Smartphone top 10: owning the hardware and software

UPDATE 14 Sept 2010: Originally from August, I'm putting this back on top during this week's Nokia World. Nokia is not dead yet. "Mostly dead", yes, but not completely dead.

Listen to the tech bloggers and you'd think that having full control over the software and hardware is certain doom for smartphone makers. Nokia is written off for dead. Blackberry, not far behind. Few have written off Apple, however many are taking glee in the fact that in not licensing their iOS, they are REPEATING THE SAME MISTAKES FROM THE GREAT PC WARS!!!

Perhaps not. We hear so much about the reasons for licensing your OS, such as Google has with the Android, such as Microsoft is (sorta kinda) about to do with the Windows Phone 7. Let's compile a list of all the obvious benefits of having total control. Yes, I'll need your help for this:

1. Easier, more trustworthy payments
2. Reliability of all apps and content purchased
3. Latest & greatest version of the operating system
4. Processor, battery and all other hardware optimized for the user interface
5. Potential for higher margins
6. Less likelihood of being victimized by spam, by spit (essentially, spam calls), malware, sypware and other bad things
7. Superior user experience (since the UI and hardware are more tightly integrated)
8. Non-scalable innovation (yes, at first glance this appears to be an oxymoron; however, as much as I'm a fan of innovation and scale, the less focused on volume-based improvements, the more you can be focused on particular markets, users, demographics, regions)
9. Stronger carrier relationships. This may not be the case, but I'm going to assume that by controlling everything, you can provide more pricing flexibility and more reliable shipments. For now, Android is selling extremely well. However, running low on EVO, or not having enough AMOLED screens could be a real bitch if you are a carrier and have spent some of your own resources on marketing these products.
10. Lower app development costs (this may be a bit of a dodge but I'll shoot. How many versions of Android are floating out there? How many handset makers have slapped on their own services/apps/UI on top of that? Who is cheating on the hardware side? As a developer, I definitely will appreciate potential sales volume, but I do not want an app that has problems over something I have no control over).

This is a first pass. What are the others?

• Stability
• Improved marketing (do you want this one to even count?)
• Better product roadmap (possibly; by having a more complete understanding of their users and controlling both hardware and software)
• Less likelihood of being used to somehow harm the wireless network (which could happen)
• an integrated solution would offer inherently better security and management in a corporate environment

I may have to keep a running list going...