iTunes Store as hub. Least controversially, Apple plans to require that all mobile applications be distributed through its iTunes Store, making the Store a necessary hub for those interested in browsing or purchasing iPhone and iPod touch software. While one source suggested that a company’s well-trafficked website or product packaging would be considerably more practical places to distribute certain types of software, another source lauded the Store as a logical place for Apple users to locate and purchase applications.

Apple as application picker. The most controversial aspect of Apple’s SDK plan is its intention to formally approve or deny all SDK-based software releases for its devices. Our sources confirm that Apple will act as a gatekeeper for applications, deciding which are and are not worthy of release, and publishing only approved applications to the iTunes Store; a process that will less resemble the iTunes Store’s massive directory of podcasts than its sale of a limited variety of iPod Games. While one source saw this as a positive for major developers, suggesting that Apple will be choked by application submissions and forced to give priority to releases from larger companies, another source disagreed, stating that Apple’s current approval processes for third-party products have resulted in lengthy, needless delays. It is unclear whether Apple will need to approve subsequent bug fixes and feature additions to accepted applications, another issue that could clog the approval system and postpone important improvements.

No accessory connectivity. Under current plans, SDK developers will be prevented from interfacing directly with Dock Connector-based accessories connected to the iPhone or iPod touch—a decision that we are told could cripple development of new accessories such as physical keyboards, traditional add-ons, and more ambitious, creative accessories such as Delphi’s iPhone car control prototype. One source described this limit as a guarantee that SDK-developed applications would be nearly as limited as current web-based ones, while consuming more of the device’s storage capacity. Yet integrated iPhone or iPod touch features such as the phone, Wi-Fi, and camera will be developer-accessible, certainly permitting development of programs that weren’t possible before. It is presently unclear whether Bluetooth 2.0, which is included in the iPhone but crippled to permit only monaural phone call streaming, will be opened to permit stereo audio streaming and data functionality as well.

Sources told iLounge that the collective impact of Apple’s decisions will be to control and stifle third-party development at a critical juncture in iPhone and iPod history, limiting what could be an open, thriving Mac-like collection of applications and accessories to a smaller, more stagnant iPod-like controlled environment. Consequently, a source suggests, developers who “jailbrake” iPhones and iPods to develop applications will be at an advantage relative to those who use Apple’s official tools. Even after extensive discussions on the subject, however, iLounge remains open-minded to the idea that Apple’s plans will result in net positives for the iPod and iPhone community, and optimistic that the company will loosen its planned restrictions to accommodate the Apple community’s demonstrated, impressive creativity.