Will Apple Open the iPhone?

(page 2 of 2)

It Pays to Be Picky

In theory this means that root access on an iPhone could be exploited for malicious purposes, such as hijacking a user's contact list, eavesdropping on calls, or worse. "You can do anything you want, including many things that Apple and AT&T don't want you to do," says Rik Farrow, an independent security consultant who has worked on Unix-based cell-phone projects for other companies, but not Apple.

Concerns like that will probably lead Apple to be careful in selecting which programmers are given the tools to build iPhone software. It isn't clear yet how Apple plans to go about vetting programmers or to what extent it will open the platform to them. Despite the purported risks, Apple's wireless partner, AT&T (T), isn't likely to stand in the way. "It's up to Apple to decide whether third-party applications will go on the iPhone," says AT&T spokesman Michael Coe. "We have embraced third-party applications on other devices."

Analysts expect that instead of equipping anyone who wants to build iPhone software, Apple will handpick the companies and individual programmers to be given the software-development kit, much as it already does with development of third-party applications for the iPod. Similarly, iPhone programming tools might be distributed via the iTunes store, which Apple already uses to distribute simple games that run on the iPod. "The real pragmatic way to look at it is, no operator would want to ship a handset that's completely open," says Benoit Schillings, chief technology officer at Trolltech, a wireless-software company. "They would want to pick and choose applications to run on it."

Early VIP Access?

It's rumored that some major players already have been given the iPhone development kit. The list is said to include gaming software maker Electronic Arts (ERTS) and Google (GOOG), which has already built versions of Google Maps and its YouTube video site for the iPhone. Electronic Arts declined to comment, while a source at Google indicated that the search company hasn't been give early access to the iPhone kit.

Meanwhile, companies that specialize in software for wireless phones are jockeying for Apple's attention. "We've been working with the Web interface for some time but would love to embed our technology on the iPhone itself," says Brian Bogosian, CEO of Visto, a privately held software outfit that specializes in e-mail software for mobile phones. Similarly, a startup named iSkoot, which offers an application for making Skype (EBAY) phone calls on mobile devices, says it's eager to adapt its software for the iPhone platform.

Interestingly, despite all the consternation about hackers, Apple may eventually decide to embrace some of the unauthorized applications now circulating if they prove especially popular. "We think Apple is welcoming these mild hacker attacks [on the iPhone] to discover weaknesses and to see if they should be hiring some people," says Richard Doherty, head of Envisioneering Group, a technology consulting firm. "There's a reason why there's an empty row" on the iPhone's screen, he says. "It's for additional applications."

Hesseldahl is a reporter for BusinessWeek.com in New York. Kharif is a reporter for BusinessWeek.com in Portland, Ore.

With Bruce Meyerson in New York