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Home > News > Apple announces cheaper 3G iPhone

Apple announces cheaper 3G iPhone

Apple has unveiled a second generation of its iPhone, with support for faster 3G wireless networks. The company is hoping to boost its share of the smartphone market, which is dominated by Nokia and Blackberry.

Apple 3G iPhone, iPhone 3G FAQ, iPhone 3G Converter. Apple has unveiled a second generation of its iPhone, with support for faster 3G wireless networks. We pick the best iPhone 3G FAQ, iPhone 3G Converter such as DVD to iPhone 3G, iPhone 3G Video Converter here.

The new devices were launched by Apple boss Steve Jobs who said the phone would be ""more affordable"" for consumers, starting at $199 (£100).

The new iPhone also comes with GPS satellite navigation built in for location-based services.

The iPhone was first launched last year and was criticized for its support for slower 2G networks only.

Mr. Jobs said the 3G iPhone was ""three times faster"" downloading content over a mobile network compared to the original device.

Analyst John Delaney, research director for consumer mobile at IDC, said the iPhone 3G was disappointing. ""To me it's more about what they didn't say, than what they did. Everyone knew it would be 3G and have GPS.""

Apple has a 20% share of the U.S. smart phone market, but only 5% worldwide.

Rival manufacturers

Rival handset manufacturers have also been designing devices which assume the iPhone's mantle as the ""most desirable phone on the market"", including Nokia's N96 and the Blackberry Thunder.

Google's Android platform will also hit mobile phones later this year, adding yet more competition to the high-end consumer smartphone market.

Apple has sold more than six million iPhones since the device debuted in the U.S. in June last year and the firm says it is on course to sell 10m iPhones by the end of 2008. Mr. Jobs said the cost of the original iPhone was the ""number one reason"" that people had not bought one of the devices. Mr. Jobs said ""The iPhone started at $599. It now sells at $399; We want to make it even more affordable.""

The cheapest 8GB iPhone 3G will sell for $199, while a second model with 16GB of storage will sell for $299. Mr Jobs pledged that the $199 price would be the same across many countries.

The new iPhones will be launched on 11 July in 22 countries, including the UK.

Reaction to the new 3G iPhone from developers and media at the conference in San Francisco was broadly positive, said BBC technology reporter Maggie Shiels.

Henry Kannapek told BBC News that the $199 price tag would be hard to resist when the phone hit the shops.

""It's tremendous. It's an incredible price. It's the best mobile device I have ever seen. I've got some cheap cell phones and I want to buy one of these.""

Developer Chris Cooksey of Wimba said Apple would score big with such a low price point.

""It's a great price. They have made huge improvements to the phone and the fact that you can do 3rd party applications rules."" Mobile developer Robert F. Farnum, of Boingo .com, told BBC News he was all set to splash out on the new device for his family.

'Pretty excited'

""I've got six people in my family that need to get one so I just sent them all e-mails saying they have to buy it. The price just blew me away and the software is amazing. It is the best phone on the market.""

Michael Arrington, of the influential blog TechCrunch, said: ""I was pretty excited by what I saw but I was hoping for a thinner model and a front-facing camera. But I think with the 3G speed and the price point it looks like a winner.""

Analyst John Delaney said: ""The fact it's cheaper is interesting. But how is it going to be cheaper? ""If Apple is doing it by cutting the retail price, it will drastically hit their margins; if they sell volume.

""If the lower price is through operator subsidy, they are becoming a bit more humble. But that's not clear at this stage. ""Either way, they are going for volume. But they have got a big mountain to climb outside of the U.S.""

(Source: BBC)

iPhone 3G FAQ

Posted by Kent German
June 11, 2008 5:23 PM PDT

Is your heart aflutter at the though of buying an iPhone 3G? Are you counting the days until the July 11 release date? If this describes you, or even if you are just toying with the idea, there are a few things you'll need to know. The process for buying an iPhone 3G will be quite different from what it was last year for the original model. Fortunately, CNET is here to tell you all you should need to know.

Q: What's so great about the iPhone 3G?
A: The iPhone 3G adds important features that were absent on the original iPhone. It now has support for AT&T's 3G networks, true GPS, and Microsoft Exchange server. The iPhone 3G also will support third-party applications available through the upcoming App Store. Its design is different as well, but not by much.

Q: What's not great about it?
A: We were hoping to see a few more features including multimedia messaging, voice dialing, video recording, and a landscape keyboard.

Q: So should I get it?
A: If you want an iPhone, but haven't yet bought one, this is the iPhone for you. If you already own an iPhone, the choice isn't as clear. However, if you can afford to upgrade, you should. The added features will be worth it. We only stress that you should verify that AT&T has adequate 3G coverage in your area.

Q: Where can I buy the iPhone 3G?
A: It will be available only in Apple and AT&T stores. You'll also be available to get it at AT&T kiosks in shopping malls. It will not be available online.

Q: Wait, so I can't get it on the Apple or AT&T Web sites?
A: No, you'll have to go to a store, which is more than inconvenient if you don't live near one.

Q: Can I still activate my phone using iTunes?
A: Unfortunately, you'll have to do that in an Apple or an AT&T store as well. You will not be able to take it home and do it there. Major bummer.

Q: Why are AT&T and Apple doing that?
A: We suspect that it's a way to crack down on iPhones that were purchased but were never activated on AT&T's network. By forcing you to activate the phone in a store, you'll be forced to sign up for AT&T service.

Q: Won't that create a mob scene on stores on July 11?
A: I expect that it will be pretty crazy that day. Though stores were mobbed last year, buyers had only to pay for their phone and get out. This year, however, they'll have to go through the entire process for credit approval, contract signing, and activation before they can leave. If you figure that each person will take at least 15 minutes to complete their transaction, then we should see some long, and slowly moving, lines.

Q: Will AT&T employees be working in Apple stores?
A: Probably not. Apple has not released details, but we expect that the process will be similar to how stores such as Best Buy handle cell phone activations now. It's likely that you'll be dealing with an Apple employee who will have access to AT&T's computer system.

Q: How much will the iPhone 3G cost?
A: This is one area of good news. While last year buyers paid up to $600 for their iPhones, the iPhone 3G will be significantly cheaper. The 8GB model will cost $199 and the 16GB model will cost $299, both with a two-year contract.

Q: Can I use an iPhone 3G with AT&T's Go Phone prepaid service?
A: Not at the moment. But this may happen in the future.

Q: But what's this I hear about the plans being more expensive?
A: It's true that Apple and AT&T are changing the structure and pricing for the iPhone 3G plans. Unlike with the previous handset, you will have to select separate voice and data plans (they won't be combined). Voice plans, which are the same for all AT&T handsets, range from $39.99 to $79.99 per month, depending on the available minutes. Unlimited data plans will be $30 for consumers and $45 business users.

As a result, the cheapest monthly cost for an iPhone user will be $69.99 for unlimited data, plus 450 anytime minutes and 5,000 nights and weekends. That's $10 more than what current iPhone users' pay for comparable services.

Q: The original data plan came with 200 free text messages. How much text messaging do the new data plans include?
A: The details aren't known yet.

Q: Will the new $30 and $45 a month data plans offered for the iPhone 3G be the same as the standard data plans for other AT&T smartphones?
A: Not necessarily. According to AT&, it is still working out the details and will have more information closer to July 11 when the phones go on sale.

Q: I heard that people who already have a first-generation iPhone have to turn it in to an Apple or AT&T store if they want the 3G phone. Is that true?
A: No, but AT&T is giving people who bought their first-generation iPhone on or after May 27 the opportunity to exchange it before August 1. AT&T and Apple will refund the difference in price but iPhone 3G users will have to sign a new two-year contract and choose a new plan. If you go this route, don't forget to erase your personal data.

Q: If I keep my current iPhone, will I miss out on all the new features?
A: Through the iPhone 2.0 software update, you'll get a lot of new goodies including the third-party applications and the Exchange server support. Yet, you will miss out on the 3G and GPS.

Q: I already have a comparable smartphone from AT&T and a two-year service contract. Can I buy the iPhone 3G for the $199 price and simply restart my contract?
A: It depends on when you started your initial AT&T contract. To get the $199 price tag, you have to meet AT&T's upgrade eligibility criteria. We'll know more on that later.

Q: Let's say I bought my iPhone last year and I want the iPhone 3G. Can I give my old iPhone to my sister or sell it on eBay?
A: No, once an existing iPhone user activates service for an iPhone 3G, their first-generation handset will be unusable as a phone. You won't be able to replace it with another AT&T SIM card and use it to make calls. This also means that you can't buy an old iPhone on eBay and expect to activate it on AT&T's network. However, you can use it as a media player and a Wi-Fi device for browsing the Web.

Q: Will people living in areas without native AT&T coverage be able to buy an iPhone 3G?
A: No, anyone buying a iPhone 3G must live in an area where AT&T provides coverage. Since the phones will be activated right in the store, people won't be able to leave the store without activating the phone for service in area where AT&T is offered.

Q: Will the SIM come preinstalled this time?
A: Yes, the SIM is already installed and is not meant to be removed or replaced with other AT&T SIM cards (though it is physically possible to do so). On the other hand, Apple will include a SIM removal tool in the box.

Q: Do I have to be in the store to get software updates or to sync it with iTunes?
A: No, updates and syncing with iTunes can be done right from your home computer. You can also buy applications from the App Store from your computer.

Q: Can I use the iPhone 3G overseas?
A: As a quad-band GSM phone with support for three 3G bands, you'll be able to use the new iPhone all over the world. Just remember that the phone will be locked to AT&T so you won't be able to use another carrier's SIM card. If you're a frequent globe-trotter, you should ask about AT&T's international plans to avoid nasty surprises on your bill.

Q: Will the iPhone ever come to other carriers in the United States?
A: There is a chance it could come to T-Mobile, but it won't be for a long time. AT&T is believed to have a five-year lock on the iPhone (now through 2012), but other reports indicate that its monopoly will be up in 2010. Unfortunately, it's unlikely that Apple will ever develop a CDMA version for Sprint or Verizon Wireless.

CNET's Marguerite Reardon contributed to this report.

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