Apple announces cheaper 3G iPhone...

Wondermike

Wondermike

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http://news.bbc.co.uk/1/hi/technology/7443543.stm

Apple has unveiled a second generation of its iPhone, with support for faster 3G wireless networks.

The company is hoping to boost its share of the smartphone market, which is dominated by Nokia and Blackberry.

The new devices were launched by Apple boss Steve Jobs who said the phone would be "more affordable" for consumers, starting at $199 (£100).

The new iPhone also comes with GPS satellite navigation built in for location-based services.

The iPhone was first launched last year and was criticised for its support for slower 2G networks only.

Mr Jobs said the 3G iPhone was "three times faster" downloading content over a mobile network compared to the original device.

Analyst John Delaney, research director for consumer mobile at IDC, said the iPhone 3G was disappointing.

They are going for volume. But they have got a big mountain to climb outside of the US

Analyst John Delaney

"To me it's more about what they didn't say, than what they did. Everyone knew it would be 3G and have GPS."

Apple has a 20% share of the US smart phone market, but only 5% worldwide.

Rival manufacturers

Rival handset manufacturers have also been designing devices which assume the iPhone's mantle as the "most desirable phone on the market", including Nokia's N96 and the Blackberry Thunder.

Google's Android platform will also hit mobile phones later this year, adding yet more competition to the high-end consumer smartphone market.

Apple has sold more than six million iPhones since the device debuted in the US in June last year and the firm says it is on course to sell 10m iPhones by the end of 2008.

Mr Jobs said the cost of the original iPhone was the "number one reason" that people had not bought one of the devices.

Mr Jobs said "The iPhone started at $599. It now sells at $399; We want to make it even more affordable."

The cheapest 8GB iPhone 3G will sell for $199, while a second model with 16GB of storage will sell for $299.

Mr Jobs pledged that the $199 price would be the same across many countries.


The 3G iPhone will be released on 11 July

The new iPhones will be launched on 11 July in 22 countries, including the UK.

Reaction to the new 3G iPhone from developers and media at the conference in San Francisco was broadly positive, said BBC Technology reporter Maggie Shiels.

Henry Kannapek told BBC News that the $199 price tag would be hard to resist when the phone hit the shops.

"It's tremendous. It's an incredible price. It's the best mobile device I have ever seen. I've got some cheap cell phones and I want to buy one of these."

Developer Chris Cooksey of Wimba said Apple would score big with such a low price point.

"It's a great price. They have made huge improvements to the phone and the fact that you can do 3rd party applications rules."

Mobile developer Robert F. Farnum, of Boingo .com, told BBC News he was all set to splash out on the new device for his family

'Pretty excited'

" I've got six people in my family that need to get one so I just sent them all e-mails saying they have to buy it. The price just blew me away and the software is amazing. It is the best phone on the market."

Michael Arrington, of the influential blog TechCrunch, said: "I was pretty excited by what I saw but I was hoping for a thinner midel and a front-facing camera. But I think with the 3G speed and the price point it looks like a winner."

Analyst John Delaney said: "The fact it's cheaper is interesting. But how is it going to be cheaper?

"If Apple is doing it by cutting the retail price, it will drastically hit their margins; if they sell volume.

"If the lower price is through operator subsidy, they are becoming a bit more humble. But that's not clear at this stage.

"Either way, they are going for volume. But they have got a big mountain to climb outside of the US."
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Hope there is a way to get around the price fixing. Prices for the old model were within $15-25 no matter where one went to get one.
 
Mattt, someone else reckons on "...around £100 for the 8gb on a mid tariff and perhaps free on the top contract of £75 a month" which would be a pretty good price TBH, bearing in mind the cost of the original.

I have a work mobile so hardly ever use my own one, changed to PAYG a few months back, so I might see if I can get it unlocked, or maybe on a PAYG tariff.
 
So with these revised versions, will they revise the activation/purchase procedure and MAKE you buy a contract at the same time as a iPhone?
 
The phone is <b>NOT</b> cheaper. It only APPEARS cheaper. :thumbsdown:

The data plan (why would you buy this phone without a data plan?) is going UP from $20/month to $30/month. And now, they are forcing in-store activation, and a 2-year contract, therefore, it will actually cost you $40 MORE over the two years of your contract.

The magic of Apple's Marketing Team only telling you PART of the story. :evil:
 
Louv said:
The phone is <b>NOT</b> cheaper. It only APPEARS cheaper. :thumbsdown:

The data plan (why would you buy this phone without a data plan?) is going UP from $20/month to $30/month. And now, they are forcing in-store activation, and a 2-year contract, therefore, it will actually cost you $40 MORE over the two years of your contract.

The magic of Apple's Marketing Team only telling you PART of the story. :evil:
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Which proves....they ain't stoopid.
 
Louv said:
The phone is <b>NOT</b> cheaper. It only APPEARS cheaper. :thumbsdown:
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Definitely cheaper over here, in fact on the more expensive tariffs the phone is free.

That's where Apple went wrong with their original marketing strategy - here in the UK we'll pay through the nose for almost anything, but we want free top-end phones, that's the way the market is.

More UK info here, it will be PAYG too :)

http://www.o2.co.uk/iphone
 
20ducks said:
Which proves....they ain't stoopid.
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Oh, I never said they were stoopid. (Just greedy at the top levels, and stingy at the bottom, like many other companies.)

PhilDZ4 said:
It is a "for profit" business. :wink:
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Yup, sure is. And I don't fault them for makin' a buck, or a billion. In the end, it does me good. But they ain't angels over there, doing good for the people. I'm just here, providing a little balance to the Rhetoric & Advertisements.

Disclosure: I've worked there. Twice. It's a love/hate thing.
 
Hmmm, little more disclosure would be appreciated there, Louv, for the telco or just being in the UK. Not like it matters to me, being here in the US. But I would like to see the US adopt the 3g instead of this inferior product we have! :)
 
ovrkll said:
Hmmm, little more disclosure would be appreciated there, Louv, for the telco or just being in the UK. Not like it matters to me, being here in the US. But I would like to see the US adopt the 3g instead of this inferior product we have! :)
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I'm not sure what you want to know. I haven't worked there in years, but my friends do. So I have no secret knowledge (of any recent products). And, if I did, I would never post it online. That would hurt me and my friends.

I think we (here in the US) will see greatly expanded 3G coverage in the near future. I read online somewhere that the telcos are in such a rush to get their systems up to 3G that their "linemen" (the people who climb the poles and install antennas n stuff) have had a sharp spike in accidents recently (e.g. falling off poles and towers). Sad human cost of better cellular data services!

I love my iPhone (2G).
And I'll probably get a new one in a few months.
But I sure as h*ll ain't camping out in front of a store, just for a freakin' phone.

Apple is in the middle of their Worldwide Developer's Conference this week, teaching all the 3rd Party developers how to write cool new Apps for the new phones. (and the old phones, which will also get the new softwarez)
 
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