Tag Archive | "apple"

Jobs on iPhone apps: $30 million in 30 days

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In a variation on the new math, 2.0 plus 3G equals $30 million now and about $360 million next summer.

Or in plain English: Apple has raked in about $30 million in sales of iPhone applications in the one month since the company opened its App Store and brought the iPhone 3G onto the market, CEO Steve Jobs told The Wall Street Journal. Jobs also sees big numbers ahead if Apple continues its current pace of selling an average of $1 million worth of applications per day.

That rate would add up to $360 million by the first anniversary of the launch of the iPhone 3G and the App Store, Jobs told the Journal. “Who knows, maybe it will be a $1 billion marketplace at some point in time.”

Or maybe the frenzy will slow down after the novelty wears off. GigaOm’s Om Malik reports that he has downloaded “nearly three dozen apps” but finds only four–Twinkle, Facebook, NetNewsWire, and Shozu–worth using day in and day out. He turned to Pinch Media for some statistical corroboration:

Using the caveat that only a few app makers were using Pinch Analytics library, he pointed out that as per their data, the ratio of free downloads to paid downloads is at least ten-to-one. He also said that the pace of downloads is slowing, which is expected because the early rush is behind us. According to data collected by Pinch Media, on average, less than 20% of an application’s overall unique users return to an application each day. Yardley also pointed out that people are using the apps for just under five minutes at a time, on average. The majority only use the applications once per day - average number of uses per day is around 1.2.

But back to Apple: In the App Store’s first month, Jobs said, iPhone users have downloaded upward of 60 million applications. Many iPhone applications are available for free.

While much of the glory for that accomplishment attends to Apple, a lot of the money does not. About 70 percent of the proceeds–or roughly $21 million so far, Jobs said–are going to the creators of the software applications for the Apple smartphone, leaving 30 percent for Apple itself–or about enough to cover expenses.

The top 10 developers have accounted for about $9 million, or just under half of the total take for developers, Jobs told the Journal.

SOURCE: CNET News

Apple increasing iPhone 3G production

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Demand for Apple’s iPhone 3G remains strong, which could be forcing Apple to ramp production beyond its original estimates.

TechCrunch is reporting that Apple has asked Foxconn, formally known as Hon Hai, to increase production of the iPhone 3G to 800,000 units a week. That pace translates to about 40 million units a year, far greater than what most analysts had been expecting the company to sell in the iPhone 3G era.

A short-term bump in production capacity may not imply that Foxconn will keep up that pace; TechCrunch’s report alludes to “some concerns about quality control” on the part of either Apple or Foxconn related to the increase. After six weeks with no iPhone sales, there was clearly pent-up demand going into the July 11 launch of the iPhone 3G that may not be sustainable over the rest of the year without causing problems.

But more countries are expected to join the official ranks of iPhone users in the next several months, and the holiday shopping season is usually the catalyst for all sorts of gadgets. A production increase could offset that demand while making it easier to get an iPhone 3G without waiting two weeks for an AT&T direct-fulfillment order or playing iPhone roulette at an Apple store.

SOURCE: news.cnet.com

Apple posts record quarter on iPhone cuts

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May/June price cuts lead to record June quarter as Apple shifts 717,000 units

Apple posted its best-ever June quarter on the back of a massive surge in first generation iPhone sales.

Apple said it shifted 717,000 first generation iPhones in the quarter ended June 30, compared to just 270,000 in the same period last year.

Combined with related accessories, iPhone sales generated revenue of $419 million for Apple.

The price of the original iPhone was slashed towards the end of the quarter, during May and June, in the UK, followed by other markets.

Apple chief executive Steve Jobs said: “We’re proud to report the best June quarter for both revenue and earnings in Apple’s history. We think we have a real winner with our new iPhone 3G, and we’re busy finishing several more wonderful new products to launch in the coming months.”

Apple chief financial officer Peter Oppenheimer said: “We are also off to a good start with the 3G iPhone after its launch in 21 countries, selling one million in just three days. Customer response has been overwhelmingly positive.”

Overall Apple revenue rose by 38 per cent year on year and Apple also saw a big rise in footfall and custom in its retail stores, it said. Sales rose 58 per cent and traffic jumped by 10 million in the Apple stores.

SOURCE: Mobile News International

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It’s a big step up, but iPhone 3G isn’t flawless

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On Friday, Apple began selling the second generation of its vaunted iPhone, just a little more than a year after disrupting the cell phone business with Version 1.0.

The iPhone 3G primarily fixes a lot of the problems many people had with the original and helps it catch up with features that have been found in other smart phones for some time. But in the process, it introduces some new issues.

While the iPhone 3G’s launch was marred Friday by technical glitches that prevented Apple and AT&T store computers from activating the devices, people continued to queue up all weekend to buy them.

Some of the lines in Houston on Saturday and Sunday were longer than those seen on launch day. Apple said Monday it sold more than a million iPhone 3Gs in its first weekend.

That may stem from the lower price some people will pay for the device, though the phone will cost more than the original iPhone over the life of the required two-year contract. Sure the starting price may be $199, but the data plan you pay is higher.

Still, the allure of the iPhone 3G is undeniable. From the front, it looks almost identical to the original, but its back — rather than being brushed aluminum — is black plastic. (A white back is available on the 16-GB model.)

It’s a sexy phone that’s mostly a pleasure to use. It even feels nice resting in your hand — a co-worker described its gently curved back as being “like a baby’s bottom.” Folks, it doesn’t get more primal than that.

Oodles of applications

But beyond that, the iPhone 3G is an important device in the evolution of the cell phone business because, with this version, it’s not just a phone, it’s a computing platform.

The original version of the iPhone initially could not initially run third-party applications, but Apple has dramatically changed that. It has opened the device up to developers who have created more than 800 programs offered through an App Store via Apple’s iTunes software.

And original iPhone owners are not left in the cold. An update to their software — as well as that of the iPod Touch — opens the App Store to them.

The applications include everything from an official box score and video highlights program from Major League Baseball, to a guitar tuner, to clients for social networks such as Facebook and Twitter. There are programs that track your stocks, let you read books and tell you where the nearest Thai restaurant is. There’s even one that turns your iPhone’s screen white, making it a flashlight.

Owners of Windows Mobile, Palm and BlackBerry smart phones will grouse that such applications are available for those devices, too; but they aren’t as usable, friendly nor downright fun as those on the iPhone. And that’s what makes this iteration of the iPhone special — it raises the bar not just for what a phone can do, but how it does it.

Nifty wireless network

While the third-party program feature is the most significant, it’s the new hardware that’s captured most folks’ attention.

The 3G in the new iPhone’s name stands for the wireless network it uses for sending and receiving data. The original iPhone uses AT&T’s Edge network, which can be agonizingly slow, and the new one works over AT&T’s zippier 3G network. While accessing e-mail and the Internet is much faster, it also consumes a lot more power. In addition, the iPhone 3G can use Global Positioning System satellites to determine its location, a feature that also consumes lots of juice.

Add to that its big touch-screen display, Bluetooth connectivity, Wi-Fi capabilities — all features found in the original — and the 3G’s battery life is remarkably shorter than that of its predecessor. My review unit of the original model went several days without needing to charge, but in testing the iPhone 3G since Friday, it looks like it would need charging nightly, given the way I use a smart phone.

That’s also a lot less than my Samsung BlackJack, a 3G smart phone, which lasts about two days on its large battery and about a day on its smaller one.

You can turn off features to save power. You can drop back to the Edge network, turn off the GPS, Wi-Fi and Bluetooth. When you want to use them, you must dive back into the Settings to turn them on or off, which gets old — fast.

One of the gripes about the original was that it wasn’t that great as a phone. Call quality was just so-so, and the speakerphone wasn’t loud enough. That issue has been fixed in a big way — calls are clearer, and the speakerphone has sufficient volume to be heard in a noisy environment.

Alas, typing troubles

There’s one major flaw with the original iPhone that’s not been fixed: its virtual keyboard. The iPhone 3G still has an on-screen, rather than physical, keyboard. As you type, its letters pop up to show which key you’ve touched. Some folks love it and can type quickly and accurately on it, but others — including me — can’t.

Even if you’re madly in love with all its other features, spend as much time as you can at an Apple or AT&T store playing with the keyboard. If you use e-mail, text messages or post items to the Web, you’ll use it a lot, and if you don’t take to it, it can bring you significant pain.

Despite that, I have decided that I should own an iPhone 3G, and bought an 8-GB model after standing in line for two hours at the Galleria Apple Store on Saturday. In doing so, I’ve given up a lot — the iPhone 3G still can’t capture video, send multimedia messages, do voice recognition … all features I enjoyed with my BlackJack.

Despite its flaws, I want to be able to review applications and track its development here and in TechBlog.

It’s one thing to test a device like this for a few days, but it’s quite another to live with it day to day. Will I find true love even with a flawed object of desire? I’ll let you know here sometime in August, and check my blog regularly for frequent updates.

SOURCE: Chron.com


iPhone 3G review…

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iPhone 3G

iPhone 3G review: now more work horse than show pony

The mobile device dubbed the Jesus Phone is about to have its second coming.

The iPhone 3G, the new incarnation of Apple’s first foray into the mobile handset business, will go on sale in 22 countries on Friday.

And Australians will be among the first in the world to witness the buzz surrounding this much-hyped touch-screen device that is part phone, part iPod and part pocket computer.

Even before it goes on sale, there’s every indication that the new model is going pick up where its predecessor left off.

In the US, queues of eager consumers have already started forming outside Apple stores and in Britain, a surge of pre-orders on the website of one carrier caused the site to buckle and crash under the strain.

Apple’s share price, meanwhile, is flying high, having almost doubled in value since the phone’s first public airing 18 months ago.

For the past couple of weeks, I’ve had an opportunity to poke and prod the iPhone 3G, putting it through its paces to see if this phone really does perform the kind of miracles that earned it the Jesus Phone moniker.

I have used it at home and at work; in a bus and train and car; by the sea and in the highlands; in both Sydney and Melbourne and in many points between those two cities.

And I have tested it on the networks of Optus and Vodafone - two of the three carriers (Telstra being the third) which will be selling the iPhone come Friday.

The phone is not without its flaws. It is not - repeat, not - perfect. And Apple has chosen to omit features which are standard in many other less high falutin’ phones.

Moreover, in the year since the first version of the iPhone went on sale, many other phone manufacturers have launched or are about to launch similarly featured so-called smart phones - narrowing the technological lead that Apple enjoyed a year ago.

But to give credit where it’s due: this sudden spurt of innovation only came about because of Apple’s dive into the mobile business. Without the iPhone, other phone companies might not have picked up their game so quickly.

Apple’s engineers and designers are no doubt already working on the next version of the iPhone to restore that advantage.

In the meantime - and possibly for the next 12 to 18 months - what you see with the iPhone 3G is what you get: a powerful, multi-featured, music and video-playing, internet- and email-capable mobile phone with a crappy camera.

The good news for Australian consumers lusting after iPhone is that there is a choice. The fact that the phone is being offered through three carriers means that there are a dizzying array of plans and deals available with the competition keeping everyone honest.

All iPhones, however, will be locked to the carrier from which the phone is purchased. In the case of phones purchased on 12 or 24 month plans, you won’t be able to leave the shop with the device without signing a contact and handing over your credit card details.

The iPhone 3G comes in 8GB and 16GB models and with a choice of a scratch-resistant white or black plastic backing.

In addition to the phone and the iPod, the device comes pre-installed with several applications including those that will allow you to: surf the web, collect your emails, take and store photos, check the weather and share prices, watch YouTube videos and plot your position on the GPS-enabled Google Maps feature.

The iPhone 3G is so called because it runs on the faster third generation (3G) mobile network. Think of it as broadband for phones as compared with the dial-up performance of the older 2G networks.

Just as broadband opened the way for a surge in internet use on PCs, so too, 3G was supposed to attract more mobile users to internet-based services.

To date, that hasn’t been how it has panned out. The Australian Communications and Media Authority recently published a report showing that although a third of Australian consumers owned a 3G-capable phone, only a third of them used the available 3G services.

The report cited a lack of awareness of these services and the high cost of data plans as being key factors in this poor take-up.

Interface

In my view, the biggest drawback in smart phones to date has been the mobile phone interface: the way you steer your way around the phone. Many of these devices have required users to perform logic-defying sequences of clicks to access those web services.

The iPhone - which uses a version of Apple’s easy-to-understand OS X operating system - has demystified that process, giving users quick click access to features such as email and web browsing.

The result has been manna from heaven for both users and carriers. Mobile industry analysts cite the experience of the German phone company T-Mobile, which found customers using the first version of the iPhone churned through 30 times more data than other non-iPhone using customers.

That was also the case with this user. The ability to download emails, surf the web and access other internet-based services from almost anywhere can become habit forming - especially when you don’t have to foot the bill for the data costs.

Emailing

The iPhone 3G provides email support for a number of free web services such as Google’s Gmail and Yahoo Mail. An important enhancement is the ability to synch the iPhone with corporate email system using Microsoft Exchange - a feature that will ensure the iPhone gains a bigger presence among data hungry corporate users.

Hooking the iPhone up to my Gmail account was a painless exercise. And from there, it gave me the option of using a wireless internet connection or the carrier’s network to download emails - including many of the more frequently used attachments.

The email even worked well in places like the small towns of Dunning in NSW and Euroa in Victoria where there was no 3G service and the phone dropped back on to the 2G network.

My biggest complaint about the iPhone’s email interface is that I could find no way of searching. Monitoring emails day-by-day is fine, but locating older emails involves way too much effort.

With the iPhone, thumb typing gives way to index finger tapping and this can be a hit and miss affair - especially if you are travelling in a bus, train or if you are a passenger in a car.

Pinpoint accuracy is hard to achieve when you’re ducking and weaving through city traffic or rattling around on a train. And the lack of a cut and paste function makes for a lot more typing.

Accessing the internet

Browsing the web can also be frustratingly fickle. Some websites are optimised and load faster than others. But speed is also affected by the signal you receive.

So be prepared for a broadband-like service that can sometimes only deliver a dial-up performance.

Being a touch-screen device, most of the functions are operated using finger gestures on the large screen. But unlike push buttons, these gestures - pinching, splaying, dragging and flicking - also don’t always deliver a uniform outcome.

But, if you master the foibles and accept the limitations, what you get is the internet as you see it on your computer. Full web pages which can be drilled down into, bookmarked and forwarded in an email as a link.

GPS Mapping

The GPS-enabled mapping feature is like having a road atlas combined with the Yellow Pages in your phone.

This tells you where you are, plots suggested routes, gives you distances and estimates travel times between points and can also pinpoint the location of nearby petrol stations, coffee shops, restaurants, plumbers etc.

On a drive down from Sydney to Melbourne this week, I was able to use it to successfully navigate my way from the outskirts of Melbourne to my destination.

You do however need to be in the passenger seat when you do this. The iPhone cannot be used by the driver. It has no voice commands and the screen and the sometimes slow speed with which the map renders makes it unsuitable as a replacement for an in-car SatNav system.

More minuses

While Apple has added a feature which allows you to attach geo-locational data to photos taken on the phone, the camera is otherwise unchanged from the first version.

Two megapixels is pretty measly these days - even by phone standards where five is becoming the norm.

In addition, there’s no flash, no optical zoom and no video - all of these are standard features on most other phones such as my four-year-old Nokia.

It’s a bit like putting manual winding windows on a high performance sports car.

With all the iPhone’s tricks, battery life was always going to be an issue. While I never ran out of juice over the course of a day, I could see how quickly certain functions very rapidly drained the battery levels.

And as the phone’s battery is fixed, there’s no opportunity to bring along a spare and swap it across when the meter hits the red zone.

Coming soon

Despite these shortcomings, the iPhone still has a couple of aces up its sleeve.

Watch out for a service called App Store which comes online on Friday when the phone goes on sale.

Indications are that App Store will feed the iPhone the way the iTunes Store feeds the iPod - providing Apple and its third party developer partners with a nice little earner.

For an average price of around $10, iPhone 3G owners will be able to tap into a potentially bottomless pit of content that can transform their phone into a game console or a musical instrument or a medical encyclopedia.

Another feature we didn’t get to examine was the MobileMe “cloud” storage service. For $119 a year, you get an allowance of storage space where you can keep photos, calendars, documents etc - all in a space accessible via your iPhone.

It’s like the iPhone’s external hard drive and you can also synch that up with your desktop or laptop computer.

Bottom line

Despite conceding its technical advantage and failing to address some avoidable deficiencies, the iPhone 3G looks set to advance Apple’s penetration of the mobile phone market.

The support for corporate email systems and the App Store will extend the phone’s appeal to new markets and while it still has many elements of a versatile consumer gadget, it looks to also have a greater practical utility that will make it more of a work horse and less of a show pony.

SOURCE: smh.com.au


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Apple goes short on 3G iPhone

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Fewer iPhones to be produced after missed targets on original…

O2 is bracing itself for stock shortages on the upcoming 3G iPhone, with senior executives frustrated that the operator won’t be able to make the most of demand for the new phone.

Apple has reduced the production order for the 3G version of the iPhone compared with the original due to the over supply of the 2G version, which failed to meet targets.

It has left O2 frustrated with Apple after the operator was buoyed by the introduction of subsidy on the 3G iPhone.

O2 believes the introduction of subsidy on the iPhone will attract far more customers than the original, which sold at the full price of £269.

One senior O2 source said: ‘We have to re-evaluate things a bit now. We’re expecting subsidy to make a big hit with the mass market, so we’re a little concerned with the supply.’

The operator is also understood to have set targets to dominate the high-end of the contract market for the second half of the year as a result of the 3G iPhone.

Senior O2 sources indicated that the operator had ‘been surprised’ by the early global release date of the 3G iPhone (11 July), which has put the operator on the back foot.

The 3G iPhone will be available in 22 countries at launch, and 47 in the following weeks. In contrast, O2 UK was one of just six operators stocking the original iPhone.

A spokesman for O2 UK wouldn’t comment on the predicted shortages, but said: ‘We’re seeing phenomenal interest in the iPhone 3G and we predict heavy demand. We urge people to get in line early to make sure they have a good chance of getting one.’

A spokesman for Carphone Warehouse, the only other place to sell the iPhone in the UK, said: ‘We have secured a large order and if that should sell out quickly that will be good for us. Getting more will not be a problem.’

The 3G iPhone, which was unveiled by Steve Jobs (pictured) last month, will
go on sale in O2 and Carphone Warehouse stores from 7:02pm on 11 July, and the 8GB version will be free on contracts over £45 per month.

SOURCE: mobiletoday.co.uk

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