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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 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
quote:
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?
quote:
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.


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