Martin:

Apple built a generic, almost foolproof device-level identity security system around TouchID, Secure Enclave, and custom secure element hardware at the lowest level of iOS that can be opened up to pretty much anyone Apple wants to let in. This is unique, and I don't see anyone else who can replicate this. Apple is merely renting this security service out to the banks for the price of a percentage of the transaction. They don't need to build a proprietary payment network, or even be a link in the payment chain.

And this system can work equally as well for health providers securing user identity to exchange HIPAA covered health data for Healthkit (for a modest fee, naturally). They can rent it to employers to secure their employee identity - not just for getting into corporate applications but add HomeKit into the mix and a company can put an NFC lock on a door, issue tokens to the iPhones of the 10 employees allowed into that room, and that gives them the ability to unlock the door with their iPhone following a positive fingerprint check. The employer can remotely revoke those tokens as needed.

This is effectively a way to replace username and passwords for anything from your iPhone or Apple Watch, if Apple builds it out to its full potential. It relieves the burden of choosing good passwords, remembering them, securing them, and puts all of the control on the agency that needs to control the security, rather than on the one being secured.

The recent partnership with IBM might make more sense now.

Shout-out to the people who said TouchID is boring, not innovative, and no different than any other fingerprint scanner out there.

MG Siegler:

I like that Apple is seemingly being thoughtful, measured, and realistic in this roll out. This SDK makes it clear that Apple will not be promising the world with the v1 of Apple Watch. Instead, we’re likely to get something much more akin to the first version of the iPhone. As you’ll recall, that initial device, while magical, only ran apps produced by Apple. Third party developers were required to use the web to reach users on the device. Apple is clearly being more lenient here — but not that much more lenient. The only apps that will run natively on Apple Watch to start will be made by Apple.

Slow and steady is the way to go. We've seen Apple do this time and time again, with the iPod, iPhone, and iPad.

In a decade we'll see the Apple Watch will grow into the most important device for mainstream consumers, akin to what the smartphone is for people today. Until then, Apple will take their time to do it right, adding the right features as the necessary technology becomes technically and financially feasible.

In the meantime, Samsung has rushed out their sixth version of their smartwatch line in one year, all of which have been flops. Because apparently, at Samsung, quantity and doing things first is more important than doing it right.

I've already said my piece about how much I hate the 16GB model of the iPhone from the user experience perspective. But here's a great look at what keeping this model does for Apple's bottom line.

Bank Innovation:

Sources tell Bank Innovation that it will probably utilize Apple’s iBeacon program, which is why Apple started selling — and possibly giving away free to select merchants — the iBeacons a while ago. It can also pass richer data than an NFC connection, according to experts who asked to remain anonymous due to the secrecy of the development behind Apple Pay.

Here’s how a source described it back in August 2014:

One way they’ve [Apple] thought up is, say you’re in a Duane Reade, hypothetically. You get a push notification from Pepsi that they’ve worked out a deal with Duane Reade that you can get a free case of Pepsi. Just pick it up and use Apple Pay at the counter.

This is plausible and could be great for bringing consumers and retailers together. It will drive user adoption to Apple Pay while also paving the way for other NFC-based solutions, like Google Wallet. (Sources say that Apple initially pitched a BLE-based solution, but financial institutions shut that down quickly because it wasn’t precise or ubiquitous enough.)

2011: Bluetooth LE = "Bluetooth? That's nothing new."
2012: Passbook = "wtf is this?"
2013: TouchID, iBeacons = "A fingerprint scanner? Whoopty fucking doo."
2014: Apple Pay = “Kinda cool but it won't catch on.”
2015: Apple Pay Loyalty Programs = $$$$$$$ = "Yeah well, Google Wallet was first..."

Gigaom:

One of the arguably best features of Android is getting friendly with third-party apps. Simply by adding a few lines of code, Android apps can take advantage of the “OK Google” voice command that’s become prevalent on Android devices and Android Wear smartwatches. Once apps are updated, users can use specific apps in their voice commands. For example, you could speak “Ok Google, search for hotels in Maui on TripAdvisor” to have the voice search use the TripAdvisor app instead of returning a generic Google search, boosting app engagement. Google says the new support is only available on English locale devices running Android Jelly Bean or higher.

This is a big deal for the future of mobile, wearable devices, and any non-traditional computing device that will be connected to the internet.

I've been hoping Apple would offer this with Siri 2.0 but Google is the only company in the world that can truly pioneer this right now.

Thanks, Samsung! Welcome to 2014.

Matthew Mombrea, IT World:

Apple Pay has the better technology but they lack the retail support to dominate. If you can't use Apple Pay almost everywhere, it's doomed. Some say that consumers will look to change where they shop based on their support of mobile payments but I have a hard time believing that. If anyone can pull this upset off it's Apple, but it will need the surrender of the largest retailers in the world who are fighting tooth and nail against credit card fees.

Good luck gaining consumer awareness of CurrentC in the first place.

Good luck getting consumers to download the CurrentC app vs. Apple Pay which will be built into every new iPhone model from this point on.

Good luck convincing consumers that holding up their iPhone with their thumb on TouchID is less convenient than:

• Pulling out your smartphone from your pocket
• Unlocking your smartphone
• Opening your CurrentC application
• Entering your 4-digit passcode
• Pressing the Pay button
• Either scannig the Secure Paycode that the cashier presents (default) or pressing the Show button at the bottom of your screen to allow the cashier to scan your Secure Paycode
• Selecting the payment account that you would like to use
• Pressing the Pay Now button

That's great that CurrentC is backed by a lot of big name retailers. But for mobile payments to catch on in the U.S., you need to satisfy multiple groups of players: consumers, merchants, credit card companies, and banks. Apple has solid backing by all four at launch time. CurrentC doesn't even have two.

Good luck with that.

UPDATE: CurrentC has already been hacked. LOL.

Intercom:

The idea of having a screen full of icons, representing independent apps, that need to be opened to experience them, is making less and less sense. The idea that these apps sit in the background, pushing content into a central experience, is making more and more sense. That central experience may be something that looks like a notification centre today, or something similar to Google Now, or something entirely new.

The primary design pattern here is cards. Critically it’s not cards as a simple interaction design pattern for an apps content, but as containers for content that can come from any app. This distinction may appear subtle at first glance, but it’s far from it.

I really love this cards metaphor that has been catching on lately; specifically, Google Now. And with the Smartwatch 2.0 era just coming around the corner, I think we'll be seeing this new design paradigm really start to blossom.

Remember, back in 2008 when the iTunes App Store was first introduced, nobody had any idea that we'd eventually have apps like Instagram, Snapchat, and Uber. I'm really stoked to think how wearable device user interfaces will evolve.

John Gruber:

I also understand the product marketing angle. That there are a lot of people who will look at the 16 GB models, see that they can get four times the storage for just $100 more, and buy the 64 GB model instead — when they would’ve bought the base model if it were 32 GB. I get it. There’s no doubt in my mind it’s good short-term business sense to go with a 16/64/128 lineup instead of 32/64/128. But Apple is not a short-term business. They’re a long-term business, built on a relationship of trust with repeat customers. 16 GB iPads work against the foundation of Apple’s brand, which is that they only make good products.

Apple has long used three-tier pricing structures within individual product categories. They often used to label them “Good”, “Better”, and “Best”. Now, with these 16 GB entry-level devices, it’s more like “Are you sure?”, “Better”, and “Best”.

Using the 16GB as a decoy price to make the 64GB more attractive is a great business strategy, but this only hurts customers and Apple in the longrun.

The biggest reason why people don't upgrade their iOS is because they don't have enough space on their devices and they have no idea how to manage it. Telling them, "just install via iTunes" is not enough. I know a lot of people that have never synced their devices with a PC. In fact, in many cases, they don't even have a PC to sync with in the first place. So what do they do? They don't upgrade. Ever.

The negative effects only grow from there. This Apple ecosystem becomes fragmented for developers because customers are spread out across different versions. This gives customers a fragmented experience because they have multiple Apple devices running different versions and can't take advantage of the killer integrations.

This is the exact opposite of Apple's "it just works" mantra.

Seriously, Apple. Don't turn into the greedy consumer electronics company that Apple-haters say you are. Don't sacrifice the ecosystem and user experience just to make more money in the short-term.

Customers like me are loyal to you for a reason. Please don't fuck it up.

Fred Wilson:

If the first wave of the mobile phone’s impact on the tech sector was driven by applications running on the phone, the second wave will be driven by the phone connecting to other devices, including other phones.

I am particularly fascinated about what happens when our phones connect to other phones in dense environments and form meshes that don’t need the traditional Internet connectivity to power them. Mesh networks don’t just solve the problem of lack of traditional connectivity (Hong Kong), they also produce a solution to the last mile connectivity duopoly in wireline and oligopoly in wireless. In the future we may just opt out of those non-competitive markets and opt into a local mesh to get us to the Internet backbone, both in our homes and when we are out and about.

Mesh networking will revolutionalize the way people connect in developing countries, the way we circumvent government censorship, and communicate in a post-apocalyptic zombie world. The future is bright.