Following a report from earlier this week claiming that AT&T was considering a limited data access plan for iPhone users which would drop the monthly cost of an iPhone by $10, AT&T Mobility CEO Ralph de la Vega has confirmed that the company is contemplating cheaper data offerings. The executive explained that it would be costly for them to cut the price on unlimited Internet access, but that the company could offer more limited package for a lower fee. “Right now we continue to study what is the best thing that is available, not just from an iPhone point of view, but what you can do to stimulate additional demand,” said de la Vega, adding, “[w]e view Apple as a strategic partner for us, a very good partner to have now and into the future.”
Recent developments suggest Apple is in negotiations with Telecom New Zealand to offer the iPhone 3G, and possibly the next-generation iPhone. First, a representative from Telecom NZ posted a message from the company’s retail head Alan Gourdie on Twitter, saying the company is “in negotiations with Apple,” adding that it is “very focused on the 3rd gen iPhone.” Several hours later, a National Business Review article also claimed the company was in negotiations with Apple, with a quote Gourdie saying that Telecom was in “discussions - deep discussions - with Apple.” The iPhone 3G is currently available in New Zealand from Vodafone.
According to the latest figures by market research firm Gartner, the iPhone saw its share of the smartphone market more than double year-over-year for the first quarter of 2009, as worldwide smartphone sales increased despite an overall decrease in worldwide mobile phone sales. Apple’s share jumped to 10.8% in the quarter, compared with its 5.3% share in the first quarter of 2008. Unit sales grew similarly, from 1.7 million units in Q1 2008 to 3.9 million in Q1 2009. Overall smartphone sales were roughly 36.4 million units, an increase of 12.7% from the 32.3 million units sold in Q1 2008. Apple rival Research In Motion also saw gains, as the Blackberry’s smartphone market share rose from 13.3% in Q1 2008 to 19.9% in Q1 2009.
Aoyama Gakuin University, located in Tokyo, Japan, is providing all staff and students with free iPhone 3G units as part of an attendance tracking system. According to the Mainichi Daily News, the school will leverage the iPhone 3G’s GPS to determine if students are at school or not, with the system scheduled to go live in the fall. In addition, the school plans to expand the use of the iPhone to include simple testing, questionnaires, homework submission, and educational video review. Aoyama Gakuin plans to pay all basic charges for the phones itself, and recently entered into a partnership with Japanese iPhone carrier SoftBank on “Mobile & Net Society Education and Training.” [via MDN]
Apple has sent an email to registered iPhone developers, asking them to download a pre-release application in order to run a high-volume test of the company’s Push Notification servers. The email provides developers with a redemption code good for the download of the Associated Press app for iPhone OS 3.0, with instructions to notify the company if the app does not begin receiving notifications within 48 hours. The email also notes that the application can only be installed on devices running iPhone OS 3.0 beta 5, and that the functionality of the application will expire in seven days.
Security software companies McAfee and Symantec are both developing products for the iPhone, according to a new report. Speaking with Reuters, McAfee CEO Dave DeWalt said the company was working on security software for both the iPhone and Mac, which he described as “a much more comprehensive suite for the Apple family.” DeWalt did not say when the software might be ready for release, or how such software, which normally requires more access to system files than iPhone applications are currently allowed, would be distributed.
Also well known for its security software, McAffe rival Symantec is instead working on a MobileMe-like backup service for the iPhone. Symantec Senior Vice President Rowan Trollope said the service would protect data on the iPhone and allow users to use the device to access information stored on their home computers or on the web, adding that although the company closely monitors iPhone security issues, it has no plans to introduce any security products at this time.
AT&T is considering a limited data access plan for iPhone users which would reduce the minimum monthly cost of an iPhone by $10, according to a new report. Citing people with knowledge of the company’s plans, BusinessWeek reports that the reduced plan could be introduced by the end of the month, and that the increased flexibility in pricing may be part of Apple’s demands for an exclusivity extension. Other options for increasing iPhone sales include reducing the up-front price of the iPhone to $99 or introducing a cheaper and/or pre-paid iPhone model.
Speaking with representatives from Oppenheimer, senior Apple officials discussed possible avenues the company could explore to further the iPhone’s market share, according to a new report. Citing a client report from Oppenheimer analyst Yair Reiner, AppleInsider reports that Apple executive mentioned providing increased functionality, lowering prices, expanding the products’ geographic availability, and segmenting the market with different models as possible ways to increase market share. “[T]hey are not saying they will necessarily do all of these,” Reiner told AI. “This is basically the menu of options.” Reiner went on to say that the executives also seemed excited by the growth opportunities presented by the Chinese market, but declined to comment further on timing and/or possible carrier partners for the region.
Apple has started selling the iPhone 3G online in the U.S. Previously, the handset was only available from AT&T online—both new and refurbished—and from physical Apple Store, Best Buy, AT&T, and Wal-Mart locations. Before purchase, customers will have to pass an eligibility check, and select a rate plan if necessary. Pricing for the handset remains at $199 for the 8GB model and $299 for 16GB versions; it is unclear whether Apple plans to offer online ordering in other countries as well.
A number of iPhone developers are running out of slots for the addition of Ad-Hoc testing devices, according to one developer’s blog posting. James Thompson, developer of PCalc, states that when he recently ran into problems deleting and adding new testing devices to his list, and contacted Apple about the problem, they replied saying, “Please know that each Standard iPhone Developer Program enrollment has a limit of 100 test devices please be aware that removing a device will not replenish the current amount available.”
He claims that although Apple’s user interface indicates that developers have 100 slots for the Universally Unique Identifiers (UUID) of testing devices, nowhere in the interface does it indicate that these 100 slots are limited in this manner. Thompson also points out that this restriction may become huge problem for many developers, as new iPhone and iPod touch models are released: “I can’t currently add any new testers or change their device entries if they get new ones. And I can only imagine what is going to happen when the new iPhones come along, presumably next month, and lots of people get replacements. If I bought a new iPhone for myself, I couldn’t even add it to my own list of development devices currently.”
New screenshots taken from a debugging menu in the latest iPhone OS 3.0 beta suggest that Apple is planning to add a magnetometer to future iPhone models. The shots, published by the Boy Genius Report, show a toggle switch for logging “Compass” information, along with Location, GPS, Motion, and Accelerometer info. Evidence of a magnetometer was first found in early April, with the term magnetometer specifically referenced inside a configuration file. The inclusion of a magnetometer would allow applications to understand not just where users are, but in which direction they are facing, allowing for features not presently possible on the iPhone platform. Examples could include automatic rotation of Google Street View information based on the orientation of the user, the overlay of information about the business, building, or venue the user is looking at, or the ability to place accurate star map information on the screen that corresponds with the part of the sky the user is facing. [via Mac Rumors]
Despite the fact that it doesn’t offer the iPhone, T-Mobile in the U.S. has pledged to support its customers who are using the devices on their network, according to a new report. The Consumerist reports that due to a recent T-Mobile voicemail system change, iPhone users were unable to check their voicemail, and were being sent blank text messages when they tried to call in to check their messages, or when a new one arrived. One customer who emailed about the issue received a call from T-Mobile’s Executive Customer Service, acknowledging the problem and offering a one-month service credit for his/her troubles. in addition, the representative also stated that “T-Mobile, though they do not offer the iPhone, [a]re committed to supporting users on their network who have them.” The problem was reportedly fixed “within a day or so.”
Apple has instituted a new policy under which iPhone owners who have accidentally caused water damage to their handsets—an issue not covered under Apple’s warranty—can buy a refurbished replacement unit for $199. ifo Apple Store reports that the new policy allows these users to replace their iPhones without the need to pay AT&T’s upgrade-ineligible pricing or add another two years to their contract. A commenter on the story indicates that the $199 price is good for replacements of both 8GB and 16GB units, and that it applies to the original iPhone as well as the iPhone 3G. The iPhone features four liquid submersion indicators—one in the headset jack, one in the dock connector, and two on the phone’s interior—which enable Genius Bar workers or other Apple technicians to determine whether an iPhone problem could have been caused by water damage.
Apple is the world’s top-ranking smartphone manufacturer when it comes to customer satisfaction, according to the results of J.D. Power’s 2009 Wireless Consumer Smartphone Customer Satisfaction Study. Apple ranked highest among smartphone manufacturers with a score of 791 out of 1000, performing strongly in the categories of ease of operation, operating system, features and physical design. By comparison, it struggled only but very substantially in the battery category, where it rated below average. LG and Samsung follow Apple in the rankings, with scores of 772 and 759, respectively. Interestingly, the study also found that 40 percent of smartphone users report dropping their landlines in favor of their mobile, compared with just 28 percent of traditional handset owners who had done the same. Overall, smartphone users reported sending and receiving an average of 17 emails per day on their devices, and 82 percent said they regularly use their device’s personal information management capabilities — such as address books and to-do lists — to stay better organized.
According to data from the NPD Group’s latest Smartphone Market Update report, the BlackBerry Curve unseated the iPhone 3G as the top-selling smartphone in the U.S. in Q1 2009. The iPhone 3G came in second, followed by the BlackBerry Storm, BlackBerry Pearl, and the T-Mobile G1. NPD attributes the jump in BlackBerry sales to Verizon Wireless’ “buy-one-get-one” promotion. BlackBerry maker RIM’s consumer smartphone market share increased 15 percent to nearly 50 percent of the smartphone market in Q1 2009 versus the prior quarter, while both Apple and Palm saw their share decline by about 10 percent. Overall, smartphones made up 23 percent of all U.S. handset sales in the quarter, compared to 17 percent in Q1 2008.
“Verizon Wireless’s aggressive marketing of the BlackBerry Storm and its buy-one-get-one BlackBerry promotion to its large customer base contributed to RIM capturing three of the top five positions,” said Ross Rubin, director of industry analysis at The NPD Group. “The more familiar, and less expensive, Curve benefited from these giveaways and was able to leapfrog the iPhone, due to its broader availability on the four major U.S. national carriers.”
Knockoff models of popular cellphones such as the iPhone are selling well in China, suggesting Apple may have a more difficult time penetrating the market than expected. The New York Times reports that knockoff, known as shanzhai, phones account for more than 20 percent of sales in China, while the government has done little to stop the proliferation of the fakes. Part of the problem, the report suggests, is the lower price of the knockoffs, made possible by technological advancements that make the fakes very cheap to produce, and by the manufacturers’ evasion of taxes, regulatory fees, and safety checks. “We’re being severely hurt by shanzhai phones,” says Chen Zhao, a sales director at Konka, a Chinese cellphone maker. “Legal cellphone makers should pay 17 percent of their revenue as value-added tax, but shanzhai makers, of course, won’t pay it.” China’s Ministry of Industry and Information Technology recently warned consumers about the hazards of shanzhai phones, saying “their radiation usually exceeds the limit.”
Fake iPhones—like the Meizu M8—are particularly popular, partially due to the fact that the phone isn’t officially available in China, except in Hong Kong, pushing the street price of imports out of reach for many. “I saw iPhone pictures on the Web; it’s so cool. But it costs over $500 — too expensive,” said Yang Guibin, 30, an office worker from Chongqing. “So I decided to buy a shanzhai iPhone. I bought it in a digital market here; it looked exactly like the iPhone.” Interestingly, even the manufacturers admit their business is less than reputable. “We are a kind of illegal producer,” said Zhang Feiyang, whose company, Yuanyang, makes an iPhone clone. “In Shenzhen there are many small mills, hidden. Basically, we can make any type of cellphone.” Apple has been linked to both China Mobile and China Unicom as potential partners for an iPhone launch in China, however, no official announcement has been made by either company.
Apple has released the fourth beta version of iPhone OS 3.0 to developers, along with an updated version of the iPhone software development kit (SDK), and a pre-release version of iTunes 8.2, which is required to activate iPhone OS 3.0. It is currently unclear what changes might have been made to the SDK, OS, or iTunes with this release; however, legal language referring to Blu-Ray data from Gracenote has been spotted in iTunes, suggesting Apple is working on Blu-ray playback/support for the media jukebox. The updated SDK weighs in at 2.13GB, and is listed as build 9M2734, while the iPhone OS 3.0 beta 4 is listed as build 7A300g.
Developers can download iPhone OS 3.0 Beta 4, iTunes 8.2 pre-release, and the accompanying updated SDK from Apple’s iPhone Dev Center.
Apple is working on two new iPhone-like devices which may be offered by Verizon Wireless, according to a new report. Citing two people “familiar with the matter,” BusinessWeek reports that one of the devices is a smaller, less expensive calling device described by one of the sources as an “iPhone lite,” while the other device is a touchscreen media pad that would allow users to listen to music, watch high definition video, view photos, and make calls via a Wi-Fi connection. According to the report, one of the devices may be introduced as early as this summer. Verizon Wireless CEO Lowell McAdam recently confirmed talks with Apple, telling BusinessWeek that “In the last six months, I have talked to Steve Jobs;” however, it is unclear whether Apple’s current exclusivity contract with AT&T would block the introduction of a new iPhone model on a competing carrier, and whether the information was leaked to provide leverage for ongoing future exclusivity negotiations between Apple and AT&T. USA Today recently reported that Verizon and Apple were discussing the development of a CDMA-based iPhone for introduction next year.
Apple’s iPhone is spurring demand for location-based services, according to Ted Morgan, founder and CEO of Skyhook Wireless. “Thanks to the popularity of iPhone, we are seeing more and more apps using geo-data,” Morgan said in an interview with GigaOM. “The iPhone has unleashed location-based creativity.” Skyhook provides the technology for the Wi-Fi location positioning feature of the iPhone OS, and also offers its services to other mobile device manufacturers and mobile app developers. According to GigaOM, the number of location-aware mobile apps has grown in the past year from a few dozen to 2,000, with five times as many location-aware apps expected by next year.
Verizon and Apple are formally discussing the possibility of introducing a Verizon-compatible iPhone next year, according to a new report. Citing “people familiar with the situation,” USA Today reports that the two companies entered into “high-level” discussions months ago while Steve Jobs was still overseeing day-to-day business at Apple. While the article states that the phone would be built to run on Verizon’s current CDMA wireless network, Verizon plans to begin commercial use of its next-generation Long Term Evolution (LTE) 4G network in 2010, suggesting that the negotiations may instead be targeting this more advanced network platform. AT&T is expected to launch a commercial LTE network in mid-2011, leaving Verizon a brief window of 4G exclusivity in which it could take advantage of a 4G iPhone. In addition, Verizon CEO Ivan Seidenberg recently commented that Apple would be more likely to offer the iPhone to Verizon once it had transitioned to a LTE network. USA Today claims that AT&T has exclusive U.S. iPhone distribution rights into 2010—though it is said to be seeking an extension through 2011—and would likely continue to offer the iPhone even if Verizon were to offer it as well.