Today I read something I had not heard about previously, speculating on Apple’s strategy for its iPhone and related businesses via analysis of a recently filed patent application. Today on MobileMarketingWatch.com an article titled, “Apple’s Secret Plans For Mobile Marketing- Ad-Supported Hardware Possible?” describes something called an “enforcement routine,” which when implemented would require users to receive, view and acknowledge advertising messages before accessing a device’s functions.
While that sounds cumbersome and unappealing, the implication is that Apple may be seeking to subsidize in part or fully the cost of iPhones and other devices via “ad supported hardware.” The article cites recent word that Apple was in discussions with AdMob before it was acquired by Google as evidence the company is interested in moving in this direction. It’s also tacit acknowledgement that the real money is in advertising, ala Google, as opposed to creating costly proprietary hardware and software. With ownership of its ecosystem, Apple would seem positioned well to execute on this strategy.
Should this happen, it would be very hard for device makers like Motorola to earn a profit. You might imagine Google getting into the device business at some point, following a similar strategy. For marketers, it would offer a much more visible presence on consumer handsets, elevating the value of such advertising to levels seen in the wired web world.
