Apple executives say that going overseas, at this point, is their only option. One former executive described how the company relied upon a Chinese factory to revamp iPhone manufacturing just weeks before the device was due on shelves. Apple had redesigned the iPhone’s screen at the last minute, forcing an assembly line overhaul. New screens began arriving at the plant near midnight.

A foreman immediately roused 8,000 workers inside the company’s dormitories, according to the executive. Each employee was given a biscuit and a cup of tea, guided to a workstation and within half an hour started a 12-hour shift fitting glass screens into beveled frames. Within 96 hours, the plant was producing over 10,000 iPhones a day.

“The speed and flexibility is breathtaking,” the executive said. “There’s no American plant that can match that.”

There’s lots more, go read it.

What many don’t know however is that Wolfram Alpha is by a company called Wolfram Research who has a long intertwined history with Apple. They have one other major product in their portfolio that many know called Mathematica. Many who never used the product know it as something that’s been demoed several a few times during a keynote after being introduced by Steve Jobs. I think the most recent was WWDC when Mathematica was ported to Intel on OS X in 2005.

Steve Jobs had a long lasting relationship with Stephen Wolfram going back to the days of NeXT and Mathematica 1.0. Apple using Wolfram Alpha to power Siri wasn’t a whim, it was coming full circle years later. Stephen Wolfram’s blog post is really an amazing story on how their companies intertwined over the years in a quite organic way. Steve Jobs gave Wolfram feedback through the years that seemingly was centered about simplicity. Siri is the culmination of Steve Jobs UX vision and Stephen Wolfram’s information vision.

Quite amazing to think the groundwork for that relationship and in a sense this iPhone feature goes back more than 20 years.

iMessage despite some claims isn’t the end of SMS, but it the beginning. To summarize how it works, it essentially abstracts the Messenger/SMS client so that to the user its protocol antagonistic. If it can use Apple’s network it does so, if not it uses SMS. The user does nothing but send messages like they always have. Apple does the magic. No app to download, no username to select and distribute, no new phone number. Just use it. Typical Apple brilliance.

Of course this poses a threat to carriers who make immense profits selling SMS packages which cost them almost nothing. I still wouldn’t be surprised it they find some vaguely worded patent and a patent war erupts to try and stop Apple. It’s a very real possibility.

However this alternative network only works between Apple iOS users… for now. Apple has three potential tricks up it’s sleeve to completely upset the market.

The App Route

This is the most obvious route. Release apps for BlackBerry and Android. As people adopt smart phones this becomes more awesome. Desktop clients will also satisfy since millions spend their day in front of a computer at work. Integrate into iChat and make an XMPP service for those using Adium or a third-party client on Windows. Release a Windows client. Get Meebo to make that a simple thing to add to your account. They could get it everywhere pretty quickly.

Third Party Integration

Apple could eventually open up an API to allow for third-party app integration. Allow me to explain how this would work:

Your Apple account right now contains two key identifiers: You’re phone number (duh) and email address. What Apple could do is let third parties like Facebook, Google Voice, etc. become alternative carriers with a higher priority than SMS. So if Facebook Messenger was an option, it would use that. Otherwise it would use Google Voice, Kik, or perhaps even BBM to send the message. Last ditch effort would be regular SMS.

The Telco Route

This is an interesting option, but not really unique. Google actually does some of this already via Google Voice. Skype offers similar functionality to a degree. What Apple would do is rather than use the carrier SMS, give the option of sending via iMessage which sends the text to anywhere in the US on your behalf. Again, Google and several other companies are already doing this. The caller ID can be spoofed legally, and replies would come back via a regular SMS, effectively making you a recipient only. In the client this is seamless. This would further disrupt carriers model by cutting texting in half asymmetrically.

Any of these methods has a major advantage for Apple by making iOS the center of people’s communication universe. They could route to other iOS devices, Apple TV, your computer etc. It’s what Google Voice is striving to be, but for text.

Of course Apple could, and likely will eventually make this service more than text only. Voice and video are obvious companions and likely to be added as iChat, FaceTime integrate. Apple could even add a pro service like SMS and voice to other countries for a fraction of what wireless providers charge putting them in competition with Skype or Google Voice.

The backside of this however is that wireless providers are likely to raise mobile data rates and add new charges to make up for SMS.

This Steve Jobs narration of “Crazy Ones” ad is pretty awesome. The aired version was voiced by Richard Dreyfuss.

What would it take to convince Apple to air this with a simple slate at the end with an Apple logo and “Steve Jobs 1955 – 2011″ at the end? Getting Jonathan Mak’s Steve Jobs Logo Tribute would be even better. I now there are a few Apple employees reading this blog. Dare I suggest we make this idea viral enough to get the attention of Tim Cook?

I could write an essay, and I generally do for any post that starts with the word “On”. That however seems inappropriate for a man who defined himself by making things clean, simple, and easy to use.

Like most of my industry colleagues I likely wouldn’t be where I am if it wasn’t for Steve. Given I started on Macs and to this day work on the web which was invented on a NeXT workstation. I literally work in a world he created and laid the groundwork to create.

I could think of only one appropriate way to conclude…

Here’s to the crazy ones. The misfits. The rebels. The troublemakers. The round pegs in the square holes.

The ones who see things differently. They’re not fond of rules. And they have no respect for the status quo. You can quote them, disagree with them, glorify or vilify them.

About the only thing you can’t do is ignore them. Because they change things. They invent. They imagine. They heal. They explore. They create. They inspire. They push the human race forward.

Maybe they have to be crazy.

How else can you stare at an empty canvas and see a work of art? Or sit in silence and hear a song that’s never been written? Or gaze at a red planet and see a laboratory on wheels?

We make tools for these kinds of people.

While some see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.

Here’s to the original crazy one.

Apple today announced the iPhone 4S. It’s pretty much what I expected to see, however many seem to view it as a disappointment due to anticipation of a mythical “iPhone 5″. I’m sure an iPhone 5 is in development, but I don’t really understand why people expected to see it today. Maybe 1% of Apple rumors, likely much less are actually true. Generally they are an attempt by a blog to generate buzz and publicity. Pay little attention to them. Launching the new phone later isn’t indicative of a “major upgrade”, especially given what we knew:

• iOS 5 is taking a while – iOS 5 wasn’t developed in complete secrecy. 100k developers have been seeded developer builds (number comes from the Apple presentation). It hasn’t been GM ready. It’s been a work in progress. It didn’t seem to be waiting for hardware.
• Apple was launching in parallel with iCloud – Apple established it was going to roll out an OS upgrade and iCloud together. Obviously any new hardware was not coming before that. iCloud was just getting tested. Again, it didn’t seem to be waiting for hardware.
• Supply Chain – Slightly weaker, but thanks to the quake in Japan, there’s been a some more difficulty in obtaining materials and parts for many electronics. Moving the iPhone launch out makes sense when you’re shipping in such volume and already have a popular tablet shipping.

Some Analysis

In my opinion the iPhone 4S met my expectations.

Regarding the iPhone 4S being a “world phone”, this was obvious. The “Verizon iPhone” was a hack. The iPhone 4 for Verizon used a Qualcomm MDM6600 as discovered by iFixit. That chip supports CDMA/EVDO and GSM/UMTS. It however didn’t ship with a SIM slot effectively preventing on the hardware level support for GSM/UMTS. Apparently the antenna was tweaked too making is sub-optimal for GSM/UMTS. Unifying the hardware means Apple can ship just one device and simplify it’s supply/distribution chain. Remember, the majority of Apple sales will still be to GSM/UMTS networks. Only the US is a major CDMA/EVDO market as it’s hard for an iPhone to compete in Japan the other major market.

Not supporting LTE is also obvious. LTE deployment is just starting. LTE chipsets today still use more power. I don’t think anyone is using LTE 100% yet, only data meaning in usage these chips will be doing both LTE and a legacy technology for voice. Given such a small percentage of users would ever even see LTE in the 2 years they have their phone, opting for improved battery life (another new feature) was the ideal choice. I suspect next revision there’s a 75% chance we’ll see LTE. It will happen when power consumption gets down to where Apple wants it. It’s just a matter of time.

The choice of an A5 dual core processor was a giveaway from the iPad. What we still don’t know is if it’s the same speed or underclocked for the iPhone. That will be discovered soon enough.

Camera upgrade is also obvious as another year has went by and cameras have improved. Going to 8MP and 1080P was a given. The iPhone 4′s camera is likely already 1080P capable at least at the sensor level (assumed to be a OmniVision OV5642). However the iPhone 4 likely wasn’t fast enough to handle that data rate hence it was limited to 720P. That’s also why you don’t see RAW support. The sensor itself converts to JPEG.

I’m inclined to think Siri could run on the iPhone 4, though slightly slower if Apple really wanted. That’s pure conjecture however.

Fragmented Ecosystem

It’s worth noting that Apple is now shipping the iPhone 4S as their flagship phone, the iPhone 4, and the iPhone 3GS as their entry level phone. This is an unprecedented (for Apple) 3 revisions in production. This makes me believe the iPhone 3GS will at least get security patches for the next 2, most likely 3 years. I do suspect it will be cut off from future major OS releases before that time, or get a reduced feature set. For Apple this is unique. I don’t think any phone vendor is doing something like this right now. On the Android front phones upgrades are notoriously finicky thanks to different vendors.

It’s also worth nothing that despite the iPhone 4S being a much faster device, it’s unlikely many apps will take advantage of it anywhere in the near future. Most users for quite a while will be on the iPhone 4 and 3GS. Designing for iPhone 4S and iPad 2 performance means you’re cutting off most of your users. With a 2 year upgrade cycle and these phones still being sold… well you get the idea. That’s not to say you won’t get anything from the added speed. Just don’t expect everything to be designed to take advantage of it very quickly. The target platform is still the 3GS if you want the full iOS audience.

iPhone 5

I expect we’ll see an iPhone 5, sometime next year. Quite possibly summer. I wouldn’t even rule out doing so a little earlier if market conditions warrant Apple pulling out the big guns sooner. Updated form factor, LTE, NFC chip, more performance tweaks all likely candidates. I could see Apple going for a software “home” button to make the screen larger without having to make the device so much larger.

Worth an Upgrade?

If you haven an iPhone 4, I think waiting for iPhone 5 is just fine. I don’t think this device is amazingly better than the iPhone 4. That’s why they didn’t bump the version to 5. For older iPhone’s, this upgrade is just another step further away. The iPhone 4 is still a very solid phone. See above for my analysis on a more fragmented ecosystem.

TL;DR

iPhone 4S is nice, pretty much what people should have expected and will likely hold things over until next year when the iPhone 5 ships. Don’t expect apps to take advantage of this speed because most iOS users are running slower hardware and will for some time. If you have an iPhone 4, likely not much to persuade you to upgrade early.

To the Apple Board of Directors and the Apple Community:

I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.

I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.

As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.

I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.

I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.

Steve

A few things strike me here:

First of all, the letter is addressed “Apple Board of Directors and the Apple Community” (emphasis mine), which as far as I know is unprecedented by Steve Jobs and really by Apple. Apple has never really acknowledged the community around it. In past “letters” (for example Thoughts on Flash), Steve Jobs just starts. It’s like an actor only acknowledges his audience when he comes out to take a bow to ensure they don’t remove the fourth wall.

Second, I sadly suspect this position of “Chairman of the Board, director and Apple employee” is largely symbolic. From what’s known about Steve Jobs is he almost lived for this job. Stepping down is a major concession for someone so obsessive about a vision and passionate about achieving it with perfection. That said, he seemed pretty strong a few weeks ago at the Cupertino City Council, so I don’t mean to suggest he’s on his deathbed. Just unlikely to regain enough health to keep a CEO schedule. Several changes in 10.7 Lion like the odd design for Calendar and Address Book make me think he didn’t have much say in it’s design either.

Third, this succession plan is hardly shocking. Tim Cook was groomed for this a quite some time. I suspect this was known by a select few for a little while now. Jonathan Ive was long suggested as his replacement, but that seemed unlikely given he already is in charge of industrial design, and the other half of the role (the business side) he has no experience in. He’s also notably reclusive and more subtle in presentations in contrast to Steve’s “reality distortion field” persona on stage. By elevating Cook and leaving Jonathan Ive to focus on design Apple gets the best of both worlds.

Lastly, I think Colin Barrett’s tweet put my personal perspective on this best:

I was 11 when Steve came back, and I’m 25 now. Can’t overstate the enormous impact Steve and Apple had on me growing up. Good luck, dude.

- @cbarrett

Indeed. Good luck Steve Jobs.