Apple interim CEO Tim Cook spoke plainly during Wednesday’s earnings call about the company’s being “ready to suit up and go against anyone” who might try to gain a competitive advantage in the mobile device arena by “ripping off” the iPhone’s IP.
General consensus holds the Palm Pre poses the best competition for iPhone thus far, with some analysts drawing close connections between Apple and Palm around the Pre’s touch interface.
Mike Abramsky, an analyst at RBC Capital Markets put the question directly to Cook on Wednesday’s call, asking, “the Palm device particularly seems to almost directly emulate the kind of touch interfaces that [Apple] innovated…Is that to what you’re referring with regarding to ripping off IP?”
Cook declined to talk about any specific company and reiterated his and Apple’s position that “competition is good [and] makes us all better.” However, he also drew analysts on the call a clear picture of Apple’s belief that the “magic” of the iPhone has little to do with hardware and everything to do with software.”
“We’ve said since the beginning software is the key ingredient and we believe that we’re still years ahead on software,” Cook said, adding “we approach [this business] fundamentally different than people that are approaching it only from a hardware point of view.
It’s obviously way early in the game, and in the event Palm’s Pre never manages to gain significant acceptance in the marketplace, Apple is likely to keep its attention and resources focused on other things.
Should the Pre come on like gangbusters and should there be a lot of “hey, this thing works just like an iPhone” talk, it’s not too difficult to imagine Apple calling on its competitive advantage in cash and legal muscle to put the squeeze on a company that, not long ago, was being written off by many as headed for the dustbin of history.
