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  (Source: Apple)

iPhone 3G  (Source: Apple)

iTunes App Store  (Source: Apple)

iPhone 3G 16GB in white  (Source: Apple)
Apple swings for the fences, again.

When it comes to announcing a new product, Apple knows how to set the stage and get people excited right up until the official announcement. Nowhere was this more obvious than with the launch of the original iPhone. The fervor surrounding the mobile handset didn't settle down when the first generation iPhone was announced in early January 2007 -- it continued until the eventual release of the phone in June of that year.

Speculation on the follow-up, the "3G iPhone", has been building ever since the first generation model was revealed -- but things really started getting a bit uproarious over the past few months. Case makers began leaking dimensions for the upcoming phone, supposed "leaked" pictures of the phone were drooled over by nearly ever gadget site on the web, and leaked firmware was picked over with a fine-tooth comb.

Apple today finally announced its next generation crowd pleaser. Apple is looking to address the shortcoming of its first effort this time around and further expand its popularity (Jobs previously stated that he wants 10 million iPhones sold within the first 18 months – it already surpassed the 6 million mark during its first year).

First things firsts – the worse kept secret about the second generation iPhone is its 3G capabilities. The first gen model was widely criticized for its slow EDGE cellular broadband capabilities. Apple is now matching the competition with the iPhone 3G. The iPhone 3G has tapered look with thinner edges, solid metal buttons, a black plastic backing, flush headphone jack [thank goodness], and vastly improved audio.

The faster cellular connectivity of the iPhone 3G allow for download speeds nearly as quick as WiFi and speeds that are 2.5 times as fast as EDGE. The iPhone 3G also sports better battery life than its predecessor. The iPhone 3G now supports 2G talk time of 10 hours, 3G talk time of 5 hours, 7 hours of video, 24 hours of audio, and 5-6 hours of high-speed web browsing.

Another big addition is fully integrated GPS tracking. IPhone 3G users can now get positioning information from WiFi, cell towers, and now the hardware GPS.

Apple also confirmed early speculation that price breaks would be in store for the new lineup of iPhones. The Cupertino, California-based company confirmed today that the new 8GB iPhone will be priced at $199 with a new two-year contract when it launches July 11, while the 16GB iPhone (which will be available in white at a later date) will set you back $299 under the same terms.

The iPhone 3G will be rolled out in 22 countries on July 11 (Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, UK and the U.S.).

Apple first announced the Software Developer Kit (SDK) for the iPhone in early March along with the 2.0 firmware update. The SDK allows third-party manufacturers to create their own applications for the iPhone and iPod touch and upload them to the new iTunes App Store.

Developers are charged a $99 fee to publish each application to the iTunes App Store -- Apple also takes a 30% cut of the purchase price for each application sold to customers to cover hosting and processing fees. For generous developers that provide their apps for free on the iTunes App Store, the aforementioned hosting and processing fees are dropped.

Jobs noted that applications that are less than 10MB in size will be downloadable through the cell network – applications larger than 10MB will have to be downloaded through a WiFi connection of through the desktop iTunes application. Automatic updates for applications will also be pushed through to the device.

A number of applications were on display that were developed using the SDK including SEGA’s Super Monkey Ball (which will be available for $9.99 from the iTunes App Store), an integrated eBay tool complete with bidding and search, and a news reader provided for free by the Associated Press. The latter tool will send local news to you based on your location, save images, video, and text for offline viewing, and even allow you submit news as it happens.

The 2.0 software -- which is available not only for the iPhone 3G, but also to the original iPhone and iPod touch -- adds a number of new features to make the devices more corporate friendly. These include push email/calendar/contacts between an iPhone/Mac/PC via MobileMe, auto-discovery, global address lookup, Cisco IPsec VPN, Certificates and Identities, WPA2/802.11x, and remote wipe.

Other features include contacts search, bulk delete/move for emails, a new scientific calculator, and the ability to save images to the Photo Library. Microsoft PowerPoint documents are now supported as well.

IPhone users will receive the 2.0 software update for free, while iPod touch users will have to pay $9.99. The update will be available next month.

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By aBott on 6/9/2008 2:57:57 PM , Rating: 3
The only thing about this release that really surprises me is the price drop. That is impressive and enticing.

RE: Price
By jax1492 on 6/9/2008 3:00:30 PM , Rating: 5
I agree, 200$ for an ipod,phone and gps? how can you say no?

RE: Price
By ksherman on 6/9/2008 3:05:15 PM , Rating: 2
Indeed! I am getting annoyed with my TomTom leading me through neighborhoods just to shave off a corner. I trust Google Maps and having that integrated with GPS alone is worth $200 to me.

Apple has certainly met complaints. I wish I could get one with a 1 year contract instead, but seems like I would be stuck. Kudos to Apple, these are going to sell like mad.

RE: Price
By therealnickdanger on 6/9/2008 3:08:57 PM , Rating: 3
Would that be $200 WITH contract or without? If it's $200 without a contract... BRAVO! I don't hand out compliments to Apple often.

RE: Price
By Runiteshark on 6/9/2008 3:44:35 PM , Rating: 3
I would bet its with contract, which is fine with me. As much as I hate Apple, I find myself actually considering this as my next phone. Seeing the amount of features it has (and now 3G), for such a reasonable price, it would be silly to not consider this as a viable phone solution.

RE: Price
By daftrok on 6/9/2008 3:48:23 PM , Rating: 2
The article says with a two year contract, so that explains why it's so cheap (my $279 T-Mobile Shadow only cost me $150 when I renewed my contract). $199 is a very good deal, but I can't help shaking how un-Apple that price is. Considering what the iPhone comes with they could have easily sold it for $299 and $399 and it would still have been considered a great deal.

RE: Price
By TomZ on 6/9/2008 3:53:53 PM , Rating: 2
$199 is a very good deal, but I can't help shaking how un-Apple that price is.

Agreed. So what we can tell is that Apple is wanting to move from their current expensive niche market into the moderate cost mainstream. That's exactly the right strategy if they want to achieve (and possibly surpass) their sales goals.

On a personal note, I personally dislike Apple and AT&T, but this offering looks pretty attractive. I look forward to seeing the resulting disruption in that market which should benefit customers in the end.

RE: Price
By Jedi2155 on 6/10/2008 9:17:49 PM , Rating: 2
Sadly, I have to agree...this is mighty tempting especially with my phone contract expiring in August.

RE: Price
By spluurfg on 6/11/2008 2:31:07 AM , Rating: 2
Agreed. So what we can tell is that Apple is wanting to move from their current expensive niche market into the moderate cost mainstream. That's exactly the right strategy if they want to achieve (and possibly surpass) their sales goals.

It's exactly the right strategy to make you think they're becoming affordable, but they make a fortune on the contracts, as they are perhaps the only manufacturer to receive a portion of the network revenue generated by their phones... I expect the contracts to be pretty expensive personally. If I were an Apple investor, I would want them to rip the customers off, because the customers are willing to pay rip-off prices.

At any rate share price didn't do much on announcement day (decreased slightly)

RE: Price
By spluurfg on 6/11/2008 2:34:41 AM , Rating: 2
NEW YORK (Associated Press) - Shares of AT&T Inc. edged downward Tuesday after the company said it is subsidizing Apple Inc.'s new iPhone, a move that is designed to drive up sales but will reduce AT&T's profit over the next two years.

Now we know why it's $199 -- you'll be paying for it in your contract =)

RE: Price
By Mojo the Monkey on 6/11/2008 3:19:37 PM , Rating: 2
Thats too bad. I would have paid the higher amount if it meant I could go with any phone provider I want. I simply dont agree with the numbers/figures in the AT&T plans and thats the deal breaker for me.

Anyone know how much longer the AT&T exclusivity lasts?

RE: Price
By spluurfg on 6/12/2008 5:31:28 AM , Rating: 2
Probably a long time. Let's face it, the mobile phone market is a tough one, in no small part due to the fact that the networks are going to wage a price war on your products. Exclusivity is the only answer to this.

RE: Price
By othercents on 6/12/2008 11:41:08 AM , Rating: 2
It was a 5 year exclusive deal. However Apple might be happy with this deal and still sign another exclusive deal. Also the $200 discount that ATT is subsidizing is the same with any other phone that ATT sales or gives away for free. The contract is not going to be anymore expensive than it was before. Apple stated that they are not going to accept their kickback from ATT, so that ATT can reduce the price by $200.


RE: Price
By callmeroy on 6/16/2008 9:10:22 AM , Rating: 2
That's what I read as well, I also heard this time around AT&T is pretty much making you register the phone with them the moment you buy it or else you aren't gonna be able to have one? How are they doing this well -- deals with the if Best Buy is selling the phone, best buy will NOT let you buy one and walk out of the store until you register it with AT&T....

I'm with everyone else this price is very tempting but there is a huge "?" in my head -- how much is the monthly AT&T bill for the iphone...I mean its already a multi-year contract but if I have to pay $80 a month just to use the Iphone, that's not really so much a deal to me.

RE: Price
By therealnickdanger on 6/10/2008 9:27:47 AM , Rating: 2
Oh, well then that's not very attractive when compared with my Touch or the replacement for it. Nevermind. It's a huge improvement over the $600 or whatever the first iPhone was.

RE: Price
By Some1ne on 6/9/2008 4:45:55 PM , Rating: 5
how can you say no?

Three words: Two year contract.

RE: Price
By Reclaimer77 on 6/9/08, Rating: 0
RE: Price
By GhandiInstinct on 6/9/2008 4:59:12 PM , Rating: 1
I have an AT&T contract now with my current cell, anyone know if I can just flip it out and put it in an Iphone to avoid the 2 year rip off plan that's mandatory?

RE: Price
By Polynikes on 6/10/2008 12:55:01 AM , Rating: 2
I'm guessing you have two options. Get an iPhone when your contract is nearly up for a discount or buy the phone full price and put the sim card from your old phone in it.

RE: Price
By walk2k on 6/9/08, Rating: -1
RE: Price
By SiliconAddict on 6/9/2008 7:02:31 PM , Rating: 3
Its not only NO. HELL NO.

RE: Price
By kelmon on 6/10/2008 8:42:01 AM , Rating: 2
I agree, 200$ for an ipod,phone and gps? how can you say no?

Pending the price of an iPhone in Belgium when they are released next month (bracing myself since phones tend to be expensive here), this is a done deal for me. A new iPod would be nice, I don't have a phone at present, and I've been looking at getting a GPS unit for a while. I don't think the phone is going to be perfect, not least because I understand that the camera is disappointing, but it'll play nice with my MacBook Pro and do pretty much everything that I want. It's always possible to improve but this looks good enough for me if the price is bearable.

RE: Price
By tdawg on 6/9/2008 3:06:56 PM , Rating: 2
Is this the AT&T subsidized price, meaning that you can only buy it for $199 if you sign up for a 2-year contract (so those outside the AT&T network that unlock their iPhones will have to pay full price)? I thought I read this a couple months back.

No biggie for me as I'm a happy AT&T customer and will take a hard look at the new iPhones when they hit the market.

RE: Price
By aBott on 6/9/08, Rating: -1
RE: Price
By JCY on 6/9/2008 3:29:26 PM , Rating: 5
According to engadget the price is contract based. Such a low price and no contract would sound unreal to me considering the features.

RE: Price
By paydirt on 6/9/2008 3:38:18 PM , Rating: 5
with 2-year contract

with 2-year contract

with 2-year contract

RE: Price
By Shlong on 6/9/2008 3:30:15 PM , Rating: 2
For $199...
No 2 year contract - I'm buying it
2 year contract - I'll pass.

RE: Price
By daftrok on 6/9/2008 3:50:11 PM , Rating: 2
So you'd rather pay $299 and get nothing instead of paying $199 and getting a two year contract with the largest phone provider in the country...

RE: Price
By Shlong on 6/9/2008 5:05:36 PM , Rating: 3
Considering I just signed a new 2 year contract with T-Mobile, I would rather just buy the phone and jailbreak it.

RE: Price
By theapparition on 6/9/2008 5:33:23 PM , Rating: 2
The largest phone provider in the country is also one of the worst, and they are masking their diminishing customer base by acquisitions of smaller carriers.

No thanks........I'll pass.

Put this on Verizon and I would consider it.

RE: Price
By tdawg on 6/9/2008 6:21:08 PM , Rating: 3
To each his own, of course. I'm perfectly satisfied with my AT&T service.

RE: Price
By Arc 0V on 6/9/2008 7:53:39 PM , Rating: 2
Put this on Verizon and I would consider it.

Do it.

RE: Price
By fonzdaman on 6/9/2008 10:46:59 PM , Rating: 2
With a price tag like that + all the features it has deffo licking my chops :)

RE: Price
By spluurfg on 6/11/2008 11:17:19 AM , Rating: 2
So you'd rather pay $299 and get nothing instead of paying $199 and getting a two year contract with the largest phone provider in the country...

No, he'd rather pay $299 and get his phone free to use on any plan and network of his choice, rather than pay $199 for the phone and also be locked into paying at least $60/month for 24 months. That way, if he manages to get a contract that he likes for $55, over two years he would have saved money.

You make it sound like AT&T is doing you a favor by letting you get a contract with them. It's not a country club.

RE: Price
By enlil242 on 6/10/2008 10:32:52 AM , Rating: 2
For everyone impressed with the price drop,plese note: AT&T will be raising the basic service plan $10, from $60 to $70. Over 24 months, thats $240, so, you will actually be paying more over the duration of the plan. Not sure how the other plans will be affected, but they'll probably get a bump too.,2933,364469,00.html

And indeed, Jobs neglected to mention one little thing during his speech Monday -- AT&T's iPhone plans would be going up, with the base voice and unlimited data monthly plans starting at $70, up from $60.

RE: Price
By jbizzler on 6/10/2008 9:20:45 PM , Rating: 2
Yeah, but the service is $10 extra a month, so in 1 year and 8 months, the new iPhone is the same price as the old, and climbing.

RE: Price
By novana on 6/15/2008 8:40:00 PM , Rating: 2
It might seem to be cheap with the price they listed. However you are under a 2 year contract which will easily cost you as low as $70 a month to a few hundred bucks a month. On top of that if u want other features you will need to pay extra. So i am pretty sure they will still make a ton of money because they are really good at marketing. Look at their earlier iphone, with that ridiculous price they still made a tremendous amount of money off of it. Also look at their ipod, for its price you can get something much better, more memory and better battery life. Yet people still buy it . It is all marketing, all you have to do is make people think your product is cool and everyone is going to have it like the ipod. But if you are rich and can afford it, why not since you are just buying another thing that makes you look "cool".

By Pirks on 6/9/2008 3:34:59 PM , Rating: 2
It's kind of illogical, isn't it? They want to get to mass market with iPhone, but they stay away from mass market in computers. Why? Does anyone have an industry insider's view on that? Is it just because of Jobs contradicting sound economical policy due to his inner fears or are there REALLY serious economic reasons not to do that? I mean going for mass Mac market iPhone 3G style.

By vexingv on 6/9/2008 4:01:19 PM , Rating: 2
b/c the smartphone is still a relatively new market for the average consumers. apple needs to hook people now. this way they'll be iphone users for life and they'll be in a locked environment/platform. they might also see a rise in Mac hardware sales through a halo effect (think ipods). also, apple gets revenue sharing from the wireless carries and now its app store (but the app store may actually be a lost-leader model to push their hardware sales much like how the itunes store operates).

i have to say i bought a 3rd gen ipod and later bought a powerbook (but i had used Macs before at medical research labs). with the ipod i got to put my own mp3's and on OSX you can load whatever you want. but with the iphone and its app store, i'm a bit skeptical about it; i'd much prefer an open platform such as the one Google's Android is trying to accomplish. however, with no hardware available it's going to be a tough sell especially when you can get an iphone in a month for $200.

apple has essentially rattled the smartphone market. new smartphones are going to have to be priced much lower to compete. even then, at a lower price, the iphone's feature set is hard to beat.

By Pirks on 6/9/2008 4:51:59 PM , Rating: 2
apple needs to hook people now. this way they'll be iphone users for life and they'll be in a locked environment/platform
So why don't they hook people to Macs as well, by introducing additional cheap mass market oriented Mac models? My question is: why Apple decides to hook people on iPhone but refuses to do the same with Macs by extending their model line with cheap budget-oriented Macs?

By othercents on 6/9/2008 6:13:23 PM , Rating: 2
Simple... Apple won't be able to keep up with demand.

By michael2k on 6/9/2008 6:13:48 PM , Rating: 2
They ARE hooking people to Macs with cheap mass market Mac models. The iPhone!

The reason they don't make cheap "PCs" is because people only upgrade their PCs every several years while they upgrade their phones every couple years. Profit man, profit is the reason why they don't extend their Mac model lineup with a budget oriented Mac.

Unless you count the Mac mini as "budget oriented".

By kelmon on 6/10/2008 9:01:22 AM , Rating: 2
The real reason is that there's no money to be made in that sector of the market. Apple could take the risk that a budget model will attract non-Mac users in the hope that they'll buy a "high-end" Mac later but it's probably not worth it. Chances are that people who buy a budget machine now will continue to buy budget computers and, as noted at the start of this reply, there's no money to be made there.

Remember: market share is not important. What is important is profit and a high market share does not necessarily guarantee a maximum profit. Apple's a relatively small company and they're going to continue to focus on those high-margin markets so that they can maximise profits.

By fic2 on 6/10/2008 12:16:32 AM , Rating: 2
What I wonder about having to buy the apps from the Apple store is - if I get an iPhone now and a newer one in 2 years will I have to rebuy all the apps I use?

I would consider an iPhone if I had my choice of cell providers and if it was an open platform (not having to buy through the apple store - 30% for "hosting fees", please).

By psychobriggsy on 6/10/2008 7:59:45 AM , Rating: 2
If the applications are using Fairplay as the keynote suggested, I imagine that you can put an app on several devices, and also de-authorise your old iPhones and iPod Touches as and when they get replaced.

30% is a fair price for such a service with such a reach, especially as it covers all credit card processing fees, servers, hosting, free updates, bandwidth, etc. It also hosts free apps (no fee required), you can also ad-hoc supply applications outside the app store for 100 users, and there's also enterprise app distribution outside the app store.

By michael2k on 6/9/2008 4:09:49 PM , Rating: 2
No, it's not illogical at all.

Tell us how Apple can achieve mass market in computers and not go out of business? Look at Dell and tell me that Apple should "race to the bottom"? What "sound economical policy" are you quoting here?

The business model (and it is quite sound) that Apple is pursuing is the BMW business model: Premium, luxury, products at a reasonable price. They aren't out to beat Dell, HP, or Acer (which represents the equivalent of Toyota, Ford, or GM), they are out to beat Gateway, Toshiba, Lenovo, Fujitsu, and IBM (which represents the, essentially, niche car manufacturers of both low and high value such as Aston Martin, SMART, Lotus, Chery, and Rolls Royce)

By Pirks on 6/9/2008 4:39:41 PM , Rating: 2
Let's suppose that Apple extends the model line of Macs and introduces cheaper mass-market oriented Macs. How is this going to hurt them if the Mac sales will shoot through the roof because of lowered prices, just like with iPhone 3G?

What I'm asking here is not "why Apple can't move from expensive Macs to cheap Macs", my question is this: why Apple can't introduce ADDITIONAL cheap models, while keeping their traditional expensive models intact?

Please tell me how can increased Mac sales hurt Apple, given that all their old models are in place and only been extended with a few budget mass market oriented Mac models?

By michael2k on 6/9/2008 5:14:32 PM , Rating: 2
Oh, that's easy. Every budget Mac that steals the sale of a premium Mac hurts them. The only way Apple can release a budget Mac that doesn't hurt a premium Mac is through differentiation of features and form factor.

And if you take THAT into consideration, the iPod touch and the iPhone 3G are both "budget mass market oriented Mac models". Seriously, what would a "budget Mac user" need that an iPhone can't deliver?

By Pirks on 6/9/2008 6:04:23 PM , Rating: 2
The only way Apple can release a budget Mac that doesn't hurt a premium Mac is through differentiation of features and form factor
Agreed. That's why I was asking this question: why can't Apple add a model of cheap Mac that will look different from the current models (i.e. different features and different form factor just like you said). How about somewhat stripped down AMD Athlon X2-based Mini in a standard miniATX case or something like it. See, Apple has no models like this, they have either tiny microcase (Mini) or a monoblock (iMac) or a monster tower workstation (Pro). Dude, where's my $300 miniATX-like Mac Mini? The one that nicely fills the _HUGE_ gap between Mac Mini and Mac Pro. Why they keep that HUGE hole in their model line in the first place? Any business reasons or is it just Jobs's fears or somethin? Whatcha think?
what would a "budget Mac user" need that an iPhone can't deliver?
Big nice screen, full-size keyboard, decent mouse, fast hardware, way more powerful and capable apps and games, and expandability/upgradeability. Is this enough?

By michael2k on 6/9/2008 6:09:46 PM , Rating: 2
So what you are describing sounds like a $1200 Mac to me. What feature/capability/niche would you be adopting to get the $300 Mac?

Given that the iPhone is $300?

Apple is going to sell a $300 miniATX Mac profitably, said system would have to cost Apple something like $100. Which, bluntly, is an iPhone.

You want big screen? Full sized keyboard? Decent mouse? Fast hardware? Expandability and upgradeability?

Welcome to the Mac Pro.

You have to pay for the features you want, and if the feature you want is "cheap", well, Apple has to have a second revenue stream. Maybe 3 year subscription to MobileMe?

So $300 up front for a "cheap" Mac, and three years of MobileMe for $99 a year.

By kelmon on 6/10/2008 9:33:40 AM , Rating: 2
Absolutely correct. You can add to this that releasing budget Macs would also increase Apple's overall costs and/or reduce the resources available to those aspects of the market that are high-margin (i.e. more profitable). Releasing a budget Mac could be considered a loss leader, but I seriously doubt that it would lead to a net increase in profits, because those who buy a cheap Mac would likely continue to buy cheap Macs in the future, and those who do buy "high-end" Macs amy elect to buy a cheaper version instead.

Apple knows what they are doing.

By Cheesew1z69 on 6/9/2008 5:23:45 PM , Rating: 2
IBM = Lenovo

Acer = Gateway

By Cheesew1z69 on 6/9/2008 5:33:25 PM , Rating: 2
Also, Apple computers, are not reasonably priced IMO.

By michael2k on 6/9/2008 6:21:59 PM , Rating: 2
What is reasonably priced, then? The prices IBM, Gateway and eMachines charged obviously were too low, otherwise they would not have been sold.

By Totally on 6/10/2008 10:20:46 AM , Rating: 2
sorry bud, 1 out of 3 fail.

By glennpratt on 6/9/2008 5:43:29 PM , Rating: 1
Since when is $199 + 2 yr contract with mandatory data 'mass market'.

May I suggest you are a very rich person in the grand scheme of things if you think that's 'mass market'.

By Pirks on 6/9/2008 6:24:08 PM , Rating: 2
Don't you agree that due to drastically lowered iPhone 3G price this market is still much more mass orineted and much less elite/rich oriented compared to first iPhone a year ago?

If you agree - then my question becomes "why Apple can't adopt the same policy for Macs and make them more mass oriented and less elite/rich oriented just like they did it with iPhone 3G?"

By glennpratt on 6/10/2008 12:54:11 PM , Rating: 2
$199 with 2 yr contract + data isn't cheap for a phone. That's a commitment to over $2000.

It is definitely an improvement over $399, but it's nowhere near the bottom of pricing, even for smart phones. Apple computers aren't cheap, but they aren't that expensive either.

They just don't make low end models, likewise they don't make low end phones.

By johnnyMon on 6/9/2008 6:18:43 PM , Rating: 2
Mass-marketing the iPhone drives Mac computer sales. Why make their computers a commodity like PCs and go for a tiny slice of profit? Why not keep what they're doing by closing their OS and making expensive computers, along with getting $100+ each year for upgrades of their OS from their users? They already have a shocking percentage of sales for computers that cost over $1,000.

They would be happy to make zero dollars on each iPhone if it would cause a good percentage of iPhone users to become Mac users as well.

By walk2k on 6/9/2008 6:41:35 PM , Rating: 2
basically the question you are asking is, why don't they make computers that run Windows?

By BruceLeet on 6/9/2008 7:16:15 PM , Rating: 2
If they had a significant market share, hackers would flock like the salmon of capistrano and the security flaws would bloom. Partial reason why their O/S isn't hacked to death, becase who wants to obtain pretty photoshop images?

Dont forget how long it took for an Apple machine to be compromised :p

By androticus on 6/9/2008 9:00:50 PM , Rating: 2
What makes you conclude "they stay away from mass market in computers"?

I switched from PC to Mac for my day-to-day computing and have been very happy (although I continue to use all three platforms for work.)

Their mac sales have been increasing like gangbusters -- much faster than the industry average. It only takes a few years of that kind of growth to start developing a major presence in the market. I'm sure they are simply following a sensible and proven business strategy, rather than trying to unleash an instant clone market which might increase share for Mac OS, but destroy the golden goose in the process by diminishing the quality of the product.

Entry-level Macs are really no more than other quality brands, and frankly not hugely more than junky discount brands. Particularly with Microsoft able to do no right (esp under Ballmer) I think Apple is wise to follow their current Mac strategy.

By jbizzler on 6/10/2008 9:28:29 PM , Rating: 2
Macs are getting cheaper. If you're not gaming, then the price/performance ratio is about the same as a self-built machine. iMac is a little more expensive than an equivelent custom PC, Mac Pro is a little less expensive (it's a workstation, not a home desktop!). But you can't really compare custom machines to Apple machines directly, especially with the iMac.

This WWDC, most of the iPhone stuff was just meh to me. Now MobileMe is interesting, though. It's like Windows Live, only instead it works on Mac OS and Windows!

By novana on 6/15/2008 8:55:51 PM , Rating: 2
That is a really good question but have you ever asked your friends what they have at home?? most of them will tell you pc. In fact there will be at least 60 to 80 % of your friends that uses pc. Now ask what your friends that uses pc about what they think of macs. i bet you 75% of the user will tell u mac "sukx". DO YOU KNOW HOW MUCH MONEY AND TIME IT WILL TAKE TO CHANGE WHAT PEOPLE THINK OF YOUR PRODUCTS?? Thats why they are not stupid and they dont want to compete with pc that are standing on a better ground then macs. Over the course of a years, mac failed to change their reputations against pcs. ipods are a major and smart breack through because there arent many major nor popular brands for mp3s. On top of that pc's market are sliding and you can see a big difference of the people that worked in Microsoft during the tec boom and now. My friend works at Microsoft Seattle, and she told me people that worked in Microsoft during the tec boom are stinking rich compare to people that worked in Microsoft now. To be honest you dont event get paid that much in Microsoft.

Very Impressive
By JasonMick on 6/9/2008 3:15:24 PM , Rating: 5
I have to admit the iPhone's initial shortcomings left it with little appeal to me. However, they have virtually erased all the points of criticism.

I think perhaps the most significant accomplishment is squeezing in 3G talk time equivalent to the prior 2G talk time. Thats impressive.

The price, the new background features, new apps, and the new push features just sweeten the deal.

If this is everything they say, their only problem may be keeping up with demand...

RE: Very Impressive
By FITCamaro on 6/9/2008 3:24:02 PM , Rating: 5
I think their bigger problem is being locked into AT&Ts service.

RE: Very Impressive
By Master Kenobi on 6/9/2008 3:53:00 PM , Rating: 2
Yes, I would like to see this on Verizon's network (My carrier) and I would like to see it with bluetooth headset/voice dailing.

RE: Very Impressive
By eyebeeemmpawn on 6/9/2008 3:57:48 PM , Rating: 2
I think their bigger problem is being locked into AT&Ts service.

especially if you live in Vermont.

RE: Very Impressive
By HrilL on 6/9/2008 7:31:41 PM , Rating: 2
I think perhaps the most significant accomplishment is squeezing in 3G talk time equivalent to the prior 2G talk time. Thats impressive.

That is not the case at all. You got 8 hours of talk with the old phone. The new one will get 10 hours on 2G(Edge) and 5 hours on 3G. 5 < 8 You also get less surfing time with the new one. 6 hours on the old one and 5-6 hours now. while you do get more audio time on the new one 24 hours vs 18 on the old one.

My #1 complaint about the old one was how you could only use the large keyboard in Safari and not for text messaging or email. Don't if the 2.0 update will fix that. But since my iphone was stolen last month I am happy to only have to pay 200 to get a new one and not another 400. Although if the 16GB model came in black like the new 8GB 3G one and not white I would rather have that as 8GB is not enough for everything I want to put on there and with applications to add as well. It is even smaller.

RE: Very Impressive
By Reclaimer77 on 6/10/2008 12:30:50 AM , Rating: 3
I honestly fail to see whats impressive about the iPhone. I know I'm wasting my time looking for value in an Apple product. But so far heres what I know about the i-phone.

No SD support stuck with 4,8,16 fixed gigs of storage.
Can't record video
Can't voice dial.
Can't instant message.
Can't copy and paste text.
Can't record voice memo's
Can't send MMS messages
Can't customize ringtones with own MP3's.
Can't change your own battery.
Can't choose your own provider, or ANY provider but AT&T

This wasn't billed as a phone, Jobs made it out to be some all in one wonder device. But its pitifully lacking in features that even common hybrid phones have as standard.

The big draw, the touch screen, is non intuitive and at times you find yourself just wishing you had a full keyboard made up of BUTTONS like the Nokia E70. Its a tap and pray screen that quickly turns smudgy. Lack and buttons and no voice dialing also bring up safety concerns while driving a car. You can't dial phone numbers in the iPhone without staring at your screen.

I don't get whats so impressive about the iPhone. I'm sure its a good product to those who enjoy it. But there are better and cheaper products on the market who don't force you to use one provider. And who do allow the community to develop applications for it, unlike Apple.

RE: Very Impressive
By JSK on 6/10/2008 1:39:53 AM , Rating: 2

Trillian Astra on the iPhone?

RE: Very Impressive
By Master Kenobi on 6/10/2008 8:15:21 AM , Rating: 2
Blackberry 8800 user here. It does all that :P

RE: Very Impressive
By kelmon on 6/10/2008 9:40:26 AM , Rating: 2

Seriously, none of the "can't do" aspects that you listed are as important as the addition of GPS, at least not for me. I would also note that you can quite easily add your own ringtones without paying Apple.

No, the iPhone is not perfect (I'd cite the crappy camera as the biggest issue) but it's going to be device that does everything that I need and that's the most important thing. No doubt I'll be kicking myself when the iPhone 3 is released, but next month I will buy one and it's the addition of GPS that really pushes me over the edge. I'll be fascinated to see what the addition of GPS does to the existing GPS market for the likes of TomTom and Garmin. Apparently TomTom is releasing map software for the iPhone...

RE: Very Impressive
By HrilL on 6/10/2008 1:47:55 PM , Rating: 2
While some of your points are true. A lot of them are supposed to be added in the 2.0 update. Also if you hack the phone many of those things you want can be added. As for the space you will also be able to have 20GB of space on that can be accessed from the iphone. Instant messaging has been there from the start. its called a WEB app. You can use which supports AIM, MSN, Yahoo, ICQ and Meebo chats. As for the Keyboard I never had any problems with mine. And it didn't get that smugged either. I always kept it clean. And I tend to have clean hands so It didn't get dirty that often. I could see this as being a problem if you tend to have grimy hands. You can Customize your own ringtones you just need to get the free software online.

The battery is still one of its biggest flaws though. I had to charge my phone every night most of the time.

Its browser is better then anything I've used on any phones so far. You can do everything you can do on a PC pretty much. I used to use it all day long bored at work or on trips. Although it does lack flash support but that may be added later (Hopes)

Oh and if you turned off Bluetooth and wifi + change the screen darker you can get another hour or so out of the battery But it does make it hard to see in the bright sun. Indoors and at night it looks fine.

RE: Very Impressive
By Reclaimer77 on 6/10/2008 4:17:07 PM , Rating: 2
Ok, I'm honestly not trying to sound condescending. But after a year they made some common features standard. Some common features requiring a work around or download. And some common features requiring a " hack " to activate. Is that basically the deal ? All that AND I can't use Verizon ? What actually works out of the box on these things ?

Seriously, no thank you. Besides the service issue, I just don't have that much faith in batteries. So let me get this straight, I have to send Apple my phone which is probably LOADED with personal information, every time the battery goes dead ? How trusting ! No. No thanks.

If the Iphone came out 5 years ago, it would have been the coolest thing on the planet. But today there are just too many good similar and better products on the market that don't force me to make so many compromises at such a high premium.

RE: Very Impressive
By HrilL on 6/10/2008 5:03:17 PM , Rating: 2
It is sad apple hasn't added more common features but the truth is a lot of iphone users don't even use the ones it already has. I know a few other people with them (mostly girls) and they have said they never use it for music and videos. Hardly ever use safari and never use email. They use it for a phone and text messaging and that is about it. I asked why they even had an iphone then and they said because its the coolest phone to have.

Honestly I don't have much faith is MAC users in the first place. These are just the people At&t wants to have as customers. They don't mind getting ripped off and they'll hardly use their service.

Myself I was using 300-600MB of data a month but since I found out you can tether the phone to a pc I'll be using much much more. Although this does break the terms of service I don't care. Used to do it with my old phone and never had any complaints. Also in the TOS it says if you use more then 5GB a month they'll start to charge you more for the amount you go over 5GB or you can Cancel. Seems like a good way to get out of a 2 year contract.

The price actually WENT UP.
By michal1980 on 6/9/2008 4:05:30 PM , Rating: 2
sorry to burst your bubble.

but the story I read, say these two things changed:

1) now a 2 year contract is required.
2) the monthly fee went up $10.

so they lower the phone 200 dollars, and jack you up 10 dollars a month x 24 months = 240 more dollars.

hench iphone gen 2 = $40 more expensive then iphone 1.

RE: The price actually WENT UP.
By Eldercat1 on 6/9/2008 4:59:02 PM , Rating: 2
I read the story 4 times and I don't see any mention of the monthly pricing. Are you talking about other site?

RE: The price actually WENT UP.
By michal1980 on 6/9/2008 5:37:00 PM , Rating: 2

i tend to get news from more then one outlet.

RE: The price actually WENT UP.
By corduroygt on 6/9/2008 7:41:10 PM , Rating: 2
Here is what I plan to do:
Buy the iphone 3G
Jailbreak it
instead of the $30 a$$rape 3g plan, get media net unlimited which is the same thing for $15 from at&t.
Since you're still getting a plan from at&t, you might not even need to jailbreak it, just tell at&t that you have a nokia or something.

RE: The price actually WENT UP.
By HrilL on 6/10/2008 1:56:35 PM , Rating: 2
You will likely have to pay the full price then because if you buy it they will force you to agree to a new 2 year contract at the new 40+30 rate so you'll only really be saving $40 over the 2 years. But I was thinking about doing the same thing. I wonder if you can just put in your at&t sim and it will work without jailbreaking it. But I know last time you had to activate the phone over itunes but that may have been to program the sim since at&t just sells you the closed box without programing a sim for you.

By glennpratt on 6/9/2008 5:50:21 PM , Rating: 2
I'm pretty sure a contract has always been required.

RE: The price actually WENT UP.
By Keeir on 6/9/2008 6:50:25 PM , Rating: 2

however, if your going to get ANY blackberry, PDA, etc from ATT wireless

It will require a 40 dollar voice plan and a 30 dollar unlimited data plan.

Frankly, I would pay an extra 10 dollars a month for unlimited data over 3g, because I would expect to be using significantly more data than when on EDGE...

Until we have offical word, but the same monthly price will make comparison with other devices easier.

RE: The price actually WENT UP.
By michal1980 on 6/10/2008 9:48:38 AM , Rating: 2
the iphone plan used to have a 20 dollars a month data contract. The data proition went up 10 dollars. Only apple can somehow sell a more expensive product and claim its cheaper. AND have people buy it.

Plus, iphone 1, you could walk into a store, buy it, and leave. Now you HAVE to get a contract for the 199 price, who knows what the price without contract will be.

RE: The price actually WENT UP.
By Keeir on 6/10/2008 6:01:35 PM , Rating: 2
It still doesn't change the -fact-

that if you walk into an ATT store today, a "ATT Tilt" from HTC is going to run between 150-250 dollars and require a 40+30 2 year plan.

Apple and ATT are delivering a compeditive product... it doesn't have to be cheaper per se, just compeditive. And Yes, you need to buy a contract to buy a phone that is in the same range tecnology and feature wise as unlocked 700 dollar phones (HTC Diamond) for 200 dollars. Oh and that 700 dollar phone, you still need the 40+30 plan from ATT to really use it!

People really need to take an objective look at these things. Price similar plans from Sprint, Verizon, T-mobile. Price similar phones... its really very close (which you would expect)!

Wah Wah, Apple and Att provide me a compeditive price and feature wise choice. Why won't they give me the moon for free!

RE: The price actually WENT UP.
By HrilL on 6/10/2008 1:59:29 PM , Rating: 2
Now that I think about it. That is likely because of the added GPS. I read somewhere verizon charged an extra $10 for GPS on some smartphones so at&t is likely doing the same thing.

O boy....
By maverick85wd on 6/9/2008 2:59:37 PM , Rating: 1
a new scientific calculator,

now I simply MUST have one!

On a side note, if I didn't hate Apple's crappy practices so much I probably would get an iPhone now that they have 3G capabilities. Seems kinda crappy to me that a company would make hardware customers pay for a firmware update.

RE: O boy....
By michael2k on 6/9/2008 3:21:50 PM , Rating: 2
It's free for me, but I already pay $60 a month for my iPhone plan.

And if you didn't know, it's not a firmware update; it's a software update, akin to upgrading software or OS from one version to another.

RE: O boy....
By biggsjm on 6/9/2008 3:31:14 PM , Rating: 1
What are you talking about? They aren't charging for the upgrade to the 2.0 Firmware for iPhone users.

Only touch users need to pay, because iPods are not accounted for as subscription sales. . . which becomes a sarbanes-oxley requirement, that you must charge for 'meaningful product changes'.

RE: O boy....
By darkpaw on 6/9/2008 4:08:49 PM , Rating: 3
Do you really buy that line of crap? Apple doesn't have to charge for the upgrade, they do because their idiot users will pay it. The same crap they pulled with the upgrade to draft N.

The company can give out whatever they want for free (see many of Microsofts software, any company that supports free software). Apple choses to charge for it.

Hell XP SP2 was a huge change to the OS, they could have easily charged for it, but didn't. Apple will charge for absolutely anything they can get away with.

RE: O boy....
By akugami on 6/9/2008 3:36:07 PM , Rating: 1
The firmware update charge is only for iPod Touch users and not iPhone users. I would wager that most iPod users bought it to listen to music so the firmware update may not be as critical to them while the iPhone users bought a smartphone and want to use the extra features and this update will benefit them more.

Still a crappy thing to do, but it may not affect people as negatively as some might believe.

RE: O boy....
By maverick85wd on 6/9/2008 5:03:23 PM , Rating: 3
I thought it was a firmware upgrade, I mis-read. Even so I'd think they would give it to iPod Touch users for free as well.

Coming to Canada
By mmntech on 6/9/2008 5:55:42 PM , Rating: 2
It's about time Apple discovered there's a big land mass north of the US. $199 is a pretty tempting price point for the iPhone. I certainly wouldn't mind one but I doubt I'd be able to afford the monthly fees. Canadians still pay the highest wireless fees in the G8. Whatever Rogers is going to charge, I'm guessing it's going to be a lot more than $60 per month; and will likely not be as generous as AT&T's unlimited data offer.

RE: Coming to Canada
By BruceLeet on 6/10/2008 3:28:14 AM , Rating: 2
Atleast you got service in your area, Rogers doesn't even cover my city =/ and a possible providers rates are just 1998, ya know what I mean?

On top of that we have to be Roaming =o

RE: Coming to Canada
By Hoser McMoose on 6/11/2008 1:08:45 AM , Rating: 2
I'm wondering if Rogers will bring back their infamous "Unlimited" data plan with the 25MB limit?

I'm sure they'll also introduce a new 'iPhone Applications Fee' and a 'Exclusive Rogers High Speed Network Fee' to go along with the 'System Access Fee' they currently charge (for those not familiar with Canadian mobile phone service, a typical $25/month plan cost between $33 and $35/month before taxes or any extra features... that's just the base rate for a "$25" plan).

Get ready for a $70/month plan that costs $120/month before you make a single phone call.

By InternetGeek on 6/9/2008 7:31:13 PM , Rating: 2
I just combed all the the tech specs from top to bottom and found no reference to WLAN (811 a/b//g/n/etc) at all. Can someone confirm this feature is available?

If it wasn't I would remove the iPhone from my list of desirables for next year.

By InternetGeek on 6/9/2008 7:33:45 PM , Rating: 2
Sorry, it is included.

Now, where do I buy this unlocked?

By Dark Legion on 6/10/2008 12:17:56 AM , Rating: 2
Try eBay, or Asia...

By Enoch2001 on 6/9/2008 3:08:05 PM , Rating: 2
"The iPhone 3G is thinner with a tapered look..."

Wrong - it's slightly fatter in the middle than the original, according to Gizmodo's live blog report.

Anyone else confirm this?

RE: Size...
By HrilL on 6/9/2008 8:12:25 PM , Rating: 2
I've read that as well. But I also saw on a different news site that is was thinner. So I don't know for sure one way or another.

slowly getting interesting...
By DeepBlue1975 on 6/9/2008 3:53:31 PM , Rating: 2
For me the iPhone starts to look better, but not quite there yet.

I need a real keyboard (or good enough voice recognition) because I'm a heavy texter and having no keyboard is 100% of a dealbreaker to me.
That and the fact that I've got too used to my N95's integrated camera. Now I only take out my bulky dslr when I know I'll want to get the best possible shots, but the N95's camera is quite acceptable for taking casual shots everywhere.

RE: slowly getting interesting...
By Yawgm0th on 6/11/2008 3:42:54 PM , Rating: 2
Agreed completely. I'll stick with my Tilt (Kaiser 8925) until there's a full QWERTY keyboard.

In Japan
By drunkenmastermind on 6/9/2008 7:53:04 PM , Rating: 2
Having been here for five years I have had at least five phones. To cut a long story short, it has gone from simple plans at reasonable prices to complex plans at unreasonable prices. Here you basically can not get a phone without a contract (usually two years). So companies like Softbank (now most popular who will have the iphone contract) offer phones at what they call 0 yen but this is just no money up front, we'll make you pay for it during your two year contract. Here's the kicker, each phone now costs a "theoretical" $1000 USD +. If you want the phone without the contract it is $1000. If you get it with a contract it is $41/month + other usual fees. I really think this is outrageous and everyone is getting taken for a big ride, including myself.

RE: In Japan
By BAFrayd on 6/12/2008 9:20:04 PM , Rating: 2
Then simply don't buy it. The iPhone is not a necessity of life.

I can't believe...
By aGreenAgent on 6/9/2008 11:18:16 PM , Rating: 2
I can't believe nobody has mentioned it yet, but this still doesn't have a micro SD/SDHC slot on it. I understand that apple is trying to sell us on varied flash capacities, but I'm still very hesitant to buy anything without an SDHC slot. I'd love to just throw in my 4GB card and (and bigger later), and add some capacity for music on it.

RE: I can't believe...
By Dark Legion on 6/10/2008 12:57:40 AM , Rating: 2
Yeah, but if they included that, then you could just buy an 8GB iPhone from Apple, then buy a relatively cheap 8GB SD card, and you would have no reason to fork out the extra $100 for Apples 16GB iPhone instead.

By vexingv on 6/9/2008 3:30:53 PM , Rating: 2
while i've been holding out for an android handset, new price and feature set is compelling.

also, does A-GPS need a data plan to work?

also my rant posted to an Android forum:

By Hase0 on 6/9/2008 3:40:04 PM , Rating: 2
Sucks that there is no 32gb atm, no front facing cam, and only 2mp cam.

Also its $199 or $299 with a 2 year contract isn't it?

By Visual on 6/9/2008 5:35:27 PM , Rating: 2
Was that supposed to mean "nearly every gadget site on the web"?
Then, the "worse kept" secret, is worse than what exactly? Or is it the "worst"?
Also, SDK traditionally means Software Development Kit, not "developer".

But you did surprisingly few mistakes for such a long article, I admit. Nice work.

The reason it is $199
By pauldovi on 6/9/2008 7:27:35 PM , Rating: 2
Because you have to buy it with a 2 year agreement now, fixing that problem of 1/2 of all iphones not even being used on AT&T's network.

IPhone Fuss
By RedFoxOne on 6/12/2008 10:40:38 AM , Rating: 2
I personally do not see what all the fuss is about. The IPhone cannot even function as a high speed modem making it pretty much useless as a business app. I'll stick with me Blackberry.


half assed 3g
By excrucio on 6/12/2008 4:08:45 PM , Rating: 2
Great phone and all. But what is a 3G network with lighning fast speeds and file transfers, when you can't use the video feature of 3G band? Get that second camera in hommies!

So then we can do like that chinese commercial... When the woman calls we can rush to put up the statistics board and you're planner behind u and fake you are at a meeting instead of the beach.. =]

By Hase0 on 6/9/08, Rating: -1
RE: Ebay?
By FITCamaro on 6/9/2008 3:24:37 PM , Rating: 1
Yeah except it'll likely be one per customer just like last time.

RE: Ebay?
By madoka on 6/9/2008 3:38:35 PM , Rating: 1
Better yet, get a JOB. Depriving a legitimate buyer of the opportunity to buy at retail so that you can insert yourself as a middle-man at a mark-up is sleazy.

RE: Ebay?
By Hase0 on 6/9/2008 3:47:20 PM , Rating: 1
uh im pretty sure you need to have a job before hand in order to purchase multiple IPhones.

I'ts called taking advantage of supply and demand nothing sleazy about it, in fact there are people who can only buy the IPhone this way. So I would also be doing them a favor

RE: Ebay?
By TomZ on 6/9/2008 3:58:53 PM , Rating: 2
uh im pretty sure you need to have a job before hand in order to purchase multiple IPhones.

I don't recall an employment check being part of buying the typical cell phone. :o)
I'ts called taking advantage of supply and demand nothing sleazy about it, in fact there are people who can only buy the IPhone this way. So I would also be doing them a favor

Doing them a favor...I don't think so. If you want to do people a favor, remove yourself from the situation and let customers buy directly from AT&T/Apple. You are adding cost without adding any value - in other words, you are contributing to economic inefficiency.

RE: Ebay?
By Hase0 on 6/9/2008 4:08:27 PM , Rating: 2
Doing them a favor...I don't think so. If you want to do people a favor, remove yourself from the situation and let customers buy directly from AT&T/Apple.

The favor is for the people who CAN'T buy from apple/AT&T.

I also don't recall selling IPhones automatically meaning that you don't have a job, which is what it seems like madoka is implying.

RE: Ebay?
By gescom on 6/11/2008 7:18:20 AM , Rating: 2
The favor is for the people who CAN'T buy from apple/AT&T.

The favor? You're joking, right? So we can buy another thing we don't need? Sad but true.

RE: Ebay?
By PhreakyMike on 6/11/2008 1:50:52 PM , Rating: 2
uh I think he meant you need to have a job to make money to be able to buy an iphone.

RE: Ebay?
By Doormat on 6/9/2008 4:07:03 PM , Rating: 2
1. Last time they had limits on #/customer.
2. Last time there was also not a starvation of supply like we're accustom to seeing with game consoles (Wii, 360, etc).

A friend of mine bought 4 iPhones at $600 ea. Not only was he not able to sell them for more on eBay for a profit because there wasn't much of a supply problem, he got hit with the price drop that forced him to sell them for a loss.

RE: Ebay?
By fic2 on 6/10/2008 12:27:29 AM , Rating: 2
I am happy your friend burned himself.

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