The future will tell if the Apple iPhone will be a totally closed device with nobody other than Apple and Apple blessed co-developers will be able to develop apps for it or others can also write apps for it using a freely (or easily) available SDK - which actually makes it an open device.
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I've seen comments in a number of places today suggesting that the iPhone will be a "closed" platform but I really can't understand what's prompting them. I fail to see any good reason why Apple would want to lock third party developers out of the iPhone. OS X is *very* open to developers. The entire OS X SDK (including compiler and IDE) is a free download to anyone willing to fill out the registration form on Apple's web site. The success of the Mac is largely a result of high quality third party software ... much of which comes from small development shops. My experience has been that Mac shareware is of
extremely high quality and is a big contributor to the Mac's loyal user base (you can have my copy of Quicksilver smwhen you pry it from my cold, dead fingers ).
To me it looks like the iPhone will support OS X Dashboard Widgets (in fact the whole UI is strikingly similar to Dashboard). If that's true (and you can install new widgets), then you'd be able to create your own apps using little more than HTML and Javascript (which is how one currently writes Widgets for OS X). And the fact that Widgets are not compiled means that they could potentially work cross-platform allowing you to run the same Widget on your iPhone and your Mac.
I see the potential for a rebirth of the Palm Pilot software development world where developers could create small, simple, specialized apps without investing thousands of hours in embedded software development. This could only help sell more iPhones, so why would Apple oppose it?
And as for Cingular, they already ship all their Windows Mobile devices unlocked (at least for adding software) so why would this be any different? As long as they keep their exclusive, more iPhones = more contracts = more guaranteed monthly revenue. And most useful apps will want to interact with the network in some way, so more available apps means more network usage (and more $$$) for the Cingular. Some carriers
are too short-sighted to recognize such a business opportunity, but I've seen little evidence that Cingular is amongst them.