Todays iPhone2 Article
Apple Slashes Cost And Adds Features With Newest iPhone
Patrick Seitz And Ken Spencer Brown
Mon Jun 9, 6:55 PM ET
Apple's iPhone just got a whole lot more affordable.
In a bold move to increase adoption of its groundbreaking smart phone, Apple (NasdaqGS:AAPL - News) on Monday slashed the price from $399 to $199 for the version with 8 gigabytes of storage. A year ago, that model cost $599. The original iPhone debuted on June 29, 2007.
The cheaper iPhone also has faster 3G wireless connectivity, built-in GPS satellite navigation and a host of third-party software applications.
Apple, which has been out of stock of first-generation iPhones for weeks, said the new iPhones will be available on July 11.
Apple Chief Executive Steve Jobs rolled out the new iPhone Monday in a keynote speech to kick off the company's Worldwide Developers Conference in San Francisco. Many of the new features had been expected, and Apple shares Monday fell 2.2%.
But the price cut and broad global rollout surprised some analysts.
With the iPhone 3G, Apple plans to greatly expand the number of countries where it is selling the device. Apple expects the iPhone 3G to be available in more than 70 countries later this year, beginning with 22 countries on July 11.
"They're really showing some aggressiveness in terms of expanding the market potential for their iPhone," said Rick Hanna, an analyst with Morningstar.
Playing music from the classic Disneyland ride "It's a Small World," Jobs highlighted on a video screen the 70 countries expected to officially carry the iPhone 3G.
"We've sold in six countries so far, but believe me, they're in use in many others," Jobs said. "It's clear that there's demand for the iPhone in many more countries."
The low price was the biggest surprise on Monday.
Apple had to slash the price to make the iPhone affordable in many of the new countries it is entering, says Shiv Bakhshi, an analyst at market researcher IDC. "It's now a volume play," he said.
Besides the $199 base model iPhone 3G, Apple will sell a version with 16 GB of storage for $299.
Price was the big barrier with the original iPhone, Jobs said.
"We've talked to people who didn't buy iPhones, and the No. 1 reason by far -- and they all want one -- is they just can't afford it. So we've made the iPhone more affordable," Jobs said.
The impact of the price cuts on Apple is unclear, because that could involve carrier subsidies and revenue-sharing arrangements, Morningstar's Hanna says.
Apple is being aggressive not just in price and distribution, Hanna says, but also in business capabilities for the iPhone.
"They realize this is another unique opportunity, just like when the PC born," Hanna said.
Apple let its dominance in personal computers slip away to Microsoft (NasdaqGS:MSFT - News) and doesn't want to miss with this new computing platform, he says.
The Cupertino, Calif., company focused much of Monday on its enterprise applications for the iPhone, particularly e-mail. Analysts say Apple wants to give Research In Motion (NasdaqGS:RIMM - News), maker of BlackBerry phones, competition in that market. But RIM's shares rose after Jobs' talk Monday, ending the day up 2.1% after Apple unveiled no "BlackBerry-killer" application.
The iPhone 3G has built-in support for Microsoft's ActiveSync to provide over-the-air e-mail, contact and calendar syncing. It also offers "remote wipe," or the ability to delete the phone's information remotely if it is lost or stolen, and Cisco Systems' (NasdaqGS:CSCO - News) technology for secure access to corporate networks.
Jobs showed testimonials from tech executives at Walt Disney (NYSE:DIS - News), Genentech (NYSE:DNA - News) and the U.S. Army. "Everything they told us they wanted, we built right in," Jobs said.
Apple says the iPhone 3G is twice as fast at downloading Web pages as the first model.
Jobs demonstrated the iPhone 3G's faster downloading speeds by pitting it against the older version, which uses (NYSE:T - News)AT&T's slower Edge network. The new model downloaded National Geographic's home page in 21 seconds. The old model took 59 seconds.
Apple also touted its software developer kit, which will let other companies write applications for the iPhone. A parade of companies took the stage to show off their new iPhone applications.
Sam Altman, founder of social networking site Loopt, said his firm had developed software for many mobile platforms but the iPhone is "the best and the most powerful."
Benjamin Mosse, director of mobile products for the Associated Press, showed off an application that sends news to iPhone users based on where they are at the time. The software also makes it easy to send eyewitness accounts and photos of breaking news to AP.
"Hands down, it's the most feature-rich mobile platform around," Mosse said.
Sega showed off progress on the iPhone version of its "Super Monkey Ball" video game.
Major League Baseball's MLB.com previewed its iPhone features, including near-real-time game highlight videos.
Source: http://news.yahoo.com/s/ibd/20080609/bs_ibd_ibd/20080609feature
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Apple Slashes Cost And Adds Features With Newest iPhone
Patrick Seitz And Ken Spencer Brown
Mon Jun 9, 6:55 PM ET
Apple's iPhone just got a whole lot more affordable.
In a bold move to increase adoption of its groundbreaking smart phone, Apple (NasdaqGS:AAPL - News) on Monday slashed the price from $399 to $199 for the version with 8 gigabytes of storage. A year ago, that model cost $599. The original iPhone debuted on June 29, 2007.
The cheaper iPhone also has faster 3G wireless connectivity, built-in GPS satellite navigation and a host of third-party software applications.
Apple, which has been out of stock of first-generation iPhones for weeks, said the new iPhones will be available on July 11.
Apple Chief Executive Steve Jobs rolled out the new iPhone Monday in a keynote speech to kick off the company's Worldwide Developers Conference in San Francisco. Many of the new features had been expected, and Apple shares Monday fell 2.2%.
But the price cut and broad global rollout surprised some analysts.
With the iPhone 3G, Apple plans to greatly expand the number of countries where it is selling the device. Apple expects the iPhone 3G to be available in more than 70 countries later this year, beginning with 22 countries on July 11.
"They're really showing some aggressiveness in terms of expanding the market potential for their iPhone," said Rick Hanna, an analyst with Morningstar.
Playing music from the classic Disneyland ride "It's a Small World," Jobs highlighted on a video screen the 70 countries expected to officially carry the iPhone 3G.
"We've sold in six countries so far, but believe me, they're in use in many others," Jobs said. "It's clear that there's demand for the iPhone in many more countries."
The low price was the biggest surprise on Monday.
Apple had to slash the price to make the iPhone affordable in many of the new countries it is entering, says Shiv Bakhshi, an analyst at market researcher IDC. "It's now a volume play," he said.
Besides the $199 base model iPhone 3G, Apple will sell a version with 16 GB of storage for $299.
Price was the big barrier with the original iPhone, Jobs said.
"We've talked to people who didn't buy iPhones, and the No. 1 reason by far -- and they all want one -- is they just can't afford it. So we've made the iPhone more affordable," Jobs said.
The impact of the price cuts on Apple is unclear, because that could involve carrier subsidies and revenue-sharing arrangements, Morningstar's Hanna says.
Apple is being aggressive not just in price and distribution, Hanna says, but also in business capabilities for the iPhone.
"They realize this is another unique opportunity, just like when the PC born," Hanna said.
Apple let its dominance in personal computers slip away to Microsoft (NasdaqGS:MSFT - News) and doesn't want to miss with this new computing platform, he says.
The Cupertino, Calif., company focused much of Monday on its enterprise applications for the iPhone, particularly e-mail. Analysts say Apple wants to give Research In Motion (NasdaqGS:RIMM - News), maker of BlackBerry phones, competition in that market. But RIM's shares rose after Jobs' talk Monday, ending the day up 2.1% after Apple unveiled no "BlackBerry-killer" application.
The iPhone 3G has built-in support for Microsoft's ActiveSync to provide over-the-air e-mail, contact and calendar syncing. It also offers "remote wipe," or the ability to delete the phone's information remotely if it is lost or stolen, and Cisco Systems' (NasdaqGS:CSCO - News) technology for secure access to corporate networks.
Jobs showed testimonials from tech executives at Walt Disney (NYSE:DIS - News), Genentech (NYSE:DNA - News) and the U.S. Army. "Everything they told us they wanted, we built right in," Jobs said.
Apple says the iPhone 3G is twice as fast at downloading Web pages as the first model.
Jobs demonstrated the iPhone 3G's faster downloading speeds by pitting it against the older version, which uses (NYSE:T - News)AT&T's slower Edge network. The new model downloaded National Geographic's home page in 21 seconds. The old model took 59 seconds.
Apple also touted its software developer kit, which will let other companies write applications for the iPhone. A parade of companies took the stage to show off their new iPhone applications.
Sam Altman, founder of social networking site Loopt, said his firm had developed software for many mobile platforms but the iPhone is "the best and the most powerful."
Benjamin Mosse, director of mobile products for the Associated Press, showed off an application that sends news to iPhone users based on where they are at the time. The software also makes it easy to send eyewitness accounts and photos of breaking news to AP.
"Hands down, it's the most feature-rich mobile platform around," Mosse said.
Sega showed off progress on the iPhone version of its "Super Monkey Ball" video game.
Major League Baseball's MLB.com previewed its iPhone features, including near-real-time game highlight videos.
Source: http://news.yahoo.com/s/ibd/20080609/bs_ibd_ibd/20080609feature
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Labels: New iPhone | iPhone 3G | iPhone News
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