Apple iPhone


Posted by flung in Apple and Apple Systems and Apple iPhone and Apple iPod and OS X21 Jul 2008 06:52 pm

Think Apple’s business is being driven by the iPod and iPhone? Guess again - Apple’s Mac business is alive and well as they’ve announced that 2.4 million Macs were shipped during the third quarter ending June 28th. That represents a 41 percent unit growth and a whopping 43 percent revenue growth over the year-ago quarter. In total, Apple posted amazing revenues of 7.46 billion with a net quarterly profit of $1.07 billion (or $1.19 per diluted share). Compare those numbers to the year-ago quarter which were 5.41 billion and a net quarterly profit of $818 million. Gross profits dipped somewhat - from 36.9 percent to 34.8 percent.

Here are other stats of interest:

  • 11 million iPods were sold during the quarter - 12 percent unit growth and seven percent revenue growth over the year-ago quarter
  • 717,000 iPhones were sold during the quarter compared to 270K in year ago quarter (of course the iPhone had just started sales during the third quarter of last year)

Now here’s where things get interesting. Apple’s CFO, Peter Oppenheimer, decided to warn analysts that 4th quarter gross margins will be negatively affected by a “product transition.” So as News.com points out - let the guessing games begin. What exactly does this product transition mean exactly? Does this lend credence that new notebooks are coming out from Apple? Does this mean product prices are coming down? Does it mean things getting more expensive to manufacture? It’s really anyone’s guess right now (but you can be sure that people will be coming out with their own theories now). For the record though, News.com thinks that Apple will do two things during the fourth quarter: Introduce new Centrino 2 based MacBooks and reduce price for the iPod touch.

[Check it out]

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Posted by flung in Apple and Apple iPhone and Mobile Phones and Smart Phones17 Jul 2008 08:34 am

iphone 3g So what do you do if a new product like the iPhone 3G is released? Well if you’re iSuppli, you go ahead and rip it apart to perform a “teardown analysis” of course. It’s almost a tradition now to hear what a significant product costs after it’s been introduced into the market and the iPhone 3G is no different here. According to iSuppli, the new 8GB iPhone 3G is approximately fifty dollars less than the 1st generation iPhone. Initial production costs for the iPhone 3G is estimated to be at $174.33 (this consists of the iPhone’s 3G bill of materials and manufacturing expenses. It does not include costs such as software development, shipping, packaging, accessories that go with the phone, marketing etc). Compare this number to last year’s number of $227 and yes.. the company did indeed shave dollars off the manufacturing process. This isn’t too surprising since the major upgrades to the new iPhone are the 3G support and the inclusion of GPS. Going to a plastic backing, and sticking with the same panel has allowed Apple to focus on reducing overall costs of the iPhone and thereby increasing sales margins.

iSuppli estimates that profit margins for the new phone will be around 55 percent. How did it get this number? Here’s the breakdown:

Apple manufacturing and bill of materials costs for 8GB iPhone 3G: $174.33

Apple pays $50 dollars for IP royalties

AT&T is estimated to be paying a $300 subsidy  per 8GB iPhone to Apple making the 8GB actually worth $499 ($199 + $300).

Thus $499 - $224.33 = $274.67 which is a 55 percent profit margin. NICE

If you’re curious as to the components found in the phone - make sure to check out the iSuppli webpage here.

[Check it out via Crave]

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Posted by flung in Apple and Apple iPhone and Mobile Phones and Smart Phones15 Jul 2008 12:54 pm

iphone 3g Usually when I receive a new product to look at, I take it for test drive for several days to several weeks and then write up a blog posting about it on Krunker.com. However, with the new iPhone 3G smartphone, I thought I’d take a different route in writing up a review. Instead of writing one comprehensive review of the product, I’m going to write a series of blog posts about the iPhone 3G - specifically one a day for the next.. well.. for as long as I can. The truth is - some products are pretty easy to review while some products are just so awe-inspiring and incredibly compelling that it takes some time to really get a full picture of what you have in your hands. Were it not for the App Store and the 3G connectivity, the iPhone 3G would basically be a small update to the existing iPhone device. However, the addition of high speed internet access and third party applications have literally changed the look and feel of the iPhone.

Thus starting tonight, I’ll be running my official “My iPhone 3G Life” series. Part 1 will be about titled “My first impressions”. In case you missed it, I wrote up a piece about my purchase experience here.

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Posted by flung in Apple and Apple iPhone and Mobile Phones and Smart Phones14 Jul 2008 03:33 pm

iphone 3g

Despite all the long lines, crazy customers, server outages, and painful activation processes, Apple managed to serve up some interesting numbers over the last three days. According to the company, Apple sold one million iPhones in just three days after its launch on Friday with the one millionth iPhone being sold on Sunday. In addition, the company’s new App Store had more than 10 million applications downloaded since the launch of the store.

Achieving the one million sold mark for the iPhone is certainly no small achievement but let’s not forget that Apple launched the iPhone simultaneously in 21 different countries! As for the App Store, remember that the new 2.0 software update is available for both the new iPhone 3G, the first generation iPhone as well as iPod Touch users (for an upgrade fee). Thus, there were certainly plenty of users out there who had hardware that would make use of the new App Store - leading to plenty of downloads.  Of course, if you’re like me, you probably downloaded many of the free applications just to see what was useful and what was well.. crap. I can see it now…

“Select to install… download.. run… oh.. it’s stupid.. delete”. That’s one download!

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Posted by flung in Apple and Apple iPhone and Mobile Phones and Smart Phones13 Jul 2008 01:27 am

It’s Saturday night/Sunday morning and I’m finally getting a chance to sit down and write about my iPhone 3G purchase experience. Yes.. I tried to purchase the iPhone 3G on Friday but that didn’t work so.. I tried again on Saturday .. and have five plus hours, I finally walked out of the Apple Store with an iPhone 3G. Along the way, I went through all sorts of feelings and emotions about the entire purchase process and gave a good amount of thought into what went “wrong” with this ordeal (I was going to say process but in many ways, it was more like an ordeal). Let’s go back to the beginning shall we?

I fell asleep rather early on Thursday night with the intention of waking up early Friday morning. The entire world knew that the iPhone 3G would be available starting at 8am local time thus I was planning to get there at the opening hour. Of course I knew that there was going to be a line of some sort .. I just didn’t know what kind of line to expect.

The target Apple store for my adventure was going to be the store located at the 3rd St. Promenade in Santa Monica. Of course I knew the purchase process this year was going to be different than last year. Last year, folks were allowed to  purchase the iPhone and then bring it home for activation later on. This meant hundreds of iPhones were purchased at Apple stores in no time. This time around, no one was allowed to leave an Apple (or AT&T) store without having the iPhone 3G activated to an AT&T account. This was to prevent consumers from hacking the phone and using it for another service provider.

Unfortunately, I woke up a tad bit Friday morning and didn’t get to the store until around 8:30am. I parked my car, walked along Arizona and turned the corner onto 3rd street and came across this scene.

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At first glance, I only saw the large crowd in front of the Apple Store. There were Santa Monica Police Officers on hand and they actually blocked my view of the rest of the line. Once I got past the officers, I saw the extent of the line for the iPhone 3G - it reached all the way to Wilshire!

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My first thoughts were.. I can wait. Yet.. I decided to walk to the end of the line and see how fast the line would move. While at the end of the line, I managed to talk to some folks working for Jirbo.com. They were walking the lines promoting the new video games that they had available on the Apple App Store.

Somehow.. I got sucked into the line and stayed there. Mind you - Friday was still a work day for me so I took a gamble thinking that the line would move at a somewhat reasonable pace. From 8:45 am till 10am, the line moved about 100 feet.. then.. at around 10:30 to 11:00 am.. things began slowing to a crawl. Rumors were flying through the line, people were grumbling. Why was the line so slow? People were passing along information from friends or news sources about how AT&T servers and iTunes servers were either very very slow or crashing.

Then at around 11:30am, an Apple rep started walking the line announcing that folks who were existing AT&T customers but did not already have an iPhone would need to purchase the 3G phone at an AT&T store. 10 minutes later, other Apple reps contradicted the first rep stating that such customers would still be able to purchase the iPhone 3G tho they could not guarantee the price. Of course, this didn’t affect me since I had the first iPhone yet, I couldn’t help but wonder how all of this was utterly botched up.

Noon rolls around and I begin to realize that there was no way I was going to leave 3rd Street with an iPhone 3G until at least 2-3pm. That was just simply unrealistic so I finally gave up and headed into work. Four+ hours wasted in line…

The funny thing was.. what ultimately convinced me to leave was an article on Crave which talked about fights breaking out at AT&T store fronts. At the end of the posting, the author said something like this - before you head down to the Apple store today, ask yourself - do you really need the iPhone 3G today? How right he was so I ultimately left.

Saturday morning rolls around and it’s 8:30am. This time, the Apple store was opening up at 9am and I decided to try and get down there at the opening. I dress quickly and drive down to 3rd street only to see that about 150+ people had the exact same idea. WHAT THE HELL PEOPLE - don’t you have other things to do? Heck… don’t I have something else to do? Ha…

OK.. you figure that day two would be a bit smoother than day one right? Wrong. I waited in line from 9am till roughly 2pm… and mind you, there were only about 150 people in front of me. However, once I did get into the Apple store, the purchase process was extremely painless. A blue-shirted Apple rep showed me the new iPhone 3G, asked me what model I wanted, and then asked for my existing iPhone info (phone number, last four digits of my social, and zip code etc). I had a new iPhone 3G activated with my phone number in approximately 8 minutes or so. OK.. not bad.. but again - this was due to the fact that I was already an iPhone user (and also because I was a user from day one and thus eligible for the upgrade price).

In total, I spent roughly 9+ hours in line between Friday and Saturday. That is the longest I’ve ever waited in line for anything… whether it’s a Black Friday sale, a new product launch.. anything. Why in the world did I do this you might ask? Believe me when I say that I also asked that very same question to myself. There’s a good deal of human emotions involved in all of this of course. Once you spend a decent amount of time in line, you end up feeling like you might as well rough it out to the end. In fact after talking to a few people in front of me, I found out that many of them had the exact same feelings. I waited this long .. I might as well wait a bit longer right?

So.. who is to blame.

I think it’s easy to blame Apple and AT&T of course. They’re the ones with servers crashing and they’re the ones establishing the criteria for purchasing an iPhone 3G. So yes.. part of the blame for this crazy ordeal does indeed lie with these companies. Now, one can understand why activating the phone in the store was so important to AT&T but there had to be a better way of doing this. When I was purchasing my iPhone 3G, the Apple rep that handled my sale had a simple handheld device that performed nearly all the work. It scanned the barcode on my iPhone 3G box, it dealt with the transaction details, and it checked to see if I was an eligible user etc. I had expected to deal with people behind terminal stations but once I realized people were simply working with these handheld devices, I thought - gee… why couldn’t they just make sure more reps were on hand with more devices? Seriously now - it was clear that the 3rd St. store was not violating any sort of fire laws with the number of people in the store. There could have been 2x the number of people inside and everything would still be fine.

And yes - Apple and AT&T are to blame for their server response times. They had months to prepare their systems for this and in particular, Apple knew that they were launching worldwide.. and hence, they knew damn well that people would be hammering the servers. To top it all off - they also knew that MobileMe would go through a good deal of stress soo.. why didn’t they prepare better for this? That’s just not acceptable.

Apple in particular should also be blamed for the way they organized the lines for the iPhone 3G. Let’s face it - putting everyone in one single long line just wasn’t the best way to sort the consumers out. If Apple knew that existing iPhone users would have an easier time in purchasing the phone, they should have separated those users out. For a company that prides itself in the user experience, they severely blew it with the launch. There’s nothing smart about putting everyone in a single line. My recommendation to Apple - divide the lines into three lines. One line for existing iPhone customers. One line for AT&T customers without the iPhone. One line for all new customers. Each line has a different wait time and this helps set up the overall expectations for the consumer.

Finally, we the consumers also had some blame to share for this - I know I was partly to blame for a long line. Come on now… let’s face it.. did I really need a new iPhone 3G on day one or day two of the product line? OK.. actually it would help if I had the new model because it allows me to crank out a review earlier to all of you. But I digress now. By waiting in line.. by spending an inordinate amount of time in the Apple store, we the consumer also made life hard for others who simply wanted the phone. If you walked into the Apple store and did not know what wireless plan you wanted nor did you know if you really wanted an iPhone 3G, then shame on you. You had plenty of time to do research and you had plenty of time to ponder on what the iPhone 3G was all about.

Yet.. ultimately, most of the blame goes to Apple for setting up these crazy expectations. The company helped fan the flame for these mobile phones and they certainly knew the product launch would be a big thing. So while I can put some of the blame on the consumers, most of the backlash really is indeed on Apple and AT&T. In many ways, this should be a case study on how NOT to launch a new product.

At the end of it all, I have the iPhone 3G finally and life is.. still the same.

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Posted by flung in Apple and Apple iPhone and Mobile Phones and Smart Phones09 Jul 2008 12:08 am

iphone 3G While you’re waiting on the new iPhone 3G due out this Friday, why don’t you check out some of the first reviews on the phone? They come from none other than Walter Mossberg, David Pogue, and Edward C. Baig.

Mossberg has this to say about the new iPhone 3G:

If you’ve been waiting to buy an iPhone until it dropped in price, or ran on faster cell networks, you might want to take the plunge, if you can live with the higher service costs and the weaker battery life. The same goes for those with existing iPhones who love the device but crave faster cellular data speeds. But if you already own an iPhone, and can usually use Wi-Fi for data, you probably should hold off and get the free software upgrade before deciding whether it’s worth getting the new hardware.

Mr. Pogue’s comments are as follows:

But it’s not so much better that it turns all those original iPhones into has-beens. Indeed, the really big deal is the iPhone 2.0 software and the App Store, neither of which requires buying a new iPhone.

And finally, Edward C. Baig’s comments are as follows:

While not everything on my wish list made it onto the new device, Apple has raised the bar with iPhone 3G. To which I offer an enthusiastic thumbs up.

Perhaps what I’m most disappointed in with the new iPhone 3G and in particular with the iPhone 2.0 software is best summarized by Pogue:

Unfortunately, most of the standard cellphone features that were missing from the first iPhone are still missing. There’s still no voice dialing, video recording, copy-and-paste, memory-card slot, Bluetooth stereo audio or phone-to-phone photo sending (MMS)

Come on!!! You’d think they would at least add MMS or video recording capabilities. My goodness, upgrade that darn camera would ya?

OK.. all venting aside, it appears Apple has yet another solid offering with the iPhone 3G. Is it a necessary upgrade for existing users? Not at all. If you don’t need the 3G experience, then you can probably hold onto your existing iPhone (not to mention your cheaper phone plan). If you’ve been waiting to get into the iPhone experience, then the 3G appears to be the way to go.

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Posted by flung in AT&T and Apple and Apple iPhone and Mobile Phones and Smart Phones01 Jul 2008 12:27 pm

iphone 3g price AT&T announced additional pricing details for the upcoming iPhone 3G today though it’s not likely to answer all the questions that people might have. Let’s go over what we do know thus far.

First off, the $199 8GB iPhone 3G and $299 16GB iPhone 3G requires a new two year contract and is available to the following customers:

  • iPhone customers who purchased before July 11
  • Customers activating a new line with AT&T
  • Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount

OK.. so what that says to me is.. if you purchased a 1st generation iPhone before July 11th and you’re up and running with AT&T already, then by default, you’re eligible for the new iPhone 3G. What that also says to me is.. if you are already an AT&T customer AND you’re NOT an iPhone user, you MIGHT be eligible for the new iPhone 3G at the reduced discount.

So.. how do you know if you’re eligible for the discount? You’ll need to log into your account at AT&T Wireless and then click on the “Upgrade Phone” link. That will tell you if you’re eligible for an upgrade discount on a new two year plan.

Now with that said.. if you’re an AT&T customer and you are NOT eligible for an upgrade discount, then the new iPhone 3G will cost $399 for the 8GB and $499 for the 16GB model. This still requires a new two year agreement with AT&T of course.

Down the road, AT&T will also offer a no-contract required option for the iPhone but that also means you’ll be paying the most of the 3G phone with the 8GB model going for $599 and the 16GB for $699.

Make sense?

Oh yeah.. there’s also an “upgrade fee” for current AT&T customers who are upgrading to the iPhone 3G. There’s also an “activation fee” of $36 dollars for new AT&T customers. They sure know how to milk ya!

OK.. so that’s just the price of the phone. We haven’t even begun talking about the plans yet.  To me - the plans are perhaps the most annoying because they’ve changed in a devious way. First off - you’ll be paying more per month than what you previously did with the first generation iPhone. Of course, it’s faster service but.. here’s the kicker - the plan does NOT include the original # of text messages. You want text messages, that’s more too!

Let’s summarize the individual plans - all of which have unlimited data.

On the low end, there’s the AT&T Nation 450 plan which includes 450 Anytime Minutes, 5000 Nights and Weekend Minutes for $69.99 a month

Next, there’s the AT&T Nation 900 plan which includes 900 Anytime Minutes, and unlimited Night and Weekend Minutes for $89.99 a month

Next, there’s the AT&T Nation 1350 plan which has (you guessed it), 1350 Anytime Minutes and unlimited Night and Weekend Minutes for $109.99 a month

Finally, there’s the AT&T Nation Unlimited which includes unlimited Anytime Minutes for $129.99. Thus, I suppose the $99.99 unlimited plans don’t apply to the iPhone 3G eh?

OK.. but notice - nowhere in here is anything about text messages. You want texting you say? That’s more! For 200 messages a month, it’ll be $ 5 dollars. For 1500 messages, it’ll be $15 dollars and for unlimited text messages, it’ll be $20 dollars a month. Yes.. that means the lowest plan will be actually $74.99 a month for 450 Anytime Minutes and 200 text messages. That’s $15 dollars more a month than what the lowest 1st gen iPhone user pays now.

Want family options?

AT&T’s FamilyTalk by default comes with two lines. Each additional line will cost you $39.99 extra for up to three more lines. All FamilyTalk lines come with unlimited data, nights and weekends and mobile to mobile.

On the low end, there’s a 700 Shared Anytime Minute plan which costs $129.99. For 1400 Anytime Minutes, you’ll pay $149.99 a month. Next up is the 2100 Anytime Minutes plan for $169.99 a month. Then the 3000 minute plan for $209.99 a month etc etc.

Of course, text messaging is EXTRA too.

Want more info or better pictures? Check out the pricing page here on AT&T’s website.

But let me see if I can summarize for you:

AT&T Nation plans:

Anytime Minutes 450 900 1350 Unlimited
Night and Weekend Minutes 5000 Unlimited Unlimited Unlimited
Additional Minutes 0.45c 0.40c 0.35c N/A
Per month $69.99 $89.99 $109.99 $129.99

 

AT&T FamilyTalk plans:

 

Shared Anytime Minutes 700 1400 2100 3000 4000 6000 Unlimited
Additional minutes 0.45c 0.40c 0.35c 0.25c 0.20c 0.20c N/A
Per Month $129.99 $149.99 $169.99 $209.99 $259.99 $359.99 $259.99

 

[Check out the press release]

[Check out the price plans]

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Posted by flung in Apple and Apple iPhone and Mobile Phones and Smart Phones26 Jun 2008 09:26 am

invisibleSHIELD for iPhone 3G

While you’re waiting to purchase the new iPhone 3G on July 11th, ZAGG Inc., is hoping you’ll also go ahead and pre-order their new invisibleSHIELD protective film covering for the iPhone 3G. The invisibleSHIELD  adhesive film cover actually has been available for pre-order for approximately three weeks now and ZAGG reports that over 50,000 pre-orders have already come in.  The company is also reporting that the invisibleSHIELD will begin shipping on June 27th which is two weeks prior to the launch of the new iPhone. If you pre-order now, you’ll get 20% off the normal price at checkout. There are three options - a full body coverage at $24.95, back coverage at $18.95 and front coverage at $14.95.

One thing I couldn’t help but do was to calculate some of the early revenues that ZAGG has already accumulated. If 50,000 pre-orders have already come in.. and we assume that people are at a minimum ordering just the front coverage for $14.95 (minus the 20% discount which comes to $11.96), then the company has already earned roughly $598,000 at a minimum. NICE….

[Check it out]

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Posted by flung in Apple iPhone and Apple iPod and JVC and Mobile Phones and Smart Phones23 Jun 2008 05:55 am

JVX NX-PN7

JVC NX-PN7 with iphone

You can categorize this one under “Why hasn’t someone thought of this before?” Since more and more households have one or more iPods, it makes only perfect sense that someone would eventually want a dual iPod docking station. That’s exactly what JVC announced today with the NX-PN7 - the industry’s first dual iPod docking stations. The system can accommodate two iPods side by side charging them both simultaneously. You can also choose to play back music from either iPod through the dock’s built-in speaker system. The dock also comes with an AM/FM tuner, clock, timer, remote control, and an analog audio input for connecting other audio devices. The remote control also comes with dedicated iPod control keys that simulate the iPod control wheel layout. There’s also an NX-PN7 model which supports the Apple iPhone. The new docking station is now available for $149.95.

[Check it out]

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Posted by flung in Apple iPhone and Mobile Phones and Smart Phones21 Jun 2008 11:50 pm

set1

If you’re looking for an inexpensive way to jazz up that iPhone of yours - might I suggest a GelaSkin? They’re thin vinyl protective covers that apply right onto the back of your iPhone. The best part - you can easily remove them and not leave a mark on your phone. Each GelaSkin is scratch resistant and extremely durable - I’ve had mine since CES 2008 (got a free one which I’ll show later on this week I hope .. I know.. I’ve been lagging a bit). GelaSkin also has downloadable wallpapers for each of the designs that they sell. They’re latest design is called the Love Cow and it’s by Anthony Hurd - a famous video and graphics artist. You can see his latest design here on GelaSkin’s website ( you can buy it for $14.95). GelaSkins will certainly help personalize your iPhone (especially since it seems like everyone has an iPhone these days!)

[Check it out]

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