There is no doubting the "skillful feat" of Apple’s recent upgrade of the popular iPhone. It took only three days for Apple to reach 1M subscribers, in its worldwide launch of iPhone 3G, the follow-on to its popular first generation model that didn’t hit the million mark until launch day plus 74, according to CEO Steve Jobs.

Steve Sechrist
Senior Analyst and Editor

Job’s said the new product is "…clearly off to a great start." as they continue to define new parameters for the wireless space, bringing the "smart" phone not just within financial reach, but giving us a host of compelling reasons to own one.

Behind the undeniable 1M units found in today’s headlines is another statistic. EETimes Amy Gilroy writes, "Users also downloaded more than 10M applications in the same time period from the new Apple Apps store, which offers wireless downloads of iPhone and iPod Touch applications." And that came "…despite widespread glitches with phone activations." When was the last time a new cell phone launch accompanied the download of 10M anything?

Clearly Apple has shifted the game, and according to Gilroy’s report, "Industry pundits say the Apple Apps store — now with 800 native applications, up from 500 only three days ago — may help transform the iPhone 3G beyond a smartphone, into a mini computer that will raise the bar in areas including wireless gaming, Internet Radio, remote-control accessories and GPS."

But we see the tour de force, the skillful feat of Apple going way beyond a portable "mini computer" for Apple is not thinking within the confines of "IT" or "cellcos". They are driven to a higher call, one of figuring out what consumers really want, what lifestyle changes can be offered based on the cutting edge of technology—then going the extra mile to determine the best way to package and deliver the goods. And it’s this last part that is the hard part, because it requires the hardest kind of work, consistent, concentrated thinking (remember IBM’s old tag line?) It is also the true source of Apple’s wealth and continued prosperity.

So extend the model forward just a few months, or perhaps to next year. What is iPhone III going to look like? What images don the whiteboards that fill the hallways of Infinite Loop in Cupertino? We believe it may include a next generation portable display. It makes perfect sense, from both a technology (based on recent advances in laser, LED and microdisplays) and marketing perspective (the display is the second most expensive component and the most visible.) Historically, it was first the computer, then the display that was developed, some may even remember compiling results from early punch cards on line printers—the days of no displays.

We’ve been talking about the idea of decoupling image size from the size of the portable device for quite some time. Everything is on the table from roll-able displays to pocket projectors, but if recent patent filings are any indication of what Apple is thinking, look to wearable, and head mounted to be the direction Apple takes.

Now here’s a shameless plug. We ran a story written by Dr. Arthur Berman in this month’s Mobile Display Report (just out today) on the new Apple laser head mounted display patent. So if you are a subscriber, Thank You, and check out the story, it should hit your in-box before this Daily does.

If you’re not a subscriber, here’s the patent details and you can look it up yourself… I told you it was shameless, (head mounted display system: 20080088937, peripheral treatment for head-mounted displays: 20080088936, enhanced image display: 20080088529).

OK, here are a few tidbits from Arthur’s article. "A patent application published April 17, which lists John Tang as the inventor, describes a method of implementing a head-mounted display adapted for stereo viewing." "With a thickness of just 2mm on the optical display element, Apple’s patent design means the display could be the same size as a pair of spectacles. When it’s not being used, the optical display elements become transparent, so the headset can be transformed from a display to common reading glasses with just the flick of a switch."

In our story, there are a few more details like some line drawings and the fact it’s laser based plus some additional analysis by Arthur.

Like the pre-iPhone cell phone market of one year ago, this wearable display space is currently rife with technology alternatives that exist because engineers could build them. But if Apple were indeed to turn its industrial design and engineering prowess to this wearable display category, the effects could be more dramatic than the iPhone’s initial impact on cell phones—combining form, function and usability into an elegant solution.