In a small footnote to its announcement of rate plans on the Apple.com web site, Apple today disclosed that a “Minimum new 2-year wireless service plan and activation fee” are “required to activate iPhone features, including iPod;” the first time that the company has suggested that iPhone’s iPod functionality may be limited for those who are not subscribers to AT&T’s services. It is unclear whether iPhone will continue to work as an iPod, or as an Internet data device, once someone ceases to be an AT&T customer.
AT&T and Apple have revealed six service plans for the iPhone. All three plans include unlimited data, Visual Voicemail, 200 SMS text messages, rollover minutes, and unlimited mobile-to-mobile calling. The first plan, priced a $60 a month, includes 450 anytime minutes and 5000 night and weekend minutes. The second, which runs $80 a month, includes 900 anytime minutes and unlimited night and weekend minutes. The third plan offers 1350 anytime minutes and unlimited night and weekend minutes, at a price of $100 a month. Plans four, five, and six offer 2000, 4000, or 6000 minutes for $119.99, $169.99, or $219.99, with unlimited night and weekend minutes. All plans are based on a new two-year service agreement with AT&T, and include a one-time activation fee of $36. Family plans are also available.
“We want to make choosing a service plan simple and easy, so every plan includes unlimited data with direct Internet access, along with Visual Voicemail and a host of other goodies,” said Steve Jobs, Apple’s CEO. “We think these three plans give customers the flexibility to experience all of iPhone’s revolutionary features at affordable and competitive prices.” Randall Stephenson, chairman and CEO, AT&T said, “AT&T has invested more than 16 billion dollars in its wireless network between 2005 and 2007, and iPhone customers will enjoy the best voice and data network in the nation.”
Apple and AT&T have announced that iPhone users will be able to activate their handsets using iTunes, instead of traditional in-store activation. iTunes will guide users through steps to choose a service plan, authorize their credit and activate their iPhone. Once activation is complete, users can then use iTunes to sync their contact information, calendars, email accounts, web browser bookmarks, music, photos, podcasts, TV shows and movies to the iPhone just like an iPod. “Users will be able to activate their new iPhone in the comfort and privacy of their own home or office, without having to wait in a store while their phone is activated,” said Apple CEO Steve Jobs. “There are tens of millions of people in the US who already know how to sync their iPods with iTunes, and syncing their new iPhone with iTunes works the same way.” Randall Stephenson, chairman and CEO, AT&T, added, “iPhone’s innovative activation and sync is just one example of how this is going to be a real industry game-changer.”
iLive has introduced its iHT3807DT 2.1-channel iPod speaker system. The iHT3807DT features an integrated iPod Dock, built-in, magnetically shielded full-range stereo speakers and subwoofer, digitally-tuned AM/FM radio, True 3D sound and SRS TruBass, and a remote control. “Our iLive Studio Series desktop speaker system delivers high-end audio performance with 2.1 sound in a stylish, compact design,” said Bill Fetter, CEO for DPI, Inc. The iLive iHT3807DT is available now for $230.
The iPhone may provide as much as $200 million in extra revenue for Apple on launch day, according to TheStreet.com. Using estimates of 200 units per store and an average selling price of $550 — it is still unknown whether there will be equal amounts of 4GB and 8GB available — along with the hard number of 1,962 stores carrying the device, a sell-out of 392,000 units would generate $216 million in revenue for Apple on June 29, not including online sales. Apple has previously announced that it will adopt a subscription-style revenue accounting system for the device.
Trying to figure out which iPhone accessories you should consider buying? iLounge has compiled a master list of over 60 announced iPhone add-ons from major vendors, including Apple, Belkin, Body Glove, DLO, Griffin, Logic 3, Macally, Marware, Monster, Speck, v-Moda, XtremeMac, and many others. Each of the products on this list is linked to our most recent photos and details, whether it’s in the iPhone Accessories section of our Accessories list, The Free iPod Book 3.0, or elsewhere on the iLounge.com site. Click on this article’s title for the fully linked list.
Be aware: iLounge’s editors have strong reason to believe that existing iPod accessories—and even some recently touted as “iPhone-compatible”—will not work as expected with the iPhone. We have made this point as clearly as possible in several articles on the site leading up to the iPhone’s launch. Unfortunately, because iPhones have not been provided to developers for in-house electronic or physical testing, it will be unclear until after the iPhone’s launch which accessories will have issues, and how serious those issues will be. We have been told that it is possible that certain iPod chargers may break when connected to iPhone, and that it is likely that noises from iPhone will create audio interference with older iPod speakers.
If you are concerned about possible damage to your past accessories, we strongly recommend that you await “safe for iPhone” postings on manufacturers’ web sites before connecting them to your iPhone. Brief tests may not be enough to reveal certain types of issues, and since many electronically different revisions of accessories are out there, it is all but impossible for anyone other than the manufacturer to guarantee that all versions of a specific product will work. We’ll continue to monitor official word from manufacturers, and from Apple, as the iPhone launch nears and passes.
Kaplan has introduced three new interactive, iPod-based SAT preparation programs. The programs, focused on the test’s Critical Reading, Mathematics and Writing sections, are priced at $5 a piece and offer detailed analyses of each completed quiz students take, as well as feedback and an option for tracking quiz score progress. “Students don’t go anywhere without their iPods and Kaplan has always sought to make test prep as convenient as possible for our students so it’s a natural fit to offer test prep on iTunes. As students have embraced new trends over the years, from new learning and entertainment channels to new technology, we’ve adapted our materials in ways that are relevant to their lifestyles,” said Mark Ward, president, Pre-College Programs, Kaplan Test Prep and Admissions. The programs are available from the iTunes Store now.
Another executive of a major cellular phone manufacturer has voiced a vote of support for the iPhone. Speaking with the Chicago Tribune, Brian Stech, director of global marketing for Motorola’s phone division, said, “Really, the iPhone benefits the entire industry.” Stech believes that the iPhone will drive sales and customer awareness in the smartphone segment. Some analysts, however, believe that it will be later, more affordably-priced iPhone models that have the biggest effect. “When the iPhone Nano comes out at $120, everyone is in big trouble,” said John Jackson, a Yankee Group analyst. The report also claims that the iPhone will allow direct, over-the-air downloads of iTunes-purchased media to the device, although neither Apple nor AT&T have made such an announcement.
Gene Munster, analyst for Piper Jaffray, has said that Apple may sell as many as 10 million iPods (free registration req.) in the June quarter. Using data from the NPD Group, Munster claims, “The 9.5 million - 10.0 million unit approximation is based on various assumptions and is an extrapolation of two months of data.” Munster continued, “When the third month of data is released, our analysis will likely lead to a slightly different iPod unit figure than what our analysis suggests based on the second month of data, so we believe investors should supplement this data point with other information.” Munster did not comment on projected iPhone sales.
In-store displays for the iPhone are making their way into Apple and AT&T Stores nationwide. The AT&T display is white with a large screen displaying a demo, while the displays going into Apple Stores resemble giant iPhones, with a similar demo running on the unit’s display.
NewsFactor has posted a report from a person claiming to be an iPhone tester. Balsu Thandu, the supposed tester, claims the handset is ready for launch. “For the launch, I think we are there,” he claimed.
Teac has introduced a new iPod CD sound system in Japan. The CD-x10i comes with an iPod Dock and features NXT speaker technology and a dedicated subwoofer.
A new miniskirt has surfaced that sports a pocket for housing mobile devices, such as an iPod or iPhone. The skirt also includes a headphone cable hole.
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Continuing our previous update from the iPhone Guided Tour, Apple has used the 24-minute long video to unveil a collection of new and unexpected iPhone features, including support for viewing Microsoft Word and Microsoft Excel documents that have been sent via e-mail.
Internet and E-mail: Google search is the default for the integrated Safari browser, but Yahoo can be used instead. Accessing search is available by touching the URL. The built-in e-mail application can read not only JPEGs and PDF files, but also Word and Excel documents. Business users have frequently cited ambiguity over iPhone’s support for Word or Excel documents as a potentially fatal omission, so their inclusion removes just one more potential barrier to the phone’s popularity. Apple claims that in “about a week,” you’ll be thumb-typing faster on iPhone than any other small keyboard. Through a settings menu, mail can be checked manually, or automatically every 15, 30, or 60 minutes. You can also choose between 0 and 5 lines to show in the mail window preview, and change between five font sizes for easier reading.
Stocks: The stock application allows you to view historical stock performance for a company on a scale of 1 day to 2 years, with 1 week, 1 month, 3 month, 6 months, or 1 year options in-between. It also lets you know whether the markets are open or closed. You can add additional stocks to the list, and scroll through them if they don’t all fit on your screen with the performance graph in place.
Maps: Zooming in or out can be accomplished with one or two simultaneous finger presses, in addition to pinching and expanding gestures. Though GPS is not—as some assumed—built into iPhone, a list of commonly used locations (such as Home) can be saved as starting and ending points. Maps can be overlaid with current traffic conditions using the bottom-of-screen car icon, which calls up Google’s traffic information to provide red and green map overlays.
Settings: Airplane Mode can be activated to deactivate the unit’s Wi-Fi, cellular and Bluetooth radios during a flight. An Airplane icon appears on the unit’s top left corner, and all of the wireless icons disappear. You can choose from 25 built-in ringtones, including Alarm, Ascending, Bark, Bell Tower, Blues, Boing, Crickets, Digital, Doorbell, Duck, Harp, Marimba, Motorcycle, Old Car Horn, Old Phone, Piano Riff, Pinball, Robot, Sci-Fi, Sonar, Strum, Timba, Time Passing, Trill, and Xylophone. Marimba is the chime currently most associated with the iPhone; there does not appear to be any way to use your iTunes music as a ringtone.
Freshly debuted on the Apple.com web site, the new iPhone Guided Tour (also called Apple iPhone Welcome) features on-screen narration by Apple’s Bob Borchers through various features of the phone, including new ones.
Sleep/Wake (Power) Button: Found on the unit’s top right, next to the SIM card slot, the “Sleep/Wake Button” turns off the iPhone’s screen and disables its touch controls. While the phone can still receive calls, play music, and see its volume adjusted via the side volume buttons, the screen goes completely dark and is no longer touch-sensitive. The same button is held down for several seconds to turn iPhone’s power completely off, and a slider appears on screen to confirm that you want to do so.
Phone: Borchers explains that the alphabet letters found on iPhone’s scrollable lists are, in effect, letter-specific scroll bars that you drag your finger through and stop at a letter of your choosing. When you press the Home button during a phone call to return to iPhone’s main menu, a green bar at the top of the screen appears to keep you informed of how many minutes and seconds your call is taking. Like Safari, the phone has a list of favorites that can be customized with the specific numbers you prefer to use for people of your choosing, making calls to these people easier than scrolling through larger lists. Calling is as straightforward as was previously demonstrated, but the video spotlights context-sensitive in-call menus that make switching between two callers (“swap”), merging calls, and adding a call (keypad/contacts) easy.
iPod: The top of the songs list now has a shuffle button, as does the top of each artist’s collection of songs in your library. Double-tapping on videos in progress toggles between widescreen (16:9) and fullscreen (4:3) aspect ratios, while a single tap brings up on-screen controls. The “More” icon at the bottom of iPhone’s iPod screen provides you with the option to customize the device’s list of default one-click categories, including icons for Albums, Podcasts, Audiobooks, Genres, Composers, Complications, Playlists, Artists, Songs, and Videos. Any icon can be dragged from the list to replace one of the icons already at the bottom of the screen.
iPhone Stereo Headset: In addition to the microphone mounted at neck level to help you talk on the phone, the iPhone Stereo Headset includes a button below the microphone for one-press control of the phone, or the iPod’s media playback. A single press pauses or plays back music, as well as answering or ending a call; music fades in and out as appropriate. Two presses advances a track in the music.
Apple has posted a new video-based guided tour of the iPhone. The tour, which is roughly 20 minutes in length, explains the most of the basic functions of the device, and how to use them. Of note, the tour gives explanations for all of the iPhone’s external buttons and ports, including the silent/ringer switch (found on the side with the volume up/down buttons), and sleep/wake button (found on the top of the device). The video also reveals that the iPhone’s included headphones offer a form of remote control built-in to the integrated microphone, which allows the user to answer and end calls, as well as control audio and video playback. The tour is available as a 175MB download.
According to a just-published NPD Group MusicWatch report for the first quarter of 2007, covering the sales of both physical and downloadable music, Apple’s iTunes has jumped in rank to become the third-largest retailer of music in the United States. iTunes now holds a 9.8% share of music purchases, ahead of fourth place Amazon.com at 6.7% and fifth place Target at 6.6%. Walmart remains the nation’s largest music retailer with a 15.8% share of the market, with Best Buy holding 13.8% for second place.
The MusicWatch findings are especially interesting in that 86.2% of the quarter’s music sales were in a physical (CD) format, versus a 13.8% share in downloadable format. Unlike Wal-Mart and Best Buy, iTunes gained share despite the fact that it only sells downloadable content. It leapfrogged CD-heavy competitor Amazon to gain fourth place in January.
A new patent application published by the US Patent & Trademark Office may be a new feature of upcoming iPods and iPhones, reports InformationWeek. The patent application, “Protecting electronic devices from extended unauthorized use,” covers a technique to keep a device from being recharged if certain conditions — “a timer expires, device is connected to a power-supply or another device, device is outside a determined geographical boundary” — are met. If that should happen, the user would then need to enter an authorization code. Failure to input the correct code would keep the device from recharging. The patent states simply, “normal use and enjoyment of the device can be significantly reduced by disabling the recharger.”
Warren East, CEO of mobile-processor outfit ARM, has said that he welcomes the iPhone, and believes it will make a “huge difference” in the smartphone market. When asked about the smartphone becoming a mainstream device, East responded, “I think we’re a couple of years away, probably, but as I said, I think the iPhone is going to make a huge difference.” While East coyly replied to questions as to whether the iPhone contains a chip based on one of ARM’s designs, he did give the device praise. “Well, frankly, I think the other players are all a bit sort of… They needed somebody like Apple to come along and shake them up a bit. I mean, Nokias are pretty good (pulls out his N95 smart phone), but this N95 is probably, in some ways, just a little bit shy of an iPhone.” He also gave Apple credit for sparking innovation in the market, stating, “I think it’s that sort of second-order effect that we’ll see in the smart-phone space with the iPhone; it’s actually stimulating lots of other people to go and bring out their own devices.”
AT&T has hired 2,000 extra workers to staff its company-owned stores in anticipation of the iPhone launch. The new employees — mostly college students — were brought in for the summer to help deal with the expected crowds of iPhone customers, said AT&T spokesperson Michael Coe. In addition, customers who come to the store only to find it sold out will be able to purchase the iPhone at the store and have it shipped to them as soon as it’s available.
Are you planning to line up for the iPhone? Or sit out the June 29th launch day? We want to know.
We’ve brought back the iLounge Poll to give you a chance to easily register your opinions. As always, it’s in the left-hand column of the iLounge.com main page. Let us know your honest feelings, and if you’re lining up, tell us why! Once you’re finished submitting your answer, you can move the poll downwards on the page just by clicking on it and dragging it away.
According to AT&T spokesman Mark Siegel, a report today that AT&T will wait until the day of iPhone’s launch to disclose rate plans for the device is inaccurate. “We will disclose before the 29th,” said Siegel, noting that customers will be able to show up at stores that day knowing how much they will be charged for both the Apple-developed hardware and AT&T’s cellular service plans. “It’s not going to be anything exotic,” Siegel told iLounge, confirming that there will be separate voice and data services components to its iPhone service plans, rather than the one-size-fits-all plans some had expected. As previously stated by both companies, and re-confirmed by Siegel, a two-year service commitment will still be required.