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June 26, 2008 1:13 PM PDT

Details scarce ahead of iPhone 3G launch

by Tom Krazit

When, and how, will people get their hands on the iPhone 3G?

(Credit: Apple)

A few tidbits about the upcoming iPhone 3G launch have trickled out this week, though unfortunately, none of them are particularly illuminating, taken individually.

Perhaps the most interesting one--if only for its lack of details--is the memo distributed to Apple Retail employees this week in FAQ-style concerning the July 11 launch of the iPhone 3G.

Employees are being instructed to answer "I don't know" to any number of pertinent questions surrounding the launch, such as how the in-store activation process will work, any upgrade offers from the original iPhone, or any planned price cuts to the iPod Touch.

AppleInsider reported that Apple is planning meetings for July 6 with its retail staff, presumably to share these details, once the company has finalized its plans.

Last year, the actual time of the iPhone launch was subject to much speculation until Apple finally settled on its "Happy Hour with the iPhone" plan.

This year, it seems a late-afternoon or early-evening start would mean a long night for employees trying to process in-store activations, so a rumor that sales would begin at 8:00 a.m. circulated on the pages of The Boy Genius Report. That remains unconfirmed, but it makes some sense, if in-store activations take several minutes to process, as expected.

Another huge difference between last year's iPhone launch and this year's is the number of countries participating in the launch of the iPhone 3G. We got some sense of what the iPhone 3G is going to cost overseas, with Orange in France declaring Thursday that the iPhone 3G versions would respectively cost 149 euros and 199 euros, or $232 and $310.

The European carriers seem to be offering upgrade paths for original iPhone owners, something that AT&T has not mentioned in its prelaunch marketing.

One last tidbit comes out of Spain, where Telefonica has apparently received 300,000 preorders for the iPhone 3G.

Demand for the first-generation iPhone in Europe was sluggish, but the addition of the 3G networking chip might have changed the minds of cell phone buyers on the continent. If Spain's pent-up demand is any indication, Apple should do pretty well with iPhone 3G sales.

Tom Krazit writes about the ever-expanding world of Internet search, including Google, Yahoo, online advertising, and portals, as well as the evolution of mobile computing. He has written about traditional PC companies, chip manufacturers, and mobile computers, spending the last three years covering Apple. E-mail Tom.
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by bobmarleypeople June 26, 2008 1:52 PM PDT
The whole "you MUST activate in-store" thing is pretty stupid. I admit it's a fairly good way to try and avoid people buying and then unlocking, but combined with the demand for the device, it will mean very very long waits. This also virtually removes the possibility of buying the iPhone as a gift for someone, especially since the new price is so low. It's also rather annoying that the iPhone is now much cheaper than the iPod Touch, although the above may suggest that Apple is considering it. As far as upgrade offers go, here in the UK, O2 are letting current iPhone owners upgrade for free to the new phone as long as they take up a new 18 month contract (and finishing the old one early).

We shall see how things develop in the run-up to iPhone day 2008!
Reply to this comment
by MarsB June 26, 2008 4:57 PM PDT
Unfortunately, despite how stupid it is, ATT is paying subsidies to Apple for every phone sold more than likely. Meaning, the moment the phone gets sold, ATT technically owes Apple $xxx.xx. Thus, more than likely it's ATT that cares alot about the activation process, and not Apple (as they get paid regardless). Thus, the only way ATT can recover their costs is to make you activate in the store. If you take the phone home without activation, you can hack the phone (theoretically) and never sign up with ATT (although they dished out the upfront money). Thus ATT would lose out on a lot of $$$.


As far as buying as a gift... why don't you just give them a gift card for $200?
by cirtap June 26, 2008 3:30 PM PDT
I think i am skipping this new improved iphone, and wait for 4G phone with 32 G or more. I think it wrong for Steve Jobs to say, well this is the only way U can get this new and improved iphone, I don't want AT&T two year deal where they r gonna hike up everything by 10 dollars. I want and UNLOCKED iphone and just pay as u go, like t-mobile cards. I think it is the better way. And if they r reducing the price of the ipod touch, which they are, it is like Steve Jobs, to shove the ipod touch for what 499 one month and the next, WITHOUT telling a soul, it will be 299. GREED!
Reply to this comment
by MarsB June 26, 2008 5:01 PM PDT
Apparently you found out what supply and demand is... as well as pricing an item. Are you trying to tell me that your TV is worth as much as when you bought it 6 months ago? Or what about the computer you're using? I can guarantee you that no matter what, in the world of electronics, there will be something better, more shiny, and less expensive in 3-6 months after the time you buy your equipment. It's just how it is. My 2 year old laptop that I paid $1800 for is crap now compared to the $1000 laptops. Learn to live with it, it's not Jobs, it's not Apple, it's everyone...
by Shirl1699 June 26, 2008 3:37 PM PDT
Does the new iphone have stereo bluetooth capabilities?
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by digitalsilvers June 27, 2008 9:19 AM PDT
No...great upgrade, right?
by SuperDave9999 June 26, 2008 5:51 PM PDT
It must be great to be Steve Jobs and be able to do pretty much anything he wants and know that a certain percentage of the population will just beg him to flog them a little harder.

And yes, I plan to buy an iPhone next month.
Reply to this comment
by Nicholsonmr7 June 26, 2008 7:37 PM PDT
The real shame in all of this is that Jobs's new slogan "twice as fast, half the price" is only a reality for some. For those of us who have att and are not currently eligible for an upgrade, we will pay a yet undisclosed greater cost to attain the 3g. Though no one is really talking about this, my source at att seems to think that even non att customers switching over to purchase the phone will also have to pay a greater cost. Consider that the majority of current iPhone customers will not fall into the small window of recent purchase upgrades, leading to even more "iPhone enthusiasts" paying the exorbitant costs. Not to mention that even if you pay full price you still have to lock in a two year agreement with a $30 a month iPhone package. I say screw att, sell the phone at apple stores and let them be used on any network. Thats the way it should be anyway.
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by www.hdgreetings.com June 26, 2008 10:39 PM PDT
Doesn't matter to me I'm in - this phones are a quantum leap beyond what smartphones used to be.
Reply to this comment
by sudeshp June 26, 2008 11:31 PM PDT
It does not make sense to launch 3 g version of iPhone in countries like India where there is no 3 G network and there are no chances of that happening anytime before 2010. So, Apple should better drop 3 G word from its phone. So the fact that there will be better faster internet access does not apply to India.

I have an unlocked iPhone and all I can say that it is a wonderful product except for some annoyances like flash not being enabled.

pricing will be an interesting thing to watch as neither Airtel nor Vodafone have revealed this. I think it will be priced at around Rupees 12000-15000 range

I have done a detailed review of my experience in the last one month. You can check out if you want at:

http://www.sudeshprasad.blogspot.com/
Reply to this comment
by cnetcensorssuck June 27, 2008 1:37 AM PDT
The 3G iPhone is backward compatible with 2G networks.
by benjaminstraight June 27, 2008 3:00 AM PDT
I can't wait for this to come out.
Reply to this comment
by Fantastipotamus June 27, 2008 7:59 AM PDT
I love all the hate directed at Steve Jobs himself, like the pricing, rebates and ATT plan cost are his doing. I'm willing to bet that pricing, rebates and plan costs are 100% ATT, as they're the ones that stood to lose when people bought phones and unlocked them at home for use on other networks.

As previously mentioned, in-store activation helps to safeguard that the subsidies that ATT are paying to Apple (which they ARE paying) aren't just going to waste on iPhones which won't be active on their networks.

It's also worth noting that Steve Jobs has taken a salary of $1 for the last couple years.
Reply to this comment
by BankAdmin June 27, 2008 9:37 AM PDT
Apple sheep.....
The Iphone is not a smartphone. It's a Ipod that can make phone calls. Have fun doing spreadsheets and word processing on a touch screen.
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by TomMariner June 27, 2008 11:54 AM PDT
Those who see the wave coming get to ride it. Those who wait for the next or declare there is no wave get tossed to the bottom.

It's innovation folks. It has been obvious for a while to some of us that color touch screens and great user interfaces make up for mediocre anything else. I launched a product with a color touch screen ahead of the marketplace and it has cemented our place in the market segment.

If you are a competitor and you can't bury them with money, your only play is to out innovate them. You can't out lawyer or out talk innovation, you just have to hold your nose and pay lots of bucks for those nasty techies, then get the heck out of the way. Not very "organization" or "B School" but if you're putting you money into a firm whether as a customer or an investor all you really want them to do is to win ... and treat you right.
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by BankAdmin June 27, 2008 1:20 PM PDT
This "wave" you talk about... is this a wave of getting locked into a ridiculous 2-year contract? Followed by paying an extra $10 a month ($5 extra if you want SMS) for 3g?

AT&T unlimited data plan - $65 dollars
Verizon Unlimited data plan - $40

Apple found a market segment that is willing to pay a premium for a pretty device with half the functionality of other devices. I'll call it a smart marketing campaign, but i'll stop short of calling it innovative.
Reply to this comment
by purcell429 June 27, 2008 1:57 PM PDT
Hey there "BankAdmin"... do you know how to actually read things? Or do you just pull magic numbers out of thin air? Yes, verizon is $40 extra dollars a month for data... but ATT's new iPhone plan is only $30 for unlimited 3G data. And the old Plan was only $20 for unlimited 2G data. Learn how to read before you post comments on things.
by pedrostee June 27, 2008 6:28 PM PDT
gee 2 year contracts with cell phones - thats really extraordinary.. not

u have a lame=o contract with your cute little 3g vx modem, too, no?

this line of yours "Apple found a market segment that is willing to pay a premium for a pretty device with half the functionality of other devices" is moronic

if u are indeed a "bankadmin" - well that's a real growth industry
by cnetcensorssuck June 27, 2008 10:21 PM PDT
For your information, AT&T's plan is $40 too. The $65 dollar price is for voice PLUS the forty dollar data plan.
by tarheels00 June 28, 2008 1:33 AM PDT
screw Jobs i already got the 1st gen iphone im not gonna get the other one, instead i got my self a Nokia N95 8GB
Reply to this comment
by yheru85 June 28, 2008 6:21 PM PDT
here, here. I agree. I don't understand why people would willing to get tied to a certain provider just so you can get iPhone? I want the UNLOCKED version which allows you to use local SIM when you travel around the world. It's a way of what I call convenient and cost saving for customer. I guess some people likes to be tied by AT&T. I thought America is land of freedom and you can choose whatever you want. Well, apparently not when it comes to iPhone. You are forced to choose AT&T if you want iPhone, if not just like anyone else look for other phone.
Reply to this comment
by willwy June 30, 2008 12:59 PM PDT
The whole business about the 3g being "half the price" is such crap. Lets see here

iPhone 3G $199+($30 extra per month x 24 months(2 year agreement))=$919

Original iPhone $399+($20 extra per month x 24 months(2 year agreement))=$879

So excluding taxes, the new iphone will actually be $40 MORE in the long run. Thanks At&t for bending over and screwing your customers once again.
Reply to this comment
by anti3g July 7, 2008 7:09 PM PDT
The actual price of the new apple iphone 3G = $399!

The published price being advertised all over for the new apple iphone 3G is $199?what they are not telling you is that price is only for new ATT customers and those current ATT customers who happen to be eligible for an equipment upgrade (according to ATT, upgrade eligibility is ?generally? determined by the amount of time remaining on a current contract). For all those current ATT customers who do not happen to be at the end of their contract, the actual price for you is $399 plus an $18 upgrade fee along with a new 2-year contract. ATT is penalizing their long-time, account in good standing, customers a whopping $200. Why is the actual price of the new iphone not being advertised for what it is?$399? It?s the same price as the old iphone with an increase in the data plan.

Post your 3G iPhone activation experience or opinion at:
www.themissingasterisk.blogspot.com
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