iPhone Reborn

June 13, 2008

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iPhone 3GThe web has been abuzz since Steve Job’s announcement on Monday the 9th about the new 3G iPhone. Anticipation had been high and speculation had already covered every possible scenario in the months leading up to this announcement. Would there be video conferencing? Would the phone be good for enterprise customers? How much faster would 3G be than Edge? The results were mostly positive with one thin shadow threatening to derail Apple stock.

 

For lovers of all things Apple, the new iPhone packs a punch. A low, carrier subsidized, price of $199 for an 8 GB version and $299 for the 16 GB device. That’s about half the price of the phone when it was first released in the Summer of 2007. There isn’t much doubt that a full featured smart phone at this price will create new demand. An increased number of international carriers also increases global demand.

On launch, the 3G iPhone will have

  • GPS - allowing for follow me routing via Google Maps, geotagging, third party applications with turn by turn directions, etc.
  • Microsoft Exchange Support - this is just a tip of the hat to enterprise users.
  • Third party applications - savvy developers will be able to create applications which run natively on the iPhone rather that just web apps as was required in iPhone 1.0. Users will be able to access apps via the iTunes store. But enterprises will be able to push applications out to their users as well. Third party apps will bring games, productivity programs, and a host of integrated features to the iPhone. This is the goose that makes the iPhone 2.0 the golden
  • Mobile Me - a mac.com replacement service which allows users to sync contacts and mail as well as store and share files.
  • Fancy new colors - the 8 GB phone will come with a black back (instead of the previous brushed metal) and the 16 GB will come in black or white.
  • Most of the other features remain the same.

We are surprised to hear that Flash is still unsupported. This is a huge frustration to users who land on pages with Flash animation or applications. Equally frustrating is the lack of cut and paste, which makes blogging and writing of any kind difficult on an iPhone. Also, we ask where the voice dialing and removable media slot are? Phones have been offering these features for years, Apple should have caught up by now.

Overall, the phone looks solid and the new features, enhanced speed speed, and lowered price should help make this an extremely popular mobile device.

So what’s the cloud over all this good news? If you listen to bloggers, Steve Jobs didn’t look to be in good health during his speech. He appeared thin and tired. His shoulder bones were visible through his trademark black turtleneck, he lacked his strength and vitality, and the event was carefully orchestrated to give Steve less stage time than is usual. Apple representatives say that Steve was merely dealing with the effects of a bug for which he has been on antibiotics. Who to believe? Apple stock has been punished since Monday falling from the $183 range to $170 at the writing of this post. Wall Street seems to be spooked by the thought Steve Jobs-less Apple. Perhaps Apple marketing should put Mr. Jobs into a fat suit next time around. That should push the stock into the stratosphere.

We’ll be in line with the rest of you on July 11th to pick up our new iPhones.

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