New 3G iPhone

Bronco

Bronco

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The buzz is starting to build concerning the imminent release of Apple's new 3G ready iPhone. I've long been impressed with the shrewd financial arrangement Apple was able to negotiate with AT&T in exchange for allowing them to be the exclusive service provider for the iPhone. Now that the 3G model is about the launch, my biggest question is will this exclusivity agreement between Apple and AT&T continue, and, by extension, does AT&T already have the network infrastructure in place to support a 3G network? I would imagine they would have to continue supporting the older, slower Edge network for some time. I'm certainly not complaining about this development as I'll be ecstatic to deep six the molasses like Edge network, but I'm wondering how seamless the transition will be.

It's also interesting to see the price in the phone itself drop so precipitously. It appears that AT&T is now subsidizing the cost of the iPhone which they haven't done before to the best of my knowledge. But it also looks like the cost to make the phone has dropped greatly. Here's a bit of an article from the macnn web site:

The iPhone 3G carries a lower price, but it also costs about half as much to make, according to a report in the EETimes. The report says tests by teardown specialist Portelligent put the bill of materials for the new model as low as $100. That should help offset the 3G’s lower $199 price point. Portelligent estimates that based on materials alone, Apple’s gross profit on the iPhone 3G totals about $99, compared to $229 for the previous version. Apparently, Apple is counting on sales volume to make up the difference and Apple may also be receiving a payut for each carrier activation, although the revenue sharing plan with carriers, as with the original device, is no longer in place.
Click to expand...

http://www.macnn.com/articles/08/06/19/att.iphone.subsidy/

Now, I'm all for economies of scale and technological improvements helping to lower the bottom line, but I have to say that I get a little uneasy when I hear that the cost to produce the new iPhone will be cut in half. Do you guys think it's possible that the production costs could be slashed by so much without compromising the build quality?
 
As technology marches on, better technology always gets cheaper... and remember that the first-gen iPhone was 3 years in the making before it even hit the shelves. The 3G iPhone just builds off of the current one with a GPS chip and support for the faster 3G network, and a few other hardware updates. It seems to me that they are probably able to take advantage of cheaper and newer technology with this revision. Steve Jobs is not really the kind of guy to make serious compromises like reliability... I think the new iPhohne will be good but I don't see myself upgrading at this time. Just no need here.
 
The 3G network is up and running in and around major cities,I've seen it in Rochester,NY,and Harrisburg and Reading,Pa,It is impressive,where you can find it,it just isn't reaching the rural areas as fast as I'd like it to.The edge network around me is good when it's good but at the same time it sucks when it isn't.When I'm in PA the edge network is a lot better.
 
Yeah, the Edge network definitely has its good days, and its bad.
 
From what I understand, if you have an older Ipone you can trade it in for the 3G. I think your service contract starts over for another two years.

What will this do to the price of the Ipod touch? I hear they are going to release a new version in Sept, I was going to buy a 16gig touch but will wait until December just to see what will happen.
-Ericb
 
I'm looking forward to the 3G upgrade although I'll probably wait a few months. My biggest gripe with the iPhone is the lack of Flash support and an apparent inability to send multimedia messages to other phones.

From what I've read, Steve Jobs has put Apple on track to become the most developer friendly handset platform.

http://reviews.cnet.com/8301-13549_7-9964401-30.html?tag=blgs

One of the few things I miss about my old LG is broadcast TV, including FOX News. I don't think that will happen anytime soon, but I'd like to at least have Flash. I can also envision the iPhone becoming printer friendly. Pulling down emails and FAX's with the ability to print them would be a great addition.
 
They dropped the iPhone price by $200 but raised the monthly cost for the network connection by $10 for 3G, with a 24 month commitment. Overall cost is a 20% increase. I believe that AT&T has another year on exclusivity with the iPhone, next years MacWorld will probably reveal a lot about future carriers.
 
Also Google a Canadian Mac/Apple user forum - you'll earn more about the new 3G iPhones than you need, or want, to know! ;) (Even in the wasteland of Kanada, where the new phones go on sale July 11, that's the only topic of conversation. Lots of info for all interested parties.)
 
July 11 is the date here in Mexico as well. I'm not sure if I can get one immediately, but I would like to have one. never could justify one for the states, the roaming fees are astronomical. I have a 3G blackberry in states and it works great much faster and better than edge.
 
according to a report in the EETimes. The report says tests by teardown specialist Portelligent put the bill of materials for the new model as low as $100
Click to expand...

That report from Portelligent received a lot of flack on some geek sites, starting with the fact they didn't actually have a phone to tear down, but extrapolated costs based on a teardown of the first gen iphone, and including a lot of guessing.
 
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