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Apple Releases 3g Version 2 Of Iphone To The World

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Apple sells million iPhones in three days of release

14 Jul, 2008, 2035 hrs IST, ET

NEW YORK: Apple Inc said on Monday it has sold one million iPhones in the three days following the release of the latest model on Friday.

"IPhone 3G had a stunning opening weekend," said Steve Jobs, Apple's chief executive, in a statement on Monday.

But the launch was plagued by software problems. All the new iPhones had to connect to Apple's servers for activation, which quickly overloaded them. Lines of customers built in stores as employees were unable to get the phones working.

Additionally, new software was released for the old iPhone, which required reactivation of those phones. Many owners of the older phone were left with unusable units.

The iPhone 3G was launched simultaneously in 21 countries, including the US.

Apple had sold about 6 million units of the first-model iPhone since it launched in the US a year ago. The company has set a goal of selling 10 million iPhones by the end of 2008.

Shares of Apple rose $5.32, or 3.1 per cent, to $177.90 in morning trading.

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iPhone 3G Cost Apple Less Than Original!


Teardown experts iSuppli has revealed that Apple, like most other manufacturers, has managed to keep the manufacturing costs down with the current iteration of the iPhone. The manufacturing cost is down by as much as $53. In fact, the whole kit (minus the software) costs Apple a measly $174.33. This added with the estimated $50 royalty that Apple shells out for each iPhone, works out to a grand total of $224.

How did they manage to keep the costs down in spite of the addition of the 3G and GPS chips? Simple. They chose to stick with the same Samsung processor as before, the circuit board is now a single, durable affair unlike the two tightly connected ones earlier. As for the battery, it is no longer soldered to the device. That's good news for technicians who help you replace your iPhone batteries!

That's about the hardware. In terms of compatibility with non-US networks, Apple has included the Infineon chipset that will ensure that the iPhone works in markets like Japan and Korea where the previous iteration would have been incompatible.

Considering the unsubsidized cost of about $499 for the 8GB version, Apple is assumed to get almost $300 from AT &T for each customer who purchases the phone at $199. That is a substansial 55% profit margin before accounting for marketing and software!

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Apple's iPhone 3G: The Verdict

Apple's iPhone 3G is out, the euphoria has died down a little, and the verdicts are surfacing. Business Week's Olga Kharif opines that the new and improved iPhone is definitely a winner compared to the original, but needs a little more polishing. The subsequent verdicts have been based on her experience with the iPhone 3G.

Price-wise and capability-wise, the new iPhone 3G is comparable to Research In Motion's (RIMM) BlackBerry Curve, and Samsung's Instinct. However, maintenance costs make iPhone more expensive. The new iPhone, on an average, would need maintenance costs upto $100 per month, which would be on par with what one would spend on a Samsung Instinct every month, and much higher than the $30 a month for the BlackBerry Curve.

Design-wise, the iPhone 3G is nicer looking because it's sleeker than the original iPhone. It fits neatly into the palm because of a new curved back.

The software of the new iPhone 3G is the best part about it, says Kharif. Features such as sending photos received via mail directly to photo albums, and the availability of keyboard languages in 20 different languages make it a good choice across ethnicities. The Safari browser allows eight tabs to be open at once, unlike any other smartphone.

However, the coolest thing that the new iPhone brings along is the Apps. There are hundreds of them to choose from. At the same time, Kharif finds iTunes to be a disappointment, mostly thanks to the complexities involved with it. Luckily, or maybe not, the Indian consumer will not face this issue in the near future, since it isn't available here yet.

Another downer is iPhone 3G's GPS, which isn't fully integrated with the preloaded software. Next in the line is the smartphone's 152-page user manual, without which, a user might be left dazed and confused. Apple also conducts tutorials at stores in the US for users to get over their iPhone 3G dilemmas.

Other downers included 3G connectivity problems with regards to the Microsoft Exchange servers, and the touch-screen, which takes some getting used.

All in all, the review finds Apple's iPhone 3G to be good, but not quite the perfect smartphone that woos every individual. But then, no device is perfect, and its usefulness is relative. It should be interesting learn about how the Indian masses rate this Apple product once it's launched with its full-fledged services here.

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iPhone wins fans' hearts

19 Jul, 2008, 0427 hrs IST, AGENCIES

Enthusiastic new iPhone owners are starting to sound like the cast of long-running stage musical: “I Love you, You’re Perfect, Now Change.” Only days after snapping up the latest iPhone, they still glow over their purchase — but already are brainstorming ideas Steve Jobs could use for Apple’s next iPhone.

In comparison to last year’s model, the latest iPhone’s snappier web speeds, better sound quality, location-aware navigation, and third-party application store left new owners with no doubts that waiting in line for hours was worth it.

But even the happiest among them offered tips for improvements for the iPhone — at heart a powerful computer and communications device — as well as reasons why it won’t completely replace other gear such as BlackBerrys or laptops. Some of the gripes appeared easy to fix, while others may take a bit more work by Apple engineers.

A common one was about the inability to copy and paste text on the iPhone. Users of the Research in Motion BlackBerry or Palm’s Treo can easily copy numbers or text from an e-mail and send them to a friend on the go. “I’m still very confused why they don’t let you copy and paste on the phone,” said Nick Divers, 22, of New York, an aspiring filmmaker who traded his Treo for an iPhone. “I’ve upgraded to a better product that can’t do one simple thing.”

Shervin Pishevar, 34, head of Social Gaming Network, said the lack of copy and paste was a reason why he stopped using the first iPhone about three months after he bought it. Still, Pishevar and his son camped out in Palo Alto, California, to buy the new iPhone. He lauded new applications from the ‘silly’ PhoneSaber, which mimics the sound of a ‘Star Wars’ light saber when the iPhone is waved around, to the ‘inspirational’ Star Finder that shows information on the night sky, depending on the user’s location.

But Pishevar’s got a new pet peeve. While Apple’s iTunes pauses a song during a call and starts playing where it left off afterward, third-party applications such as Pandora’s music service quit when Pishevar used other iPhone features. “Applications should not stop working when you go away,” he said.

“For a game, you shouldn’t lose where you are.” Rob Biederman, 21, who works at an investment bank, gave up his BlackBerry for an iPhone, but was upset to find he could only buy songs from iTunes when his device is linked to Wi-Fi — short-range wireless networks found in places like cafes.

“That was a big disappointment because I expected to be able to download songs from iTunes,” said Biederman, who wants to be able to buy new music right after a cool new song catches his attention in a shop or on the street. Many other phones sold by US iPhone provider AT&T and its rivals Verizon Wireless and Sprint Nextel can downloads music from other music services over cell links.

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iPhones Hot Even in Places Apple Has Yet to Reach

In the Soviet days, Russians asked their American friends to bring blue jeans, rock records and other Western goods into the country. Today Russians can buy almost anything they want here - but they are still begging for one item: Apple Inc.'s slick iPhone.


The new iPhone went on sale in 21 countries July 11 and will soon be released in 70 nations. Officially, Russia and China are still on hold - neither last year's original iPhone nor the updated model have been launched in those countries because Apple is still negotiating with mobile service providers.

And yet analysts estimate that only the U.S. has more iPhone users than Russia and China.

In both countries, the device enjoys super-exclusive status, thanks to a thriving market for "unlocked" iPhones adapted for local use. Even Russian President Dmitry Medvedev has been seen using one.

Moscow and Beijing have become an iPhone trader's paradise. Russian Web sites were offering the new 3G iPhone for about $1,200, six times the $199 base price in the U.S. Even Apple's first-edition 8-gigabyte iPhone was going for almost as much at Moscow's Gorbushka electronics market this week, though Moscow iPhone owners said a skilled bargain hunter could find one for about $775.

"They are being brought in in suitcases," said Eldar Murtazin of Moscow's Mobile Research Group. "No one is paying any sort of customs fees."

Murtazin estimates that 400,000 iPhones have been brought into Russia since the first model was released in June 2007. China is believed to have at least twice as many.

Online auction sites in mainland China, such as taobao.com, were offering the new 16-gigabyte model the day of its release for $1,370. However, dealers at Beijing's Nurenjie shopping complex predicted it would go for about $735 once it arrived.

Russian and Chinese buyers aren't all paying astronomical prices for their iPhones. Some buy the phones for themselves when abroad, while others request them from friends traveling in the U.S. or Europe. The iPhone is also sold legally in Hong Kong.

They then pay a fee - around $100 in Russia - to get it "unlocked" for local use on the Russian or Chinese network of their choice.

Once unlocked, the flashy gadget is good to go - although the new iPhones can't max out on their Internet connectivity in many cities in Russia and mainland China because of the absence of so-called "3G" high-speed networks.

"I knew I wanted to buy it right when it came out, but I didn't have an opportunity to," said Moscow resident Ruslan Kashapov, 28, who eventually bought a first-edition iPhone for $399 in April, courtesy of a friend who brought it back from the United States. He said he would buy the new iPhone if he could get it at U.S. prices.

But with the new iPhone, Russian and Chinese enthusiasts face an additional hurdle.

In the past, customers could buy an iPhone in the U.S. without activating it on a service plan, and analysts estimated that one-third to one-half of the phones sold in the U.S. never made it onto AT&T Inc.'s network.

The new iPhone, however, is subsidized by mobile carriers. This accounts for the drop in price from $399 to $199 for the base model, but it also means that buyers will be forced to activate service contracts before leaving the store.

Zhu Shuang, 27, who works at an Internet search engine in Shanghai, said she paid $399 for a first-edition iPhone, which she received from a friend returning from the U.S. and had unlocked in China - where the devices are made, incidentally.

"At that time, you could buy the phone without signing a contract," she said. Zhu said she wants to buy the new iPhone, but the new regulations are "troublesome." She has yet to decide if she will purchase a smuggled phone or buy one outside of China with a contract.

Apple did not comment on the use of its phones in places like Russia and China, although CEO Steve Jobs has said the company expects to sign contracts with Russian and Chinese providers this year.

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iPhone 3G Jailbreak Tool Released


The iPhone 2.0 firmware has just been cracked. Through a post titled Thanks for waiting, the iPhone-dev team has just announced a new version of its jailbreak software for the iPhone and the iPod Touch. Note that this update only jailbreaks the iPhone 3G, it does not unlock the device. Yet.

Jailbreaking allows the iPhone to run any unsigned app, while unlocking allows a phone to work with any SIM card.

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Apple iPhones Hard to Find in the USA

On Sunday, less than 9% of Apple's retail stores in the US had any phones to sell, thus reflecting a drastic drop in the supply of iPhone 3G over the weekend, reports ComputerWorld.

According to the company's own inventory tool, only 16 (8.5%) of the 188 total stores had iPhone 3G available for sale. Even one of Apple's most prominent stores, and the only one open around the clock, located on 5th Avenue in New York City, didn't have all the models of iPhone to sell. In fact, none of the 38 stores in California, Apple's home state, had iPhones. The figure has been dropping since Thursday, when 50 stores (27%) indicated the availability of iPhones.

Of all the iPhone models, iPhone 3G 16GB model priced at $299 was the hardest to find in the US, being available only in 3 stores, while the 8GB model was available in only 10 stores on Sunday. For a detailed report click here.

Early last week, an analyst from Wall Street has predicted that consumers planning to buy iPhone 3G will have to wait at least a month for Apple to boost its orders with suppliers and refill the pipeline.

We'll have to wait and watch to see how Apple handles this one.

Courtesy : Techtree

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