Everyone remembers the iconic commercial that launched the Macintosh in 1984. Automatons loll along listening to the laconic droll of the dictatorial overlord. Individuality is non existent. The only matter of import is to “prevail.” Suddenly from afar a hero emerges. Wearing white and red she stands out from the pallid rags of the masses.  She is pursued by ardent guards desiring to thwart her. She finds the reeducation room and launches her sledgehammer at the video. Then rolls the famous line: On January 24th Apple will introduce Macintosh. And you’ll see why 1984 won’t be like “1984.”

Today, it could easily be Steve Jobs face splashed across the screen, flickering in blue and shouting about the need to succeed at all costs while a new upstart smashes the establishment. Recent rumors, briefings, and new stories have begun to paint Apple as the Big Brother overseer they once mocked.  While Apple has done much right in the last decade, their new behavior is troubling for the company and for Anywhere innovation.

So, what has Apple done

• It has pulled a number of applications from iTunes; such as Box Office and NetShare.
• It has not communicated with developers. This includes sharing, then not sharing, then again sharing download data with developers. There is little insight into when an update will be rolled out.
•  Limited the device’s functionality. Where is the customizer applications? How about widescale turn by turnGPS offerings (so far only one company has been rumored to be developing such an app). Apple has been rumored to stifle innovation when it deems it necessary (or it competes with iTunes) and in turn hindered the capabilities of the device.

So, what does this mean for Apple and the broader market?

Apple is a market leader. By creating a fervor for the iPhone, iPods, and Macs it has become one of the most cutting edge companies in the digital world. However, it also locks users in. Every protected song, movie, or application a users buys further tiess them to Apple by increasing the switching cost to another device. Combine this with amazing devices that rival or exceed all its competitors and users want to continue to exist within the Apple ecosystem so few consumer feel the friction of wanting to opt out – yet.

Unfortunately, Apple really isn’t an open system and as a result many of the Anywher behaviors it is enabling will never be fully realized. Could this create an opening for Android or other alternatives? If Google were to truly open up Android to its developers could it become the Apple of 1984? It seems possible.

There are two ways for this to happen.

1. Frustrated developers abandon Apple. With poor communication, difficulty in releasing software updates, Apple pulling applications at will, and Apple refusing to offer applications that directly compete with iTunes – frustrated developers could leave. With LG, Nokia, Motorola, etc. desperate to offer differentiation they would welcome a development community. Applications are what will make the iPhone a mega hit with long term sustainability. Conversley, these applications could also help propel other platforms forward. So Apple should work with these individuals and companies and make more transparent their policies instead of alienating them.
2. Frustrated users abandon Apple. Everyone loves Apple. Just this weekend I stood in an Apple store for90 minutes while a friend bought an iPhone and saw more hardware purchased than I ever could have fathomed. The fervor will not die down anytime soon. But, if Google or others can offer open systems that allow users to fully embrace openness perhaps the window of opportunity will open further.

Ultimately, Apple is not going to suffer in the short term. They are simply too popular and offer too much right now for consumers to realize there is more out there that theymay  desire. But in the long term, Apple will need to decide how it will continue to evolve. Will a semi-open system be sustainable? While safeguards need to be in place to protect the integrity of the hardware should Apple be pulling apps for any other reason (outside of potentially violating a TOS)? Will Apple truly open up the iPhone or will it desire to maintain control at the behest of creativity, individuality, and further innovation.

There is still time to change course and after the initial launch craziness is over, perhaps Apple can catch its breath and decide on strategies moving forward (for the iPhone and other devices such as Apple TV). However, a course correction will be necessary if Apple doesn’t want to become the Big Brother it mocked nearly twenty five years ago.