iPhone 3G

Well, the next generation iPhone is finally on its way. Announced last month and due to ship on July 11th, the second-generation iPhone, dubbed iPhone 3G, fixes a lot of what was wrong with the first generation model -- at a much lower price. The 3G refers to the fact that the new iPhone works on 3G wireless networks, for much faster connection and download speeds. You also get built-in GPS and a new OS/interface, complete with lots of new iPhone-specific apps. The new model will be available at AT&T stores only, and only with a 2-year subscription. There's a 8GB model priced at $199, and a 16GB model at $299 -- assuming you're either a new AT&T customer or an older customer who qualifies for this "upgrade" pricing.

FWIW, this is the model I've been waiting for. There's still some things about it I don't like (such as the lack of multimedia messaging), but for me it's time to take the plunge. See you at a local AT&T store on the 11th!

iPhone Ringtones on iTunes

Apple now lets you create ringtones from any tune you purchase from the iTunes Store. You have to pay an additional 99 cents (for a total of $1.98 -- the original 99 cent tune purchase plus the 99 cent ringtone purchase), but then you get a custom ringtone from that tune you can import onto your iPhone. Check it out from within the latest version of the iTunes software.

iTunes WiFi Music Store -- and Starbucks

Part of Apple's new product announcements last week was the opening of the iTunes WiFi Music Store. Designed for use with WiFi-enabled iPods (currently, the iPhone and iPod touch), the WiFi version of the iTunes Music Store lets you purchase and download music directly to your iPod/iPhone from any WiFi hotspot, no computer required. Songs you download in this fashion are later transferred to you computer when you sync your iPod.

It's a great idea with some limitations. For example, you currently can't download DRM-free iTunes Plus tracks. Neither can you download videos. Maybe at a later date.

Apple also announced a partnership with Starbucks. If you hear a song you like playing at your local Starbucks, just tap your iPod's new "Starbucks" button to display information about the track and, if you like, to purchase and download it. Good deal for Starbucks, I'm sure, and an interesting application of the new iPod/iPhone WiFi capabilities.

iPhone Price Cut

You knew it was going to happen, you just didn't know it would happen this fast. Apple has lowered the price on the ridiculously overpriced 8GB iPhone from $599 to $399. It also dropped the once-lowerpriced 4GB model. At $399, that makes the iPhone somewhat more appealing; the price is closer in line to that of competing smartphones.

And what if you already purchased an iPhone for $599? Tough luck, chump. Apple will give you a $100 credit for the Apple Store, but past that you just paid $200 to be an early adopter.

iPhone Sales Disappoint

Remember my previous post about analysts estimating that Apple sold a half-million iPhones in its first weekend of release? Wrong, sorry. Apple just announced its latest quarterly results, and the real number of iPhones sold wasn't 500,000, it wasn't 400,000, it wasn't even 300,000. Nope, AT&T reported activations of just 146,000 iPhones. Now, that's not a small number, but it's not a half million. (And it's nowhere near the 8 million copies of the last Harry Potter book sold in its first weekend of release.)

Some analysts are predicting iPhone sales to increase from current rates, but I think not. The first weekend was a tremendous sales surge, based on pent-up demand from die-hard Apple cultists, gadget geeks, and fashion trendists. Sales from here on out will be to normal people, and normal people are less fascinated by Apple's overpriced, under featured first generation phone.

I hold to my previous advice. Wait for iPhone 2.0 -- it'll fix all that's iffy with the current model, and probably be a better deal, besides.

500,000 iPhones Sold

Various reports say Apple sold more than a half-million iPhones in its first weekend on the market. That puts it well on the way to meeting the 10 million units Steve Jobs says it will sell by the end of 2008.

The iPhone is Here!

In case you missed all the media hoopla and long lines outside your local Apple or AT&T Store, the iPhone is now shipping. It looks like everybody who waited in line got one, and there were a few left over after that. Initial reports are mainly positive, with some common negatives.

The positives:

• Touchscreen interface is everything it promised to be
• Activation is quick and easy (for most users) via iTunes; you choose your AT&T plan directly from the iTunes interface
• Voice quality appears to be good
• The web browser is terrific -- with one qualification (in a minute...)
• The screen is also great for viewing movies.
• The auto-swivel feature works quite well, reorienting the screen when you turn the unit in your hand.
• The 2 megapixel camera is pretty good for a phone
• It's a great iPod music player, except for the storage limitations

The negatives:

• Web browsing and email via AT&T's EDGE network is slower than slow -- several minutes to retrieve a message or load a web page. Intolerable, especially for device that has souch a great web browsing interface.
• The touchscreen keyboard is difficult to type on at best, impossible at worst. This is not a phone for heavy instant messagers or emailers.
• No connection to corporate email servers means you can't use it for work email, as you can a Blackberry. Which is why most corporate IT departments are saying "no" to the iPhone.
• The lack of MMS messaging means that you can't send the photos you take via text messages. (You can send via email, however, but not to another user's cell phone via text.)
• Lack of stereo Bluetooth means you can't use Bluetooth headphones -- although you can use Bluetooth mobile headsets, like the Jabra.
• You only get 4GB or 8GB of storage (actually 3GB and 7GB, after you account for operating system software), which isn't enough to store a lot videos or big music libraries.
• There's no voice activated dialing, which is baffling in a phone of this overall caliber.
• In spite of previous reports (wishes?) to the contrary, you buy the iPhone, you're locked into a 2-year AT&T service plan.
• AT&T sucks, of course.
• It costs freakin' $600!

My advice? Unless you absolutely, positively have to have the latest and greatest, don't buy a first-generation iPhone. Wait for the second-generation model, probably in January, which should fix most of the negative issues. (There will be lots of negative press in the days and weeks to come; people will have buyer's remorse.)

iPhone Release Date: June 29th

Apple will release its long-awaited iPhone combination iPod/smartphone on June 29th. Two models will be available, a $499 model with 4 GB music/video storage and a $599 model with 8 GB storage. In the U.S., the iPhone will work exclusively with the AT&T mobile service.