How the iPhone 3G is changing the wireless game

My son is 3. He can use it, It's that simple. That is what it takes. A smart phone that a child can use and an adult who doesnt feel dumb using it. I think eventually everyone will succumb to the iphone, think not? Think Zune. Say goodbye to the rest,

Apple products are not made for Indian markets…to know the reason check here

http://pulseate.blogspot.com/

Apple and the media sure know how to build hype.

O2's site didn't crash. What happened was that *existing* iPhone users received a message from O2 inviting them to upgrade to the iPhone 3G for *free*, as a special offer. Not surprisingly, that created a scramble of users requesting the upgrade. Then, shortly afterwards, upgrade submissions were no longer successful and people were redirected to https://upgrades.o2.co.uk/failover/index.html. That page says the iPhone 3G is out of stock online. Sure! If you believe that, I have a bridge to sell you. O2 is not stupid — they'll make more money from new users than existing ones who upgrade for free. Thus, it is to be expected O2 will artificially put a limit to the number of free upgrades. It's just an old trick: advertise a nice offer to get attention, then fake the "out-of-stock" to get free publicity, build hype and demand.

"While it’s great to have all those internet features – I for one am not willing to pay those prices. Not all of us can afford $100+ a month to have that kind of access on our phones."

"Think about it. 20 years ago you paid for phone service – maybe cable – but now you are paying for phone, cable\dish, wireless, internet, and whatever else."

The same will hold true for iPhone because I'll be able to accomplish much more while on-the-go.

3G coverage may be an issue…

http://tinyurl.com/5w9svp

I misspoke when I said, 'I had been using Apple products since 1987'. I bought my first Mac in 1987, however I bought my first Apple computer in 1981.

When the Mac came along, I snickered but only because I felt there was no way, I was going to give up all my Apple ][ goodness for a Mac whose software offerings was one percent of what was available to the ][ crowd.

In some respects the Mac software offerings are still one percent when you compare it to what's available to the PC-using community, however with the purchase of my new iMac I can now run all of THAT software too. One thing you realize quickly is, is that for every software program available to the Mac, there are fifty made for the PC and there is a whole lot of marketing BS to contend with; many of the boxes look fantastic and promise lots but fail to deliver any fun or productivity. It looks like, for the most part, that only the extremely popular PC software gets ported to the Mac platform or conversely, many of our finest software packages started on the Mac.

If you're a PC user, look in to the Mac. Especially if you want to run Vista. If you're a box builder, obviously money is an issue with you and you'll insist you can build 'em cheaper and that's fine, I respect your craft. But you can't build a faster or more stable machine with the breadth and depth of technology you get from a Mac Pro. I say that only because if you install XP you'll encounter the law of diminishing returns way too soon (measly Ram limits, no-boot external drives, etc.) and if you install Vista you will compromise your system sooner than you would like for a number of reasons, like my neighbor, who swears up a storm chasing ghosts in the machine, can't get a straight answer from anyone about what the matter is and I know damn good and well he withholds a lot of his problems.

Pride keeps people ignorant and in the dark.

With a worldwide launch, the iPhone should sell more than 10 million units this year. More carriers will be added. China will be the most important because Chinese tend to buy the newest and best cellphones and China has the most cellphone users in the world. Russia and possibly India will be major carriers to add.

No analyst has projected the revenue from the App store. The App store and iPhone Applications have not been allowed to be marketed by Apple, because Apple wants it to be a surprise. The App store and iPhone applications will start to be marketed aggressively a few weeks after the 3G iPhone launch. You'll see iPhone games on TV and in magazines. Also iPhone business and other applications on TV and periodicals.

3G isn't wide spread in the USA and some countries with old cellular networks. But 3G is wide spread in Japan, and some Asian and European countries, that was why other countries wanted 3G. 3G is still new in the USA.

The App store and Full Internet will be the reason why the iPhone will be better than other smartphones. There are 4,000 approved developers so there should be 4,000 new applications. Thousands of other developers have not been approved but might be approved later. The iPhone will have applications from 3rd party developers that will make it better than the Blackberry. The Blackberry costs more to use and operate than the iPhone, so reviewers who say the iPhone is expensive don't know what they are talking about. TomTom is rumored to have a navigational software for turn-by-turn with the iPhone GPS. iPhone owners will have to pay about $10 for the TomTom software. The iPhone GPS is the same with all other smartphones with GPS but the iPhone offers a cheaper price.

I handicapped other players against the iPhone 2.0 in:

Who can beat iPhone 2.0?

http://counternotions.com/2008/03/10/iphone2-competitors/

And there are two major ways that telecoms cheat the cell phone user:

1. Charging for calls one does not make by just answering the phone…this is ridiculous and should be outlawed.

2. Not being able to save time from one month to the next, even though the time is paid for; it just was not used, and this should be outlawed too.

Call congress; tell your house and senate representative to pass the people's legislatoin, to protect us, not passing legislation to protect big telecoms more. We are more important than they are.

You know when the people's representatives pass legislation to protect big telecoms from prosecution for breaking the law but don't pass legislation to protect the people from the swindling that I described in the two points I made.

Apple changed the personal computer landscape when they released the first Mac in 1984, they changed the music player landscape with the iPod, and now they are changing the smartphone landscape with the iPhone (all models).

This it what Apple does, they take technology and make it useable. Making both the software and hardware gives them this unique ability. Once a person has all three of the devices mentioned above they come to understand what Apple is all about.

We've heard from the "investor" (constable) and his tripe is thick with BS. Apple is snakebit due to poor market timing? What does that even mean? Besides Apple is a tremendous investment and the tens of thousands of dollars I have spent on Apple have yielded immeasurable hours of enjoyment while using its products.

Who cares if the stock is flat or flaky?! Or that it might be a poor investment at the moment. The entire US economy sucks right now and you have a problem with flaky stocks? AYKM? First of all, Apple or any tech company is NOT defined by it's rise or fall in the stock market, especially in a failing economy. I don't trust my broker 100 percent of the time and I certainly don't trust the wags on WS or the pundits of the industry in general, because they're all idiots with tunnel vision.

Apple shares broke the 200 dollar mark on 12/28/2007. Even more amazing is they did it in a tech economy in decline and dropping fast and for as long as I can remember pundits like you have been predicting Apple's demise and look where they are today. Their market value stands at 158 BILLION dollars and they have 18 BILLION in the bank. That's 18 billion for future investments and expansion like the new campus, and seed money for the acquisition of promising innovation and software development.

But this is where you jump the shark. The following statement puts you in the same class as the Nokia VP. If you're still betting on the come in this economy, you're the one who's flaky. You just don't get it, do you?

"Google will get more value from Android than Apple will get from Mobile OSX even though Android won’t be released for another few quarters."

You talk as though you don't even own an iPhone much less any Apple products.

I will go on and on because that's what I've been doing with Apple products, since 1987. I got in when the stock was selling at 15 bucks a share and have since retired, and am now living my dream.

What many fail to understand is the culture that is Apple. Sure there are some embarrassing zealots and what culture doesn't have them, but for anyone to think that Apple is the cause of this over-developed sense of righteousness is a fool. Apple has made some mistakes and at times the cure has been perceived as a mistake as well, but none as fatal as Vista which may ultimately cost Microsoft billions of dollars in lost revenue. XBox cost them a billion dollars just to fix shoddy engineering!

Now tell me, what company can continue to absorb those kinds of losses and at the same time continue to undermine its value as a tech leader? None can, and for all the damage Apple's Get A Mac ad campaign has done to Windows recently, nowhere has the damage been greater than when it came time to silence the critics in its put-up-or-shut-up moment and failed miserably with Vista. Microsoft's response? Wait for Windows 7.

For me personally, I see this rise in Apple's star, in some respects, as vindication for sticking with Apple and even when I didn't think things could get any worse they up and fired the man who would eventually return to refocus Apple's energy. Imagine that?

I only use Microsoft to contrast Apple's efforts to deliver products that actually work as advertised. When Jobs stated he would sell 10 million phones in 2008 no one laughed harder than the telcos but the real tell came from Microsoft's Ballmer when asked about Apple's effort to muscle in on Windows Mobile.

One thing I've learned over the years is that Windows is an upside down, backwards, and shoddy version of the Macintosh operating system and 95 percent of the PC-using world thinks Microsoft bought Apple Computer and their OS, giving the world Windows. What a wake-up call this iPod/iPhone business must be for you.

Interesting comments so far. A good mix of pro/anti-Apple. Excluding the extremes at the ends of the spectrum, consumers in general are fed up with their phones. Numerous studies point to this fact. The phone manufacturers have forgotten the consumer all together by pandering to the telco's needs for increasing profit (send picture mail? — extra fee; access media features? — extra fee; access internet? — extra fee). Long forgotten was the user interface and the accessibility to features and ease of use.

Apple built the iPhone from the ground up. Applying their tried and true focus on the consumer, they hit their mark on a phone that is usable. Has everyone forgotten that the 1st generation iPhone has been out of stock now for over a month? Not good for the stock price, but it appears that Apple didn't anticipate being out of stock for so long.

Demand is there. Apple will surpass their goal of 10MM phones sold — which is phenomenal since they are a newcomer to a mature market. Do all of the other manufacturers need to be fearful of the iPhone effect? You bet…Focus on the consumer and you might get some where. Microsoft, Nokia, et al have forgotten about the consumer. Why else do you need a user manual that is 100+ pages? The iPhone manual is just a few pages long.

12 months of Apple being in the US smart phone market and they are #2 behind RIM (way above MS, Nok, et cetera). 1st in consumer satisfaction with 75%+ satisfaction rating, next is RIM in the 50th%, and all others in the low 30s or lower.

All I have to say is good luck keeping up with Apple. No one has come up with an iPod killer yet, and their OS market share is increasing every quarter.

I like the hockey puck analogy. Most other companies playing catch-up, are skating to where the puck is now. But Apple is skating to where the puck is going to be and since they were at the place where the puck is now, they know exactly where it's going.

You gotta admire Apple. Their disruptive technology works on many levels… product focus, consumer ease of use, enlightened design at every level of a product's production(why oh why does everyone else decry it's importance, then be forced to follow along with a copycat product~) and oh so skilful marketing.

Our company has hitched an Apple ride with the iPod and now the iPhone – we are as exited now as we were 5 years ago. In that time Apple has been brilliant at forward planning, keeping us posted almost every step of the way, tho' we know as much(little) about future products as everyone else.

Competitors, pundits and analysts, whilst tirelessly writing off Apple, who insist that because Apple bucks established and trusted trends(read predictable and safe), will be left thrashing in their wake struggling to make sense of what happened.

Having been present at a couple of Steve Jobs briefings, I can't be certain but they(the company) seem to care less about making money and more about spreading the brand and their technology. Insane? – not when the whole world is talking about them. I've just come back from inking a deal in India, where you can't even see a Mac and only a few iPods in the main cities but EVERYONE is talking about the Apple iPhone. I would hazard a guess they will sell 100 million in that country alone over the next few years.

If your view of the world is based purely on company stability via it's share price, the next few years of capital shrinkage might just bring you round to Apple's way of thinking.

While it’s great to have all those internet features – I for one am not willing to pay those prices. Not all of us can afford $100+ a month to have that kind of access on our phones.

One 3G iPhone with 200 SMS will be $75, not $100, per month.

Even though the article says phone service prices are going down I would beg to differ. Every time my carrier calls, they try to switch me to a more expensive plan even though I never use my existing 500 minutes. And I know that there are a lot of us out here but no one seems to be speaking up. Think about it. 20 years ago you paid for phone service – maybe cable – but now you are paying for phone, cable\dish, wireless, internet, and whatever else. As consumers we need to be fighting back more to say that we want more for our existing dollar. How is it that all other electronic technology eventually comes down in price but except with cell phones. And companies are so scared of the free market they lock you into contracts that you wouldn’t put up with in any other area of your life. FIGHT BACK!!!! Demand more instead of pay more.

My cell phone service costs have remained relatively constant over the years. If anything, they HAVE gotten cheaper. What has certainly happened is that I get more minutes and other features now than I did when I first started carrying a cell phone 16 years ago.

I don't know where you get your cable/satellite, but I have had Dish Network and recently switched to cable and both require contracts to get the promotional rates/deals.

You don't have to sign contracts to get a cell phone. Just find a company that will sell you one unsubsidized or buy an unlocked phone online. Of course, you would be paying full price for the phone instead of the subsidized price. You probably expect to get a free phone with no contract…

@Bill, I read those articles about the Sprint Instinct, and they all say it's not ready for prime-time. And, it's beauty is only skin deep, as under the makeup, it's Windows Mobile. You mention the WSJ, I can only assume you READ Walt Mossberg's review.

@Constable, why does the author need to address stock price performance? It has nothing to do with the point of his article.

@Natalie, the original iPhone's voice/data plan was the cheapest on the market at $60 a month. Where did you come up with $100? Are you in Canada? I know Minnesota is close to Canada, but didn't realize you had to use Rogers.

@Jordan, why should the 3G phone have been here last year? 3G networks were rare a year ago. And, while you sound like a Verizon user, the fact is, GSM is a worldwide standard that Verizon is NOT using. This is a world phone. Verizon needs to get with it, sooner rather than later.

"Flummoxed?" What a word to describe the industry response to iphone….Now read this: Who cares about carriers?…Pay attention!…Apple has covertly introduced the "Pocket-Mac"….Does "Smith-Corona" ring any carrier (pun intended) bells?….Yappin on and on, pay attention…..This is what is happening: An entire industry has just been reduced to less than peripheal participants; (and even there, only temporarily), while Apple pulls off "interconnectivity" right under their noses!.. When all things (your Apple devices) are connected, who needs carriers? Think about it. Welcome to the real "Mac-world"

I went to the Apple store to look at the IPhones I also brought my three daughters. My youngest one had just turned 7 at the time the IPod was released. On her own she was able to take pictures, surf the net, email her grandma and call her mom. I've had my non iPhone for years and still can't figure out how to use its internet access.

I was sold at its power and ease of use. Nothing else even comes close!

@Bill: And the Instinct is somehow different from the other also ran iPhone imitators because…?

@Jordan: So far as the iPhone being on a "real network", whatever that means, the only other nationwide GSM network is T-Mobile, and from what I understand their 3G coverage is laughable. If you want Verizon, it isn't going to happen on CDMA, so stop holding your breath. Once Verizon, AT&T, et al. move to 4G LTE presuming the Apple/AT&T exclusivity deal is up, there probably will be iPhones available on multiple carriers in the US. We are talking several years from now however.

Constable – I think you meant Apple was expecting consumers to break 10 million units…just like the Ipod. My husband is on his 4th…

@Bill,

"The Sprint Instinct is a major competitor to the ATT/iPhone offering."

Be patient.

See if you can test both side-by-side. Then come back and report. In the meantime, try to read a few published reports comparing the two.

No need to rush. Give it a few months and the verdict will be in.

North America is a developing country when it comes to telecommunications. There are more 3g devices in India than in the States.

The iPhone is nice and all that, but Apple currently seems to be a poor investment due to media volatility. I doubt if there is any company where people are lining up for it's products days in advance or the products selling out before official release, but these people are just considered iSheep or iDiots and WS doesn't give a crap.

Apple's target was to break 10 million iPhone units. Apple will probably sell 12 to 13 million and the stock won't even get to $200. Let's face it, no matter how great Apple's fundamentals are, it's not going to move the stock price signficantly this year. No institutions or large investors are loading up on shares because the stock is too flaky based on wild speculation.

Google will get more value from Android than Apple will get from Mobile OSX even though Android won't be released for another few quarters. Apple is snakebit due to poor market timing and nothing much is going to change that fact.

So before you keep going on about how grand the iPhone is for Apple and how it's changing the face of wireless communications, let's just see what it's real worth will be to Apple's stock performance.

While it's great to have all those internet features – I for one am not willing to pay those prices. Not all of us can afford $100+ a month to have that kind of access on our phones. Even though the article says phone service prices are going down I would beg to differ. Every time my carrier calls, they try to switch me to a more expensive plan even though I never use my existing 500 minutes. And I know that there are a lot of us out here but no one seems to be speaking up. Think about it. 20 years ago you paid for phone service – maybe cable – but now you are paying for phone, cable\dish, wireless, internet, and whatever else. As consumers we need to be fighting back more to say that we want more for our existing dollar. How is it that all other electronic technology eventually comes down in price but except with cell phones. And companies are so scared of the free market they lock you into contracts that you wouldn't put up with in any other area of your life. FIGHT BACK!!!! Demand more instead of pay more.

IPhone here I come!!!!

Nice article. No mention of the new T-Mobile phone being built as well to complete. All these new phones will be nice phones but not iPhones and will not have the seemless integration in life that makes people coming back again and again. What cell phone manufacturer can promise that your phone, home computer and work computer all have the latest data avaialable and upto date almost instant.

One thing for sure of the Apple trend, when the other companies come out and copy the latest iPhone they will only be catching up. Apple Inc. is already thinking on the 4th generation Iphone so to compete instead of catch up start thinking of what to do for the 5th generation

I will add however, this article is very well done overall, and gives an excellent perspective on the industry and global impact of the iPhone.

This reporter didn't do his homework. The iPhone does NOT run on CDMA, it runs on GSM 3G networks, which are more prolific than CDMA world wide!

From Jon Fortt: There's a difference between CDMA and WCDMA. Many of the legacy GSM carriers (including those in Europe) are using WCDMA for 3G. Have a look into it.

Fortt,

You've obviously been under a rock for the last 4 months. The Sprint Instinct is a major competitor to the ATT/iPhone offering. No mention? Maybe pick up a WSJ and read about it, the many articles that have already been written. The content in your head was out of date from the moment you turned on your computer. Stay with the market.

Well said. I especially agree with your point about ease of use of features being a strong point for Apple. I think your article is reflective of a growing recognition that this IPhone is probably a more important step its evolution than the first generation.

Cramer, Savitz, hedgies, shorts, bashers notwithstanding Apple will prevail!

I really just won't be interested in the iPhone till it comes to a decent carrier – even then I'm going to need to wait for my wireless plan to be up in a year, and even then that's assume Apple has kept their head out of their a$$ long enough to keep the subsidized iPhone a reality. the first time around was a win-win for At&T and Apple, and a lose-lose for customers… yet people still tolerated it and I didn't understand why.

Now those same people that tolerated a 2-year contract with no phone discount are going to probably shell out the $599 for the phone unsubsidized from apple – since they obviously didn't care about money the first time – and honestly this "New 3G phone" should have been here last year. Agreement with Noki – iPhone v1, not exciting in the least – v2 now seems to have alot more going for it, but it's still tied to AT&T – call me when it goes on a real network.

You forgot Microsoft CEO Steve Ballmer's interview where he laughed at Apple iPhone.

Here is the link in case you missed it:

This stock should be $200,00 minimum It has been 'water-boarded' by wall street, shorts, and crooked kosher media types: Cramer/Savitz, etc.