As the iPhone 3G hits stores this week, Apple is aiming to gain more users by offering it at reduced prices through carriers.
Apple has slashed the iPhones price nearly in half, possibly attracting new buyers who balked at paying US$499 for the original 16G-byte iPhone. The new model will work on faster 3G (third-generation) broadband wireless networks for quicker downloads and come with GPS (Global Positioning System) capabilities.
In the U.S., AT Apple hopes to sell it in 70 countries by year-end, including India, the Philippines, South Africa and Egypt.
Support for 3G networks will enable the new iPhone to download data up to 2.8 times faster than the earlier model, according to Apple. It will come with a 3.5-inch screen with improved battery life, talk time of five hours, standby time of 300 hours, six hours of high-speed browsing, 20 hours of audio and seven hours of video, the company claims.
The phone runs Mac OS X, weighs 113 grams (0.29 pounds), and is a hair thicker than its predecessor at 0.48 inch, or 12.3 mm. The new iPhone includes a standard audio headphone jack, which the previous model didnt include.
The new phone has some shortcomings, such as the lack of a video camera, but the new features and low price points should attract buyers now that the iPhone is tried and tested, said Fareena Sultan, associate professor at Northeastern Universitys College of Business Administration.
"The issue is not about the box, its about the service," Sultan said. The carriers are assisting Apple in subsidizing the phones and ultimately hope to make money through higher-priced contracts and additional services, Sultan said.
The price drop and addition of GPS and 3G support are dramatic enough to boost consumer adoption, said Bill Hughes, principal analyst for wireless devices at In-Stat.
Dropping the price wont hurt the iPhones enterprise adoption, but it wont open the floodgates either, Hughes said. Enterprises are looking for mobile devices to handle back-office applications, and the iPhone 3G needs to prove itself capable, Hughes said.
There are also questions in larger enterprises surrounding the security and manageability of iPhones, Hughes said.
"It takes a courageous manager to justify the skeptics around them to prove the [iPhone] as a compelling device," Hughes said.
The initial adopters could be small and medium-size businesses, Hughes said. It may take longer for the iPhone to make a dent in larger enterprises, where Research In Motions BlackBerry is widely used, especially for e-mail.
The phone may also face competition in the consumer space from iPhone clones, said Jack Gold, principal analyst at J. Gold Associates. The original iPhone set a precedent for new devices like Samsungs Instinct and HTCs Touch Diamond, with touchscreens and similar interfaces to the iPhone, Gold said.
But Apple cant keep innovating technologically, so it is developing a proprietary software ecosystem to deliver applications that could differentiate the iPhone from competing mobile devices, analysts said. The iPhone will come with iPhone 2.0, a new software platform that builds in support for Microsoft Exchange, allowing enterprises to push e-mail, contacts and calendars from Exchange Server to the iPhone.
Developers can write applications for the iPhone 2.0 platform and sell them through Apples online App Store, which will also launch on Friday and be accessible to users in 62 countries. Users will be able to download iPhone applications under 10M bytes over cellular networks, by Wi-Fi or through iTunes. Downloading applications larger than 10M bytes will require Wi-Fi or synchronization through iTunes on a PC. Users will also be able to distribute applications by syncing iPhones.
Markets in which the iPhone will bow Friday include Mexico, Hong Kong, Ireland, Austria, France, Portugal, Switzerland, Canada, Singapore, Italy, Spain, Denmark, Finland, Norway, Sweden, the Netherlands and New Zealand. The new iPhone will support 16 languages including English, French, German, Italian, Spanish, Portuguese, Polish, Dutch, Danish, Norwegian, Finnish, Swedish, Russian, Korean, Japanese and Chinese.
Apple has slashed the iPhones price nearly in half, possibly attracting new buyers who balked at paying US$499 for the original 16G-byte iPhone. The new model will work on faster 3G (third-generation) broadband wireless networks for quicker downloads and come with GPS (Global Positioning System) capabilities.
In the U.S., AT Apple hopes to sell it in 70 countries by year-end, including India, the Philippines, South Africa and Egypt.
Support for 3G networks will enable the new iPhone to download data up to 2.8 times faster than the earlier model, according to Apple. It will come with a 3.5-inch screen with improved battery life, talk time of five hours, standby time of 300 hours, six hours of high-speed browsing, 20 hours of audio and seven hours of video, the company claims.
The phone runs Mac OS X, weighs 113 grams (0.29 pounds), and is a hair thicker than its predecessor at 0.48 inch, or 12.3 mm. The new iPhone includes a standard audio headphone jack, which the previous model didnt include.
The new phone has some shortcomings, such as the lack of a video camera, but the new features and low price points should attract buyers now that the iPhone is tried and tested, said Fareena Sultan, associate professor at Northeastern Universitys College of Business Administration.
"The issue is not about the box, its about the service," Sultan said. The carriers are assisting Apple in subsidizing the phones and ultimately hope to make money through higher-priced contracts and additional services, Sultan said.
The price drop and addition of GPS and 3G support are dramatic enough to boost consumer adoption, said Bill Hughes, principal analyst for wireless devices at In-Stat.
Dropping the price wont hurt the iPhones enterprise adoption, but it wont open the floodgates either, Hughes said. Enterprises are looking for mobile devices to handle back-office applications, and the iPhone 3G needs to prove itself capable, Hughes said.
There are also questions in larger enterprises surrounding the security and manageability of iPhones, Hughes said.
"It takes a courageous manager to justify the skeptics around them to prove the [iPhone] as a compelling device," Hughes said.
The initial adopters could be small and medium-size businesses, Hughes said. It may take longer for the iPhone to make a dent in larger enterprises, where Research In Motions BlackBerry is widely used, especially for e-mail.
The phone may also face competition in the consumer space from iPhone clones, said Jack Gold, principal analyst at J. Gold Associates. The original iPhone set a precedent for new devices like Samsungs Instinct and HTCs Touch Diamond, with touchscreens and similar interfaces to the iPhone, Gold said.
But Apple cant keep innovating technologically, so it is developing a proprietary software ecosystem to deliver applications that could differentiate the iPhone from competing mobile devices, analysts said. The iPhone will come with iPhone 2.0, a new software platform that builds in support for Microsoft Exchange, allowing enterprises to push e-mail, contacts and calendars from Exchange Server to the iPhone.
Developers can write applications for the iPhone 2.0 platform and sell them through Apples online App Store, which will also launch on Friday and be accessible to users in 62 countries. Users will be able to download iPhone applications under 10M bytes over cellular networks, by Wi-Fi or through iTunes. Downloading applications larger than 10M bytes will require Wi-Fi or synchronization through iTunes on a PC. Users will also be able to distribute applications by syncing iPhones.
Markets in which the iPhone will bow Friday include Mexico, Hong Kong, Ireland, Austria, France, Portugal, Switzerland, Canada, Singapore, Italy, Spain, Denmark, Finland, Norway, Sweden, the Netherlands and New Zealand. The new iPhone will support 16 languages including English, French, German, Italian, Spanish, Portuguese, Polish, Dutch, Danish, Norwegian, Finnish, Swedish, Russian, Korean, Japanese and Chinese.
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