What next for Apple's iPhone?
2008-06-03 10:01
San Francisco - June has arrived
and for Apple Inc fans and investors that means just one thing
- a new iPhone.
The encore to the original iPhone, which launched nearly a
year ago amid unprecedented industry buzz, is widely expected
to be the main attraction when Chief Executive Steve Jobs takes
the stage at Apple's developers' conference next Monday.
The new iPhone will be accompanied by support for corporate
e-mail and a slate of new programs that could help boost sales
of the devices, which sport a touch-sensitive screen, wireless
internet access and iPod-style media functions.
"The thing for Apple is to be able to leverage the iPhone
for further innovation, or they run the risk of being the next
(Motorola) RAZR, which was iconic in its own way, but for which
innovation did not come fast enough," Shiv Bakhshi, director of mobility research for market research firm IDC.
Apple has declined to comment on what Jobs will announce,
but analysts are betting he will show off a long-rumoured phone
running on a so-called 3G, or third-generation, network.
That would address one of the chief complaints about the
current iPhone: the speed at which it calls up web pages on
AT&T Inc's pokey EDGE network.
That is a particularly important concern in Europe, which
is ahead of the United States in building new networks and
where sales of the iPhone have lagged.
"I see 3G as important for the US but essential for
overseas," analyst Avi Greengart of Current Analysis said of a faster iPhone.
"It will be appreciated by technology enthusiasts and
anybody who wants to get fast web browsing outside the hot
spots."
Apple may bow to pressure
A new iPhone may be a catalyst for Apple stock, which has
risen 50% over the past three months, to a close of
$186.10 on Monday. Investors have regained confidence that
demand for the company's Macintosh computers and iPod media
players is holding up amid fears the US economy is headed for
recession.
There is also speculation Apple could bow to a cellphone
industry practice and offer a subsidised iPhone, an arrangement
where AT&T could kick in a couple hundred dollars to make the
devices more affordable. AT&T already gives Apple a slice of
the monthly service fees it gets from iPhone subscribers.
"We think that actually Apple could talk about a very
disruptive business model, or a change in their business model,
embracing subsidies where necessary, multiple carriers to help
get the iPhone into more hands," Lehman Brothers analyst Ben
Reitzes told a conference call last week.
But more important than the actual hardware will be new
services and programs that can tap the increased power.
Some reckon that will include the ability to download songs
from iTunes using the cellular network. IPhone users now have
to be connected to a Wi-Fi network to get music from Apple's
online store.
Apple will also roll out its highly anticipated support for
corporate e-mail, a capability it showed off earlier this year
and that is expected to give iPhone a push into business, which
now overwhelmingly use Research In Motion Ltd's Blackberry
devices.
Apple will also launch its iPhone "applications store" that
will sell programs made by developers outside of Apple. The
service marks an about-face for Jobs, who initially blocked
third-party software from the device.
"That's important for developers who can now build this out
as a critical platform for Apple," said Michael Gartenberg, an
analyst with Jupiter Research. "The potential here is sort of
unlimited."