With thousands of Apple aficionados signing up for the iPhone sight unseen and thousands more on waiting lists, the firm is reported to have turned to longtime Apple manufacturer Quanta Computer to ramp up production.
Responding to reports that it had received an order to produce 5 million iPhones with delivery scheduled to begin in September, Quanta issued a cryptic statement that neither confirmed not denied the reports.
"It is important for the Company to gain new business to sustain growth and development," the company said, according to media reports adding that "the Company will not comment on specific customer, order or any types of confidential information."
Taiwan's Quanta is the world's largest producer of laptop computers and has produced various products for Apple in the past.
Earlier this week, WR Hambrecht analyst Matthew Kather released the results of a survey of AT&T Cingular stores the investment banking firm queried.
"Most stores expect the phone on 6/15 or 6/22, and most expect to only have a few (highest number was 40 at one store) on hand initially." Kather's report states, "Overall pent-up retail demand at Cingular stores appears very strong, with about 15-20 percent of the stores we contacted keeping a waiting list for customers interested to purchase it."
Apple CEO Steve Jobs said Wednesday that he expects to begin selling the iPhone before the end of June. The widespread expectation by analysts is that the launch will coincide with Apple's World Wide Developer Conference in San Francisco. Jobs is scheduled to deliver his keynote on Monday, June 11.
At the January Macworld keynote, Apple said the iPhone will initially be sold in the U.S. by Cingular Wireless (now AT&T). The handset is expected to include a touch screen and includes a music and video player. The iPhone is expected to come in two versions with a starting cost of $500 without the accompanying phone contract.
2007年6月3日星期日
You've Got to Hide Your iPhone Away
A little more than two years ago, Glenn Lurie's new bosses at Cingular Wireless put the Portland, Ore., native in charge of a super-secret project: Negotiating the rights to be the exclusive wireless carrier for Apple's (Nasdaq: AAPL) long-awaited iPhone.
Lurie, a onetime soccer standout at Wilson High School, played professionally in Cleveland, Atlanta and Portland before launching his cellular career in 1993 selling phones at a store in Mall 205. He worked his way into the management ranks, then weathered a succession of mergers in the cell phone industry. He's now a top executive in the wireless division of AT&T (NYSE: T) -- whose name Cingular took after its latest merger.
Meeting behind-the-scenes with Apple chief executive Steve Jobs and other tech heavyweights, Lurie won the deal for Cingular and took part in the unveiling in January at the MacWorld conference. Lurie, who now lives in Atlanta, stands at the center of a frenzy of anticipation as techies await the product's formal launch next month.
Yes, He Has One
The iPhone is a cell phone, address book, Web browser, music player and TV rolled into one. It's the most eagerly awaited tech product in years, and Lurie, in Portland this weekend to watch his son in a soccer tournament, is one of the few people in the world with his own iPhone.
He won't show it to you, though, or tell you much about it, Jobs or the negotiations. Mystery, he's learned from Apple, is an extremely valuable commodity.
"Steve was very clear on what he thought the benefits of us doing it that way," Lurie said during a conversation last week.
"The buzz has exceeded all of our expectations," he said. "That's probably the biggest benefit out of this."
(Comments have been edited for brevity and clarity.)
Question: Have your kids seen your iPhone?
Answer: My oldest is 13. I went to MacWorld, and I'd been working on it for, gosh, almost two years, and we announce at MacWorld and I got home and he was not happy with me because he didn't know about it. I didn't tell my family. I said, "Look, this is a project I really can't talk about." And [they] respected that. One of the things that was really important to me is I wanted to earn [Apple's] trust. As a lead guy, I had to take that to the Nth degree to earn their trust and respect.
Q: So you're not passing it around your house, even now?
A: No. It'll be a very, very cool day when we launch this thing. For lack of a better term, it's like giving birth. We're hiding it, hiding it, hiding it. We're all very excited about it and what it can be. But bottom line is no, we're not showing it around and are being very secretive with it.
Q: Your son, college students, these people love it. But who can afford a (US)$600 cell phone? (Apple plans to charge $499 and $599 for two models of iPhone.)
A: One-hundred million iPods have been sold. Obviously, those people are all target customers. We have 62 million subscribers. So there are 180 million people out there who aren't AT&T Mobility customers, who might want one of these, too. So that's the target, it's everybody.
I'll tell the story about my CES (Consumer Electronics Show) press conference (in January). I asked everybody in the room, I said, 'How many of you carry a wireless phone?' And literally 100 percent had a phone. Then I asked how many are carrying a smart phone -- RIM, Blackberry, whatever. Eighty percent had (one of those). Then I asked a third question: How many had an iPod. And it was 100 percent. If you just do the math of those, a 4 gig (iPod) Nano is, what 200 bucks? A Blackberry, if you get a great price on those let's just call it 200 bucks. And if you've got a decent handheld (phone) you pay 50 bucks. You have all these other things this (iPhone) does. It's a widescreen iPod. Right now, there isn't a widescreen iPod. So I am really not concerned at all about the price that Apple has set for the device.
We're not doing any pre-orders. But we put on our Web site: If you want more information, just give us your name and e-mail address and we'll be glad to let you know. And we just crested 1.1 million people who have given us their names. That completely eclipses everything that we would have imagined.
Q: What are you guys going to be charging?
A: Service pricing we're not talking about. But I would say that the pricing is going to be similar to what you see today (from AT&T).
Q: This is not a 3G product at this point. (The iPhone uses Cingular's slower, second-generation EDGE rather than its new, faster, third-generation technology.) Is that frustrating as you use it?
A: Not at all. We have the largest high-speed data network, and that's EDGE. We're very excited about what we're building on our 3G network. But for the applications, the majority on the device, they work wonderfully in the EDGE environment. On the browsing side, I'll tell you the experience is very, very good in EDGE. Now, let's not forget: The device also has WiFi in it. You can tell the device to see that, and it automatically connects over when it sees that. We see those working hand-in-hand with our network.
Q: What did you think when they (Cingular) pulled you in and put you in charge? You were pretty new to that organization (He'd joined four months earlier, when Cingular bought AT&T Wireless).
A: I was pleased that they had that confidence in me. They gave me an opportunity to go out and prove what I could do for the business, and it's worked out terrific. I took it on as a challenge. I'm obviously a pretty competitive guy.
There were high times in this project, and also low times when you think, "Gosh, we've got to get through this issue." The great thing is everybody saw the potential that this could have for the company's success.
Q: So during those low times -- can you tell me what any of those were?
A: No.
Q: But there was a commitment by you, and the people you were working with, that we're going to see this through?
A: We went to the board and got the board to approve this deal without ever seeing a phone. They never saw a device. We never knew exactly what we were getting. And you know why we did that? Because we made a bet on people. We made a bet on Apple's people. You know what? It was a great bet.
Lurie, a onetime soccer standout at Wilson High School, played professionally in Cleveland, Atlanta and Portland before launching his cellular career in 1993 selling phones at a store in Mall 205. He worked his way into the management ranks, then weathered a succession of mergers in the cell phone industry. He's now a top executive in the wireless division of AT&T (NYSE: T) -- whose name Cingular took after its latest merger.
Meeting behind-the-scenes with Apple chief executive Steve Jobs and other tech heavyweights, Lurie won the deal for Cingular and took part in the unveiling in January at the MacWorld conference. Lurie, who now lives in Atlanta, stands at the center of a frenzy of anticipation as techies await the product's formal launch next month.
Yes, He Has One
The iPhone is a cell phone, address book, Web browser, music player and TV rolled into one. It's the most eagerly awaited tech product in years, and Lurie, in Portland this weekend to watch his son in a soccer tournament, is one of the few people in the world with his own iPhone.
He won't show it to you, though, or tell you much about it, Jobs or the negotiations. Mystery, he's learned from Apple, is an extremely valuable commodity.
"Steve was very clear on what he thought the benefits of us doing it that way," Lurie said during a conversation last week.
"The buzz has exceeded all of our expectations," he said. "That's probably the biggest benefit out of this."
(Comments have been edited for brevity and clarity.)
Question: Have your kids seen your iPhone?
Answer: My oldest is 13. I went to MacWorld, and I'd been working on it for, gosh, almost two years, and we announce at MacWorld and I got home and he was not happy with me because he didn't know about it. I didn't tell my family. I said, "Look, this is a project I really can't talk about." And [they] respected that. One of the things that was really important to me is I wanted to earn [Apple's] trust. As a lead guy, I had to take that to the Nth degree to earn their trust and respect.
Q: So you're not passing it around your house, even now?
A: No. It'll be a very, very cool day when we launch this thing. For lack of a better term, it's like giving birth. We're hiding it, hiding it, hiding it. We're all very excited about it and what it can be. But bottom line is no, we're not showing it around and are being very secretive with it.
Q: Your son, college students, these people love it. But who can afford a (US)$600 cell phone? (Apple plans to charge $499 and $599 for two models of iPhone.)
A: One-hundred million iPods have been sold. Obviously, those people are all target customers. We have 62 million subscribers. So there are 180 million people out there who aren't AT&T Mobility customers, who might want one of these, too. So that's the target, it's everybody.
I'll tell the story about my CES (Consumer Electronics Show) press conference (in January). I asked everybody in the room, I said, 'How many of you carry a wireless phone?' And literally 100 percent had a phone. Then I asked how many are carrying a smart phone -- RIM, Blackberry, whatever. Eighty percent had (one of those). Then I asked a third question: How many had an iPod. And it was 100 percent. If you just do the math of those, a 4 gig (iPod) Nano is, what 200 bucks? A Blackberry, if you get a great price on those let's just call it 200 bucks. And if you've got a decent handheld (phone) you pay 50 bucks. You have all these other things this (iPhone) does. It's a widescreen iPod. Right now, there isn't a widescreen iPod. So I am really not concerned at all about the price that Apple has set for the device.
We're not doing any pre-orders. But we put on our Web site: If you want more information, just give us your name and e-mail address and we'll be glad to let you know. And we just crested 1.1 million people who have given us their names. That completely eclipses everything that we would have imagined.
Q: What are you guys going to be charging?
A: Service pricing we're not talking about. But I would say that the pricing is going to be similar to what you see today (from AT&T).
Q: This is not a 3G product at this point. (The iPhone uses Cingular's slower, second-generation EDGE rather than its new, faster, third-generation technology.) Is that frustrating as you use it?
A: Not at all. We have the largest high-speed data network, and that's EDGE. We're very excited about what we're building on our 3G network. But for the applications, the majority on the device, they work wonderfully in the EDGE environment. On the browsing side, I'll tell you the experience is very, very good in EDGE. Now, let's not forget: The device also has WiFi in it. You can tell the device to see that, and it automatically connects over when it sees that. We see those working hand-in-hand with our network.
Q: What did you think when they (Cingular) pulled you in and put you in charge? You were pretty new to that organization (He'd joined four months earlier, when Cingular bought AT&T Wireless).
A: I was pleased that they had that confidence in me. They gave me an opportunity to go out and prove what I could do for the business, and it's worked out terrific. I took it on as a challenge. I'm obviously a pretty competitive guy.
There were high times in this project, and also low times when you think, "Gosh, we've got to get through this issue." The great thing is everybody saw the potential that this could have for the company's success.
Q: So during those low times -- can you tell me what any of those were?
A: No.
Q: But there was a commitment by you, and the people you were working with, that we're going to see this through?
A: We went to the board and got the board to approve this deal without ever seeing a phone. They never saw a device. We never knew exactly what we were getting. And you know why we did that? Because we made a bet on people. We made a bet on Apple's people. You know what? It was a great bet.
2007年6月1日星期五
iPhone's Secret Ingredient: Google
Apple and Google just can't stand to be apart. Apple CEO Steve Jobs announced this week that Apple TV will soon play YouTube videos. Google recently unveiled a desktop search program especially for Mac users. And Google tools increasingly appear to be a key part of the secret sauce behind Apple's signature new gadget, the iPhone, set for release in June.
Both brands are beloved by legions of fans, and with Google CEO Eric Schmidt embedded on Apple's board of directors, the companies have gotten wise to the benefits of synergistic coupling. Call it the power of Gapple.
The partnership is more a friendship of convenience than a permanent pact. Apple benefits by bolstering its phone with popular Web tools, while Google gives its users a slick new way to access its services. One concern for Apple might be that the growing popularity of Google's mobile e-mail and calendar programs could reduce interest in Apple's own such offerings. But Apple already gives that software away for free, so the competition isn't likely to pose a lasting problem.
The iPhone's Web widgets and browsing software will enable access to a wide range of Google applications, with built-in tools for Google Maps and searches. A number of the portal's other mobile applications, such as Google News, will also work on the iPhone, benefiting from its touch-friendly browser. And Google's newest mobile tool, an on-the-go version of its calendar program, will take advantage of the iPhone's bright colors, though Apple will offer an alternative in the form of a built-in version of its own iCal software.
Sumit Agarwal, product manager for Google Mobile, says Google has been working with Apple and is moving in the direction of universal access to its suite of search and software applications on mobile devices. "Generally speaking, everything that you see on Macs, pending the technical ability of the device itself, will migrate into mobile applications," Agarwal says. That's likely to include a universal sign-on, so that you don't have to sign into each of Google's services separately.
Programs that require significant data input or are compromised by screen size aren't likely to be ported over in the near term, though. Agarwal says he doesn't expect consumers will demand a mobile Notebook product anytime soon, for instance, referring to Google's popular Web-clipping tool. And he doesn't see consumers clamoring to do heavy word processing on their mobile phones. They may want to comment on and communicate about such documents, though, to facilitate collaboration.
Rather than dumping huge applications onto small devices, Google's mobile applications are streamlined and stripped down to focus on the primary ways consumers use them on the go. "With Blogger, for example, it isn't as important that I be able to leave lots of comments, as that I can capture the essence of what I'm doing at that moment and share it in real time," Agarwal says. "I may want to snap a photo of a monument and store a voice annotation."
Google may have surprises yet to come for the iPhone. The portal partnered with LG in March to offer a blogging tool, and a related widget for the iPhone would be a logical next step. Google already offers a GMail widget for Macs, and a similar program on the iPhone would complement the pre-installed Apple mail software.
What else might Google offer? Possibly a Google Reader widget. The portal recently announced that its blog-reading tool can now be accessed offline. And though the iPhone could access Reader through its browser, a widget would be particularly useful when speedy mobile Web access isn't available. And why not a YouTube iPhone widget, now that YouTube is on Apple TV?
Though Google is key, it is far from the only iPhone partner. Yahoo will offer a mail widget and others, such as Sling Media, may offer software add-ons later to enable access to Web content and TV. Jobs has said that he is open to third-party applications that work within Apple's software framework.
AT&T, the iPhone's wireless carrier, has followed Apple's secrecy lead in keeping mum about the iPhone's features. But AT&T's Glenn Lurie recently alluded to Google applications on the iPhone as particularly appealing features that would make the device worth its $500 sticker.
Lurie and Jobs are both betting that supplementing Apple's sleek mobile browser with Google goodies will encourage consumers to capitalize on the mobile Web in a way that so far they haven't. Although about 90% of phones have some sort of built-in browser, Forrester Research has found that only about 45% of consumers say they are aware of their phone's Web capabilities. And given that 55% of those surveyed by the Equs Group, a market research firm, said they would buy a Google or Yahoo-branded phone, Apple looks smart partnering up.
Both brands are beloved by legions of fans, and with Google CEO Eric Schmidt embedded on Apple's board of directors, the companies have gotten wise to the benefits of synergistic coupling. Call it the power of Gapple.
The partnership is more a friendship of convenience than a permanent pact. Apple benefits by bolstering its phone with popular Web tools, while Google gives its users a slick new way to access its services. One concern for Apple might be that the growing popularity of Google's mobile e-mail and calendar programs could reduce interest in Apple's own such offerings. But Apple already gives that software away for free, so the competition isn't likely to pose a lasting problem.
The iPhone's Web widgets and browsing software will enable access to a wide range of Google applications, with built-in tools for Google Maps and searches. A number of the portal's other mobile applications, such as Google News, will also work on the iPhone, benefiting from its touch-friendly browser. And Google's newest mobile tool, an on-the-go version of its calendar program, will take advantage of the iPhone's bright colors, though Apple will offer an alternative in the form of a built-in version of its own iCal software.
Sumit Agarwal, product manager for Google Mobile, says Google has been working with Apple and is moving in the direction of universal access to its suite of search and software applications on mobile devices. "Generally speaking, everything that you see on Macs, pending the technical ability of the device itself, will migrate into mobile applications," Agarwal says. That's likely to include a universal sign-on, so that you don't have to sign into each of Google's services separately.
Programs that require significant data input or are compromised by screen size aren't likely to be ported over in the near term, though. Agarwal says he doesn't expect consumers will demand a mobile Notebook product anytime soon, for instance, referring to Google's popular Web-clipping tool. And he doesn't see consumers clamoring to do heavy word processing on their mobile phones. They may want to comment on and communicate about such documents, though, to facilitate collaboration.
Rather than dumping huge applications onto small devices, Google's mobile applications are streamlined and stripped down to focus on the primary ways consumers use them on the go. "With Blogger, for example, it isn't as important that I be able to leave lots of comments, as that I can capture the essence of what I'm doing at that moment and share it in real time," Agarwal says. "I may want to snap a photo of a monument and store a voice annotation."
Google may have surprises yet to come for the iPhone. The portal partnered with LG in March to offer a blogging tool, and a related widget for the iPhone would be a logical next step. Google already offers a GMail widget for Macs, and a similar program on the iPhone would complement the pre-installed Apple mail software.
What else might Google offer? Possibly a Google Reader widget. The portal recently announced that its blog-reading tool can now be accessed offline. And though the iPhone could access Reader through its browser, a widget would be particularly useful when speedy mobile Web access isn't available. And why not a YouTube iPhone widget, now that YouTube is on Apple TV?
Though Google is key, it is far from the only iPhone partner. Yahoo will offer a mail widget and others, such as Sling Media, may offer software add-ons later to enable access to Web content and TV. Jobs has said that he is open to third-party applications that work within Apple's software framework.
AT&T, the iPhone's wireless carrier, has followed Apple's secrecy lead in keeping mum about the iPhone's features. But AT&T's Glenn Lurie recently alluded to Google applications on the iPhone as particularly appealing features that would make the device worth its $500 sticker.
Lurie and Jobs are both betting that supplementing Apple's sleek mobile browser with Google goodies will encourage consumers to capitalize on the mobile Web in a way that so far they haven't. Although about 90% of phones have some sort of built-in browser, Forrester Research has found that only about 45% of consumers say they are aware of their phone's Web capabilities. And given that 55% of those surveyed by the Equs Group, a market research firm, said they would buy a Google or Yahoo-branded phone, Apple looks smart partnering up.
Apple iPhone sells for $800... on eBay
Decatur (GA) - An eBay auction for a brand spanking new Apple iPhone has just ended for $800 dollars.
The phone was put on the auction block on May 27th at 11:59 AM PDT and was quickly bought at 3:20 PM for the $800 "Buy it Now" price. My notes - Sorry, TG Daily, it appears since you posted your story the auction was pulled.First (as they noted), $800 seems low for something that would be in such high demand.
AND, though TG Daily seemed to think the seller was legit because he had a positive feedback of 11, I would say ..no way. I would only buy from a seller with an 11 feedback, 100% positive or no, if it was a) an inexpensive item, b) not something hot like this.11 feedback can be easily faked. Seems like not just the buyer, but TG Daily was scammed. via TG Daily.
The phone was put on the auction block on May 27th at 11:59 AM PDT and was quickly bought at 3:20 PM for the $800 "Buy it Now" price. My notes - Sorry, TG Daily, it appears since you posted your story the auction was pulled.First (as they noted), $800 seems low for something that would be in such high demand.
AND, though TG Daily seemed to think the seller was legit because he had a positive feedback of 11, I would say ..no way. I would only buy from a seller with an 11 feedback, 100% positive or no, if it was a) an inexpensive item, b) not something hot like this.11 feedback can be easily faked. Seems like not just the buyer, but TG Daily was scammed. via TG Daily.
Apple's iPhone: Who Really Wins?
I can't recall when there has been more anticipation built up about the release of a cellular phone -- or any consumer device -- than now, with the Apple (Nasdaq: AAPL) iPhone. The buzz has been incessant and almost as long-lasting as the ringing in my ears.
Yet all the talk and speculation has got me thinking -- even if the iPhone only partially lives up to the hype, who really benefits from it? Of course, we could look at who builds the guts of the iPhone and buy stock in those companies. But beyond this, who will profit the most from the supposed "sea change" that the iPhone is ushering in?
Getting a little crazyIn case you live on Venus, have no communication with the outside world, or simply don't know why everyone is talking about the iPhone, look here, here, and here. Its pending release has caused markets to gasp, has forced competitors such as Motorola (NYSE: MOT), LG, and Samsung to push out "iPhone killers," and has carriers scrambling to offer them. The only thing the iPhone buzz hasn't done yet is change the earth's magnetic polarity.
Even smartphone manufacturers that haven't yet built a media device to go directly mano a mano with the iPhone have commented on its impact on sales of their devices. Everyone from Research In Motion (Nasdaq: RIMM) to Palm (Nasdaq: PALM) to Nokia (NYSE: NOK) has had to assure investors and the general public that they will not implode under the weight of a giant apple with CEO Steve Jobs' smug profile beaming on the side.
You phone, iPhone, we all phoneAnd I agree that the iPhone story is not so much about who or what it will squash, displace, or otherwise somehow render moot. I'm much more interested in what the iPhone will increase, multiply, and magnify -- and I believe investors should be as well. Thus, the story I'm most interested in is that of the iPod, where an entirely new, thriving ecosystem was built on the back of a smash-hit consumer device.
To this end, much has been said about the high price the iPhone will supposedly command -- $500 even for the cheapest version -- and how that will affect its popularity. Certainly, a high price will keep it out of the hands of millions, but given time, the price should come into a range more digestible to the mass market, just like with the iPod. On this point, I agree with my Foolish colleague Tim Beyers that a premium price for the device may be the smarter move in the long run.
A premium product also sets up a more lucrative value chain for companies that will eventually build products or services around the iPhone. So while the exclusive provider of the iPhone -- AT&T (NYSE: T) -- won't see a huge crush of new subscribers on the back of a cheap device, the premium pricing of the iPhone will place it a level above the competition and attract big spenders. And I believe consumers will pay for a higher-quality device and service, even if this is only in perception and not fact.
A question of controlOne of the biggest debates around the iPhone, and one with large, long-term consequences, is whether the device will change the balance of power between mobile device manufacturers like Motorola and Ericsson and wireless service providers such as AT&T and Verizon (NYSE: VZ). Historically, the carriers call the shots and largely dictate what features and services they want to offer consumers. Additionally, carriers want to control the branding and distribution of products and services, to achieve the maximum benefit of paying subscribers sticking with them, rather than another member of the value chain.
While many pundits have offered the opinion that Apple will finally break the carriers' control over wireless services and devices, I don't buy it. The same was said about offering the Internet on mobile phones and how it would destroy the carriers' "walled garden," where consumers are captive mostly to carriers' product pages. While Apple and other manufacturers of high-buzz products will get preferential treatment, carriers will not go so far as to sabotage the value chain that keeps them growing.
Not only do I believe carriers will maintain their position, I actually think they all stand to benefit tremendously from the "iPhone effect." Devices with cool new features bring more media applications into the mobile realm, where carriers can bill for them -- even considering the potential that carriers may lose billable bandwidth to services carried over the iPhone's Wi-Fi connection. Carriers will reap not only the benefits of iPhone and iPhone-like device sales, but also the new revenue generated by mobile applications on all those devices.
It's a win-winOf course, Apple itself should do well with the iPhone -- it's really only a matter of how well. And I really have to hand it to Steve Jobs and the Apple team -- no matter how well or how badly the iPhone is received in the market, Apple hit pay dirt with the amount of press and "free" advertising it has received.
So, in my mind, Apple has already won. Even if the iPhone gets raked over the coals as a high-priced, over-hyped glam device, it will still garner more attention and promotion than any massive marketing budget could have bought. And I believe the wave of euphoria is a tide that will eventually lift all boats, even the ones that many have pegged as losers.
For related Foolishness:
This iPhone Would Be Worth $600
Great Investments For Busy People
Avoid the VoIP Value Trap
Palm is a Motley Fool Stock Advisor selection. To find out which other stocks are currently making the cut with Fool founders Tom and Dave Gardner, check out an all-access 30-day free trial today.
Fool contributor Dave Mock is betting the iPhone will top Tickle Me Elmo as the "must have" item this year. He owns shares of Motorola. Dave is the author of The Qualcomm Equation. The Fool's disclosure policy thinks you're a winner no matter what.
Yet all the talk and speculation has got me thinking -- even if the iPhone only partially lives up to the hype, who really benefits from it? Of course, we could look at who builds the guts of the iPhone and buy stock in those companies. But beyond this, who will profit the most from the supposed "sea change" that the iPhone is ushering in?
Getting a little crazyIn case you live on Venus, have no communication with the outside world, or simply don't know why everyone is talking about the iPhone, look here, here, and here. Its pending release has caused markets to gasp, has forced competitors such as Motorola (NYSE: MOT), LG, and Samsung to push out "iPhone killers," and has carriers scrambling to offer them. The only thing the iPhone buzz hasn't done yet is change the earth's magnetic polarity.
Even smartphone manufacturers that haven't yet built a media device to go directly mano a mano with the iPhone have commented on its impact on sales of their devices. Everyone from Research In Motion (Nasdaq: RIMM) to Palm (Nasdaq: PALM) to Nokia (NYSE: NOK) has had to assure investors and the general public that they will not implode under the weight of a giant apple with CEO Steve Jobs' smug profile beaming on the side.
You phone, iPhone, we all phoneAnd I agree that the iPhone story is not so much about who or what it will squash, displace, or otherwise somehow render moot. I'm much more interested in what the iPhone will increase, multiply, and magnify -- and I believe investors should be as well. Thus, the story I'm most interested in is that of the iPod, where an entirely new, thriving ecosystem was built on the back of a smash-hit consumer device.
To this end, much has been said about the high price the iPhone will supposedly command -- $500 even for the cheapest version -- and how that will affect its popularity. Certainly, a high price will keep it out of the hands of millions, but given time, the price should come into a range more digestible to the mass market, just like with the iPod. On this point, I agree with my Foolish colleague Tim Beyers that a premium price for the device may be the smarter move in the long run.
A premium product also sets up a more lucrative value chain for companies that will eventually build products or services around the iPhone. So while the exclusive provider of the iPhone -- AT&T (NYSE: T) -- won't see a huge crush of new subscribers on the back of a cheap device, the premium pricing of the iPhone will place it a level above the competition and attract big spenders. And I believe consumers will pay for a higher-quality device and service, even if this is only in perception and not fact.
A question of controlOne of the biggest debates around the iPhone, and one with large, long-term consequences, is whether the device will change the balance of power between mobile device manufacturers like Motorola and Ericsson and wireless service providers such as AT&T and Verizon (NYSE: VZ). Historically, the carriers call the shots and largely dictate what features and services they want to offer consumers. Additionally, carriers want to control the branding and distribution of products and services, to achieve the maximum benefit of paying subscribers sticking with them, rather than another member of the value chain.
While many pundits have offered the opinion that Apple will finally break the carriers' control over wireless services and devices, I don't buy it. The same was said about offering the Internet on mobile phones and how it would destroy the carriers' "walled garden," where consumers are captive mostly to carriers' product pages. While Apple and other manufacturers of high-buzz products will get preferential treatment, carriers will not go so far as to sabotage the value chain that keeps them growing.
Not only do I believe carriers will maintain their position, I actually think they all stand to benefit tremendously from the "iPhone effect." Devices with cool new features bring more media applications into the mobile realm, where carriers can bill for them -- even considering the potential that carriers may lose billable bandwidth to services carried over the iPhone's Wi-Fi connection. Carriers will reap not only the benefits of iPhone and iPhone-like device sales, but also the new revenue generated by mobile applications on all those devices.
It's a win-winOf course, Apple itself should do well with the iPhone -- it's really only a matter of how well. And I really have to hand it to Steve Jobs and the Apple team -- no matter how well or how badly the iPhone is received in the market, Apple hit pay dirt with the amount of press and "free" advertising it has received.
So, in my mind, Apple has already won. Even if the iPhone gets raked over the coals as a high-priced, over-hyped glam device, it will still garner more attention and promotion than any massive marketing budget could have bought. And I believe the wave of euphoria is a tide that will eventually lift all boats, even the ones that many have pegged as losers.
For related Foolishness:
This iPhone Would Be Worth $600
Great Investments For Busy People
Avoid the VoIP Value Trap
Palm is a Motley Fool Stock Advisor selection. To find out which other stocks are currently making the cut with Fool founders Tom and Dave Gardner, check out an all-access 30-day free trial today.
Fool contributor Dave Mock is betting the iPhone will top Tickle Me Elmo as the "must have" item this year. He owns shares of Motorola. Dave is the author of The Qualcomm Equation. The Fool's disclosure policy thinks you're a winner no matter what.
iPhone's rivals: Do they measure up?
Must you wait for Apple Inc.'s iPhone (and shell out $500) to get a device that truly combines communication and music?
Other manufacturers say no.
I decided to see for myself by asking phone makers to send me the best music player they make for each big cellular carrier.
Samsung rose to the challenge first by shipping me three new models: the SCH-u540 from Verizon Wireless, the Synch from AT&T, and the UpStage from Sprint Nextel. (Music phones from other companies will be reviewed in future columns.)
All three phones do much more than play music, of course. Each has a built-in camera, a Web browser, a video player and a Bluetooth receiver. The models from Verizon and Sprint also have GPS transmitters, which allow them to provide driving directions and local search.
That said, I mostly ignored these features and focused on music. My only real concern was whether these devices could realistically replace an iPod.
For Mac users who cannot run Windows on their machines, the answer is certainly not. None of the phones can take songs in any format directly from a Mac.
For PC users, the answer is probably not. An 8GB iPod shuffle sounds good, holds 2,000 songs and plays for 24 hours straight. None of these three models sounds as good, holds more than 20 songs or plays as long.
Still, if you don't need high-fidelity music for days straight, current options may suffice. Memory chips add enough room for up to 500 songs, and streaming music services can further expand variety. Users who want to listen beyond their own collections may enjoy the trade-off.
SCH-u540 (Verizon)
This midsize clamshell model costs $120 in stores or $70 at the Verizon Wireless Web site. Most users will need to spend an extra $100 or so on a headset, a memory chip and a USB cable that will connect the phone to a computer.
The phone supports Bluetooth headsets but, alas, not stereo models.
Verizon's system makes it easy to transfer music from PC to phone – if music is stored on Windows Media Player. Attach a cable to both devices, press the "Synch" option on the phone's "Music & Tones" menu and then select the "Synch" tab on WMP.
Even iTunes users can transfer songs from computer to phone.
To do this, they must download WMP, which is free from Microsoft, and then convert any songs they have in AAC to the MP3 format. (To convert one song in iTunes, right click on that song and select the conversion option. To convert a bunch of songs, check the box next to each song and select the conversion option from the "Advanced" menu.) Once a song is in the MP3 format, WMP will automatically recognize and display it.
Songs purchased through the iTunes store cannot legally be converted for use on Windows Media Player, but songs uploaded from CD are fair game.
Users can download new songs to their phones or their WMP libraries from the VCast Music Store, which charges $1.99 a song, $1 more than iTunes.
That price, along with the limited storage, seems like a deal-breaker to me.
Synch (AT&T)
This model, another midsize clamshell, costs $25 with contract and mail-in rebate. Again, most users will need to spend another $100 or so on headsets, memory chips and USB cables.
The Synch works with stereo Bluetooth headsets, but it's otherwise quite similar to the SCH-u540. Windows Media Player users will have no problems transferring songs to their phones. Users of iTunes should see the WMP conversion instructions above.
The difference between the two phones lies mostly in the services provided by Verizon and AT&T. Verizon gives one purchase option: the company store. AT&T offers several music sources.
AT&T customers can download songs from Napster for 99 cents each or subscribe for $15 a month to Napster to Go, a music service that lets users "rent" any of Napster's 2 million songs. (AT&T actually lets users try Napster free for 60 days.) AT&T also offers Yahoo Music Unlimited, another subscription rental service, which costs $12 a month, and 25 stations of commercial-free music from XM Satellite Radio, which costs $9 a month.
These services provide an enormous amount of variety, but there's currently a big catch. Aside from XM, which streams directly to phones, users must download music onto their computers and then transfer it to their phones.
AT&T promises direct downloads soon, which would make the Synch a decent option.
UpStage (Sprint)
Unlike its two conventional counterparts, the UpStage looks fresh. The slim, black rectangle has a cellphone on one side and a music player on the other. It costs $99 with contract after rebate, but yes, users will have to spend extra on memory chips and headphones. (A USB cable comes with the phone.)
The tiny package uses every square millimeter of surface space to pack in nearly as many features as its larger competitors, but the form creates drawbacks. UpStage's tiny battery supports only 2.5 hours of talk time per charge.
Users who wish to synchronize a computer music library with the UpStage must first install Sprint's music software. Then, they must transfer songs from Windows Media Player or iTunes to the Sprint software before moving music systematically to their phones.
Sprint, like Verizon, operates its own music store, but it charges only 99 cents a song. The company's $15-a-month data package comes with 10 commercial-free music channels. The company's $20 package provides 50 music channels plus one TV channel of music videos and news.
Next month, Sprint will add a further wrinkle to the mix, an Internet music service called Pandora that creates personal music channels for users. The Pandora service, which predicts what songs you will like based upon how you rate songs you have heard, will become available by the end of next month and cost $3 a month.
The UpStage looks pretty cool, but I couldn't recommend it without Pandora. If Pandora fits the system, though, the UpStage could be a contender.
Other manufacturers say no.
I decided to see for myself by asking phone makers to send me the best music player they make for each big cellular carrier.
Samsung rose to the challenge first by shipping me three new models: the SCH-u540 from Verizon Wireless, the Synch from AT&T, and the UpStage from Sprint Nextel. (Music phones from other companies will be reviewed in future columns.)
All three phones do much more than play music, of course. Each has a built-in camera, a Web browser, a video player and a Bluetooth receiver. The models from Verizon and Sprint also have GPS transmitters, which allow them to provide driving directions and local search.
That said, I mostly ignored these features and focused on music. My only real concern was whether these devices could realistically replace an iPod.
For Mac users who cannot run Windows on their machines, the answer is certainly not. None of the phones can take songs in any format directly from a Mac.
For PC users, the answer is probably not. An 8GB iPod shuffle sounds good, holds 2,000 songs and plays for 24 hours straight. None of these three models sounds as good, holds more than 20 songs or plays as long.
Still, if you don't need high-fidelity music for days straight, current options may suffice. Memory chips add enough room for up to 500 songs, and streaming music services can further expand variety. Users who want to listen beyond their own collections may enjoy the trade-off.
SCH-u540 (Verizon)
This midsize clamshell model costs $120 in stores or $70 at the Verizon Wireless Web site. Most users will need to spend an extra $100 or so on a headset, a memory chip and a USB cable that will connect the phone to a computer.
The phone supports Bluetooth headsets but, alas, not stereo models.
Verizon's system makes it easy to transfer music from PC to phone – if music is stored on Windows Media Player. Attach a cable to both devices, press the "Synch" option on the phone's "Music & Tones" menu and then select the "Synch" tab on WMP.
Even iTunes users can transfer songs from computer to phone.
To do this, they must download WMP, which is free from Microsoft, and then convert any songs they have in AAC to the MP3 format. (To convert one song in iTunes, right click on that song and select the conversion option. To convert a bunch of songs, check the box next to each song and select the conversion option from the "Advanced" menu.) Once a song is in the MP3 format, WMP will automatically recognize and display it.
Songs purchased through the iTunes store cannot legally be converted for use on Windows Media Player, but songs uploaded from CD are fair game.
Users can download new songs to their phones or their WMP libraries from the VCast Music Store, which charges $1.99 a song, $1 more than iTunes.
That price, along with the limited storage, seems like a deal-breaker to me.
Synch (AT&T)
This model, another midsize clamshell, costs $25 with contract and mail-in rebate. Again, most users will need to spend another $100 or so on headsets, memory chips and USB cables.
The Synch works with stereo Bluetooth headsets, but it's otherwise quite similar to the SCH-u540. Windows Media Player users will have no problems transferring songs to their phones. Users of iTunes should see the WMP conversion instructions above.
The difference between the two phones lies mostly in the services provided by Verizon and AT&T. Verizon gives one purchase option: the company store. AT&T offers several music sources.
AT&T customers can download songs from Napster for 99 cents each or subscribe for $15 a month to Napster to Go, a music service that lets users "rent" any of Napster's 2 million songs. (AT&T actually lets users try Napster free for 60 days.) AT&T also offers Yahoo Music Unlimited, another subscription rental service, which costs $12 a month, and 25 stations of commercial-free music from XM Satellite Radio, which costs $9 a month.
These services provide an enormous amount of variety, but there's currently a big catch. Aside from XM, which streams directly to phones, users must download music onto their computers and then transfer it to their phones.
AT&T promises direct downloads soon, which would make the Synch a decent option.
UpStage (Sprint)
Unlike its two conventional counterparts, the UpStage looks fresh. The slim, black rectangle has a cellphone on one side and a music player on the other. It costs $99 with contract after rebate, but yes, users will have to spend extra on memory chips and headphones. (A USB cable comes with the phone.)
The tiny package uses every square millimeter of surface space to pack in nearly as many features as its larger competitors, but the form creates drawbacks. UpStage's tiny battery supports only 2.5 hours of talk time per charge.
Users who wish to synchronize a computer music library with the UpStage must first install Sprint's music software. Then, they must transfer songs from Windows Media Player or iTunes to the Sprint software before moving music systematically to their phones.
Sprint, like Verizon, operates its own music store, but it charges only 99 cents a song. The company's $15-a-month data package comes with 10 commercial-free music channels. The company's $20 package provides 50 music channels plus one TV channel of music videos and news.
Next month, Sprint will add a further wrinkle to the mix, an Internet music service called Pandora that creates personal music channels for users. The Pandora service, which predicts what songs you will like based upon how you rate songs you have heard, will become available by the end of next month and cost $3 a month.
The UpStage looks pretty cool, but I couldn't recommend it without Pandora. If Pandora fits the system, though, the UpStage could be a contender.
Apple CEO confirms late June iPhone debut
Steve Jobs pulled an iPhone out of his pocket yesterday during a staged Q&A at the Wall Street Journal's D: All Things Digital conference, but quickly tucked it away. His comments about Apple Inc.'s dive into the cell phone market were almost as fleeting, but the company's CEO did offer up some new tidbits to eager buyers.Early in the conversation with Walt Mossberg, the Journal's personal technology columnist, Jobs confirmed that the iPhone will be available in late June."Like the last day of June?" Mossberg asked."Uh, yeah ..." Jobs replied.But will there be enough in the pipeline to satisfy demand?"I don't know, I hope not," Jobs said.On another issue that's been the focus of a heated argument (whether the iPhone will be open to third-party developers) Jobs hedged, citing security as the reason why it will be closed -- for now -- but holding out hope to software makers that they will be able to sell ad-on wares."This is an important trade-off between security and openness," said Jobs according to an Engadget transcript of the Q&A. "We want both. We're working through a way, we'll find a way to let third parties write apps and still preserve security on the iPhone. But until we find that way, we can't compromise the security of the phone."I've used third-party apps. The more you add, the more your phone crashes. No one's perfect, and we'd sure like our phone not to crash once a day. If you can just be a little more patient with us, I think everyone can get what they want."Jobs also confirmed that the iPhone is powered by Mac OS X, not a miniaturized version or a completely different operating system, as some had theorized earlier this year."Take out the data [from Mac OS X], every desktop pattern, sound sample. If you look at Safari, it's not that big. It's real Safari, real OS X," Jobs said. That may explain the controversial decision last month when Apple announced it would delay Mac OS X 10.5, known as Leopard, at least four months to free up enough developers to wrap up the iPhone by June.But just because the iPhone runs Mac OS X doesn't mean Mac developers should start salivating at the prospect of taking their applications to the new device. "We don't think that's a good idea," Jobs said. "We don't have a mouse, we don't have pull-down menus. We have a very different user interface on the phone."Some habits, however, never change. Jobs, famous for his "one last thing" moments at Apple get-togethers such as MacWorld, during which he delivers at least one major previously unannounced product or feature, wouldn't take the bait offered by Mossberg."Any features on the iPhone that you haven't announced that you would like to share with us here today?" Mossberg asked."Uh ... no," Jobs said. "Sorry."Wall Street reacted to the increased buzz of the iPhone by pushing Apple shares up $2.66 by 2:45 p.m. EDT to an all-time high of $121.43, an increase of 2.2%. Today, Lehman Brothers Inc. raised its price target for Apple, following similar moves yesterday by other investment firms. In a research note to clients, Lehman analyst Harry Blount cited the iPhone as the reason for the new target. "We believe that the iPhone launch may be a game-changing event for Apple," Blount was quoted as saying in today's issue of the Journal.
订阅：
博文 (Atom)