My take on iWork being free, iOS 7 & the two new iPhones

In case you missed it, Apple just held a press event to showcase the updates to iOS coming next week, two new iPhones, and the fact that iWork for iOS is now free with all new iOS devices. Here are my thoughts on each of these announcements.

iWork for iOS being free for all new iOS devices: In 2012 Microsoft generated about 30% of their revenue from Microsoft Office and related services and about 6 out of every 10 dollars in profit came from Office*. iWork directly competes with Microsoft Office for business customers to be able to use both the Mac and iOS devices as their way to create documents, spreadsheets, and presentations – the three legs of the business communication barstool. The fact that iWork exists makes it possible for business owners to use iOS. And now it is free. This could be seen as the biggest announcement of the day.

iOS 7: This is a much needed refresh of an operating system that set the standard for mobile operating systems over the last 6 years. It is going to be a big change and for some an unwelcome one . However, I’ve already seen so many mobile developers rethinking their entire apps from the ground up that this update to iOS is going to set the standard for at least the next decade for both the mobile OS market and the mobile app market.

iPhone 5c: This phone is going to sell like wildfire. I believe it will be Apple’s most successful iOS device to-date, something akin to the iPod Nano debut. The fact that they are launching in so many countries on the same day (including China) is going to make this easily the biggest launch of any Apple product.

iPhone 5s: This is as solid of an update to an existing product as we’ve ever seen. A much faster device with better performance on every level, 64-bit processing (which is pushing the envelop in the mobile space) and an upgraded camera in both hardware and software. Gold? There is obviously a really, really high demand for this. Perhaps not in the US, though. Put simply, the 5s is a premium product at standard prices.

About both iPhones: The iPhone is already the most popular camera, music player, mobile internet browser, and mobile video communication device in the world. These two phones will help Apple continue to widen the gap between iOS devices usage and Androids. Android has far more devices in play but people simply aren’t using them for anything other than text messaging, phone calls, and an alarm clock.

* I’m no financial analyst. I got my info from here and here. Either way, Microsoft Office is a big part of Microsoft’s (the largest software maker in the world) business.

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