So the dust has settled.. the rumor mill has dissipated.. the world is still here in the same condition we woke up to this morning.. and yes.. the 3G iPhone is here.. well sort of.

As nearly all predicted, the new 3G iPhone was indeed announced during Steve Jobs keynote address at WWDC 2008 and as some predicted, it will indeed be a few weeks late.

So what’s the important stuff about the new phone? From a feature perspective, it’s the following:

3G support finally

• Support for HSDPA (High Speed Downlink Packet Access) to download data over UMTS
• Simultaneous data and voice support – talk on the phone while surfing the web, checking email etc
• Still supports EDGE

Assisted GPS support

• Location finder via GPS, Wi-Fi, and Cellular towers
• View turn by turn directions or watch your progress with live GPS tracking

App Store support

• Works over cellular networks and Wi-Fi
• Applications in a variety of categories including games, business, education, entertainment, finance etc
• Browse categories, search for apps, look at recommendations
• Download and install apps directly on iPhone
• iPhone informs users of updates to apps

Microsoft Exchange support

• Supports Microsoft Exchange ActiveSync for push email, calendar, and contacts
• Cisco IPSec VPN support
• Enhanced Wi-Fi security with WPA2 Enterprise and 802.1X authentication

Software Enhancements

• Full support of Office documents including Word, Excel and now PowerPoint
• Support for Apple iWorks
• Contacts seamlessly integrated into Maps, Safari, and SMS
• Bluetooth 2.0 + EDR
• Landscape view for calculator with new scientific calculator features
• Photo geotagging support
• Enhanced email support (support for more file formats etc)
• Support for new Apple MobileMe (formerly .mac)
• Additional language support

Important Technical Specs.. (because we love those details)

• Measures 4.5 x 2.4 x 0.48 inches
• Weighs 4.7 oz
• 3.5 inch multi-touch display with 480 x 320 resolution at 163 dpi
• Stereo headphones with built-in microphone
• 8GB model in black
• 16GB model in black or white
• UMTS/HSDPA support (850/1900/2100 MHz)
• GSM/EDGE support (850/900/1800/1900 MHz)
• Wi-Fi (802.11b/g)
• Bluetooth 2.0 + EDR
• Assisted GPS
• 2.0 megapixel camera
• Built-in rechargeable lithium-ion battery

Other tidbits:

Thanks to AppleInsider for these tidbits:

• No home activation for iPhone 3G. All new iPhones must be activated at either the Apple store or the AT&T store (10-12 minute process)
• Expect no online sales of the iPhone 3G which means you’ll need to go to a store to pick one up
• All iPhone 3G buyers will need to sign a new 2 year agreement but it will overwrite any existing contracts. Thus the new 2 year won’t tack onto any existing contract with AT&T
• AT&T will still be the exclusive provider of the iPhone in the U.S.
• Revenue sharing has been eliminated between AT&T and Apple – basically AT&T will no longer share a portion of monthly service revenue with Apple
• Unlimited iPhone 3G data plans for consumers will be available at $30 dollars a month with voice plans starting at $39.99 a month
• Unlimited 3G data plans for business users will be available at $45 dollars a month in addition to voice plan

The impact:

OK.. so let’s consider the impact of today’s announcement. It really does indeed boil down to the following:

1. 3G support

2. GPS support

3. Third party applications

4. Exchange support

(5. Price)

3G support was a foregone conclusion for the new iPhone – simply because there was no way the iPhone could continue to sell with EDGE support only. With many other handset manufacturers offering 3G support, the iPhone HAD to have it. It wasn’t an option at all. In fact, in order for Apple to penetrate foreign markets successfully, it would NEED to have 3G support – something that is much more prevalent in Asia and Europe.

Yet what does this ultimately mean for you and I? It means we, the average consumer, can finally enjoy the web in a very mobile way. We now have a device that truly is portable AND is enjoyable from a multimedia perspective. We can sit in a lounge somewhere and watch YouTube videos to our heart delight. We can surf the web without waiting for the download to finish – something that felt slower than a 56K modem sometimes. We can read our emails quickly and easily.. We can do so much more now in a quicker fashion.

GPS support built in. It seems that everyone is buzzing about location aware services.. yet I think this is also Apple’s way of saying – hey – we’re not going to necessarily be dependent upon Google’s cell phone tower/Wi-Fi method of tracking users.. and really – why should Apple? If Google is going to launch and offer Android, Apple better make sure they’re well protected from Google’s services. This is not to say that Google will turn around and back-stab Apple (I somehow can’t imagine Google doing this at all). Yet – it makes perfect business sense.

Plus – it opens the doors to many more third party application software opportunities. Imagine being able to launch a social networking tool that updates a website to your physical location (I know.. kinda scary at times but some people will enjoy it). Or take it a step further – have an app TELL you where your friends are… where your kids are.. etc etc.

So this leads me to the third party applications. This is where things really start becoming big for Apple. It’s all about the apps/content stupid. That’s what’s ringing in my head and it’s never so much closer to the truth than the iPhone. Up until now, we’ve had a closed system and now.. we’ve got a way to enjoy the iPhone even more so. While Apple is certainly great at developing ground breaking applications, one can also imagine the many more possibilities that third party app developers will do with the iPhone. The possibilities are seamingly endless and this will certainly drive growth for the platform. Think again – why did Microsoft ultimately succeed with Windows? Because they got it on as many systems as possible AND they fostered a huge developer community with tools and libraries. Apple can very well succeed following the same model.

Exchange support. While 3G support, app support, and GPS support are nice new features – the three elements together will not necessarily translate to many new customers. However, adding in business support in the form of Microsoft Exchange support and VPN support from Cisco changes the picture. The iPhone becomes a bona-fide competitor to other business oriented devices like the BlackBerry and Windows Mobile Smartphones. There will be still plenty of individuals who will want to work with a real QWERTY keyboard. Yet – there will be many who are willing to give that up if it means they can enjoy the iPhone AND enjoy their business email. This truly opens many MANY doors for Apple.

Finally, perhaps the biggest announcement of the day (at least to consumers) had nothing to do with the iPhone feature set as much as it had to do with the new price levels. We’ve been hearing for some time that the iPhone might be available at lower prices. We even heard that AT&T may offer the iPhone at a lower price than Apple (which would have suggested that AT&T was not going to be the exclusive carrier in the U.S. anymore). This of course didn’t quite happen. The lower prices did in fact happen but it wasn’t AT&T specific per se. Thus whether you purchased it from Apple or from AT&T, the iPhone will cost you $199 for the 8GB and $299 for the 16GB. This is MUCH more palatable than the original $499/$599 costs or even the current prices for the 8GB iPhone (which you can’t find anyhow).

Lowering the price will do several things for Apple:

• It will allow existing iPhone owners to feel OK about purchasing/upgrading to the new phone
• It will capture additional non-iPhone users who were put off by the initial price – this could range from a little to a lot of new users – depending on what $199 means to these individuals.

Taken together – all of these new features and price levels can only mean one thing for Apple. The new 3G iPhone will be another blockbuster device – but with one difference. It will be a blockbuster device NOT just in the U.S. but around the world.

Now we wait.. July 11th here we come..

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