need one app that makes fart noises. The quality of an app catalog does not scale in direct proportion to quantity, in fact it’s more of a logarithm with a large base number.
WebOS will continue to be the best mobile OS, especially once it gets Flash, which will be the most popular feature ever to hit smart phones, but will still not eclipse the iPhone or Android in total sales yet. Hopefully for Palm’s sake they’ll ditch the creepy marketing campaign for one that works.
3. More Android units will ship that are highly-regarded and will land on every major carrier. 2010 might not be the year my prediction from 2008 comes true, but it might be the last where it doesn’t.
4. Apple will launch a tablet of some sort. It won’t be a roaring success like the iPhone 3G. It probably won’t even be anywhere near the middling success (or middling failure, depending on your point of view) of the original iPhone. It won’t be a total dud (Apple TV) either. Think along the lines of the Macbook Air.
Apple does product development as well as anybody though, maybe better. The original iPod sucked. So did the original iPhone. In both cases, Apple watched what users did, figured out what mattered and what didn’t, and successive generations got better and cheaper. So to make this clear, I’m speaking only of the first generation.
I would guess most people don’t want to carry a device around 24/7 unless it fits in their pocket. It will be a device for lounging around the house, but people already have notebooks and smart phones for that.
And if people have to have some sort of carrying case for a computing device whenever they leave, they’ll want a full-featured computing device, especially at any price point over $500 since you can get a reasonable notebook for that these days. It’s unclear to me what a tablet can do that an iPhone can’t, and what it can do as well as a notebook, let alone better than, while still remaining price-competitive.
I expect the tablet will be what the Kindle should have been. Apple will realize (as they always have) that nobody cares about battery life. They’ll deal with 5 hours if it means a color screen and the ability to watch video and surf the web. Apple will also realize that even a digital keyboard is better than that monstrosity on the Kindle, that Wi-Fi is better than Whispernet, and that a web browser is better than all of the books and magazines in the universe.
My guess is the product will have a 3G data card built in, cost $599 subsidized through a carrier with data service (which is why I’m putting this in mobile) and maybe $799 with no service contract. That will be way too much. I’m just spit-balling there though.
Web/Software
1. Facebook and Zynga will both IPO (their valuations will be very much tied together) and a previously thawed tech market will heat back up. Social games will continue to grow,and maybe get a second IPO from someone like Playdom, though not at the astounding pace they did in 2009.
2. Twitter won’t exactly fade back into obscurity, but it will garner fewer and fewer media mentions, and new users, as time goes on. It may end the year with fewer daily actives than when it started as people tire of the enforced inanity of a 140 character limit.
3. Application developers will slowly start to shift away from iPhone and Facebook to the good old-fashioned internet once again. The iPhone platform’s terrible distribution system will, despite insanely high RPUs, prevent the business case from being realized by developers. Facebook’s platform (which has great distribution but much lower RPU) will go through a rough patch with major changes that makes developers ask “why am I not just building this on a website again?”
4. Google Wave will gain virtually no traction at all. The DoJ will take firm action against Google for anti-trust violations.
5. Facebook’s growth will slow because there are only so many people on the net. Their revenue may hit $1 billion.]
6. Bing will gain a little market share, but not enough for Google to worry about. Most of it will come from Yahoo anyway.
Games
1. Pundits will finally realize that the real success story of the previous generation of consoles wasn’t the Wii, but the Xbox 360 (All gamers already realize this, pundits can’t see beyond unit sales.) just in time for rumors of the next generation to start circulating.
2. Starcraft 2 will finally launch, after years of teasers. It will be critically acclaimed and very popular, but not as popular as it could have been a year or two ago due to many former RTS players having moved on to MOBA games like DoTA and League of Legends.
3. Flash will come to mobile devices, sparking a massive upsurge in the casual games industry. The number of game apps on any mobile platform is trivial when compared to the number of Flash games out there.
That’s all I’ve got. Please tell me where and how I am wrong.