Welcome!

Python Authors: Pat Romanski, Matt Davis, AppDynamics Blog, Donald Meyer, Liz McMillan

Related Topics: Python, Wearables

Python: Article

iPhone 3G Only Looks Cheaper

Apple Started Chasing the Mass Market with An Entry-level $199 iPhone 3G with 8GB of Memory

Apple has a history of carriage trade pricing, and, although such practices cost it the PC market – while imbuing it with a certain cachet – the policy was enshrined in the original iPhone.

For the first time Monday Apple sorta kinda changed its tune, so to speak, and started chasing the mass market with an entry-level $199 iPhone 3G with 8GB of memory and $299 for a model with 16GB of memory, in either case a $200 price cut compared to iPhone 1.0, $300 cheaper than a year ago.

The price cut isn’t really coming from Apple – at least in the US. It’s coming from AT&T, iPhone’s exclusive US carrier, which will be paying Apple subsidies (rumored to be as much as $450 a phone) to compensate for the price cut.

Apple has forsaken taking a cut of the carrier’s monthly service fees, which will now be going up.

AT&T plans to charge $39.99 a month plus $30 for unlimited data for a two-year contract. That makes the cheapest service plan $10 more for Internet access so users can kiss the savings good-bye, and it’s still unclear how many minutes of talk time $39.99 buys. The base rate of $59.95 for the old iPhone bought you 450 minutes.

Business users get to pay $45 a month for unlimited Internet.

AT&T says the new arrangement will cost it an earnings hit of 10-12 cents a year for the next two years. It’s gambling on higher volumes in the mid-term.

Outside the US the iPhone might be free in exchange for a commitment to a carrier.

The dingus, destined to be sold in 70 countries through multiple carriers in some places, is supposed to hit the stores on July 11 backed by an iPhone Apps store, peddling Apple-approved third-party applications – like a button direct to eBay – for a 30% cut of the proceeds. There could reportedly be a thousand apps available initially, a potentially important revenue generator for Apple.

As expected, the new thinner-still iPhone includes built-in GPS, and thanks to ActiveSync widgetry licensed from Microsoft e-mail sent to and from this iPhone can be synched to corporate and home computers secured by deleting technology from Cisco for 99 bucks extra.

Exchange compatibility and Cisco VPN support are meant to get iPhone’s foot in the corporate door.

For users without Exchange servers there’s a $99-a-year Mobile Me service that Apple calls “Exchange for the rest of us” and describes as being “cloud computing-like” in giving you your “desktop everywhere.” It comes with 20 gigs of storage where you can store e-mail, appointments and address books.

iPhone will also support Office.

Jobs said 35% of the Fortune 500 is testing the iPhone.

Piper Jaffrey predicts that Apple will sell 45 million phones next year. Steve Jobs said Apple has sold six million iPhones so far and wants to move another four million by the end of the year.

Being 3G puts its Internet access close to wireline class. It’s supposed to download data twice as fast as the original. AT&T can provide 3G in 280 US markets now, 350 by the end of the year. Better be in one if you’re going to buy the thing or you’ll have to depend on its backward-compatibility with AT&T’s slower EDGE network.

The battery is supposed to be good for five hours of talk time, up to seven hours of video watching, five-six hours of web browsing and 24 hours listening to music.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (1) View Comments

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


Most Recent Comments
Peterson(3G is designed to provide voice and high-speed mobi 06/17/08 10:26:39 AM EDT

3G is designed to provide voice and high-speed mobile data using the cellular approach already proven to work in mobile phone networks. The biggest obstacle to implementing high speed wireless networks is the lack of bandwidth, or range of usable frequencies. Just as only so many radio stations can be squeezed onto the FM dial, only so much data can be transmitted across the available bandwidth. EVDO is an advanced CDMA technology developed by Qualcomm to deal with this limitation.

IoT & Smart Cities Stories
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
SYS-CON Events announced today that IoT Global Network has been named “Media Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. The IoT Global Network is a platform where you can connect with industry experts and network across the IoT community to build the successful IoT business of the future.
CloudEXPO New York 2018, colocated with DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Disruption, Innovation, Artificial Intelligence and Machine Learning, Leadership and Management hear these words all day every day... lofty goals but how do we make it real? Add to that, that simply put, people don't like change. But what if we could implement and utilize these enterprise tools in a fast and "Non-Disruptive" way, enabling us to glean insights about our business, identify and reduce exposure, risk and liability, and secure business continuity?
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DXWorldEXPO LLC announced today that Telecom Reseller has been named "Media Sponsor" of CloudEXPO | DXWorldEXPO 2018 New York, which will take place on November 11-13, 2018 in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
To Really Work for Enterprises, MultiCloud Adoption Requires Far Better and Inclusive Cloud Monitoring and Cost Management … But How? Overwhelmingly, even as enterprises have adopted cloud computing and are expanding to multi-cloud computing, IT leaders remain concerned about how to monitor, manage and control costs across hybrid and multi-cloud deployments. It’s clear that traditional IT monitoring and management approaches, designed after all for on-premises data centers, are falling short in ...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...