June 10th, 2008
07:45 AM GMT
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NEW YORK – Mark your calendars. On July 11, Apple's new 3G iPhone hits stores worldwide. (Well 22 countries at first, 70 by the end of the year.) If you believe the hype, this could be the device which really kicks open the door to Internet mobility.

Steve Jobs introduces the new iPhone 3G.
Steve Jobs introduces the new iPhone 3G.

For those of you who missed the highlights, the phone, which was unveiled at Apple's Worldwide Developers' Conference, will be thinner, faster, and perhaps most importantly cheaper. Two hundred dollars cheaper!

During the presentation in San Francisco, Jobs admitted the first generation iPhone was too expensive for some customers. He said that about half of the customers who wanted an iPhone but hadn't bought one said it was due to the high price. That has certainly been the case for me.

As a result, the new phones will sell for $199 dollars for an 8-gigabyte model, $299 for a 16-gigabyte model. (one note – in some cases the monthly service may be higher.)

Some say the price cut is a sign that iPhone sales have been disappointing. Maybe. But I give Apple credit for acknowledging it got it wrong and acting quickly to fix the problem.

The other major development is from the developers. Jobs and other Apple executives showed off some of the third-party applications that will be available in the iPhone software store on iTunes.

There was a blogging platform called Typepad, a friend finder social network called Loopt, medical apps, games ... to name just a few. Many of the demos were met with applause from the audience, according to the bloggers who were streaming live from the event.

The other major announcement is that the Apple is now taking direct aim at Blackberry's strangle-hold on the corporate market. The new iPhone will have push e-mail, contacts and calendars.

Jobs says 35 percent of Fortune 500 companies have participated in beta testing. This confirms what I blogged about a few weeks ago. Research firm, Yankee group and others have been saying that corporate IT departments are starting to take a serious look at Apple. If Apple is now reaching out to them and making inroads, this could be a lucrative new area for the company.

Interestingly, the reaction on Wall Street was very tepid. Apple's stock dropped 2 percent. Some are worried the cheaper price will hurt profitability. Others are skeptical that Apple can take on Blackberry.

I don't share their pessimism. Yes, there may be some who early iPhone buyers who may feel they overpaid now that the price has been slashed. And we have to see how all these new third-party applications actually work.

But the faster more powerful connection and the innovative programs being developed offer huge promise. I held off on buying one the first round, but at $199 my willpower is fading. Apple says it expects to sell 10 million this year. Are you biting?

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Filed under: Business


soundoff (45 Responses)
  1. Gwats

    Steve 'my Boy' Jobs has hit one out of the park and the opposition has their hands over their eyes pretending it didn't happen. A $200 iPhone? are kidding me? I am soooo there July 20th!!!!!
    Like I always say.....wait a year and make sure no one dies from it first. Early adopters of Apple's technology are very cool and out a lot serious jack$$. I bought a 22" studio display in '03 that cost a third of that a year later. I waited on the 3G phone and Jobs delivered. Wow, did he deliver!

    June 10, 2008 at 8:48 am |
  2. compost

    I am one of those millions of customers who only had a reason not to buy the iphone. The price. Sure enough, $200 now makes it ridiculous to get anything different. Think about it: GPS, MP3, Video, Browser, WiFi, touchscreen, bluetooth, 3G....Did I mention A REAL GPS? Steve, either you and Pinki are out to conquer the world, or you already did and we didn't even notice it. Why am I still carrying my laptop?

    June 10, 2008 at 9:52 am |
  3. roy

    overpriced indeed!! bwahaha

    June 10, 2008 at 9:54 am |
  4. Kevin

    I bought an iPhone in February of '08 and it is the single best thing I have ever owned. The new iPhone is faster, cheaper AND smaller ? Amazing. In my opinion there is no other phone that is as sweet as the iPhone. I have seen ads about this phone and that phone being the "iPhone killer" but it's simply not true.
    The only downside is that AT&T is much more expensive than their competitors when it comes to internet service and other add-ons.
    I believe that Apple is trying to make the iPhone as popular as the iPod is for mp3 players and at those prices I don't see them failing.

    June 10, 2008 at 10:25 am |
  5. Michael

    Nice device, but...
    I travel a lot, and have different cellphone plans for countries I visit often. As long as I can not change sim cards/plans while traveling, the iPhone is not for me.
    I'll wait for Google's android.

    June 10, 2008 at 10:35 am |
  6. Tom

    Same here, Michael. I travel all over the world on business. Until Apple brings out a device that allows me to change SIMM cards and select the carrier of my choice, the IPhone is nothing but a silly over-hyped American-centric toy, and is useless as a serious business tool.

    June 10, 2008 at 10:44 am |
  7. Joe

    Michael, you can switch the sim cards in an iPhone... What makes you think you can't?

    June 10, 2008 at 10:54 am |
  8. Duncan

    This device will be sold in 70 countries and has some very serious corporations developing business-specific applications for it. A toy it most certainly isn't.

    June 10, 2008 at 10:57 am |
  9. Dorje

    $439 is the actual price.
    ATT is raising thr pricing of its 3G data plans, which will now cost $30 per month, and $45 per month for business users.
    That's a $10 per month increase or an extra $240 current users don't have to pay. It may appear that you're saving yourself $200, but in actuality, you're paying more.

    June 10, 2008 at 11:00 am |
  10. Bill Chow

    Steve, "make a lot of money" or "take over the world"? They are not necessarily mutually exclusive. How much money do you really need? I vote for: open up the IPhone to all carriers and take over the world!

    June 10, 2008 at 11:38 am |
  11. Chris

    I did not know it was still SIM locked.

    I currently have the Blackberry Curve. I wanted it as it has the camera and MP3 and the keyboard is nice for IM and emails, and though they technicaly all work, its not smooth and the MP3 litteraly shuts down after a call and does not restart. I had a Sony Ericsson, and it was nice but did not like the push email and I want the full keyboard given my IM and Email usage.

    I am tempted at the price, but only if I can take it off the shelf in the states and plug my German SIM card in.

    June 10, 2008 at 11:53 am |
  12. stephen m

    i love my unlocked" iphone....i can use any gsm sim card, in any country, yes, i am stuck with the operating system in the pnone unless i want to go through a cumbersome process to make sure apple doesn't "brick" it, but still, its great. i only hope apple swill soon allow competeing companies to offer service, the strangle-hold by ATT hardly seems legal...

    June 10, 2008 at 12:06 pm |
  13. srinivas

    its a way too coolphone conqures the teen image but lacked business apllication .. but now jobs has coverd that and exceeded the expectation only draw back is keyboard . while the competetors may flash their 5mp cam but do we really use cam on phone for serious pics? existing cam is good enough for those mug shots we take. and SIM card guys we can chnage SIM card in iphone just use a hair pin and it pops out not a problem

    June 10, 2008 at 12:13 pm |
  14. Shrinath

    Yeah, yeah Michael and Tom. Going to wait for google phone. If I can't change carriers then it makes no sense. I am using a SE P990i and the sounds it produces as a mp3 player is pretty ok. Gps? Eh, thanks. Don't need it. Faster internet access? Hmmmm. But the cons far out weigh the pros. Get it right Stevie. We need to change carriers.

    June 10, 2008 at 12:39 pm |
  15. Seth

    @Tom & Michael; it is a shame that in the US AT&T has continued to carry the exclusive rights for the iPhone . .there is, at least hope for the rest of the world in being able to buy this phone and use it to it's fullest capabilities...

    With the new full bag of features exactly what makes it 'a silly over hyped American-centric toy'?

    In it's new form it is faster, thinner, more beautiful, has more features and more add ons and software that those irritatingly ugly and outdated Blackberry's that have become so widely adopted...

    Hold an iPhone and hold a Blackberry and let your brain make the choice, it should be a 'no-brainer' !!!

    June 10, 2008 at 12:41 pm |
  16. Alexander

    I disagree that the iPhone is an "over-hyped American-centric toy", but not entirely. Apple's determination with the first iPhone to keep it locked to AT&T and O2 (in the UK) was American-centric, because it failed to realize that there actually are people who change SIM cards when they are abroad.
    FORTUNATELY, there were some great minds who came up with myriad ways of unlocking the iPhone and from the first day that this was possible I have had the iPhone.
    In most countries where the iPhone wasn't officially available, there was a gray market – and outside of the US you would be surprised how many people were willing to pay US$1,000 for an iPhone. So imagine now that Apple is releasing it internationally at heavily subsidised prices how many people will be switching to the iPhone. I dare say it, the market abroad will be bigger than the market in the US.

    June 10, 2008 at 12:56 pm |
  17. Rich

    LOL
    Tom and Michael will now be hung, drawn, and quartered by the raging mobs of Apple fanatics!
    You are obviously modern day Ludites!

    June 10, 2008 at 1:19 pm |
  18. Michael

    "In some cases the monthly service may be higher."
    Can someone elaborate on this statement. I have not heard of any increase in service charges.

    June 10, 2008 at 1:29 pm |
  19. Mohammed

    it's coming out on my birthday 11 jully yaay

    June 10, 2008 at 1:31 pm |
  20. Roland

    I am waiting for an Apple iPhone that can do all the latest gimmicks plus dual SIM card capalbility (like Samsung) . In addition it must have at least a 5 Mega Pixel camera and a 16G memory.

    June 10, 2008 at 1:53 pm |
  21. Krishna

    It will be a big hit in INDIA as now a days most of the Phones bought here are priced around $200(Rs 10,000). So there will be a huge demand for this Phone in INDIA for this price without doubt.

    June 10, 2008 at 1:58 pm |
  22. James

    $200, yes. But what about the monthly mandatory contract? Still ridiculously expensive, unless you're going to illegally unlock it.

    So you see, it's simply not a bargain when you have to pay HUGE amounts every month.

    But the FEATURES of this thing are amazing. I await a monthly price cut and then I'm in.

    June 10, 2008 at 2:17 pm |
  23. Sky King

    Great! But we are still locked into one carrier. It's either AT&T or the door. I prefer to wait.

    June 10, 2008 at 2:22 pm |
  24. MF

    If I were an Apple investor, I would be disappointed by the decision to sell the new phone at anything other than a rip-off price, because that is precisely what the market is willing to pay.

    June 10, 2008 at 2:30 pm |
  25. Azuka

    Well I felt the initial iphone was over priced but I must say it is pretty cool. With a new cheaper and faster verision at a cheaper price I am definitely getting one for my birthday which will be on the 12th.

    June 10, 2008 at 3:51 pm |
  26. mel

    Did anyone mention if the new 3G will support Flash? If not, they missed the mark... again.

    June 10, 2008 at 3:57 pm |
  27. Brad Pullen

    AT LAST!!!! the iphone is coming "officially to Botswana" by year end cannot wait. Unblocked grey phones are widely advertised here at approx US$1000.00 each. Thank you Mr. Jobs you have made my year and I can now throw away my Nokia communicator

    June 10, 2008 at 4:59 pm |
  28. JCC

    Apple is moving in the right direction, and fast.

    June 10, 2008 at 5:15 pm |
  29. rrijke

    AWESOME!!! I'm from Holland and I am so happy that it's finally coming here! and with the low dollars it's a real bargain for us in Europe! :D:D I'm going for the $300 bucks/180 euros version and in black off course.

    I mean just look at its features: GPS, music and video, 3G. My next countdown is now for july 11.:D:D

    June 10, 2008 at 5:58 pm |
  30. Wasi Zaidi

    All u apple fanatics once u are able to send a file through bluetooth then come talk to me. Cuz u cant in an iphone. Its the worst phone ever made and will be like the motorola v3 that everyone wanted. I love nokia and will always trust them since they have much experience in the phone market than anyone. The N series phones kicks the iphone out of the water any model u choose. That is if only people knew. The N95 sold 10 million over in 5 months what apple tries to achieve in a year. Good luck u apple wanna bes lol

    June 10, 2008 at 6:12 pm |
  31. CT

    I do believe this phone will rock worldwide. I´m just waiting for it to get to Costa Rica, due to the fact that we are currently paying ripoff prices for the old version. AS opposed as other bloggers in my country the market will allow us to use the unlocked version so it´s going to be a huge plus when we travel.
    Thanks Steve J, you have maid millions of people happy with this new launch, and you will make all the shareholders happy at the end of the day , due to the fact that your 10.000.000 in sales will be easily surpassed.
    Good job Apple.

    June 10, 2008 at 7:31 pm |
  32. Alvaro M

    It's better to win less with many than more with less. You can reach more people with less price... Steve, go ahead...that's the idea....

    June 10, 2008 at 11:52 pm |
  33. Manolo

    I bought an iPhone sept last year, unlocked it myself in about 15 minutes max, have updated every new release and am currently running 1.1.4 thanks to ZiPhone, i travel frequently have three different sim chips and use them freely, granted this is illegal, as has been said, but quite frankly there are no iPhone cops running around the planet checking out if your iPhone is legal or not, have had no issues with it, and quite frankly it works flawlessly and i get oh so many features, first of all i had an ipod and a phone, now i just have the one device, check my email on the go wherever i am, will be getting push email with the 2.0 software so to sum it all up, quite frankly there is no reason at all why you wouldn't have an unlocked iPhone, plus you get to choose your plan with whatever carrier you prefer, and if data plans are too expensive for you, stick to wi-fi at starbucks, airports and a zillion other places where it's free or very cheaply priced for unlimited downloads or use. the only drawback, yes, the keyboard, other than that the device is perfect and flawless

    June 11, 2008 at 12:28 am |
  34. Kastas

    Mexico's main cel phone carrier, Telcel, will also be offering, for the first time the iPhone. I'm glad they waited and I hope that they don't overcharge for it. I've had a Nokia N80 for over a year now and it's sluggish to say the least. I've been a loyal Nokia customer for over 10 years and I think it's time to make a change. From what I've read and comments from friends, the iPhone does not disappoint. Watch out Nokia!!!

    June 11, 2008 at 12:29 am |
  35. Hugo

    Even me living in Costa Rica, where iPhone wasn't officially approved by the only government owned cell company, have had a tremendous experience with it. I can change Sim cards when going to the States, Nicaragua, and other countries. I will certainly bite the next one!

    June 11, 2008 at 1:01 am |
  36. Louie M.

    This is a good move by Apple. Steve Jobs, you did hit the market share in the consumer industry. When this phone reaches the Philippines. I am so sure stocks will be out in an instant.

    And I am getting not one but two iPhones for me and my wife. And probably my brother and my mom! :)

    You hit the secret! Create a useful and powerful gadget and sell it for a price that is reachable and all else will follow.

    I bet Nokia, Samsung, Sonyericsson and HTC, etc are scratching their heads right now on the price drop for a good and complete technology for the consumer. And did I mention I could also create my own app? :)

    This is a good move. You will sell millions!

    God Bless!

    June 11, 2008 at 1:14 am |
  37. Vikingolatino

    Wow, has Apple actually learned that hitting the mass market is the key to success??? I feel like I'm experiencing the 90s all over again when McIntosh had the best product but couldn't get it out to the masses and lost out to the inferiors and the DOS users...!! I've been scratching my head with this ATT deal and the hopeless distribution brining back those 90s memories. God I wish Apple finally can learn their lesson and launch this feakin' thing to the masses without so much ado about so little. It's now or lose out again to the competition. You think Motorola, Nokia, Sony/Ericcson, and the rest are ready for the masses? You bet they are and that they are praying for another strategic mistake of Apple!
    Wake up Apple!!

    June 11, 2008 at 4:24 am |
  38. Jarson

    This is all well and good and I'm very excited about the release here down in Australia but it would REALLY be nice to know how much it's going to cost for us down here!

    June 11, 2008 at 4:55 am |
  39. Bill

    I will keep my Nokia N95 8GB. It does way more than any iPhone and can be used worldwide without having to deal with proprietary software issues. iPhone has a long way to go to beat the features of Nokia.

    June 11, 2008 at 7:16 am |
  40. sarav

    The new iphone and software update 2.0 are a serious threat to Microsoft and RIM corporate dominance. Both do not have any corporate management system for mobile devices that are handed to employees. With the enterprise feature apple is going to make inroads into the corporate world. I think we are looking towards some breakthrough technology in the coming years with Microsoft's fight with Apple on getting corporate users.

    June 11, 2008 at 10:52 am |
  41. Fred Rabin

    Inflation has been evident for a long time now but only recently are the media admitting it. Why is this? The answer lies in the fact that the public have now woken up to price increases because it is no longer possible to hide them, and CNN does not want to look completely foolish by continuing to deny it.

    Also, on CNN Todd Benjamin was recently asked what inflation was, and he answered by saying it was 'rising prices'. IT is NOT rising prices, but rather it is increased money supply (a.k.a. printing money), a function carried out by the Fed and the government between them in a complicated exercise to make it appear they are not printing money. The result from this is then rising prices, and we should call that 'price inflation'.Now Todd didn't want to say this because it reveals the fact that government is the cause of inflation.

    Some things you are allowed to know and some things not!

    June 12, 2008 at 4:58 am |
  42. Only If Steve Jobs will Hear This

    If Steve Jobs can just pay a visit to Nigeria and walk through any street in Lagos, he will be amazed by the number of people carrying the 'older' iphone. I believe Nigeria should be one of the countries where the new iphone would be sold in the first week of lunch. Meanwhile I have given a friend money to buy one for me if its not locked to a particular network and if locked he should check out the possibility of unlocking it. I'm buying 2 one for me and another for my wife. i don't have a kid yet.

    June 13, 2008 at 2:21 pm |
  43. judi2545

    i hope the iPhone will also sell on my country.

    see us "SeeU.tv " and use yours iPhone.

    June 13, 2008 at 10:28 pm |
  44. judi2545

    I will write about that on my web: "best-design-site.com
    with the youtube video.

    It is a big hit . are you buying the new iPhone – tell me about..

    June 13, 2008 at 10:37 pm |
  45. Anders Sagadin

    No MMS though which we have used heavily in Europe for a while, easier to deal with when shooting of photos comparing to do email, hope there will be a software update soon including the MMS features!

    June 15, 2008 at 8:40 pm |

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