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Apple's $499/$599 iPhone still on track for late June

Apple's iPhone has been surrounded in a thick cloud of hype ever since it was announced in early January. The phone was announced at MacWorld 2007 in January, but it was all the talk at the Consumer Electronics Show in Las Vegas which was being held at the same time.

From the beginning, Apple said that the iPhone would ship in June of this year and would be a Cingular Wireless (AT&T Wireless) exclusive phone. Late last month, an unofficial launch date of June 11 was reported by CNET. The launch would coincide with Apple's Worldwide Developers Conference in San Francisco which is slated to run from June 11 through June 15.

Things took an even more interesting turn when Apple announced that it would delay the launch of its OS X 10.5 Leopard operating from June until October. At the time, the iPhone was blamed for the delay. "iPhone contains the most sophisticated software ever shipped on a mobile device, and finishing it on time has not come without a price -- we had to borrow some key software engineering and QA resources from our Mac OS(R) X team," said Apple on April 12.

Apple noted at the time that a "late June" launch date was in sight for the iPhone. Apple CFO Peter Oppenheimer reiterated yesterday that the iPhone will indeed ship in late June. "We look forward to shipping the iPhone in late June and are very excited," said Oppenheimer.

Oppenheimer also noted that the company's impressive gross margin of 35 percent would not be sustainable going forward due to fluctuations in component prices.

Apple's iPhone will be priced at $499 for the 4GB model and $599 for the 8GB model -- both prices are with 2-year contracts. The phone doubles as a portable audio player (a la the iPod) and includes a 3.5" 320x480 display, WiFi and OS X. The exact processor used by the phone is unknown at this time, but it is likely some variant of Marvel's PXA320.

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ugh.
By Quiksel on 4/26/2007 11:17:02 AM , Rating: 5
no matter what they say, this is still a phone.

AN INCREDIBLY EXPENSIVE PHONE.

I wish them luck in selling these in gangbusters, but not really, because a success here by Apple only makes a more expensive phone for everyone sooner or later.

The market is watching Apple's product very closely.

Consumers to not need to spend >$300 for a phone, no matter how awesome it is.

~q




RE: ugh.
By Talcite on 4/26/2007 11:36:15 AM , Rating: 2
I agree. Apple definitely needs to review their pricing policies. Why pay $500 for a iPhone when a $399 OpenMoko has nearly the exact same, if not better, functionality?

I for one will buy an OSS phone when my current one dies off. I say the ability to write your own software and the limitless possibilities for the OpenMoko much outweighs the features of the iPhone.


RE: ugh.
By BMFPitt on 4/26/2007 11:51:44 AM , Rating: 5
I think you're ignoring the basic principle behind Apple's marketing drive. They're gearing this towards the type of people who are proud of overpaying for fancy gadgetry that they don't really understand or even come close to fully utilizing. These are the people that Mac ads make sense to, and who are perfectly willing to throw a few hundred into a phone just to be trendy.

I'm more than happy with My LG 9900 (which I refuse to call the "EnV") from Verizon that I got for $50 after contract and instant rebate. I wouldn't trade it straight up for a iPhone.


RE: ugh.
By retrospooty on 4/26/2007 12:13:52 PM , Rating: 4
"I think you're ignoring the basic principle behind Apple's marketing drive. They're gearing this towards the type of people who are proud of overpaying for fancy gadgetry that they don't really understand or even come close to fully utilizing"

Agreed, but that is the mentality that drove Apple from a Major player in the personal computer industry to a near non-contender with less than 3% global marketshare. There arent enough of those people.


RE: ugh.
By subhajit on 4/27/2007 2:36:51 AM , Rating: 2
"There arent enough of those people."
Probably not in the computing world (Computers are still used primarily for work), but you have to understand this is a CE product. The success of iPod proves that Apple knows the mentality of this market. They are now Apple Inc. (not Apple Computers), remember?


RE: ugh.
By Frank M on 4/26/2007 11:52:05 AM , Rating: 5
Apple people will buy anything Apple. I think that this fact is pretty well established.


RE: ugh.
By LatinMessiah on 4/26/2007 11:53:17 AM , Rating: 3
It's the brand people want to pay extra for. Plus, why would anyone want to write software on a tiny, little phone?


RE: ugh.
By Talcite on 4/26/2007 3:54:16 PM , Rating: 2
quote:
Plus, why would anyone want to write software on a tiny, little phone?


I think you're missing the point of the OpenMoko phone. It has nothing to do with writing software ON a phone. It runs a Linux kernel with the X11 server so you write software FOR the phone. The possibilities are limitless. It's practically like a UMPC, just less powerful.


RE: ugh.
By rrsurfer1 on 4/26/2007 12:51:23 PM , Rating: 2
Yea, I'm predicting this will bomb too.

It's too much money for a phone, and they don't have enough carriers onboard to even approach the volume they are targeting. Even if this phone is everything and more that they claim, its going to be a problem selling them at any appreciable volume in this price range. And if there are ANY problems at all, which wouldn't suprise me with Apple's history as of late, thats going to make people even more hesitant to spend that kind of dough.

In my opinion Apple should have targetted $100 - $200 range with this phone, even if it meant fewer features. They might have been able to piggyback off the iPod "craze" in a phone form-factor. But the price of this gadget is just too high for that.


RE: ugh.
By noxipoo on 4/26/2007 1:27:42 PM , Rating: 3
wait for the iphone nano, and shuffle, with the smaller and no screen models, prices will come down.


RE: ugh.
By kamel5547 on 4/26/2007 3:15:50 PM , Rating: 5
Does the shuffle call random numbers from your phonebook?

:p


RE: ugh.
By BMFPitt on 4/26/2007 3:20:28 PM , Rating: 5
Pretty much all phones will do that with a 3rd party accessory called Alcohol.


RE: ugh.
By GoatMonkey on 4/26/2007 3:33:08 PM , Rating: 2
The iPhoneShuffle makes the random booty call for you though.


RE: ugh.
By Jack Ripoff on 4/26/2007 1:51:17 PM , Rating: 3
I'd like to remind you that the same thing was said about the iPod at the time of its launching.


RE: ugh.
By hinchesk on 4/26/2007 4:59:33 PM , Rating: 2
Agreed. I said all the same crap about the iPod and never bought one. Much to my surprise, that didn't stop tens of millions of others from buying them because they look nice and work.

People that read Dailytech don't represent the majority and aren't the target audience for the iPhone. DT readers aren't afraid of technology and have specific tastes/requirements. They don't need/want things to be easy... the majority of people do.

The mentality that created market share probs for Apple in the past doesn't apply any more. The majority of the audience now is much less technical and if you build a cool looking gadget that works easily people will pay a premium for it. We who nitpick all features and can tolerate poor functionality aren't the majority any longer...


RE: ugh.
By eman 7613 on 4/26/2007 10:08:17 PM , Rating: 2
People already pay 200 and upwards for trios and palmphones, and blackberries (lots of people buy and love their ipod nanos the 4gb version at $200. 500 - 200 = 300). Heck, my mum would be utterly lost without hers. If the iphone sucsefuly delivers, and (as i hope) is capable of running regular java apps, not just mobile java, as well as some regular apps for macs (simple stuff like calculators and adressbooks), it may really be worth the money.

Also, business like JCPenny that give their upper management blackberries could have a lot of use in the iphone. They already have all their mac machines interfacing with windows servers, vpn, and getting updates from them, so the ability to better regulare an iphone over a blackberry is there while simultaneously allowing them to provide more functionality if they can code their own apps for it.

(yes i know my spelling is atrocious, no i don't care)


RE: ugh.
By Ralph The Magician on 4/27/2007 3:35:09 AM , Rating: 2
Expensive? No. I don't know where people get that. It's no more expensive than other "premium" phones when they first come out. $499 is a pretty standard price for a top model Nokia. The RAZR originally sold for $499 with a contract and $799 without, and they were going on eBay for months at near the $1,000 price point.

I think people in the US are simply used to getting phones 9 months after they release everywhere else in the world, and then subsidized by the phone companies to $99. Too bad they rape you with that 2yr contract.

The reality is that $500 for a new phone isn't much at all, especially one as capable as this.


Nice phone but...
By retrospooty on 4/26/2007 11:21:02 AM , Rating: 2
This would be a $699 to $799 phone without the contract. I dont see Apple hitting thier 8 million sold in 2008 target at all. That is a pretty rediculous goal at that price especially without Sprint and Verizon models. That and the lack of a tactile keypad will hurt it for business users, who are the largest share of smartphone market.




RE: Nice phone but...
By LatinMessiah on 4/26/2007 11:55:39 AM , Rating: 2
A lack of a keypad will also hurt the visibly challenged consumers.


RE: Nice phone but...
By theapparition on 4/26/2007 12:07:20 PM , Rating: 3
I for one don't like the lack of keys. Buttons are low tech and not sexy but they just work.

I've been involved with high end audio for years, and was quick to jump onto the pronto/touchscreen remote bandwagon. Its ok, but lack of tactile feedback hampers its usability. Find myself going back to buttoned remotes (which are far superior). Don't see the market any different for phones.


RE: Nice phone but...
By retrospooty on 4/26/2007 12:19:59 PM , Rating: 4
me too... I agree the UI on the iphone is really cool, but when you are trying to get an email out quickly, its going to piss you off.


RE: Nice phone but...
By Von Matrices on 4/26/2007 10:44:45 PM , Rating: 2
Here is a better description of the many uses for the phone:

http://www.youtube.com/watch?v=1xXNoB3t8vM


RE: Nice phone but...
By Oregonian2 on 4/26/2007 2:12:04 PM , Rating: 2
More that that. With my current el-cheapo (Motorola) phone I do most of my cell phoning from the car (with speakerphone attachment). I can't be looking at it to dial - I use the single button quick dialing feature. I can feel for the button I want to use and push it (for a couple seconds) without looking at it, and make my call. That would be impossible with Apple's phone as far as i can see. Surely I'm not the only one to do this.


RE: Nice phone but...
By mcnabney on 4/26/2007 12:51:43 PM , Rating: 2
Pro's for Apple iPhone
Apple logo and UI
Sleek form-factor
Some PDA functionality
Really cool voice-mail manipulation
Bad battery life for an MP3 player

Con's for Apple iPhone
Exclusive for AT&T (Cingular)
Really expensive
Finger recognition appears cool, but is useless for TXTing
Runs on the 2G EDGE network
Expandability, not so much
Screen not well protected
Issues accessing corporate networks
The target market, Apple fans, already have an I-Pod
Good battery life for a phone

They are just not going to sell 8 million in the US at these prices. That would be almost 15% of Cingular-branded customers getting one. Not going to happen. I work in the wireless industry and while the cool phones appear in the pictures and marketing, by far most activations are for basic phones. Honestly, I would be amazed if they sold a million before Christmas.


RE: Nice phone but...
By tekzor on 4/26/2007 12:57:51 PM , Rating: 2
Apple makes "fad" products, theres just no way about it.
Productivity does not increase with use on any apple product, however, they cost more then the equivalent or better non Apple product.

Apple is America based only because we have the deep pockets for cheap gadgets, so buy at your own risk. Yes it looks good but the functionality is sub medium as with any apple product.


RE: Nice phone but...
By bkm32 on 4/26/2007 1:52:04 PM , Rating: 2
Don't forget:

Lack of camera
No 3.5G (or 3G for that matter)
Not a World phone
Not a Pocket PC, but priced as one
Many (if not most) phones all ready store MP3s
Only up to 8GB
There are lowere-priced phones do a lot more
Spears, Lohan, and Timberlake will have one (Hilton will have the LG Prada phone)


RE: Nice phone but...
By jarman on 4/26/2007 2:29:41 PM , Rating: 2
quote:
...Lack of camera


Just to clarify specifications a bit, the Apple website states that the iPhone does incorporate a 2MP camera.


RE: Nice phone but...
By sdsdv10 on 4/26/2007 2:34:54 PM , Rating: 2
quote:
Only up to 8GB


Please show me another phone, any phone, that has anywhere close to 8GB of flash memory built in (not via expansion card).


RE: Nice phone but...
By GoatMonkey on 4/26/2007 3:41:30 PM , Rating: 2
Why does it matter if it's on an expansion card? That would be better actually. Expansion cards are dirt cheap these days.

8GB wouldn't even handle my music collection, much less video as it's being marketed. $600 would be fine if it came with the 80GB hard drive from the iPod video. If the iPhone had a regular keyboard (maybe a slide out type) and built in GPS I'd be all over it.


RE: Nice phone but...
By Brandon Hill (blog) on 4/26/2007 3:45:31 PM , Rating: 2
You're right about the cards being cheap. Woot.com just had a 4GB SD card for $19.99 during their "Woot-Off"


Technology such a funny little beast...
By rushfan2006 on 4/26/2007 2:02:48 PM , Rating: 2
Ever think how funny the times are nowadays....

You got along just fine for god knows how many years with a regular phone -- that well made phone calls. Novel idea huh? A phone...that simply makes phone calls....the genius of simplicity I tell ya. ;)

Moving on... now flash to today....People like me will say you are "INSANE" to pay hundreds of dollars for a phone....and people will shoot back "but it can play music...it has a daily organizer....it can show video clips...DOOOOD IT HAS NO BUTTONS MAN!!!!"....

So ok..um....my life was fine with my normal phone way back when....the universe is still in-tact....the world is still around (at least for now)....

So when did playing music, video and having no buttons on a phone become like air to us?

bottomline...if a phone I get has these features for a normal price....nice...they are just extras to me....to go out of my way and pay $500 for these features...you are outside your mind.




RE: Technology such a funny little beast...
By sdsdv10 on 4/26/2007 2:41:03 PM , Rating: 2
Then please explain to me how people paid $400 or more for the Motorola RAZR when it came out, when the it was only a phone.

http://en.wikipedia.org/wiki/Razr


RE: Technology such a funny little beast...
By rushfan2006 on 4/26/2007 4:55:22 PM , Rating: 2
Why must I "explain" anything? --- as long as I wasn't one of those that paid $400 for the RAZR (hint and I wasn't)...from my point of view my argument is still valid.


RE: Technology such a funny little beast...
By sdsdv10 on 4/26/2007 6:50:15 PM , Rating: 2
Because the way "argument" went, and I quote
quote:
to go out of my way and pay $500 for these features...you are outside your mind.
implies that the iPhone will not sell well because of the high price with this feature set.

The example I linked to, shows this not to be the case. Sure your comment states "my way", but then you follow up with "you are" implying others would be crazy, stupid, etc for buying the iPhone with its price/feature ratio. The launch of the RAZR shows this senario is completely plausable and in my view invalidates your "arguement".


By rushfan2006 on 4/27/2007 11:34:17 AM , Rating: 2
LOL..what ever dude....bad word usage with the "you are" part...it said have read "in my opinion THEN you are"....I keep forgetting this forum is one of those "take no prisoners, no one can show human mistakes -- like missing a word or two or typos, etc."...

Furthermore....you can't disprove someone's OPINION...that's the whole point of OPINION....you can think someone's off their rocker with their opinion and you can even go to the extreme and be one of those "well you can have your opinion but it would be wrong" types. (of which this would come into play with people stating opinion on a factual matter...for instance if I said my opinion is that gravity doesn't exist....that would be a moronic statement and a flawed opinion...it can be scientifically proven...)...

HOWEVER if my opinion is you, me, Aunt Ginny, the pope or whoever that pays $500 for a phone is insane for paying that....that is my opinion and there is no website you can link, no report you can relate, no "expert" you can quote that can refute such opinion.

Live with it...deal with it...embrace.......or don't...but that's the way it is.

/fin


RE: Technology such a funny little beast...
By themadmilkman on 4/26/2007 3:35:16 PM , Rating: 2
Yes, yes... and at one time we got along without cell phones in general. Oh wait, we also got along without home computers, 2nd cars, cars in general, electricity, indoor plumbing, the internet, etc.

People like phones. People like technology. People like good UIs. The iPhone appears to be a great combination of those things. So people will buy it. The best thing you can do is, well, get over it.


By rushfan2006 on 4/26/2007 5:04:04 PM , Rating: 2
Touchy touchy....My little post was equal parts satirically looking at our society as a whole and our now lust for technology - whether said technology truly and honest adds real value to our lives be it -- work or play. The other part being , one of practicality.

Your analogy is quite funny though, I got a serious laugh when you actually compared my first post with people having a 2nd car, INDOOR PLUMBING and this was the best...ELECTRICITY....are you friggin' kidding me? You really think the significance and value on ones life and/or life style for a button-less cell phone that playes movies and music is anywhere close to the significance and value of electricity and indoor plumbing? LOL....

WoW!

I know where you are trying to go..but your example for analogies are really really bad.....you should of at least compared crappy phones to better phones....but to pick such out of whack comparison that have WAY more value than a stinking fancy phone...hardly illustrates your point well.

Anyway...get a sense of humor a bit and relax...there's nothing for me to get "over" on this issue...because for that -- first I'd assume you'd have to have "something" to be in your way.

I really don't care...*I* think its absurd to pay that kind of money on a phone just because of silly features most will use in the first 30 days of ownership and then maybe once a couple of months thereafter.

And before you say something like "well that's your opinion"....of course it is...did I miss-understand the concept of free web-based forums to be a place to comment and express your OPINIONS? ;)

Have a great day.


It WILL be good...eventually.
By slash196 on 4/26/2007 1:33:57 PM , Rating: 2
In two, three years, the further revisions of this device and corresponding drop in price will make this quite the useful gadget. For now, only the super-rich technophiles need apply.




RE: It WILL be good...eventually.
By bkm32 on 4/26/2007 1:58:46 PM , Rating: 2
By then, MS and Sony will both release the XBoxphone and PSPhone that play HD videogames and movies, connect wirelessly to the X360 and PS3, respectively, and come with a 160GB SDD.

Nintendo will have a phone built into the Wii-mote, but you can only use it by dialing numbers on your TV. However, this won't really matter because the DS will have had cellphone capabilities two years prior.


RE: It WILL be good...eventually.
By andrewln on 4/26/2007 8:47:44 PM , Rating: 2
it will be cool if u need to draw the numbers in mid- air using the wii-mote instead of dialing...lol


RE: It WILL be good...eventually.
By darkpaw on 4/26/2007 6:01:34 PM , Rating: 1
Most technophiles I know wouldn't touch anything with an Apple logo on it.

Change that to stupid rich people that only buy "cool" stuff and its probably more accurate.


The iPhone will sell like hot cakes.
By Darthvoy on 4/26/2007 4:04:44 PM , Rating: 2
Doesn't matter what any of you think this phone is going to be a mega success. For those of you who are saying that nobody's going to buy because of the price, when the Motorola razr came out it was price in the 500-600 dollar range and it still sold incredibly well. I knew a crap load of people who bought it at that price and are excited about getting the iPhone.




By bladerunner2376 on 4/26/2007 4:22:18 PM , Rating: 2
^^^^

Exactly. My buddy bought a Samsung for close to $300; Not even in the same league as the iPhone. One thing is for sure, It will not bomb!


By Rainman on 4/26/2007 8:21:18 PM , Rating: 3
I only need to point to the $10k to $15k Vertu phone. Even with that price the company for some odd reason is still around as I just passed by one of their STORES (!) in Hong Kong. Once I saw that, I realized there are just too many rich people in the world.

A Nano or Ipod Video goes for anywhere from 250 to 400. They used to sell Ipod Videos for 500. Arguments aside about whether Ipods are worth the money or not, at these prices, they do sell.

I'm sure most of you took econonomics at some point in your life. If anything sells well enough to make business sense, then it's not overpriced.




There is a lot more to it!
By Senju on 4/26/2007 3:57:06 PM , Rating: 2
This is Apple first generation iphone. They probably have lots of things they wanted to put into it but is waiting put it in the next gen. Apple is also making aggreements with Softbank behind the scenes. SoftBank will come out with a Japanese iphone this fall. The first gen will be Apple's learning experience in the new market but do not underestimate them. 3 years down the line, you may see it take a big share. They start small but Apple knows how to grow so it will be interesting to watch.

I will get the iphone simply because it is the coolest ipod so far which happens to be a phone. I would love to have a good mobile web browser as well which it can provide.

That being said, Docomo is not standing still. They already have a touch phone in Japan. Also, you can use it as your monthly train pass, buy coffee, buy stuff at a vender machine buy just placing your phone on it. Other things that iphone does not have;
OneCega TV - Very good picture quality TV (here in Japan)

RealTime Navigation - On my Japanese phone, I can navigate realtime. I can pinpoint on a map, where I am and tell my freind exzactly where I am (to meet me).

Video Conferecing - not just phone conferencing with iphone
But picture - to - picture calls have been out already here for 2 years.

This list can go on and I am just talking about what Japanese phones can to TODAY in existing markets. So iphone has some compitition here!

However, APPLE has establish a very good "BRAND NAME" and Japanese love new gaget phones. It will be a hit here, even with the compitition. What the iphone has done, is made a already aggressive Asia market even more. :D This will be good because it will bring prices down!




Fugly
By jiopsi on 4/26/2007 9:51:33 PM , Rating: 2
That is one fugly, overwide mobilephone in ages.




By AkumaX on 4/27/2007 12:58:04 AM , Rating: 2
hi, i'd like the iphone, but just the i part. you can keep the phone part.

(i dont want a new service, i dont want the calling. i just want to use it for touchscreen + widescreen videos. why apple why?!?)




Business opportunity
By INeedCache on 4/27/2007 1:34:35 AM , Rating: 2
Maybe someone should come out with an iCT scan, for all of the folks that will actually shell out $500-600 for this thing. Because something has to be wrong in there.




By hiscross on 4/30/2007 10:40:38 AM , Rating: 2
I don't care if you don't want to buy tye iPhone anymore than I care what coffee you drink or what clothes you buy (and wear). It's your money, not mine. Just don't tell me what to buy and how to spend My Money.




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