apple iphone carnival - June 30, 2007

Welcome to the June 30, 2007 edition of apple iphone carnival.

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Ruby presents 7 Things About Success That You Can Learn From Steve Jobs posted at Advice and Rants.

apple iphone

Craig Huggart presents The iPhone Prophesy posted at Tech Rest, saying, "My quick thoughts about the future of the iPhone."

Meredith Mathews presents Link Karma: Apple iPhone Commercials, Demos & More! posted at Lemonade Stand.

Ant presents Apple iPhone - Extra Product Review posted at The Beef Jerky Blog.

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iPhone: What the Critics Say

Boston Globe
Hiawatha Bray writes that he couldn't trash the iPhone if he wanted to. The Globe sees the iPhone as unprecedented and says it leads the way for the newest cell phone technology: "For it's not just cool; this phone is important, in the same way that Apple's first Macintosh computer was important. The Mac showed us a better way to interact with computers, and forced the entire industry to follow its lead." In the end he called it: "an elegant marvel that even a hype-weary journalist has to love."


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CBS News
Larry Magid writes "My overall thought is that the iPhone's software represents a truly remarkable accomplishment... Regardless of how well this device ultimately does, it will always be remembered as the phone that broke the mold from which all others were fabricated." He says the biggest difference in this cell phone compared to others is the lack of a physical keyboard which he said, "While my very first experiences with the touch screen were frustrating and — five hours later — I still find myself making some mistakes, I can certainly understand the advantage to being able to dynamically re-define the keyboard depending on the task at hand." He also gave the phone a mixed review when it came to the Web. "The good news is that the phone's version of Apple's Safari browser is by far the best browser I've ever used on a hand held device," but he said it's hard to read the text since the screen is so small.

CNET
Kent German and Donald Bell give the iPhone an 8 out of 10 rating, which is equivalent to excellent and say the bottom line is: "Despite some important missing features, a slow data network, and call quality that doesn't always deliver, the Apple iPhone sets a new benchmark for an integrated cell phone and MP3 player." The positives are that "its Safari browser makes for a superb Web surfing experience, and it offers easy to use apps. As an iPod, it shines." But it also has variable call quality and lacks stereo Bluetooth support and 3G compatibility. It also has "stingy" integrated memory for an iPod.

Engadget
The website's review of the iPhone highlights a comparison chart between the phone and Helio's Ocean handset. They say, "Quite frankly, the chart does make a few good points, most notably around the iPhone's lack of GPS, strangely omitted MMS ability, and the obligatory removable battery; of course, we personally aren't offended nor joyous about "MySpace integration," but we suppose it could sway some folks tweens one way or another." Other posts point out more iPhone deficiencies — it isn't supported by 64-bit Windows XP or Vista and doesn't work with most third-party headphones. However, another post points out a positive — the iPhone is "pottymouth friendly" and allows users to write curse words.

New York Post
Glenn Fleishman tells readers not to buy the iPhone at all. While he calls it "a technological marvel," he says Internet and email are sub-par and the small screen makes it hard to read Web pages. He also criticizes the network saying "Modern cell networks use third-generation (3G) standards that are five to 20 times faster than the iPhone" and says the phone scrimps on storage. He urges consumers to wait until the 2.0 version saying "You can bet that iPhone 2.0, probably available withing the next year, will be faster and have more storage — probably for the same price.

New York Times:
David Pogue writes that much of the hype and some of the criticisms are justified — "it does things no phone has ever done before; it lacks features found even on the most basic phone." He says the biggest achievements are the software, because the phone is "fast, beautiful, menu-free, and dead simple to operate," and the Web browser because "you get full Web layouts, fonts and all, shrunk to fit the screen." The downfalls are the AT&T network — call quality is average and they use an ancient EDGE network to connect to Web — and missing features like a memory-card slot, chat program and voice dialing. You also can't install new programs from anyone but Apple and the browser doesn't support Java or Flash.

San Francisco Chronicle
Ryan Kim writes that the iPhone deserves all the attention it's getting and says, despite the flaws, "this is a device that will be defined by what it brings to the table, not what it leaves behind." He says the simple design is inviting — "the lure of the iPhone is that it makes you want to use it. It's actually fun." He also says when he uses it "I keep coming back to the word 'fluid' because each action seems to flow into the next. Nothing is abrupt."

TG Daily
Wolfgang Gruener writes "After spending a day or so with the phone, it is clear to us that Apple has created a special product that extends far beyond the definition of a cellphone." They says it's not just a phone, "it is a mobile communications device that will also entertain you." However, they say, expect this phone to be a beta product and expect breakage to occur and that it shouldn't be used as a communications device for your business.

USA Today
Ed Baig says "Yet with a few exceptions, this expensive, glitzy wunderkind is indeed worth lusting after... Apple has delivered a prodigy — a slender fashion phone, a slick iPod and an Internet experience unlike any before it on a mobile handset." But he says that it may not be "the most ideal smartphone for every user. It's pricey. It lacks certain features found on some rival devices. AT&T's coverage was spotty in some areas I tested over the past two weeks. Your employer may prevent you from receiving corporate e-mail on the device." The most remarkable thing missing is the physical dialing keyboard and instead, "finger-tapping takes getting used to." But one of the best features is visual voicemail, which lets you prioritize the messages you hear first, instead of listening to them in the order they arrived.

Wall Street Journal
Walter Mossberg and Katherine Boehret write that "despite some flaws and feature omissions, the iPhone is, on balance, a beautiful and breakthrough handheld computer." The iPhone's best qualities include the software, which "sets a new bar for the smart-phone industry," and its clever finger-touch interface, along with its ability to roll intelligent voice calling, a full-blown iPod, the best Web browser seen on a smart phone and robust email software that synchronizes easily with Windows and Macintosh computers using iTunes into one phone. They say it "makes other smart phones look primitive." The major drawback is the cellphone network — it isn't able to use AT&T's fastest cellular data network to sign online. Instead, it uses a "pokey network" called EDGE, which is "far slower than the fastest networks from Verizon or Spring that power many other smart phones."

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Iphone Review - Apple's simple, versatile iPhone changes the game

Apple's simple, versatile iPhone changes the game


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Ryan Kim, Chronicle Staff Writer

Saturday, June 30, 2007

So ... is it all that?

After all the ink that's been spilled describing, previewing and hyping the Apple iPhone, does it deserve the attention? I'd have to say yes.

It has its flaws and omissions, but this is a device that will be defined by what it brings to the table, not what it leaves behind.

Will you want to buy it? Well, that's a personal question that has to do with your take on the value of technology. I would have loved it to be $100 cheaper. But let's be clear: This Internet, music and cellular device is a game-changer.

The lure of the iPhone is that it makes you want to use it. It's actually fun. Do we say that about any phones? Hardly. It's not really the physical design, which is a marvel of simplicity. It's what happens when you pick it up and use it. There is nothing intimidating about it. Rather, it's inviting.

Here is a quick look at some of the key features:

-- Touch screen: It starts with the 31/2-inch touch screen, which the iPhone uses to great effect. On other phones with a traditional directional pad, you can measure people's attention fading away by each click of the button.

But with the touch screen, even mundane tasks seem interesting. You're actually able to move things about, sliding your finger here and there, conjuring up fluid screens that slide and zoom into place. Unlocking the phone involves a sweep of the finger. Gliding through your music library requires a similar movement. You can "pinch" pictures and Web pages with two fingers to make them larger or smaller.

I keep coming back to the word "fluid" because each action seems to flow into the next. Nothing is abrupt.

For those who remember the first time the mouse was introduced, it's a similar sensation. This is something quite new, utterly engaging and smile-inducing.

-- Keyboard: The biggest question about the iPhone has been how the virtual keyboard works. It only pops up when you need it, but because it has no physical keys, there is no tactile feedback. Instead, you have to watch your typing and then rely on the iPhone's intelligence, which constantly works to correct your spelling and also predicts what letters you're trying to press.

I found that it performed better than I thought, though it was still difficult early on to get the hang of it. It will take awhile to get up to speed, especially if you've got thick fingers.

There are some problem words you will need to look out for. Mine was the word "but," which came out "bit" or "not." The virtual keyboard won't replace the BlackBerry's keypad yet, but it'll get the job done if you give it some time.

-- The Internet: The Internet experience is beyond what I've seen on other phones. Surfing the Web on your cell phone or smart phone can be grim work. Even on phones that allow you to call up regular Web pages, not watered-down mobile versions of regular Web sites, the text and pictures are reordered to fit the small screen. No wonder only 11 percent of people surf the Web on their phones.

But with iPhone's 31/2-inch screen, you're able to call up the actual Web site and see it in full as it would appear on your computer. With a double tap on the screen, you zoom into the page. A quick double tap and you're back out. If you want to move around, you just drag your finger and "pull" the page in one direction or the other. The screen is sensitive enough to discern when you're trying to pull the page in one direction and when you're trying to connect a link on the page.

It's not a perfect port of the computer experience. You can't watch Flash-based videos, and the browser won't support Java. And when you're out and about, you have to rely on AT&T's Edge data network, which, while a few times faster than dial-up, is not as fast as the state-of-the-art 3G data network, which approximates DSL speeds. But when you're in Wi-Fi range, the iPhone is really able to make good on Steve Jobs' promise of delivering the Internet in your pocket.

-- Music: The iPhone is a sweet music player, too. Gone is the iPod click-wheel, which will probably never make another appearance on a full-size iPod. Here you just scroll through your library by sweeping your finger. Turn the phone sideways and you can view your album covers through Cover Flow, allowing you move through your collection visually with, again, a sweep of your finger. When a call comes in the song pauses and then resumes when the call ends.

-- Video: Watching videos on the iPhone is where you can really take advantage of the large screen in landscape view. Tapping on the screen brings up onscreen controls. Tapping twice moves you between full-screen and widescreen views. The screen is brilliant, and the experience of watching TV is full. I've stopped watching videos on my iPod, partly because of battery concerns but also because the screen seems too small. This gets it right.

-- Phone: Lest we forget, this iPhone makes phone calls. Because it has no keyboard, you're just pressing virtual buttons on the screen. But the act of making calls, moving through your contacts and setting up conference calls is a breeze. Every task is organized right on the phone screen, and it's just one-touch to get started. Visual voice mail is a bit of a treat, especially if you're someone who lets voice mails pile up. Here you can just view the voice mails as if they're e-mails, allowing you to jump to the messages that seem the most important. The phone quality was OK, though a friend experienced an echo when I put him on speakerphone.

-- E-mail: It's not a BlackBerry. But it sets up e-mail nicely with programs like Yahoo, Google and AOL. I wasn't able to set up on our corporate exchange server through the IMAP protocol. My company, like many others, won't allow you to access e-mail because of potential security risks. But when you get the e-mail running, it's actually very fun to use with clean messages that support full HTML, so your picture attachments come through. Word, Excel and PDF files are also viewable, though you can't edit them.

-- Pictures: Pictures are fine, too. You do the pinching maneuver to resize your photos and sweep your finger to move through your library. For pictures in landscape mode, you just turn the phone horizontally and it reforms the picture to fill the screen.

-- Applications: Google Maps is nice, though it would have been great to have GPS. Without it, you have to enter your location to find nearby stuff or get navigation help. It allows you to do turn-by-turn navigation, but you have to update the process after each turn. You do get live traffic updates on a map, showing you where trouble spots are. YouTube support was a late addition and a nice one at that, allowing you to kill time checking out videos.

Again, this is not the perfect phone. You can't voice-dial, and there is no word on downloadable ring tones or the ability to make your own ring tones. And without the fastest data network, it's not always as fast as it can be when surfing the Web. GPS installed would have been nice, too.

But for a first effort, this still blows away so many other phones because it takes us to a new level of interaction with our mobile devices. This makes the promise of a "mobile computing" future seem possible because it's now something we want to do.

The cell phone, the most personal of technology devices, has just gotten a whole lot more personal.
Apple iPhone

Combination cell phone, media player and Internet device.

$499 for a 4GB unit, $599 for an 8GB unit.

Sold through Apple and AT&T stores and online at www.apple.com.

This article appeared on page A - 11 of the San Francisco Chronicle

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Iphone Debuts - New York

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By JEREMY W. PETERS
Published: June 30, 2007

Apple wanted a spectacle when the iPhone went on sale, and it got just that.

Dozens of photographers hovered outside Apple’s flagship store on Fifth Avenue near East 59th Street, waiting to snap pictures of the elated, often sunburned faces of the first iPhone owners. Some Apple faithful had waited in line for days.

At 6 p.m., their patience paid off.

“I guess I didn’t need to get in line because they have thousands of them in there,” said Norbert Pauli, 52, who had waited since Wednesday morning outside the Fifth Avenue store. The sweaty tangle of people who lined up there included a customer service representative for a trucking company who took a vacation day to make her first Apple purchase; a jazz musician who declared, “I don’t stand in line for anything”; and a tourist from Argentina who said he was not even sure the phone would work once he got it home.

At Apple stores across the country yesterday, there were the so-called iCultists, the Internet entrepreneurs and technology consultants who would have surprised you if they said they didn’t wait in line all night.

“If Apple made sliced bread, yeah, I’d buy it.” said Andrew Kaputsa, who waited outside the Michigan Avenue Apple store in Chicago. “It’s just good stuff. Everything they touch.”

But then there were the iConverts, the not-so-savvy customers who did not know much about the iPhone other than that they had to have it.

“Have I drank the Kool-Aid?” said Marc Falato, 42, a Broadway producer who got in line at the Fifth Avenue store around 8 a.m. yesterday. “I think maybe to a certain extent. After all, you can order it online tonight and get it delivered in three to five business days. So I guess I bought into the hype.”

Tracy Carroll, a 42-year-old Internet consultant who waited in line just a few steps ahead of Mr. Falato, said, “I’m buying it sight unseen, and that’s kind of rare for me.” Later, as he was walking away from the cash register with two iPhones in hand, he said, “Oh man, it was so worth it.”

The iPhone, which sells for $499 or $599, depending on memory size, is a huge step for Apple. But it is also critical to AT&T’s growth. The telephone company has an exclusive contract with Apple in the United States to sell the phone and provide wireless phone service, and is betting on an influx of new customers. Of course, that would mean that people who already have cellphone service with other carriers must be willing to pay the hefty fees to break their contracts.

Indeed, there were several T-Mobile and Verizon Wireless customers in line yesterday in Manhattan. “That’s not even an issue. I want the phone,” said Cassie Tran, a 25-year-old who does public relations for a high-end fashion designer in New York. Ms. Tran has a contract with Verizon that she said she would “pay whatever” to break.

Some had clearly been following everything about the iPhone for so long, that they spoke as if they were reading from Apple’s talking points. “What Steve Jobs cited in his keynote in January was that everybody was looking for a device that brought it all together,” said Gene Lewis, 34, the owner of a Web site development company.

Mr. Lewis, who got in line outside the Fifth Avenue store around 7 p.m. on Thursday and slept all night in a folding chair, used words like “elegant” and “beautiful” to describe the phone, which at that point he had seen only in pictures.

Josh Topolski, 29, a blogger for the technology blog Engadget.com who waited all day outside the Fifth Avenue store, said Apple’s ability to generate such intense interest was remarkable. “Apple, they’re masters of hype and keeping people waiting. This line is proof of that.”

But the mania surrounding the iPhone’s debut has created somewhat of a backlash among bloggers and comedians, who have reveled in mocking all the hoopla.

“It’s going to do for phones what the iPod did for pods,” Rob Riggle, the “senior technology correspondent” of “The Daily Show,” said in a sketch on Thursday night. Mr. Riggle then asked to see the hands of an unwitting blogger who tested the iPhone and he then sniffed them. “Man, it’s still warm,” he cooed.

Gizmodo.com wrote under the headline “Nerd Party,” “Do you wish you were hanging out in line at the 5th Ave Apple Store, but are stuck with a pesky job that won’t let you bum around with a bunch of nerds on a weekday?”

So exactly what type of people can take all day, and in some cases several days, to wait in line for a cellphone? Well, the mayor of Philadelphia, for starters. John F. Street waited much of the day yesterday to buy an iPhone. A spokesman explained that Mr. Street was conducting city business by cellphone and BlackBerry while he waited.

Then there are the people who were being paid to wait in line for others. Dan Zabar, a 23-year-old production assistant for a company that produces television commercials in New York, was making about $150 to wait all day in line for his boss. Others got in line early to try to sell their spots. Along 58th Street, where the line for the Fifth Avenue store had spilled over, one young man was offering his place for $160 in the early afternoon. By late afternoon, he had raised the price to $180.

There were also the so-called early adoptors, the technophiles who habitually rush out to buy first-generation electronics. “I’m everyone’s guinea pig,” said Christopher Kokinos, a former Apple employee who now works for a marketing communications firm in New York. He spent a total of six hours in line outside the Fifth Avenue store yesterday. “All my friends say, I’ll wait until you buy it so I know if it’s any good.”

But not everyone was so enthusiastic.

Near the Chicago store on Michigan Avenue, Sara Bafundo, a guest services agent at the Wyndham Hotel across the street from the Apple store, looked at the long line and said, “I just don’t get it. I just don’t get it. The hype just doesn’t make sense.”

Eric Taub contributed reporting from Los Angeles and Eric Ferkenhoff from Chicago.

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Iphone Debuts - Atlanta

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By SCOTT LEITH , LEON STAFFORD
The Atlanta Journal-Constitution
Published on: 06/30/07

Apple's siren song was answered.

The company that tempted customers with the iPhone saw them show up en masse for Friday night's retail launch of the device. From the city to the suburbs, eager buyers stationed themselves outside AT&T and Apple stores for a day or more, tolerating heat, humidity and even thunderstorms.

They plunked down a few hundred dollars and left with phones that — for a certain kind of person — have turned into nothing short of an obsession.

"My Nokia is old school ugly," said Demetrius Sharp, 33, of Atlanta. "I've been suffering. I deserve this."

The iPhone was unveiled in January with a flashy presentation by Apple honcho Steve Jobs. The device soon become the most-anticipated product the cellphone industry has ever seen.

Atlanta has played a solid supporting role in the maelstrom, given that AT&T's wireless unit is the exclusive provider of the iPhone. The Atlanta-based operation was in a frenzy during the launch, and many of its stores were thronged with buyers Friday.

"There are lines everywhere," AT&T spokeswoman Dawn Benton said. "In Savannah, we've got 50 or 60 people. Hilton Head, 30 or 40. It's just everywhere."

As the clock wound down for the 6 p.m. launch, cheers erupted among the crowds outside the Apple store at Lenox Square in Atlanta. The gathered group — much like those outside Times Square in New York during New Year's Eve — counted down the final minutes until the hot product was sold.

Then the buyers, several hundred of them, began slowly filing into the Apple store.

The iPhone has turned into both a pop culture phenomenon and a media obsession. But the early response to the debut shows many consumers are infatuated, too.

The line at the Apple in Lenox Square wrapped around the upper level of the mall, ending around Bloomingdale's. In it, iPhone fans were making friends with each other, describing the features they like most.

Stores and marketers inside the mall took advantage of those in line. Representatives of Red Bull handed out drinks, and the Nike store provided energy bars. Young entrepreneurs handed out CDs and flyers to clubs.

Some expected the iPhone to be most popular in places where iPods are ubiquitous — big cities like New York and San Francisco. Indeed, long lines formed early in those places.

But the iPhone's appeal seemed to stretch everywhere, despite being priced at $499 or $599, depending on memory.

In Boise, Idaho, a line at an AT&T store had 20 people by midafternoon. "It's almost like I have to buy one. God is telling me to buy it," 45-year-old computer consultant Ron Rabehl told the Spokesman newspaper.

In Ridgeland, Miss., a Jackson suburb, folks lined up more than 24 hours in advance. Jesse W. Mason, a 25-year-old graphic designer, hadn't planned to sleep outside an AT&T store but did so when he noticed a line had formed.

Atlantans flocked to stores, too.

At an AT&T store near Gwinnett Place Mall in Duluth, more than 60 people waited in line to get an iPhone — 60 very hot people.

The lines snaked along the side of the shopping center past a sushi restaurant and hair salon, their awnings providing some shade. People sat on the ground. Others brought camp chairs. A few listened to iPods to pass the last hour until 6 p.m.

A Gwinnett County police officer was stationed nearby, though the droopy-looking crowd seemed too heat-oppressed to be much of a concern.

At Atlantic Station, Brian Norwood waited overnight in the rain outside AT&T's store.

Norwood said he arrived with "military precision," exactly 24 hours before the iPhone went on sale. He was armed with a comfy chair, toothpaste, magazines, a writing pad and plenty of snacks and beverages.

"I wrote a lot of letters overnight," he said, although Thursday night's downpour forced him to huddle under the store's small awning. "It was a wet night."

Karen Lewis of Stone Mountain stationed herself at AT&T's store near Northlake Mall Thursday morning, then sat through monsoon-like rain later that night to be ready for the launch.

"That phone is off the chain," said Lewis, a 45-year-old who works at a barber shop on Auburn Avenue in downtown Atlanta. She doesn't own a computer but considers herself a gadget freak.

Many early buyers are just this kind of buyer. Others are Apple loyalists.

"Apple products are innovative," said Andrew Hanhauser, 25, who lined up for an iPhone at Apple's store at Lenox Square. "When Dell comes out with a new product, nobody cares. Nobody waits in line," said Hanhauser, a consultant for IBM who took the day off to get his iPhone.

Though some have questioned whether the iPhone would live up to expectations, Jeremy Raymond, 22, said the purchase was a no-brainer. "Think about it. In this pocket, I carry my iPod. In this pocket I carry my phone. I carry my laptop in my bag," said Raymond, who lined up at Lenox. "I can put all those things together."

Time will tell if the iPhone becomes a durable success like the iPod. Early reviews from a few gadget experts were largely good, especially about the phone's design and groundbreaking Internet browser.

But many complained that the phone uses AT&T's relatively slow EDGE network to surf the Web. Apple chose EDGE because the network is widely available and saps less battery power than a device that uses AT&T's fastest system, known as 3G.

Just before Friday's launch, however, AT&T juiced up EDGE. The news was a topic online, as chatters noticed an increase in data speeds.

Mark Siegel, a spokesman for AT&T, said the company spent $50 million to improve its network, just to get ready for iPhone. That included adding radios atop cell towers and redirecting some to improve EDGE coverage.

The launch of the device prompted AT&T to quickly retire the Cingular Wireless name. AT&T's cellphone operation was, until recently, known as Cingular.

Not all branding changes made it in time for the launch. At AT&T's Northlake Mall site, the old Cingular sign still decorated the facade. A truck-mounted crane arrived in the morning to attach temporary AT&T banners.

Staff writers Megha Rajagopalan, Duane Stanford, George Mathis and The Associated http://www.ajc.com/business/content/business/stories/2007/06/29/0630biziphone.html

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Apple Iphone Line - Ohioans line up for Apple's iPhone

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Ohioans line up for Apple's iPhone
Friday, June 29, 2007 11:47 AM
By Tracy Turner
THE COLUMBUS DISPATCH
John Atkinson got in line at 4 a.m. today to buy his first cell phone.

The 47-year-old Gahanna resident said that he's simply never had a desire to own a mobile phone until he saw an ad for Apple's iPhone.

Call it love at first sight.

“When I saw it, I though, ‘Wow, they've finally created a cell phone that's impressed me enough to buy one,” Atkinson said, as he stood in a light rain outside the Hamilton Road AT&T store, the first person in line to buy iPhone.

Techies and newbies alike are vying to be among the first to get their hands on the new smart phone as the much-hyped iPhone goes on sale today at 6 p.m.

Lines formed before dawn at numerous central Ohio AT&T stores, spokesman Bob Beasley said.

While iPhone's price of $499 and $599 isn't a significant factor for those consumers who say they've waited six months to get one, the latest hot tech device is just too expensive for a lot of other people, a new survey says.

The iPhone could cost consumers more than $2,000 for the duration of the required two-year contract with AT&T, which is providing the wireless service for the phone. That price is for the basic service plan, a 4-gigabyte phone and activation, according to the company.

The survey of nearly 500 online cell-phone shoppers found that about 60 percent of respondents were interested in the iPhone but were unlikely to buy one now because of the price of the phone and the cost of switching service providers.

The survey, released this week by IDC, a market-research company based in Framingham, Mass., found that 10 percent of respondents would be willing to buy an iPhone at full price and switch to AT&T. Nearly 18 percent of the respondents said they'd buy the iPhone if it were priced under $299, the survey said.

“While the allure of owning the next ‘cool' device will undoubtedly have early adopters … queuing up to get the iPhone regardless of the price, the associated costs of ownership will persuade many others into a ‘wait-and-see' position,” Shiv K. Bakhshi, director of mobility research at IDC, said in a statement.

Despite the costs, AT&T anticipates strong sales of the iPhone, particularly today. In fact, stores are staying open an hour later today and have added workers to meet the expected rush, Beasley said.

“We're expecting crowds similar to those we've had on peak holiday season and more,” he said. “ Some customers began lining up outside some Ohio stores” yesterday.

Beasley said the iPhone is priced competitively, considering its features.

“This device represents the future of hand-held wireless devices. Not only is it your wireless phone, it's the best iPod ever made and the best wireless hand-held Web browser made,” he said. “ People are interested in it because it truly lives up to the hype.”

Brennan Brumfield is among them. The 20-year-old Grove City resident got in line at 6 a.m. at the Hamilton Road AT&T store to buy the 8 megabyte iPhone.

“I spent like $250 for the cell phone I have now and all it really has is a camera,” Brumfield said. “Dude, what's a couple more hundred when you consider all the options iPhone has?”

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Apple Iphone Line

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NEW YORK: Tech-heads camped overnight outside Apple electronics stores in US cities aiming to be the first to own an iPhone, marketed as the coolest gadget on the planet, when they go on sale on Friday.

The breakthrough device, which puts a phone, web browser and music player in the palm of the hand, goes on sale at 6 pm (2200 GMT) Friday.

Late Thursday some 60 fans armed with umbrellas and rain gear - and a handful with pup tents and lawn chairs - braved the elements outside Apple's 5th Avenue store in New York city.

First in line was Greg Packer, 43, who arrived Monday at 5 am - a whole 109 hours before iPhones would be sold. He became an instant celebrity, and reporters from around the world flocked to interview the paunchy line sitter.

The iPhone "is the combination of everything: you get your iPod, you get your iPhone and you get your internet in one," gushed Packer.

"I want to be the first to get it, the first one to see what it's like," he said, vowing to buy "at least two" iPhones.

Third in line was David Clayman, 21, who arrived at 2 pm on Monday with the explicit goal of using the media attention to advertise the Taproot Foundation, a small NGO he works at.

"Here the press is approaching you to get a story," said Clayman. "The best thing that one can do, is try to redirect some attention to a non-profit that is doing good work in the city."

Clayman said he plans to auction off for charity one of the three iPhones he plans to buy.

Meanwhile at the Apple store in Soho, in southern Manhattan, members of the local charity organization "Keep A Child Alive" took turns holding the first spot in line. They arrived at 7 am Tuesday set on buying an iPhone and selling it at auction to help buy medicine for needy children in Africa.

"We're hoping to be the first in the world," said Johnny Vulkan, who rotates his spot in line with other group volunteers. "We had the idea over the weekend. We knew the media would come to cover it."

Some fans have already sold their place in the line for $500 to customers who will show up just before the store opens, Vulkan said.

Tech geeks also lined up outside Apple stores in places like San Francisco and Detroit.

The national iPhone mania is being tracked on gridskipper.com. "Check out the full map of iPhone line imagery so far, and weep for our nation," reads the intro at iPhone section of the site.

"Of course, there's no reason you can't become part of the problem," it continues, urging visitors to send in their own video and pictures standing outside Apple stores.

Although it brings together several portable technologies - mobile phone, camera, web browser, music and video player - the pocket-sized gizmo has no mechanical keyboard and allows almost all controls to be handled by touching a finger on the unit's screen.

All of the iPhone's features come at a premium price: the gadget costs about five times more than a conventional cell phone. The four-gigabyte model will sell at 499 dollars, while the eight-gigabyte model will sell for 599 dollars.

Buyers also will be obligated to sign up for a two-year phone contract with AT&T.

The iPhone is to debut in Europe in late 2007 and in Asia in 2008.
http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Apples_iPhone_debuts_in_US/articleshow/2159417.cms

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Apple Iphone Line Camp

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Palo Alto iPhone Mania Day 1



iPhone Line at Apple Store, SoHo



Apple Iphone Camp Day 3

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Apple Iphone Lawsuit - How the IPhone Breaks Industry Rules

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NEW YORK -- Among consumers, the excitement around Apple Inc.'s iPhone, launching on Friday, centers on its cool looks and innovative interface. In the cell phone industry, the iPhone will be closely watched because it breaks several conventions governing the relationships between handset manufacturers, carriers and consumers. If successful, Apple could end up changing the way phones and the industry work.

The iPhone can handle phone calls, e-mail, Web browsing, music and videos. There are already cell phones that do those things. What's unusual is that on the iPhone, Apple software is behind all those functions.

The music and video store will be Apple's iTunes, rather than a proprietary music store run by the carrier. The Web browser is a version of Apple's Safari browser. With the iPhone's relatively large 3.5-inch screen, the gadget will give relatively easy access to the Web at large, unlike the Web snippets, chosen by the carrier, that are available on most other phones.

In another example, Apple has said that about 10,000 videos from Google Inc.'s YouTube will be available on the iPhone at launch, and the rest this fall. Click to continue.
http://www.washingtonpost.com/wp-dyn/content/article/2007/06/28/AR2007062801416.html

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Apple Iphone Review - Apple's iPhone: Not A Disrupter ... Yet

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Oxford Analytica 06.29.07, 6:00 AM ET
The Apple iPhone launches today, June 29. The new product encapsulates a significant shift in Apple's strategic focus, which is extending steadily beyond the computer into the broader realm of consumer electronics and digitally connected lifestyles. However, the exclusivity and terms of the agreement between Apple and AT&T means that, in the short term, the iPhone will have a limited impact on the structure of the U.S. market for mobile telephony. In the longer term, the device probably will instigate a process of innovation and diversification.

Apple (nasdaq: AAPL - news - people ) is hoping that the distinctive design of the iPhone will disrupt and even re-invent the concept of the mobile handset in the United States and worldwide. Apple has forecast relatively modest sales of 10 million units by the end of 2008, which would translate into an approximate 1% share of the world market for handsets.

The iPhone represents a natural extension of the successful iPod franchise from a standalone digital music player into a multi-functional communications, media and information device with Internet access. In particular, as Apple marketing drives interest in smart phone features, iPhone design will force other mobile handset makers more aggressively to develop and diversify their offerings.

The handset includes a sophisticated operating system (based on Mac OS X, which is used on Apple's existing computers); innovative applications, including visual voice mail and improved full Web browsing capabilities (using Safari); and multi-touch screen technology, enabling users to interact with the device using their fingers rather than a stylus.

Similar to other Apple products, the iPhone has attracted considerable media attention and publicity. Sales of the iPhone probably will benefit from short-term stock shortages, thereby stoking demand and anticipation throughout the summer months. However, the relatively high price of the iPhone ($499 for a four-gigabyte model; $599 for an eight-gigabyte model) will limit mass-market customer adoption.

Like the iPod, the iPhone will be a closed technology platform, sacrificing openness for simplicity in the user experience. However, there will be scope for software developers to create third-party applications for the iPhone, which must operate within the confines of the Safari browser.

In recent years, the first generation of Apple products have suffered from relatively higher levels of manufacturing defects compared with competitors. For example, customers reported problems with screens on the first generation of the iPod Nano, as well as earlier versions of the PowerBook.

Apple sought to allay concerns about the iPhone, announcing an upgraded glass screen, and extended battery life, in the two weeks preceding launch. However, several characteristics have raised debates about the appeal of the first-generation iPhone.

These include:

--the general durability of the device, compared with equivalent mobile handsets, and the life of the battery, which is not removable;

--the user interface, particularly for those accustomed to tactile feedback with keys when sending text messages; and

--the speed of Internet access, which will rely on AT&T's (nyse: T - news - people ) relatively slow EDGE network in areas without wi-fi.

Apple essentially has focused on entering rather than disrupting the U.S. mobile telephony market. The flawed yet necessary agreement with a provider such as AT&T is illustrative of the challenges facing entry into this market. The closed nature of the iPhone means it will have relatively limited implications for the structure of the market, at least in the short term. However, it does signal the beginning of a new era of multi-functional mobile handsets, consisting of media, communications and information.

Over time, there will be growing pressure for handset makers, including Apple, to enhance the networking capabilities of handsets--notably by taking advantage of faster third-generation (3G) networks. There will be pressure on Apple to maintain a steady stream of new iPhone models, address design limitations and offset the competitive threat posed by potentially more open and flexible devices from rival firms.

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Apple Iphone Release Date - June 29, 2007

June 29th is the official iphone release date. Below is the release date for other countries.

Latest Update:

Country Estimated Release Date Latest Report
US June 29 updated on 5/12/2007
Europe Fourth quarter on 2007 updated on 1/9/2007
UK October updated on 1/10/2007
Australia First quarter on 2008 updated on 1/9/2007
Asia 2008 updated on 1/9/2007


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Apple Iphone Review

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11 iPhone Gotchas

Want an iPhone? Of course you do. It looks sexy, it's innovative, and--for a while at least--it'll be the ultimate status symbol. But in the fog of iPhone hype, it's easy to lose sight of the fact that the latest Apple sensation will still have its share of disadvantages. We don't have the king of gadgets in our mitts yet, but judging from the information that has already been released, clearly some folks could have problems with the iPhone. So before you dump your current cell phone, consider these issues.

Data that crawls: When AT&T's EDGE network debuted in 2005, it seemed zippy indeed, delivering data at up to 100 kilobits per second. But that was then. Today, with true 3G technologies delivering data at up to several hundred kbps, Apple's decision not to support AT&T's UMTS-HSDPA 3G network seems short-sighted--especially given the iPhone's investment in cool new Web browsing technology that doesn't suffer from the compromises of a mobile browser. In our limited hands-on tests a few months ago, downloading the New York Times' front page via EDGE took quite a few seconds. AT&T has tacitly acknowledged this potential problem by announcing upgrades to its EDGE network in anticipation of the iPhone launch. And of course, the iPhone will support Wi-Fi, which will make Web page downloads much more feasible if you're in range of a hotspot.

Limited third-party apps: Lots of cell phone power users get more value out of the applications they've loaded on their handsets themselves than the often lame or expensive offerings from their carriers. When the iPhone was first announced, third-party apps seemed shut out entirely, a move that prompted one online petition of protest. Now Apple says that developers can create iPhone apps that run in Safari. Only two problems with that: First, those apps may be fairly poky given the iPhone's slower EDGE network connection. Second, many developers seem to hate writing for Safari. As PC World forums member dazeddan said, "As a developer, we have more problems designing around Safari than any other platform. I wish it would just go away."

Where are the keys? The iPhone's software keyboard, with its on-screen key images, may work fine with Steve Jobs's single-finger hunt-and-peck approach, but it could prove problematic for those folks who have honed their thumb-typing skills on BlackBerry units, Treos, Motorola Q handsets, or other PDA phones with physical QWERTY keyboards. Things did not go well for one PC World editor when she tried typing on a prototype iPhone in January; even the best predictive text entry software would have been stymied by the string of incorrect characters. Plus, what happens when the on-screen keyboard covers up the very e-mail text you're trying to respond to?

It costs how much?! You've probably already heard about the iPhone's astronomical price: $500 for a 4GB model and $600 for 8GB. But you may not have calculated all the other costs associated with buying one. You'll have to make a two-year commitment to AT&T at a per-month cost that starts at $60, recent reports say (though that includes unlimited data access, something AT&T often charges $40 for on smart phones). And unlike with pretty much every other phone in the world, making that commitment doesn't knock down the price, it's just a requirement. Plus, if you're in the midst of a prior two-year commitment with a competing carrier, your cost of iPhone ownership could be further inflated by the early termination penalty you'll pay your current carrier. And finally, AT&T doesn't always receive high marks for its service. You may be okay with the deal now, but how will you feel in a year if the iPhone is no longer the coolest handset on the planet?

Businesspeople need not apply: It's a safe bet that many professionals will want an iPhone. But BlackBerry, Windows Mobile, Palm, and Symbian smart phones offer a long list of business-related features that the iPhone apparently won't, at least upon release. For instance, while the iPhone apparently will connect with Exchange servers, it will require some security trade-offs that could make your IT department nervous. There's no word on connecting to Domino servers. And though you can open Word and Excel files on the iPhone, you can't edit them.
http://www.pcworld.com/article/id,133439/article.html#

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Apple Cingular Iphone - The Apple iPhone Matches Most of Its Hype

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By DAVID POGUE

Talk about hype. In the last six months, Apple’s iPhone has been the subject of 11,000 print articles, and it turns up about 69 million hits on Google. Cultists are camping out in front of Apple stores; bloggers call it the “Jesus phone.” All of this before a single consumer has even touched the thing.

So how is it?

As it turns out, much of the hype and some of the criticisms are justified. The iPhone is revolutionary; it’s flawed. It’s substance; it’s style. It does things no phone has ever done before; it lacks features found even on the most basic phones.

Unless you’ve been in a sensory-deprivation tank for six months, you already know what the iPhone is: a tiny, gorgeous hand-held computer whose screen is a slab of touch-sensitive glass.

The $500 and $600 models have 4 and 8 gigabytes of storage, respectively — room for about 825 or 1,825 songs. (In each case, 700 megabytes is occupied by the phone’s software.) That’s a lot of money; then again, the price includes a cellphone, video iPod, e-mail terminal, Web browser, camera, alarm clock, Palm-type organizer and one heck of a status symbol.

The phone is so sleek and thin, it makes Treos and BlackBerrys look obese. The glass gets smudgy — a sleeve wipes it clean — but it doesn’t scratch easily. I’ve walked around with an iPhone in my pocket for two weeks, naked and unprotected (the iPhone, that is, not me), and there’s not a mark on it.

But the bigger achievement is the software. It’s fast, beautiful, menu-free, and dead simple to operate. You can’t get lost, because the solitary physical button below the screen always opens the Home page, arrayed with icons for the iPhone’s 16 functions.

You’ve probably seen Apple’s ads, showing how things on the screen have a physics all their own. Lists scroll with a flick of your finger, CD covers flip over as you flick them, e-mail messages collapse down into a trash can. Sure, it’s eye candy. But it makes the phone fun to use, which is not something you can say about most cellphones.

Apple has chosen AT&T (formerly Cingular) to be the iPhone’s exclusive carrier for the next few years, in part because the company gave Apple carte blanche to revise everything people hate about cellphones.

For example, once the phone goes on sale this Friday, you won’t sign up for service in a phone store, under pressure from the sales staff. You will be able to peruse and choose a plan at your leisure, in the iTunes software on your computer.

Better yet, unlimited Internet service adds only $20 a month to AT&T’s voice-plan prices, about half what BlackBerry and Treo owners pay. For example, $60 gets you 450 talk minutes, 200 text messages and unlimited Internet; $80 doubles that talk time. The iPhone requires one of these voice-and-Internet plans and a two-year commitment.

On the iPhone, you don’t check your voice mail; it checks you. One button press reveals your waiting messages, listed like e-mail. There’s no dialing in, no password — and no sleepy robot intoning, “You...have...twenty...one...messages.”

To answer a call, you can tap Answer on the screen, or pinch the microscopic microphone bulge on the white earbud cord. Either way, music or video playback pauses until you hang up. (When you’re listening to music, that pinch pauses the song. A double-pinch advances to the next song.)

Making a call, though, can take as many as six steps: wake the phone, unlock its buttons, summon the Home screen, open the Phone program, view the Recent Calls or speed-dial list, and select a name. Call quality is only average, and depends on the strength of your AT&T signal.

E-mail is fantastic. Incoming messages are fully formatted, complete with graphics; you can even open (but not edit) Word, Excel and PDF documents.

The Web browser, though, is the real dazzler. This isn’t some stripped-down, claustrophobic My First Cellphone Browser; you get full Web layouts, fonts and all, shrunk to fit the screen. You scroll with a fingertip — much faster than scroll bars. You can double-tap to enlarge a block of text for reading, or rotate the screen 90 degrees, which rotates and magnifies the image to fill the wider view.

Finally, you can enlarge a Web page — or an e-mail message, or a photo — by spreading your thumb and forefinger on the glass. The image grows as though it’s on a sheet of latex.

The iPhone is also an iPod. When in its U.S.B. charging cradle, the iPhone slurps in music, videos and photos from your Mac or Windows PC. Photos, movies and even YouTube videos look spectacular on the bright 3.5-inch very-high-resolution screen.

The Google Maps module lets you view street maps or aerial photos for any address. It can provide driving directions, too. It’s not real G.P.S. — the iPhone doesn’t actually know where you are — so you tap the screen when you’re ready for the next driving instruction.

But how’s this for a consolation prize? Free live traffic reporting, indicated by color-coded roads on the map.

Apple says one battery charge is enough for 8 hours of calls, 7 hours of video or 24 hours of audio. My results weren’t quite as impressive: I got 5 hours of video and 23 hours of audio, probably because I didn’t turn off the phone, Wi-Fi and other features, as Apple did in its tests. In practice, you’ll probably wind up recharging about every other day.

So yes, the iPhone is amazing. But no, it’s not perfect.

There’s no memory-card slot, no chat program, no voice dialing. You can’t install new programs from anyone but Apple; other companies can create only iPhone-tailored mini-programs on the Web. The browser can’t handle Java or Flash, which deprives you of millions of Web videos.

The two-megapixel camera takes great photos, provided the subject is motionless and well lighted . But it can’t capture video. And you can’t send picture messages (called MMS) to other cellphones.

Apple says that the battery starts to lose capacity after 300 or 400 charges. Eventually, you’ll have to send the phone to Apple for battery replacement, much as you do now with an iPod, for a fee.

Then there’s the small matter of typing. Tapping the skinny little virtual keys on the screen is frustrating, especially at first.

Two things make the job tolerable. First, some very smart software offers to complete words for you, and, when you tap the wrong letter, figures out what word you intended. In both cases, tapping the Space bar accepts its suggestion.

Second, the instructional leaflet encourages you to “trust” the keyboard (or, as a product manager jokingly put it, to “use the Force”). It sounds like new-age baloney, but it works; once you stop stressing about each individual letter and just plow ahead, speed and accuracy pick up considerably.

Even so, text entry is not the iPhone’s strong suit. The BlackBerry won’t be going away anytime soon.

The bigger problem is the AT&T network. In a Consumer Reports study, AT&T’s signal ranked either last or second to last in 19 out of 20 major cities. My tests in five states bear this out. If Verizon’s slogan is, “Can you hear me now?” AT&T’s should be, “I’m losing you.”

Then there’s the Internet problem. When you’re in a Wi-Fi hot spot, going online is fast and satisfying.

But otherwise, you have to use AT&T’s ancient EDGE cellular network, which is excruciatingly slow. The New York Times’s home page takes 55 seconds to appear; Amazon.com, 100 seconds; Yahoo. two minutes. You almost ache for a dial-up modem.

These drawbacks may be deal-killers for some people. On the other hand, both the iPhone and its network will improve. Apple points out that unlike other cellphones, this one can and will be enhanced with free software updates. That’s good, because I encountered a couple of tiny bugs and one freeze. (There’s also a tantalizing empty space for a row of new icons on the Home screen.) A future iPhone model will be able to exploit AT&T’s newer, much faster data network, which is now available in 160 cities.

But even in version 1.0, the iPhone is still the most sophisticated, outlook-changing piece of electronics to come along in years. It does so many things so well, and so pleasurably, that you tend to forgive its foibles.

In other words, maybe all the iPhone hype isn’t hype at all. As the ball player Dizzy Dean once said, “It ain’t bragging if you done it.”

http://www.nytimes.com/2007/06/27/technology/circuits/27pogue.html?hp=&pagewanted=all

E-mail: Pogue@nytimes.com. For his regular column tomorrow, David Pogue will answer frequently asked questions about the iPhone.

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8gb Apple Iphone - Apple and AT&T Announce iTunes Activation and Sync for iPhone

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CUPERTINO, California and ATLANTA—June 26, 2007—Apple® and AT&T Inc. today announced that iPhone™ users will be able to activate their new iPhones using Apple’s popular iTunes® software running on a PC or Mac® computer in the comfort and privacy of their own home or office, without having to wait in a store while their phone is activated. Activating iPhone takes only minutes as iTunes guides the user through simple steps to choose their service plan, authorize their credit and activate their iPhone. Once iPhone is activated, users can then easily sync all of their phone numbers and other contact information, calendars, email accounts, web browser bookmarks, music, photos, podcasts, TV shows and movies just like they do when they sync their iPods with iTunes.

“Users will be able to activate their new iPhone in the comfort and privacy of their own home or office, without having to wait in a store while their phone is activated,” said Steve Jobs, Apple’s CEO. “There are tens of millions of people in the US who already know how to sync their iPods with iTunes, and syncing their new iPhone with iTunes works the same way.”

“iPhone’s user-driven activation is another example of how AT&T and Apple have partnered to bring innovative new features to our customers,” said Randall Stephenson, chairman and CEO, AT&T. “iPhone’s innovative activation and sync is just one example of how this is going to be a real industry game-changer.”

iPhone introduces an entirely new user interface based on a revolutionary multi-touch display and pioneering new software that allows users to control iPhone with just a tap, flick or pinch of their fingers. iPhone combines three products into one small and lightweight handheld device—a revolutionary mobile phone, a widescreen iPod, and the Internet in your pocket with best-ever applications on a mobile phone for email, web browsing and maps. iPhone ushers in an era of software power and sophistication never before seen in a mobile device, which completely redefines what users can do on their mobile phones.

Pricing & Availability
iPhone goes on sale at 6:00 p.m. (local time) on Friday, June 29 and will be sold in the US through Apple’s retail and online stores and AT&T retail stores. iPhone will be available in a 4GB model for $499 (US) and an 8GB model for $599 (US), and will work with either a PC or Mac.

System Requirements
iPhone activation requires an Internet connection; an iTunes Store account or a major credit card; a valid Social Security number (as required by AT&T); the latest version of iTunes available at www.itunes.com and a PC or Mac with a USB 2.0 port and one of the following operating systems: Mac OS® X v10.4.10 or later; Windows XP Home or Professional with Service Pack 2 or later; or Windows Vista Home Premium, Business, Enterprise or Ultimate Edition. iPhone requires a new two-year AT&T service plan. Customers with existing AT&T accounts will have the option of keeping their existing phone number and upgrading their account to work with iPhone. See separate iPhone Service Plan press release for further details.

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Apple Iphone Retail Price - Apple, AT&T Unveil Monthly iPhone Plans

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CUPERTINO, Calif. — AT&T Inc. and Apple Inc. on Tuesday said wireless service for the iPhone will range from $59.99 per month to $99.99 per month.

The highly anticipated gadget retails for $499 for a model with 4 gigabytes of storage and $599 for one with 8 gigabytes. It's slated to go on sale at 6 p.m. local time Friday at Apple and AT&T retail stores as well as Apple's Web site.

The $59.99 monthly plan includes 450 minutes of voice time; a $79.99 plan includes 900 minutes; and a $99.99 plan includes 1,350 minutes. All three offer 200 text messages, unlimited data services, minutes that roll over month-to-month and mobile-to-mobile calls. There also is a $36 activation fee.

Apple claims the iPhone — which combines the functions of a cell phone, iPod media player and Web-surfing device — will be easier to use than other smart phones because of its unique touch-screen display and intuitive software that allows for easy access to voice mail messages, the Internet, and video and music libraries.

But skeptics wonder whether even the most innovative product can live up to the iPhone's lofty expectations. Scrutiny of the product is so great that any small disappointment could send Apple's stock plunging, analysts say.

Apple shares traded at $123.70 in Tuesday's pre-market session, up $1.36 from Monday's closing price of $122.34. AT&T shares traded at $39.24 in the pre-market session, up 16 cents from Monday's closing price of $39.08.

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Buy Apple Iphone - Apple iPhone hype machine in overdrive

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SAN JOSE, Calif. (AP) — Even for a company that's mastered the art of product-launch hoopla, Apple Inc. appears to have pulled out all the stops to propel iPhone hysteria into the stratosphere.

Technology analysts say Apple started its publicity campaign for the iPhone uncharacteristically early, first showing off the device six months ago and shrewdly stoking the media feeding-frenzy since then with incremental announcements that have kept the sleek cell phone-multimedia player-Internet browser in the news.

It goes on sale this Friday, and die-hard Apple fans are expected to line up overnight or longer outside retail stores to get their hands on an iPhone for either $500 or $600.

But skeptics wonder whether even the most innovative product could live up to the iPhone's lofty expectations — and whether the pre-launch anticipation has spiraled too far out of control. Scrutiny of the product is so great that any small disappointment could send Apple's stock plunging, experts say.

Technology analyst Mike McGuire said Apple fans have elevated the status of the iPhone to unprecedented proportions — "somewhere between electricity and sliced bread."

"The blessing is you've created an amazing amount of demand. The curse is you have a very high level of expectations to meet," said McGuire, a research vice president with Gartner Inc. "If there's a misstep, there will be a lot of gloating people in the industry."

Apple claims the iPhone will be easier to use than other smart phones because of its unique touch screen display and intuitive software that allows for such user-friendly features as scrolling visually through voice mail messages and easy access to the Internet and video and music libraries.

The hype began when Apple CEO Steve Jobs took the wraps off the iPhone at the annual Macworld Conference and Expo in early January. The dramatic introduction — accompanied by thunderous applause and a standing ovation from thousands of Apple aficionados at a San Francisco convention center — was followed up by a public relations blitz and hundreds of articles in blogs, trade publications and the mainstream media.

The iPhone stayed in the news for weeks after the launch, thanks in part to a trademark-infringement lawsuit by Cisco Systems Inc. over rights to the name. Cisco said Apple's use of the iPhone name constituted a "willful and malicious" violation of a trademark that Cisco has owned since 2000.

In late February, San Jose-based Cisco — which sells a line of Linksys iPhones that make free long-distance calls over the Internet — and Cupertino-based Apple agreed to share the name. Click To Continue to page 2

http://www.mlive.com/newsflash/business/index.ssf?/base/business-11/1182808189316660.xml&storylist=mibusiness&thispage=2

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Apple Iphone Mobile Phone

Steve Jobs on Nightline



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iPhone has a Photo-Video



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Apple iPhone on CNBC (iPhone 2.0)




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Apple iPhone: ALL DEMOS IN ONE!




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Official iPhone Ad (with the full list of clips!)




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Apple IPhone - Smudge Spoof




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NBC news report on Apple iphone




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Macworld 2007 - Steve Jobs Keynote Speech - Part 2




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The iPhone review Apple doesn't want you to see! (TV-MA)




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June 25 (Bloomberg) -- Apple Inc., whose market value passed $100 billion in May as euphoria mounted over its iPhone, may be facing investor expectations that are too high.

Apple may sell as many as 200,000 iPhones in the product's first two days on the market this week and as many as 3 million in the second half of the year, according to the most optimistic analyst estimates. Apple, in its only public forecast, says it plans to sell 10 million next year.

Sales at those levels would outdo the iPod, Apple's best- selling product to date, for comparable periods. The danger is that Apple may fall short of projections for initial sales and damp investor enthusiasm for the product.

``There's definitely a lot of buzz,'' said Andy Hargreaves, an analyst at Pacific Crest Securities in Portland, Oregon. ``If they only sell 100,000, that would be bad'' and the stock will fall. Hargreaves is one of two analysts predicting two-day sales of 200,000.

With iPhone partner AT&T Inc., Cupertino, California-based Apple will begin selling the combination iPod and mobile phone on June 29 in the U.S.

Apple shares have gained 43 percent since Chief Executive Officer Steve Jobs unveiled the iPhone Jan. 9, seven times faster than the Standard & Poor's 500 Index. The shares closed at a record high of $125.09 on June 18. Apple fell 66 cents to $122.34 at 4 p.m. New York time in Nasdaq Stock Market trading.

Betting on Jobs

Investors are betting Jobs, 52, can deliver on his sales promise and give Apple a foothold in an industry that's almost four times as big as the personal-computer market.

The iPhone will become Apple's third major business along with the Macintosh computer and iPod player, which each have sales of about $10 billion a year, Jobs told attendees at a conference on May 30. Slimmer and higher-capacity versions of the iPod and faster Macs built with Intel Corp. chips helped sales more than triple in five years to almost $20 billion in 2006.

The iPhone may have a greater impact on Apple's revenue than the iPod because of its price and the potential number of units sold. Apple will sell two models, a 4-gigabyte version for $499 and an 8-gigabyte model for $559. IPods start at $79 for the Shuffle and up to $349 for the most expensive video version.

Apple also will get an undisclosed piece of the monthly subscription fee charged by AT&T, the iPhone's exclusive wireless service provider. A two-year contract with AT&T is required.

Price Issue

Analysts don't expect the iPhone to have a significant effect on Apple's revenue this year or next because the company said in April it will recognize revenue from sales of the device over two years, rather than in the quarter it's sold.

San Antonio-based AT&T may pay Apple $5 to $10 per month per subscriber, said UBS analyst Benjamin Reitzes in New York. He estimates sales of 150,000 iPhones on June 29 and June 30, the last two days of Apple's third quarter. He says that would add more than $8 million to Apple's revenue for the quarter.

Apple spokeswoman Natalie Kerris declined to comment beyond confirming that iPhone sales will begin June 29.

Apple may report a 21 percent jump in total third-quarter revenue to $5.29 billion, according to the average estimate of analysts surveyed by Bloomberg. Fourth-quarter sales may rise 24 percent to a quarterly record of $6.02 billion, the analysts estimate.

The iPhone's price and the required service contract, a boon to Apple if unit sales reach projections, may prove to be a deterrent to some potential buyers.

While 60 percent of 465 people questioned in an IDC survey released last week said they were interested in the iPhone, just 10 percent said they may buy one at full price.

No Simple Sale

Outside of early adopters and die-hard Apple fans who will buy regardless of price, ``the associated costs of ownership will persuade many others into a `wait and see' position,'' said Shiv Bakhshi, a researcher for Framingham, Massachusetts-based IDC.

One of the least optimistic projections of sales for the first two days is 50,000 units, by analyst Shaw Wu of American Technology Research in San Francisco.

``The iPhone is not a simple sale,'' said Wu, who rates Apple's shares ``buy'' and doesn't own them. ``You have to sign up the customer for service. Can they even get a couple of hundred thousand people through the stores in two days?''

Expectations that the iPhone will outsell the iPod led Piper Jaffray analyst Gene Munster earlier this month to raise his share-price forecast for Apple by 14 percent to $160 this month.

Munster expects iPhone sales of 200,000 units the first two days, 1 million in the quarter ending Sept. 30 and 2 million in the holiday quarter. Apple sold 381,000 iPods in the first year after Jobs unveiled the player in October 2001.

The iPhone will go on sale at 6 p.m. in each time zone in the U.S. Apple will sell it through its Web site and 162 retail outlets, as well as at 1,800 AT&T-owned stores.

The following table shows estimates for unit sales of the iPhone.



Fiscal Year Fiscal Year
Ending Sept. 2007 Ending Sept. 2008
================================================================
American Technology Research 250,000 **
Bear Stearns & Co. 650,000 **
Credit Suisse 1.7 million 12.3 million
Pacific Crest Securities 800,000 4.8 million
Piper Jaffray & Co. 1.2 million 8 million
UBS AG 950,000 8.1 million
================================================================
**Not available
Source: Analyst research reports
To contact the reporter on this story: Connie Guglielmo in San Francisco at cguglielmo1@bloomberg.net .

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