Living with the iPhone

The whole Freeiphoneswap.com process (see part 1) got me worrying and thinking about fraud. And, with frustrations about the iPhone's battery common among bloggers and friends alike, you know there is a lawsuit looming out there as some plaintiff-side law firm will want to take Apple to task for allegedly misrepresenting the iPhone's battery life (both the first generation and 3G). Whether these would-be rentseekers have a claim a jury would buy will be seen.

But thinking about it, Apple says this about the iPhone's battery life:

Talk time: Up to 5 hours on 3G Up to 10 hours on 2G

Standby time: Up to 300 hours

Internet use: Up to 5 hours on 3G; Up to 6 hours on Wi-Fi

Video playback: Up to 7 hours

Audio playback: Up to 24 hours

All of this with a whole bunch of footnoted caveats about testing being one pre-production models in May 2008 with this feature turned off, that one turned on, and that fact that no animals were harmed. But did they take into account all these 2.0 applications? The fact that people would be using their iPhones to do a lot more than talk, surf the new slowly, email or text? Probably not. All of these footnotes are probably enough of a caveat, c-y-a claim for Apple to argue that they never intended for anyone to rely on these estimates or that they made a warranty about battery life, i.e., no fraud, false promise or negligent misrepresentation, essentially, buyer beware. And with that, it'd be hard to muster a claim of fraud. In any case, legal or otherwise, Apple's claims about battery life didn't seem amount to very much. Just in case, these are the elements of fraud in California:

The tort of deceit or fraud requires: (a) misrepresentation (false representation, concealment, or nondisclosure); (b) knowledge of falsity (or 'scienter'); (c) intent to defraud, i.e., to induce reliance; (d) justifiable reliance; and (e) resulting damage. Engalla v. Permanente Medical Group, Inc., 15 Cal.4th 951, 974 (1997).

Apple has, however, put this page up with tips and suggestions about extending battery time, is this all they're going to do? Well, the jury's out on that one.

Was it worth the wait? The 5-hour phone service/text/data outage? Do you really have to get the new iPhone on the first day? The first weekend? From a rational point of view, the answer is probably not. But, from an admitted early-adopter Apple-phile, a resounding hot tamale train YES is the answer. But, this is not without caveats of course (battery life, hassle, and jittery/buggy application crashes). Overall, the new iPhone 3G is slick. The applications (which work 90 percent of the time) are even slicker (many worth special attention to come in the next few posts). Sound quality is much improved. The handset feels bigger, but is lighter. It's more than a refinement over 1.0, but I wonder if that has to do with the 2.0 firmware update that allows those long-awaited, legitimate third-party application bringing in outside innovation.

iPhone 1.0 say hi to iPhone 3G

(Credit: Kevin Ho)

In any case, with the white 3G version that yours truly got, people stop and notice and ask questions like they did last year. Today, I've already had two people stop and ask about the iPhone when they noticed it wasn't the typical one that we all have grown accustom to seeing. Sure, they've seen iPhone before, but when they spotted this one, which is different (it's white for Pete's sake) they stopped and asked to see it and the new applications with a lot of attention paid to the GPS-maps feature (deservedly so).

The fact that people stop, look and ask, and that there are still long of people willing to spend part of their weekends in line is pretty fascinating - even given the tough economic that 2008 had over 2007. As the Field of Dreams quote goes: If you build it, people will come.

It didn't take a check of other CNET stories to confirm that Apple/AT&T's registration servers have either went back to bed or checked out early on a Friday. After the cheers at 8:00 a.m. the line moved less than 20 feet within the first hour. There were at least two announcements from Apple reps (one in a utila-kilt even) that things are "a little bit slow," because of the "overwhelming demand." An insistent, we could always come back later was touted too.

At one point, I was getting discouraged. The Apple Store'ss WiFi connection was increasingly out of range as the line arced around itself. Laptop batteries were fading. Many with iPhones in line started to look antsy and bored too. A geek 2.0 shantytown was at risk of developing. Gripes about AT&T and it's 'ease' of in-store activation were heard. And yet, the line grew longer and added more people. Somehow, the line started to move - or maybe it was just my turn...

But, after 2.5 hours of waiting I was in! And yes, the white 16-gig iPhone 3G was indeed available. "Mike" my handy Apple assistant told me stories of the various difficulties that AT&T has presented to its new and existing customers. Rightly so, as I had to talk to an AT&T rep about my upgrade. Eventually, I won. But others in the store weren't so lucky. One customer apparently dropped his new iPhone 3G and returned it wanting another one. After processing that return, moments later AT&T told the customer he was no longer eligible for the 'incentive' upgrade pricing. Oops.

As for my iPhone is still begging to be connected to iTunes and I have yet to snych it yet. So, more to come. But at least I have one. And it was tax-free too.

Some things never change: Despite being a stranger in a foreign land (a San Franciscan in sales-tax-free Portland on business), despite only getting 4 hours of sleep and despite iPhone 1.0 waffling towards getting iPhone 3G, I found myself in line in front of the Apple Store at 7:00 a.m. in Portland, Oregon waiting for the new iPhone 3G. And, of course, I wasn't alone.

Can you see the line now? The line in front of the Portland Apple Store wraps around the Verzion booth.

(Credit: Kevin Ho on his old iPhone)

My goal: the white 16-GB iPhone. Will I get it? Only time will tell. But like last year's wait in San Francisco, those earliest of the early adopters are primarily male, white and middle-aged. There are free bottles of water, coffee and random post cards of iPhone 3G literature. There are many folks who are toting their 1.0 iPhones too. But, unlike last year, I haven't been in line for more than an hour, there aren't people hawking their places in line for profit, and there aren't the throngs of media (apart from your loyal blogger). And, instead of a release time of 6:00 p.m., early adopters are being made to get up early to adopt their iPhone 3G, well, early on in the day. But like last year, there buzz, excitement, and all that buzz that Apple has been successful at creating, not quite the same as the original, but a more 2.0-like version.

Strangely, I found myself with 30 minutes of free time yesterday. And, instead of doing something productive, I found myself drawn to watch the latest 30-minute iPhone 3G video from Apple.

Sure, it's that same creepy guy from last year, and this time, he looks even more CGI-generated than last. I think he gained some weight too. But, the new features made up for the the excessive use of "most advanced," "incredible" and other doped-up adjectives. Those are 30 minutes down the tubes watching this man, but, the 3G iPhone does look pretty enticing. No idiotic recessed earphone jack (a 'redesign,' really?), mass-email edits, Exchange services, slick Stek Trektricorder-like GPS tracking, finally allowing legitimate third-party innovation via applications... the list does go on. The bells and whistles showcased here did partially counter the weariness I've heard some of my friends fret about the ritualized procedures (and fee increase) that AT&T seems to have imposed on the 3G iPhone launch.

With iPhone 2.0 coming soon, a question I've heard many a current iPhone owner wanting to get the next iPhone ask: what do I do with my old one? This emerging question highlights the early-adopter's plight against the law of diminishing returns. It's doubtful that a current iPhone will fetch more than $100 on eBay. But you never know. This presupposes that people will dump their old iPhones for a new one, but the incentives are there this time around especially with the lowered price, and given our disposable cell phone culture, it's more than likely that people will replace. (This leads to other questions: if you plan to get a new iPhone anyway, why would you buy Apple Care when a new iPhone comes out each year? And, now, with an even lower price, why bother?)

For those who haven't replaced with iPhones and bought them near to day 1 last year when the 1.0 iPhone came out, the clock is ticking to replace them. I've seen these original 1.0 iPhones with batteries that are deteriorating and many 1.0 iPhone screens and cases that are scratched, rendering them even less valuable once iPhone 2.0 comes out.

In my case, I've been a bit luckier as this is my third iPhone which means it's still relatively 'new' (if not refurbished). There hasn't been noticeable battery deterioration (yet) nor is the iPhone scratched especially after I encased it in plastic - sounds like a good eBay tag, doens't it?

Given Apple's previous willingness to swap out iPhones over this past year, will Apple see a sudden surge of iPhones returned this month before the 1-year warranty window runs out? Will this willingness to accept returns for 1.0 carry over to 2.0 and be as generous? After all, when they replaced my dropped iPhone they said it was for research purposes, presumably for the 2.0 iPhone, but if this carries over to 2.0 iPhones is not clear. With mandatory in-store activation and a lowered price point, it doesn't seem like 1.0's goodwill will carry over into 2.0.

A newly negotiated deal with Apple could hurt exclusive U.S. iPhone carrier AT&T in the short term, but the cell phone carrier sees a big upside for the future.

Following the much-anticipated launch of the iPhone 3G at an Apple event in San Francisco on Monday, AT&T announced that it had struck a new deal with Apple. The new arrangement between AT&T and Apple is similar to other contracts AT&T has negotiated with other smartphone manufacturers such as Research In Motion and Samsung.

(Credit: Apple)

Since the first iPhone was launched last summer, AT&T and Apple have shared ongoing revenue from iPhone users. But now AT&T will pay the upfront cost for the iPhone 3G and subsidize the total cost of the phone by making customers agree to a two-year service contract.

The arrangement will benefit consumers by allowing the new iPhone to be sold at a much lower price point. The 8GB version will cost only $199 and the 16GB version will sell for $299 with AT&T's subsidy. This puts the iPhone on par with other smartphones such as RIM's BlackBerry and Samsung's BlackJack.

But the new deal comes at a price. AT&T executives said on a conference call with analysts and investors on Monday that the arrangement will put pressure on the company's profit margins and dilute earnings for the next year and a half. That said, the company believes that the new price point and improved Web surfing experience of the iPhone on AT&T's 3G wireless network will drive sales of the iPhone and get more customers using its data services.

"Less than 20 percent of our customers have integrated devices," Ralph de la Vega, the head of AT&T's mobile business, said during the conference call. "And at the $199 price point we could have mass adoption and put the iPhone in the hands of people who have never surfed the Web on a phone."

What's more, AT&T sees iPhone users as highly valuable customers. Executives said that they are willing to make upfront sacrifices to get these customers on their network.

Specifically, iPhone users typically generate more revenue than basic AT&T cellular customers because they use more data services, de la Vega said. And with the new 3G capability and more applications coming to the phone, executives expect that to increase. iPhone users are also more willing to recommend the device to friends and family. And the churn or rate at which they drop the iPhone and the AT&T service is very low compared with customers using other devices.

"The 2G iPhone experience helped us understand what the customer characteristics are likely to be," Rick Lindner, CFO of AT&T, said during the conference call. "These are high value customers."

As a result of the new arrangement, iPhone users will subscribe to the same kind of voice data plans already offered to other AT&T smartphone customers. This means that as part of the two-year contract commitment, customers will be required to have at least a $39.99 voice plan. And they will choose from one of two data packages. Consumers will get the full smartphone data package for an additional $30 extra a month. Business users who want corporate e-mail can select a data plan for an additional $45 a month.

Update 3:59 p.m. PDT: The new AT&T iPhone 3G data pricing means that consumers will now pay $10 more a month for data service. The original iPhone data plan, launched a year ago, costs $20 a month. An iPhone 3G must be activated in either an AT&T or Apple store, and customers must agree to the two-year service contract with AT&T, de la Vega said.

There comes a point where every early adopter realizes they are no longer really adopting anything unique any more. This happens when a product becomes saturated, more available and more universal. For me, as I've seen over the past few days, that point has come to pass - at least in San Francisco.

Walking around, eating out, and driving around San Francisco, all I see are iPhones. But it's not only the young yupppie/guppie types any more. Rather, there are kids, young professionals, middle-aged folks (not so many older folks though), men, women, white, Black, Latino, Asian, you name it and they are touting an iPhone. Have prices fallen drastically? No. Has that SDK come out yet? Not in an appreciable way yet. But nonetheless, visual evidence indicates that Apple and AT&T are on their way to selling millions of units this year, even if it's not 10 million.

This would explain, perhaps, why it was so easy for me to get another replacement iPhone when I thought I'd have to buy a new one. Unlike my last iPhone which had a portion of the touch-screen die (cell death is what the Apple rep temred it), this time I dropped my iPhone during a 20-mile training ride for the AIDS LifeCycle. It was my fault, plain and simple. The iPhone still 'worked' in a sense as it powered up and displayed its main menu. After all, it's tough enough to have been rolled over by a semi truck - but it was odd to me that a simple drop would disable it to such a great extent. But nonetheless, to fix this problem, or replace my iPhnne, I thought I'd be out a few hundred bucks. I thought wrong.

Because my iPhone impacted on that single spot, it kept switching off and on, and off, and on with a consistent "No Service" message with an occasional sign of hope from AT&T saying service was found. I toyed around with the idea of being to live with a bi-polar iPhone, but dismissed it.

So, I made an appointment at the nearest Apple Store at Stonestown in San Francisco later that day, and came up with all the possible rationales for them to swap my iPhone out. "It was like this way already. Version 1.1.4 messed up my iPhone. My iPhone was possessed." But all these excuses couldn't hide the fact there was a big 'ol dent and scratch on my iPhone that was clearly my fault. Turns out that was all unnecessary as the clerk took a look, noted the issue and muttered something about the iPhone being useful for "research."

With that, I wasn't going to ask any more questions nor say anything And, in less than 10 minutes, I had a 'new' refurbished iPhone in hand. This time I bought a plastic cover for it and promised it that I wouldn't drop it. I walked out wondering what the terms of the warranty were. Would I have really been forced to buy a new iPhone? Luckily, I didn't have to answer those questions.

Next time, the trauma of finally migrating all my music, contacts and ringtones to an iMac from a PC-based iPhone account.

Recent iPhone ads have touted the utility of having the iPhone on a trip. Vacationing with the iPhone is a great convenience, but also makes it harder to vacation.

Using the quasi-GPS and Google Maps, being able to make dinner reservations, forsaking tour guidebooks and printed itineraries it great. On a recent long weekend to Hawaii, my friends and I discovered and confirmed the utility of the iPhone features on the road. So much so, we didn't even bring our laptops, which is a big deal for some of us. Really, it is. The only physical complaint I had about the iPhone was getting sunscreen and sand on it. The only user-interface issue: dragging and dropping the "pin" in Google Maps as it sometimes got tripped up and I wished for some "reset" function to clear out all the locales we looked up.

In a larger sense though, at one point, I kind of wanted to throw my iPhone into a pineapple patch or a volcano (there were road closures do to hot lava flows). But while the iPhone is touted to merge phone, camera, iPod and PDA. Doing so, however, makes it hard to truly disconnect and unplug - spam emails follow you, work emails come too. Sure, this is true with any phone or mobile device. But doing so is both liberating and daunting as it takes me a particular amount of will power to switch off my phone and to keep it off for an extended period of time. Imagine a knight without their sword, a politician without their teleprompter (or morning talk show hosts on SNL for that matter).

Switching off the iPhone, I think requires oo much effort to think about it on vacation by my book. But there are times for serenity and calm, however. the horror!

Anyway, I say this all as we still await the SDK package, meaning we may get Exchange server emails and endless applications that make us even more reliant on the iPhone.