The Apple iPhone and Cisco - Now what for mobiles?

So, Apple and Cisco have decided to bury the hatchet on the iPhone trademark dispute. Now both companies will promote iPhone products.

While Apple’s foray into the name was widely expected, it was surprising to discover Cisco already held the trademark. However, observers soon noted that the Cisco claim was tenuous at best.

So now it’s a win-win situation for both companies, right?

Well, Apple claim victory in securing another iconic trademarked product, and Cisco have had a flash of glory in promoting their VoIP phone products.

The real question is what impact the Apple iPhone will actually have on the overall mobile market.

After all, the iPhone isn’t billed as a mobile phone or mobile device - but as a “revolutionary way to manage your life”.

In that way, Apple are pushing harder towards the Ultimate Mobile Device - but it’s a direction the markets were already heading in.

We’ve already seen a range of PDA’s trying to bridge the gap between PC media and mobile, with the Blackberry lines by RIM being strong leaders.

But other mobile manufacturers are still pushing the envelope at their own pace.

For example, something among the hype for the iPhone, an advertising campaign was launched for the Nokia N95. This is a mobile device fbrimming with bells and whistles, bringing together a raft of features normally reserved for higher end phones.

Other companies aren’t standing still - innovation continues, as LG released their touch-screen only PRADA earlier this year, and Pantech pushed into the market with face recognition.

The message is clear - mobile devices are fast integrating themselves into general consumer media markets, and Apple and Nokia will surely have a popular lead in this area with the flagship iPhone and N95 products.

The question is really one of how fast will the pace of development continue.

The likely answer is that manufacturers will try to settle in and milk this more emergent market of tooled-up mobiles. Expect fewer new features - just better of the same.

The reason being, like any technological sector, is that uptake of existing technology needs to fund the following developments.

That’s the theory anyway.

In reality, what we’re seeing in countries such as South Korea and Japan is a continued pushing on the envelope - massive connection speeds and continued experimentation.

So the overall trend is that we will see more of the same in terms of the new next generation phones - multimedia-heavy mobile devices that become less like phones as much as mobile computers.

The question is - what’s the next generation after that?

The Apple iPhone gives us a clue. It’s not the hardware possibilities that will lead the next wave, as much as services - in built IPTV, VoIP, wireless internet, local maps services, and other software applications that help turn the humble mobile phone into a much more diverse product.

My bet is on home integration as the bext big service area - mobile devices that will switch on your PC, your lights, and get the microwave ready. The traditional, and almost cliched “home of tomorrow” run not by general remote controls, but remotely by media-packed mobile devices.

If Apple and Cisco had pushed on their legal battle, the possibility is that we’d see both companies strangled from R&D on product innovation, slowing the overall mobile market growth and market share of these companies.

Now that they are best buddies again, the mobile markets are under starters orders again.