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


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
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?


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.

"We are going to continue to work with them to make sure they understand the reality of the Internet.  A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
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