In 2007 when Steve Jobs introduced the iPod that was three things (a music player, a web device, a phone) a line in the sand was drawn.  The era of phones as “just a phone” was over, and smart phones weren’t just for businessmen any more.  In the nearly three years since the original iPhone, things have changed a lot. Consumers are throwing more at their connected devices than ever before. People are downloading apps, finding new ways to push the limits of productivity (and procrast-ivity), and demanding more from the carriers and manufacturers.

What’s needed in iPhone 4.0

Just last month Apple introduced the iPad, a new tablet device which is basically a large screened iPhone (minus the phone). Next month, Apple will introduce the 4th iteration of the iPhone OS, version 4.0. Looking back, version 1.0 introduced a revolutionary phone with a few interesting widget/apps (maps, stocks, weather) and simple web-apps. Version 2.0 brought on the App store, and version 3.0 gave us push notifications. So what’s on tap for the next version?

Looking ahead to 4.0, what could make the now pretty good iPhone OS into another game changer?  Luckily we can draw some observations by looking at Apple’s self-imposed limitations and by checking out what competitors are doing. There are some clear directions that Apple needs to develop. Three things would create a better overall iPhone experience:

Fast App Switching. Multi-tasking is not essential, but quickening and streamlining workflow between apps and system functions is. Allowing apps to retain current states (freeze) along with quick app switching would make copy/paste between something like a dictionary app and Safari or twitter much more convenient. Additionally a workspace of several commonly used apps evoked with gestures would improve the flow and aid in getting things done on the phone.

Better Notification Interface (GUI). Currently notifications fly by one at a time; if you get a few notifications plus a text while in the lock screen, all but the top notification is delivered (or seen). Then you’re forced to hunt down the app with a indication badge on one of many home screens.

Push Notifications use the network to connect to a server. What’s needed is a central scheduling dispatch within the OS in charge of local notifications. Apps such as alarms and calendars schedule specific time based actions/notifications which should be independent of network availability. Relying on Push notifications as they exist now for a calendar app (like Pocket Informant) could be risky business if you’ve got no coverage (on ATT? impossible).

The way Google Android and Palm WebOS phones handle notifications is much better. Android uses a pull-down notification bar or shade; this has two benefits 1) easy app switching/replies to texts and emails 2) history, which allows the user to singletask without fear that they will miss (or be interrupted by) the multitude of notifications flying at them. Palm’s WebOS uses unobtrusive notifications which show like a stacked ticker at the bottom of the screen, allowing the user to act on them (or not) without leaving your current task. WebOS’s multitasking also means you can reply to a message and come back to the original app without any lost work.

At the very least, Apple should implement smarter notifications for 4.0, and increase the multitasking abilities of important system apps (such as allowing instant responses to SMS messages without leaving the current app). Small tweaks could make a huge difference, and go a long way towards addressing current shortcomings. Apple did not anticipate the huge number of apps that would rely on its imperfect notification system, it’s time to beef that up.

Hubs: The future, also-ran?

What is less clear is how Apple will respond to the overall paradigm of the App store in contrast to the emerging model of the phone as a connected hub for online life.  Just last week Microsoft previewed their new Windows Phone Series 7. While the name isn’t elegant, it’s approach to integrating into a user’s online life is compelling. Instead of filling the home screen with dozens of (unsorted) app icons, Windows Phone 7 will display a dashboard of live updated information (Hubs) based on categories of use: People, Pictures, Games, Music+Video, Marketplace, Office.

The Apple App store offers a panoply of choice (retail perspective), but Microsoft’s Hub approach just makes sense from a user perspective. By that, I mean the usefulness of an iPhone is now limited by how much people leverage the power of the App store. And with 100,000+ Apps the noise level is high, and the quality isn’t guaranteed. Even if Apple doesn’t innovate, the iPhone has still garnered “loyalty” among users because of the quality of the device. These same users, however, may begin to feel stuck because of the hundreds of dollars they sunk into the App store.

In the future the power of a device will be based not on the thousands of apps one can choose from, but the flexibility of the platform in anticipating and delivering what the user intends to accomplish. A hub approach may be more in line with leveraging the power of the cloud (internet connected services). Apple must grow the iPhone/iPad/iPod platform to embrace the hub life-centric approach as well as blow the lid off of what is now considered possible in the mobile computing space.

Let’s hope for “One More Thing” from his Steveness this year.