The good and the bad. And some ugly.

I posted some preliminary impressions about the camera in the iPhone 4S here. I’ll be writing more when I have had a real chance to wring the camera out. One point worth noting is that you can snap faster with this camera – shot-to-shot – than with my ‘serious’ stand-by, the Panasonic G3! Apple has engineered the heck out of shutter lag to the point where this cell phone camera leaves the point-and-shoot brigade in the dust. High time time some one got this right. You now have shutter lag and inter-snap delay comparable to your 3 pound monster DSLR. Mums the world over, seeking to capture their drooling toddlers just so, will love it. And so will street snappers. Like me.

I’ll go further. If Henri Cartier-Bresson were alive today, he would be ditching his tired old Leica for an iPhone 4S. The image quality equals his Leica’s to all intents and purposes, face recognition means he won’t blow focus, and the gadget is a whole lot smaller. Plus you can call your sweetheart for a spot of voulez vous between taking snaps on it. Best of all, if she pinches it after a night of passion, you can disable it remotely from your home PC! And you are out two hundred bucks and costs …. which will likely be greater, after throwing in a bottle of Chateau Mouton Rothschild to oil the wheels, so to speak.

The goal of this piece is to make more general comments from the overall perspective of a user whose previous phone was the iPhone 3G. This was Apple’s first phone to add 3G capability but, sadly, when iOS4 came out, the phone became distinctly sluggish in response. The later 3GS added a faster CPU and reversed that performance loss, but did not add enough to convince me that an upgrade made sense.

I had the iPhone 4 on order when it was announced, but the faulty design of the antenna, despite Apple’s lies to the contrary, saw me cancel my order in disgust, consigning Apple to this journal’s Hall of Shame.

Watching the product roll out for the 4S left me with mixed feelings. Certainly the specs were a very significant jump from the 4 and the addition of magic sauce in the guise of Siri was enticing, not to mention a far faster CPU and a more capable Sony camera. But, rather than calling it the iPhone 5, Apple named it the 4S which left me feeling a bit jaded. Had the masters of hype and spin missed an oopportunity to add a quick $30bn to AAPL’s market capitalization by a simple naming error?

No. It turns out that the launch saw one million 4S models ordered on the first day of availability with sales for the weekend rumored at four million. And, yes, AAPL’s market cap rose by $30 billion last week.

So what are my initial impressions, coming from the 3G?

• The much vaunted ‘Retina Display’ introduced in the iPhone 4 is so much hype. The increase in definition on the pathetic little screen is barely noticeable.
• The shape is awful. Gone is the plastic fluidity and charm of the 3G/GS, replaced with sharp corners and a brutalist design. Like going from a Ferrari to a Mercedes. The sublime to the functional. Still, at least it still fits my belt case from iPhone 1, bought in 2007 on the day of release and now a collectible!
• The camera release button is now the ‘Vol +’ mechanical button, a massive improvement from having to try to stab the soft release on the 3G’s screen.
• Performance improvement is startling, though coming from a 3G that’s axiomatic. It’s especially noticeable in the Stocks app where graphs simply fly into view.
• AT&T’s HSDPA 3G technology is impressive. While it’s fashionable to trash AT&T, this technology on their US GSM network is miles ahead of what CDMA systems like Verizon and Sprint offer. I measured download speeds of 3.5mb/s (3.6 is the maximum), compared to 8-11mb/s on the home wifi system. And that 3.5mb/s is on 3G. CDMA systems will be 5-10 times slower. So if you need fast 3G, and I often do when no wifi is available, the AT&T iPhone 4S is the one to go for if coverage in your area is good. Fourth generation cellular speeds with third generation technology. This is in no way an advertisement for AT&T whose sense of business ethics is right down there with the Vampire Squid’s.
• Anyone buying the Sprint version likely needs a lobotomy. Sprint is paying 11% for debt, as it’s broke, and will have to borrow $2bn just to front money to AAPL for all the iPhones it reckons to sell. Add another $8bn for LTE expansion and you can say bye-bye to this poorly run business, whose CFO at the last investor presentation didn’t even admit to those numbers, ones that anyone could figure on a napkin. The collected analysts actuallylaughed! That has to be a first.
• The Hotspot facility is a blessing. My Virgin Mobile MiFi failed within its warranty period, a replacement was no better and I hope mine is the last refund check Sprint/Virgin cuts before they go belly-up. Simply stated, for a modest additional monthly fee, your iPhone 4 or 4S becomes a mobile wifi source, so that you can use your laptop or non-3G iPad to get on the internet when no wifi is available. And with HSDPA 3G speeds, do you realize how huge that is? I have lost track of the numbers of books I have read and stock trades I have placed using the iPad on trains, and this restores that functionality now that the MiFi is no more. I had some problems getting it to work (a call to AT&T resulted in “4S? Never heard of it.”) but a reboot of the 4S, some colorful language and a further boot into the resident Border Terrier fixed that.
• Siri. When I first heard of this AI/voice recognition technology my reaction was to flashback to that famous Doonesbury cartoon ridiculing the handwriting recognition in Apple’s Newton PDA. At that time the company was being run by a sugared water salesman named John Sculley, who had fired Steve Jobs.

My concerns were heightened when Apple’s Chief Hype Officer Phil Shiller (what an appropriate name) referred to Siri as a ‘Beta release’. A first for Apple. Uh oh! You know what that means. In the event, while it has its faults, Siri is awesome and will only get better. A quantum leap in computing which will soon obsolete the keyboard on mobile devices.

Naturally, my very first demand to Siri was from Stanley Kubrick’s masterpiece, which just happened to be the very first DVD I bought:

A friend in England seems to be developing a more personal relationship with her 4S, as the following shows:

She tels me that Siri is a man over there, whereas US residents get a woman’s voice. Go figure.

So not only does Siri work, it also has a sense of humor when it comes to more pilosophical issues! Hardly surprising. For all those asking where the next Jobs will come from, they need look no further than to Scott Forstall, the head of iOS development at Apple. Smart, ambitious, young, fit, hard driving, intolerant of fools and now accounting for 75% of Apple’s revenues.

• The camera. See yesterday’s piece.
• Battery life. Apple claims 8 hours of talk time which is their best yet. I will never test that but a full day of hard use with the mobile hotspot was fine.
• iCloud. This is why you will not have to buy lots of memory for future mobile devices. Much of your data will be stored in the cloud. I set up iCloud on the 4S (it also works on the 4 but not on earlier models), on my iPad 1, my MacBook Air, the MacMini and one of the Hackintoshes and it really works as advertised. Buy a song on one and it appears on all others (up to five devices for iTunes). Later this month iTunes Share will be rolled out which will allow the movement of existing content to the cloud, the first 5gB free, with $ for more. I have 25gB as my MobileMe(ss) account was moved over to iCLoud. iCLoud will further lock-in Apple’s customers to their ecosystem and generate significant additional annuity revenues. Smart and, so far, seems well executed. It could scarcely be worse than MobileMe.
• iCloud login and account. This area is a mess caused by Apple’s indiscriminate use of the phrase ‘Apple ID” which can mean either your iTunes Music Store ID (ITMS) or your iCLoud ID (IC). Here’s what I make of it:

1 – If you have an ITMS and no MobileMe account you are in luck. Go to SysPref->iCLoud and create a new iCloud account using your ITMS ID. That way you will only have to remember one Username and Password for ITMS and IC.
2 – If you have a MobileMe account go to www.me.com and convert it to an IC account. Your IC account will have the same name as your MobileMe account, which you will cease using. Do not create a new IC identity – use the old MobileMe one.
3 – Whenever you input an ID: In SysPrefs-iCloud it must either be your IC Username and Password from #1 above, or your former MobileMe Username and Password from #2 above. In iTunes it must be your existing ITMS Username and Password.
4 – If your ITMS and IC Usernames and passwords are different, tough. Apple has stated they cannot currently combine the two.

Like I said, it’s a mess. The worst mistake is to use your ITMS Username and Password as your IC Username and Password if you have an IC or existing unconverted MobileMe account already with a different Username and Password. You will get massively confused with multiple IC Usernames and Passwords when you decide to convert your MobileMe account to an IC one. You want the same IC Username and Password for iCloud on all devices you want to share the cloud seamlessly – regardless of what your ITMS identity may be. If different devices have different IC Usernames and Passwords because you have set up more than one IC identity, those devices will be unable to seamlessly share iCloud content.

• AirPlay. This one is a real sleeper. It will destroy the Wii and Playstation game consoles, as henceforth your iPhone will become a touch controller for gaming on the big screen, requiring only the addition of a $100 AppleTV to confer brains on the dumb display which is your TV set. You will pay $5-10 for games which used to cost $40-60. Meanwhile AirPlay works well for video, and I find I can route videos from the iPad to the ATV seamlessly. I can also route them from my file server using the AirVideo app, but I get stuttering, suggesting that the next generation of ATV and iPad will be required to process video data fast enough over the air. But you get the point. Your file server will soon be able deliver video wirelessly to anywhere in your home over wifi, controlled by an iPhone or iPad.
• Messages. This app has been revised so that IMs can be sent free to any other user of iOS5 anywhere in the world. Now I happen to think that Instant Messaging is one of the very worst inventions of the technology age. It has simultaneously destroyed analytical thinking while replacing motion with action. In fact, I would go as far as to say that allowing our children to IM is significantly hurting their prospects of success later in life. The fast replaces the correct and IMs (like that other stupidity, Tweets), can be incredibly distracting for an undisciplined person. Still if you want to send free IMs to other Apple buddies, doing so from within the Messages app will show your sends in blue; if the recipient is not on iOS5, the message will be sent using MMS and will appear green. And you will get hosed down by the telco. I tested this internationally and not only does it work perfectly, all conversations are also fully replicated on both my 4S and iPad. Images in your Photos app are easily added. Either party can be on 3G or wifi.
• The oleophobic glass coating on the screen (introduced in the 3GS) does a great job of keeping greasy fingerprints at bay. How long it will last is another question, and I’m sure that brutal cleanings will not help matters, but it’s significantly more fingerprint resistant than the plain glass on the iPhone 3G. Not enough to make you fall for a glossy screen, but an improvement overall.
• The iPhone 4 faulty antenna design has been fixed.

The iPhone, with its attendant ecosystem, is quite possibly the most complex consumer technology ever developed. At $200 plus a two year contract it’s a bargain for those needing its broad capabilities and wanting to do an absolute minimum of maintenance to keep multiple devices synchronized. However, unlike the 2007 iPhone 1, there are masses of menus and submenus buried under the ‘Settings’ icon, meaning it’s no longer a trivial process to set the device up just so for your needs. It demands study and understanding to get the best out of it.

Are there Android phones which are better? I have no idea, as I have not used any, so I am not qualified to comment. The BS quotient here has always been low and will remain so. I have no advertisers to please.

Getting out of an existing contract:

If your existing iPhone 4 contract with the cellular service provider still has time to run, you have several ways of mitigating the penalty for early exit should you decide to immediately upgrade to the 4S:

• Sell your phone back to Apple. They will pay up to $200 for a pristine one. Easiest option.
• Sell your phone on eBay. Easily $300. But you have to deal with the crooks who dominate eBay – the management and the users.
• Sell your phone in Europe – $400 and up. Now you have to deal with Russian crooks. And eBay. Good luck with that.
• Threaten your existing carrier with a move to a competitor. What have you got to lose?

My lock screen on the 4S? Thought you would never ask:

Now the only question I have left for Apple is “When will Siri come to OS X?”

Disclosure: No AAPL position.

The demise of point-and-shoot cameras.

Watching Tim Cook’s roll out of the iPhone 4S this past Tuesday, I was struck by this slide:

A typical, disingenuous presenter would have taken the simple way out – shown the iPhone as having some 30-50% share of the smartphone market. Cook was more honest. 5% is the iPhone’s share of the global cell phone market, he stated, and the reason we are showing the statistic that way is that we believe eventually every cell phone user will be a smartphone user.

That seems right. One of the unremarked, yet very significant, features of the latest iPhone, the 4S, is that for the first time no computer is required to use it. Most of the world’s citizens still do not own a computer. Most wish they did. Now the iPhone comes to you with over the air start-up and maintenance, including back-up and remote storage. No computer is required. It is a computer. You might say that the iPhone is the computer for the rest of the world much as the Macintosh was the Computer for the Rest of Us all those years ago.

I ordered the new iPhone 4S as soon as the online page to do so became available. There are several reasons, but the most important is that I am a huge fan of the process of early adoption of new technologies. For those who are always waiting for Version 2 of anything, the cheaper, debugged one, I say “Your time is worth little and you value your life even less”. Every day represents a higher percentage of my remaining time on earth and that means a lot to me. The math is the same for the late adopter, the result different.

I set forth my beliefs concerning early adoption in The Unfair Advantage. Later, writing about Steve Jobs’s last days as CEO of Apple I stated:

“Transduction is increasingly a matter of speech and touch rather than hitting idiotically disposed keys on keyboards designed around the mechanical limitations of a bygone age. ”

That day is rapidly approaching and the first likely usable realization for the man in the street will be the Siri voice recognition technology in the iPhone 4S. The keyboard’s days are finally numbered. I was especially attracted to the use of the new phone with Wikipedia. I encourage our son to do his homework using Wikipedia on the iPad. Now he will no longer have to type his query. He will just speak it. And I very much want to confer the Unfair Advantage this suggests upon him. Remember how Jobs showed the very first iPhone to a friend and asked him what he thought, only to be met with the reply “You had me at scrolling!”? Well, the iPhone 4S had me at Siri.

So as Apple and Android continue to do a number on dumbphones, Apple has just announced the death of the worst possible thing about computing, the keyboard.

But there’s another nascent seismic change in the iPhone 4S, and in other better smartphones, and that’s the new Sony 8mp camera. Now, goodness knows, I’m no fan of small sensors. After all, I really like large prints and small sensors don’t cut it there – yet. Meanwhile, we have foolish efforts by the likes of Nikon and Fuji who are making cameras with miniscule sensors at less than miniscule prices. Given that everyone has to have a phone and as every smartphone comes with a camera with a like sized sensor, why on earth would you shell out $600-1,000 on these short lived toys when you can get much the same capability in your phone? And the iPhone’s Sony camera boasts some non-trivial features, features to which Apple devoted very substantial time in its product roll out this week:

Click the picture for the feature list.

With improving ergonomics – no need to switch the phone on to take a snap, under 0.5 seconds from snap to snap, a better disposed shutter button (the latest iOS variant allows the use of the side/top mounted volume buttons to take a picture), better definition, high battery life, HDR, 1080p movie mode, vibration reduction and so on – you get a lot of what the designers looking in the rear view mirror at Nikon and Fuji want to charge you $700 for. Plus, at the touch of an icon my iPhone snaps will be in the cloud, available on all my devices. No upload/download/frustration cycle to deal with and you always have a decent camera with you. And unlike the tired offerings of the camera makers, when you upgrade your iPhone two years hence at no cost, selling the old one for a profit to some Eastern European, its replacement will come with an even better camera while your Fujikcanon rots in the desk drawer, obsolete and worthless, aired annually at Christmas.

So the nascent technology in the latest generation of smartphones will not only kill the keyboard. If I were a manufacturer of point-and-shoot mass market cameras, where I make my bread and butter, I would be seriously scared and looking for new directions in my business. And I already know that I can only sell so many large sensor behemoths to the ‘serious’ crowd, allowing me to downmarket to the rest. The point-and-shoot camera’s demise was announced this week, coinciding neatly with Kodak’s impending bankruptcy.

Stay tuned here for my experiences with the camera in the iPhone 4S, which I should have in a few days. My tired old iPhone 3G? It’s already programmed for use as a universal wireless remote. Ivan can buy his elsewhere.

Can cell phones take pictures? Wrong question. Photographers take pictures.

Disclosure: Long AAPL call options.