Saturday’s Apple: The iPhone Mess Continues

Last week I wrote about WWDC and the expected announcement by Steve Jobs of a new iPhone. And indeed we did see a new iPhone, one with 3G and GPS, but otherwise pretty much the same. The iPhone 2.0 software was also announced and it will be available within about a month and a comment today on the site says that the AppStore will be also be available in the UAE which is reassuring. Perhaps that opens up the possibilities of an iTunes store for music, TV, and movies as well, and iPhone in the future.

But of course we were all disappointed that the UAE was not included in the 70 something countries – 78 I think by last count – that Apple listed as having within the year. That was a serious blow to many, I think. I was one of them, looking forward to an official launch in the UAE.

And especially now that other countries in the Middle East are getting iPhone, including Egypt, Jordan, and Qatar. Why is it that the Emirates is treated differently? I don’t think anyone can say for sure but again in the papers the Telecommunications Regulatory Authority, TRA, said they would not allow any exclusive deal between an operator and Apple. The thing is that in Italy and India Apple already are working with more than one operator for launches later this year, so why not here? Perhaps Etisalat and Du cannot agree to let the other side carry iPhone as well, but wouldn’t that just result in them shooting themselves in the foot since they lose out on revenue? And if Apple elsewhere agrees on non-exclusive agreements why wouldn’t they do it here, and in doing so satisfy the TRA?

Obviously the questions far outnumber the answers and will so do for quite some time, I fear. Some recent rumors say that the UAE may get iPhone in 2009, or perhaps later. Some people in positions that should know something more than the rest of us still say that the iPhone will never be sold here. But now the iPhone is moving into countries where Apple IMC ME operates so I assume they’ll have to start selling and servicing it. That’s a change and it seems more certain that it will be here sooner or later.

So those who want iPhone 3G in the UAE can only resort to buying their phones from elsewhere and unlock (hack) them, just as they had to do a year ago. Or is it the same this time? News from US seem to say that it will not be the same thing all over again. Before customers could walk into an Apple store, buy the iPhones and walk out. Later they could unlock them or activate them the correct way online via iTunes. Now people will have to walk into a store and before they leave, when they make the iPhone purchase, activate for a two-year agreement in the store. There’s no walking out and activate later now. Although it’s not quite clear still exactly what the options are, but it seems that customers can cancel iPhone contracts but they then pay a penalty and records are kept so they can’t do this too many times, or they are refused to buy more iPhones.

What does this mean for the flourishing iPhone market in the UAE then? My guess is that the current iPhones will be continue to be sold for quite some time, and that sooner or later the 3G version will make it here, possibly at a very high premium. But I think it’s sad, so sad, that customers in the UAE and beyond who are more than willing to part with their money for an iPhone will not get the chance to do so, at least not an official one. And for those who manages to get one anyway there’ll be no service and support for the foreseeable future. This is not good for customers and it also doesn’t see good for Apple IMC ME, Apple Inc., Etisalat, Du, and the other players. But it’s happening and we can only wait and see how it plays out.