Reporting its third-quarter financial results, Apple’s U.S. iPhone carrier partner AT&T revealed that it saw 2.4 million iPhone activations from the device’s launch on July 11 to the end of September. Of those 2.4 million activations, approximately 40 percent were new AT&T wireless customers. “I am particularly pleased with the customer response to the iPhone 3G,” said AT&T CEO Randall Stephenson. “The new customers we’re winning are high-value, with attractive revenue and churn profiles. We’re expanding the market, as users adopt more data and media-rich services and access a wide array of applications. These achievements are positive for the future of our business.”
Making a rare appearance during the company’s quarterly results conference call, Apple CEO Steve Jobs discussed several topics, including iPhone sales, the App Store, and the economy. Notably, Jobs compared Apple’s iPhone sales in the quarter to that of rival Research In Motion, stating that Apple “beat” RIM by selling 6.9 million iPhones compared to RIM’s sales of 6.1 Blackberry devices. “Even more remarkable,” Jobs said, was the fact that measured by revenues, Apple has become the world’s third-largest mobile phone supplier, behind only Nokia and Samsung. Stating that deferred iPhone revenue has grown to $5.8 billion dollars, or 39% of Apple’s total revenue, Jobs said it was “too big to ignore,” while outlining the company’s reporting of non-GAAP financial results to help investors get a better sense of Apple’s actual business. Later, when asked about the upcoming year and the possibility of the market being cluttered with iPhone “wannabes,” Jobs said the company has to be the best, without leaving a price umbrella underneath the iPhone. He noted that Apple has a great partner in AT&T, and that both are committed to making the iPhone a great value for customers, while hinting that the “next round” would include either lower prices or new models.
Speaking about the App Store, Jobs said Apple has changed the value proposition for mobile devices. He said the Store will see its 200 millionth download tomorrow, now offers over 5,550 applications, and is available in 62 countries around the world. The rate of new submissions increases every week. “We’ve never seen anything like this in our careers,” Jobs said. He also said that customers are now attracted to iPhone not only for its functionality and multi-touch user interface, but also its ability to add free games and applications.
Discussing the economy, Jobs described Apple customers as some of the smartest, most product-aware customers in the market, saying that they are unlikely to abandon the quality and seamless integration of Apple’s products. He went on to say that they are more likely to delay purchases than switch away from the company’s products, and that while Apple may not appeal to every prospective customer, the percentage it needs to appeal to in order to grow its share isn’t that many. Finally, he noted that Apple has almost $25b safely in the bank, and zero debt.
Apple has posted its latest TV advertisement for the iPhone 3G online. Titled “Game Changer,” the spot continues Apple’s recent trend of highlighting only a single application — in this case, MLB.com’s At Bat — showing off the app’s scores, live pitch updates, and video clip features. The new ad is now available for viewing on Apple’s website. [via TUAW]
Similar to the pre-purchase tool launched by Apple in September, AT&T is now offering an online iPhone pre-screening tool that allows customers to get pre-qualified for the iPhone 3G before they head to the store. The tool allows new customers to perform a credit check and determine number porting eligibility, while existing customers can check upgrade and/or add a line eligibility. The new AT&T online iPhone pre-purchase tool can be accessed by visiting att.com/iphone.
Apple has launched a series of new iPhone Tech Talk World Tour events to be held in cities around the globe between October 22nd and December 9th. Unlike previous Tech Talks held last year that focused on building and optimizing web applications for the iPhone OS, these new events focus on app development using the iPhone SDK. A promotional email sent out to registered iPhone developers reads, “Learn about the tools and technologies you’ll use to create great iPhone applications, then work with the experts to optimize your code, refine your user interface, and apply the knowledge you gain from the sessions.” Events are scheduled in more than 20 major cities worldwide, including Chicago, Paris, Stockholm, Delhi, and Sydney. Apple’s iPhone Tech Talk World Tour events are open to all registered iPhone developers; admission is free. To register, visit Apple’s Tech Talk web page.
Mexican iPhone carrier Telcel has begun selling (Translated Link) the iPhone 3G without a contract. The 8GB iPhone 3G sells for MEX $7899 (roughly $700) while 16GB models go for MEX $9199 (~$816). Both models are being offered with a bonus of MEX $500 worth of air time and 30 days of unlimited internet usage. As with the majority of other carriers offering contract-free iPhones, it is believed that the units sold by TelCel will remain locked to that carrier’s network. [via Mundo Mac | Thanks, Alfredo]
According to a new report from The NPD Group, 30 percent of U.S. customers who purchased an iPhone 3G from its launch on July 11 through August switched mobile carriers to do so. By comparison, only 23 percent of consumers, on average, switched carriers between June and August. Of the iPhone customers that switched to AT&T, 47 percent switched from Verizon Wireless, 24 percent switched from T-Mobile, and 19 percent switched from Sprint. In addition, the report states that prior to the launch of the iPhone 3G (January through May 2008), iPhone sales accounted for 11 percent of the consumer market for smartphones, while after the launch of the iPhone 3G, Apple commanded 17 percent of the market. From June through August, the iPhone 3G was also the top-selling smartphone based on units sales to consumers, followed by the BlackBerry Curve, BlackBerry Pearl, and Palm Centro.
“The launch of the lower-priced iPhone 3G was a boon to overall consumer smartphone sales,” according to Ross Rubin, director of industry analysis for The NPD Group. “While the original iPhone also helped win customers for AT&T, the faster network speeds of the iPhone 3G has proven more appealing to customers that already had access to a 3G network.”
Developers have found a number of features hidden in iPhone Software 2.2, which is currently in beta and was recently updated and seeded to developers. Although the release notes list only “compatibility testing” as the only change, according to Mac Rumors, developers have found some new features hidden in iPhone’s framework files. A number of hidden Japanese emoji icons were found, which if implemented will answer one of the most common complaints about the iPhone from Japanese users, support for Street View in the Google Maps application, and a new toggle in the iPhone’s keyboard settings to turn Auto-Correction on and off. Apple has yet to announce a firm release date for iPhone Software 2.2.
Apple has announced that it will drop the portion of its non-disclosure agreement (NDA) for released iPhone software. A statement posted to the company’s iPhone developer website reads, “We put the NDA in place because the iPhone OS includes many Apple inventions and innovations that we would like to protect, so that others don’t steal our work. It has happened before. While we have filed for hundreds of patents on iPhone technology, the NDA added yet another level of protection. We put it in place as one more way to help protect the iPhone from being ripped off by others.”
It continues, “However, the NDA has created too much of a burden on developers, authors and others interested in helping further the iPhone’s success, so we are dropping it for released software. Developers will receive a new agreement without an NDA covering released software within a week or so. Please note that unreleased software and features will remain under NDA until they are released.” It is unclear exactly what Apple means by “unreleased software and features,” however, the NDA may continue to cover only pre-release Apple software, seeded to developers but not yet released to the public, while all features and nuances of publicly-available software would not be covered. Alternately, the NDA may continue to cover unreleased third-party software, which would create further issues for developers.
AT&T has announced that it will begin selling the iPhone 3G in Puerto Rico and the U.S. Virgin Islands on October 17. Pricing will be the same as in the U.S. mainland, with the 8GB model available for $199 and 16GB $299 for new and upgrade-eligible customers; customers not eligible for the upgrade can purchase the 8GB for $399 or the 16GB model for $499. As before, each model will require a new two-year contract. “iPhone will arrive for AT&T customers in Puerto Rico on October 17,” said Jose Juan Davila, vice president and general manager of AT&T’s wireless operations in Puerto Rico. “AT&T is committed to offering the most innovative products and services to our customers, and we are pleased to be part of this great milestone in our market.” [via Mac User Boricua]
Russian carriers Vimpelcom, MegaFon, and MTS will begin selling the iPhone 3G in Russia on October 3. Available without a contract, the 8GB iPhone 3G will sell for 22,999 rubles (roughly $919), while the 16GB version will sell for 26,999 rubles (~$1,079). In addition to the carriers, electronics retailers Tekhnosila, Eldorado, and M.Video will also be selling the device, according to a Reuters report. “All retailers will begin sales of iPhone in Russia at the same time, during the night between October 2 and October 3. Our company will be also selling them,” said Nadezhda Senyuk, a PR director with Tekhnosila. Rival chain Eldorado estimated that sales of the iPhone in Russia will reach 150,000 before the end of 2008.
Apple has unexpectedly begun selling unlocked iPhone 3G units in Hong Kong, amidst reports that mainland China may end up receiving a functionally handicapped model. Apple’s online store for Hong Kong is now offering both the 8GB and 16GB models of the handset unlocked, priced at HK$ 5,400 (~$695) and HK$ 6,200 (~$798), respectively. A description on the product page reads: “iPhone 3G purchased at the Apple Online Store can be activated with any wireless carrier. Simply insert the SIM from your current phone into iPhone 3G and connect to iTunes 8 to complete activation.” It is believed that this is the first instance of Apple offering the iPhone 3G directly from its online store.
Meanwhile, the South China Morning Post is reporting that Hon Hai, the manufacturer of the iPhone, is waiting for verification from mainland China to ship versions of the iPhone 3G that lack both W-CDMA (3G) connectivity and Wi-Fi. According to the report, China Mobile (long reported to be Apple’s carrier of choice for the Chinese market) is expected to build out its 3G network using the TD-SCDMA format, which is incompatible with current iPhone 3G models. The report goes on to state that iPhone units offered by China Mobile would have the W-CDMA stripped out so they could not be unlocked and used on competitor China Telecom, which is expected to use W-CDMA technology for its 3G services.
Turkcell has announced that it will begin sales of the iPhone 3G in Turkey tomorrow, September 26. The handset will be priced on a tiered scale, from 0-279 YTL (roughly $0-$227) for the 8GB model or 195-479 YTL (~$158-$389) for the 16GB model with a choice of one three packages, each of which include unlimited data, and range in price from 75 YTL (~$61) to 145 YTL (~$118). Alternately, the 8GB iPhone 3G will also be available without a contract for €129 (~$190) a month, for five months.
TeliaSonera has announced that it will be launching the iPhone 3G in Latvia and Lithuania through its subsidiaries LMT and Omnitel on September 26. “This represents another strategic step for us in the development of the mobile broadband market and further strengthens our position in the Nordic and Baltic region,” said Kenneth Karlberg, president, Business Area Mobility Service, TeliaSonera. “Following the successful launch of iPhone 3G in the Nordic countries and in Estonia, we are happy to offer iPhone 3G to our customers in Latvia and Lithuania.” TeilaSonera currently offers the iPhone 3G in Denmark, Estonia, Finland, Norway, and Sweden.
Following the iPhone 3G’s discontinuation of the original iPhone’s iTunes-based service signup and activation, Apple has launched a new online tool that lets customers planning to purchase an iPhone 3G review their eligibility and pricing, select an AT&T rate plan, and inform their local Apple Store of when they would like to come in to purchase the device. As all of these steps were previously handled for iPhone 3G customers while in-store or through an in-line, on-site screening process, the tool is likely designed to help reduce the amount of time it takes customers to purchase and activate their phones. It will also likely help avoid confusion when/if there is an AT&T-related issue, giving the user a chance to sort whatever issues may arise with AT&T prior to coming in to the store.
The service appears to be available only for U.S.-based customers at this time.
Yet another lawsuit has been filed against Apple and AT&T over the iPhone 3G, alleging “deceptive, improper or unlawful conduct in [Apple and AT&T’s] design, marketing, manufacturing, distribution, and sale” of the iPhone 3G. The Class Action complaint, filed in New York Eastern District Court by Jai Sen, cites numerous issues relating to Apple’s latest handset, including hairline cracks in the housing, 3G power demands and AT&T’s struggle to respond to the resulting demands on its infrastructure, and misleading advertising. This suit is at least the fourth such complaint filed against Apple and/or AT&T over problems with the iPhone 3G; the suit is seeking restitution, damages, and disclosures and/or disclaimers to be added to packaging and advertisements for the iPhone 3G.
A number of iPhone users are experiencing problems with email fetching following the installation of iPhone Software 2.1. According to a lengthy thread on Apple’s discussion boards, some users find that Mail will only check their email manually, regardless of whether the account is set up to automatically receive mail via push or fetch, and regardless of whether they are using an original iPhone or iPhone 3G. At least one user in the thread claims to have received a phone call from a product specialist confirming that Apple is aware of the problem and is handling it as a “major” issue, although it remains unclear when affected users may expect a fix.
Apple has launched its new iPhone Developer University Program, a free program designed for higher education institutions wanting to introduce curriculum for developing iPhone OS applications. According to Apple’s website, the program will allow instructors and professors to create a development team of up to 200 students, and will provide a wealth of development resources, tools for testing and debugging, and the ability to share applications within a development team. In addition, institutions will have the ability to submit applications for distribution in the App Store. The program is currently available to accredited, higher education institutions in the U.S. It is unclear what adjustments or exceptions Apple may be planning to add to the iPhone developer Non-Disclosure Agreement, which currently forbids developers from discussing iPhone OS development.
Due to a defect identified in the “Ultracompact” USB Power Adapters included with all iPhone 3G units sold in the U.S., Japan, Canada, Mexico, and six Latin American countries, and sold separately in these and four others, Apple has launched an exchange program in which customers can return their adapters for a new, redesigned version. The program’s site states: “under certain conditions the new ultracompact Apple USB power adapter’s metal prongs can break off and remain in a power outlet, creating a risk of electric shock. We have received reports of detached blades involving a very small percentage of the adapters sold, but no injuries have been reported…. Users with ultracompact power adapters should immediately stop using them until they exchange them for a new, redesigned ultracompact adapter.” The page also states that if the user’s adapter has a single green dot near the prongs, they already have the redesigned adapter and will not need a replacement. According to the program page, replacement adapters will be available starting October 10, and the company will offer replacements via the web, or through its retail stores.
While Genius playlist creation is listed as a new feature in the release notes of the iPhone 2.1 Software Update, iLounge has confirmed that the feature will not appear unless the user performs a sync following installation of the 2.1 software. First seen on the new iPod touch, the Genius playlist creation button is supposed to sit below the audio scrub bar on the Now Playing screen beside buttons for toggling shuffle and looped playback on and off. Normally, the bar and buttons can be accessed by tapping the screen while a song is playing.
If the iPhone is not synchronized after applying the 2.1 software update, the Genius button never materializes, leaving a sizable gap between the shuffle and repeat buttons. The feature is also missing from the top of the Playlists menu, where it would normally appear. Synchronizing the iPhone with the Sync button in iTunes fixes this issue, bringing the button and menu choices back.