Michael Schneider

It is often said that imitation is the sincerest form of flattery. If that's the case, iPhone app developer Michael Schneider should just be glowing right now.

Apple today introduced its latest iPhone -- the 3G S -- with a number of enhancements: a three megapixel camera; hands free voice control and longer battery life. But it also unveiled a new way for iPhone users to type using the wider "landscape" mode keypad. That minor adjustment is a big deal for Schneider, whose best selling TouchType app does the exact same thing.

I asked Schneider -- who was attending the Worldwide Developer's Conference in San Francisco -- what it's like to learn that an 800 pound gorilla was entering his terrain. Interestingly, the Seattle lawyer-turned-iPhone-app-developer didn't seem too bothered by the whole thing.

In fact, Schneider said he's known for months that the enhanced keypad technology would be part of the new iPhone. And he said that he was a little surprised that Apple didn't roll it out sooner since the small typing screen was one of the reasons why some consumers initially balked at the device.

Schneider said it makes so much more sense to have landscape mode integrated with the phone, rather than as a third party app. "It is much better for the user," he said.

Still, Schneider did establish himself with TouchType -- a 99 cent app that to this day resides in the top 25 in the productivity category.

With Apple integrating a similar technology in the new device, doesn't that mean lost revenue for Schneider?

Maybe. But Schneider, who has 18 applications in Apple's app store, is trying to stay two steps ahead. He's hoping that people will still buy TouchType since it includes a more traditional spell checker. And there are also those iPhone users with an older device.

"I am hoping that I can continue to keep it alive," said Schneider, noting a huge banner at the conference which includes the TouchType icon.

But Schneider also said he's adjusted, focusing on apps for relaxation, smoking cessation and even dog tricks.

TouchType is still his best selling app of all time, but others now account for a larger share of the revenue.

"Even if it goes away, it was a good run," said Schneider, comparing the iPhone app market to video games or movies. "To make money on the iPhone you have to constantly be making new apps -- you can't ride one app for a long time." 

Editor's note: I am currently reaching out to iPhone app developers in the Seattle area to get their thoughts on the device, which ranges in price from $99 (8GB) to $299 (32 GB). If you are an iPhone developer just shoot me an email (johncook@bizjournals.com) answering these two questions:

What most excites you about the new iPhone?

What feature do you wish it had?

I'll include answers in a follow-up post.