Apple Announces iPhone, Stock Soars
by Michael Arrington on January 9, 2007

Once again, Apple CEO Steve Jobs wowed the crowds like no one else can. In his 9 am keynote at MacWorld in San Francisco this morning, Jobs announced the new iPhone cell phone. From the description in appears to be a game changing device, and the public markets seem to agree. As of the time of this writing, Apple stock is up over 7% for the day. Competitor Research in Motion (Blackberry) is down over 6%, wiping $2 billion dollars in market cap off the table. Palm, maker of the Treo, is also down, nearly 6%.

The iPhone is an impressive, and expensive, device. It comes in 4 GB and 8 GB models and costs $499 and $599, respectively. It includes a 3.5 inch touchscreen with a virtual keyboard, a 2 megapixel camera, is WIFI enabled and runs OSX. Cingular is the carrier. The desktop-like interface and user experience looks to be a killer. This might actually take the mobile email revolution another full step forward from what Blackberry has done. Standard web sites can be viewed via the Safari browser (and soon, I’m sure, Firefox). And there are a number of nice touches as well, including a motion sensor that rotates photos when you turn the phone, and voicemails displayed visually that you can click on and listen to. As we all expect from Apple, this is a seriously buttoned up device.

The iPod functionality is almost a side benefit, and with the limited storage compared to the high end iPods, serious music aficionados will still want to carry their 80 GB iPods as well.

Apple also made other announcements today, including the availability of Apple TV (formerly iTV), a $299 living room device that streams iTunes content to the television. And iTunes appears to be soldiering on, with 2 billion songs and 1.3 million movies sold.

The biggest letdown is the fact that the iPhone won’t be available until June 2007 in the U.S. They have so much horsepower and untested software packed into this tiny device that the first version will almost certainly have problems - overheating, bugs, etc. That won’t stop millions from buying it as soon as it is available. And it won’t stop me, either.

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Very interesting, the device actually looks a lot less like an iPod than most people would have expected. Sounds like a smart move nonetheless, the mobile handsets industry shall review its rules.

 

THIS IS SICK! For 10 years I have refrained from getting a “cool” gadgety phone because I always thought they all sucked. But I will pre-order the iPhone the minute it comes out. OMG. I am so excited to use it. Man 6 months without it is going to be tough…

 

The hype annoys me a bit.

None of the specs are market-leading. It will probably be better integrated than any HTC device (though it won’t come close to RIM). And meanwhile HTC is conscientiously plugging away and offering higher specification, lower-priced products, Win Mobile is just getting to the point of usability, Opera is just about slick enough… Everyone’s just about learning to get along with open standards, and then Apple organises its own VIP party. It feels like deja vu to me.

Apple is a great consumer products company, and it has lots of excellent designers, but its philosophy is fundamentally closed (own the whole chain; keep it proprietary) at a time when the mobile/PDA is approaching a open platform tipping point, and when the stack is just beginning to stabilise enough that there is finally some serious prospect of a no-walled-garden mobile world.

I’m going out on a limb: I think the mobile market is going horizontal irrespective of Apple’s actions, and I think that Apple may be behind the curve on this one. The iPhone will push the PDA category into the mainstream, and there will obviously be lots of early adopters, but I think annoucing this far ahead of launch is risky, gives their well-oiled PDA competitors a lot of breathing room, and is a sign of weakness not strength.

 

I think Apple is delaying the release until June on purpose. People who are likely to purchase it when it becomes available are not going to buy any other decide from any other company. Also, we are highly unlikely to sign a 12-year contract with Verizon or Sprint now that we know it’s going to be available on Cingular.

IMHO, this is a very calculated move on their part - let the competitors bleed for a few months… :)

 

I hate spelling mistakes. “decide” = “device”. But I’m sure you figured it out already. hehe

 

It seems that this site.. crunchgear…..and apple are all having issues because of the live blogging. Well, we knew it would be an in demand product but I didn’t think that it would crash sites that just spoke about it.

Apple Computer to Apple, Inc. - Yawn.
AppleTV - most likely I am going to buy one of these
IPhone - What is going on with the name conflict with Linksys or whatever company that came out the the same name? I might buy it and you are definitely right about signing a new contract. Mine comes up in April but I have a two year contract. I might have to figure out a way to get out of it to get my number moved to Cingular.

I am looking fwd to watching the keynote.

 

I can’t believe they put a camera in it too.

 

Yesterday I loved my Blackberry Pearl, today I want a divorce!
The phone is dead, long live the iPhone!
Steve is da Jedi….

 

Mike: The biggest letdown is that there’s no 3G support. Cingular is terrible where I live, and all of my friends and family are on Verizon as a result. No way I’d switch to an inferior network, and drop half a G for this.

 

This looks like a Nokia handset to me. The video iPod case was much prettier. But the user interface and features just rock!

 

It’s horrible. I don’t know why everywhere I look on the net for opinions of this thing, I seem to find people all too willing to jump on the ultra-supportive, no-questions-asked bandwagon. The iPhone is a beast - and although it’s technical functions may be cool, so was the iPaq and O2 XDA etc.

In my opinion, Apple has taken a serious downfall in the last couple of years. I had a G3 iBook when it came out, as I used to be a serious Apple lover - I was completely let down by the level of service as I had one with a really dodgy logicboard which died on-cue every three months. I just find it apalling that Apple is trying to take over the consumer electronics world without yet rectifying the problems it has caused in the past.

OS X is looking old and tired, the new Macbooks aren’t as good as I thought they would be and iPods are now almost a disposable device which lack functions like noise cancelling and wifi connectivity that some of their (obviously less popular) competitors don’t.

 

Wow…a lot of hate coming across the wire. Why? Steve Jobs is a genius, that’s nothing new, but to bring Schmidt and Yang on stage with him to unveil this phone, pure brilliance!! Say what you want about Apple, but if you can’t find something positive in Google or Yahoo, then you got problems my friend. Everyone knew this was coming for months and the stock is still up $5…silly.

 

Feel free to bash me, but as a realist - this thing won’t be the super mega star some of you might think. I just posted my thoughts as 3 reasons why this won’t be a star for a long time (if ever).

Click my name to read…

 

Apple’s stock soars during Macworld! OMG, alert the media. It’s a whole new world!!!

Sounds kind of stupid huh? Like most of the blogosphere you over-hype something that could be pretty mundane. Why don’t we wait until June, or better yet, December, to see what’s up with Apple’s stock? Just because a few fan boys cream their shorts doesn’t mean that Apple is changing the game. Besides, doesn’t Apple’s stock usually get a bump during Macworld?

P.S. - Can you explain how they are changing the game after simply launching a phone? This has to become widely adopted and accepted by a majority for it to have changed a game. It just launched and is not even publicly available. Of course, having read some of your previous posts a MySpace clone is a game changer too.

 

Iphone will not be able to get into the masses mainly because of the price. It will definitely put up a fight against PALM and RIM adopters but its totally out of reach ($$$) to the masses who just want good, cheap phones.

==================================================
Payscroll.com - The answer to the \”How much am I worth?\” question. Coming Soon

 

you do not need the Apple phone, all of this can be done on a Nokia; and when you have WiFi coupled with ((truphone)) , http://www.truphone.com attached you will be able to kick any E-Series or N-Series Nokia into the “mobile VoIP” mode you have always dreamt about. Most services like song downloads or navigation are on all future Nokia devices so why bother with a newcomer. As WiFi becomes the killer app on the mobile, we need a new global carrier helping us to communicate. In my eyes this will be ((truphone)) - they just got elected to become Tech Pioneer 2007 at Davos World Economic Forum… so wait and see … Google was there before

 

I do not recall when was the last time that a company was kicking so much ass in so little time.

In the last 7 years Apple has shown all of us that it is possible to innovate and execute consistently with 21st century speed. Thanks for restoring the focus on innovation, Steve, and may empires fall!

As far as iPhone goes it looks to be absolutely brilliant. Given that I have been a very happy iPod owner for the past 2 years and given the fact that I never had a good cell phone I have every reason to think that I will love iPhone.

Alex

 

This is it. It’s what phones were always meant to look like. Why has it taken so long? Why is only Apple capable of this? I can’t believe it, I actually want one.

 

It should probably be noted that the bottom of the iPhone section of the Apple websites says that it has yet to recieve FCC approval - could be a big flop if they don’t get it!

“This device has not been authorized as required by the rules of the Federal Communications Commission. This device is not, and may not be, offered for sale or lease, or sold or leased, until authorization is obtained.”

 

I’m not completely convinced that the iPhone will launch without it’s share of glitches and other problems. But, I’m extremely happy that the competition has heated up in the mobile/smartphone and wireless service provider industries. I’m tired of seeing small improvements to these types of devices…it’s time for a revolution. Here’s another take on the whole story http://ryanmapes.blogspot.com/.....o-and.html

 

!@#$, when will Verizon start getting these device first? Oh I know, when they stop requiring everyone to use CDMA and a QualCom shipset. This just sucks for everyone on verizon.

 

JB,
Apple is the leading the way in Open Source development and is the first major computer company to widely support open standards and open source development.

Apple is the antithesis of Microsoft in so many ways. It’s wide support for Open Standards and Open Source is one of the reasons why its core OS and components are so robust and secure and just work. (Apple’s DRM is another story)

You need to learn more about Apple before you can generalize like that.

Here’s a good link to start:
http://apple.com/opensource/

 

That phone looks sick! Nothing what I thought it would look like.

 

Granted some other Macworld keynotes did not live up to expectations, I cannot believe that anyone would think the same about this one. This isn’t just a run-of-the-mill MP3 player grafted on to a crappy phone. This is a very ambitious device with an extraordinary UI. And putting nearly the entire UI into software gives Apple a lot of enhance-ability down the road.

 

This will fail. Not tremendously, but it will not enjoy the same cultural and social changing magnitude of iPod.

In 36 months’ time we will all talk about how Apple wasn’t able to break into the mobile phone industry.

1. Apple eschews the enterprise. Outright shoots its foot every time it wants to court them. Launching and being hush-hush iPhone and with Cingular is just another bullet.

2. Too much for the average consumer. Too much overall for anybody. A Treo/Q/Blackjack + iPod + Video + Newton + OQO + 5 hour battery life and you end up with something just not perfect. There should have been three things released today: a no frills iChat integrated WiFi + BT + EDGE + GSM iPhone, a fullout nuclear bomb iPhone Pro, and a widescreen video iPod. Instead we’re wowed by a phone that’s going to cost more than $2000 after your 2 year contract is over.

3. Apple does not have the support system in place to make this work. In 6 month’s time things might be different but after working here for so long the truth is Apple is a very tiny tiny company compared to Dell or HP or Microsoft. Adding consumer and enterprise support is magnitude of success that Apple just doesn’t have the capacity for. Ron Johnson was the first step in the right direction but efforts have been slow. The 30% budgeted to build out a retail infrastructure will have be managed more than just wisely but as quick as possible. And that in itself is a whole other pandora’s box.

In conclusion, this, iPhone, will fail.

But at least for now you’re sure to know a widescreen video iPod is capable will be out before summer’s end. That I’ll buy.

iPhone + AT&T (the shittiest cell phone provider)? No, thanks.

 

I’m thinking this isn’t so much a phone as a minicomputer…with it running OSX I’d imagine the possibilities are almost endless… Someday Apple WILL win…

 

You’ve all missed the boat — the haters anyway. Apple did not unveil a $500 “phone” today. They unveiled a $500 fashion accessory (albeit with unbelievable functionality and utility) that will be as much a “must have” as an iPod 2 years ago. By announcing well before launch they do two things. One, make all early adopters freeze from signing any new non-Cingular contracts or buying any new phones. Two, they allow the next level of users save their money for 6 months. Brilliant. Well done Steve.

 

You missed the point WTL. But at least I’m safe on land while you’re sinking with the Titanic.

 

Sign me up. Not an apple fanboy by any means but this phone is impressive. I’ll have to admit…. “Apple might just be the best to do it”… Can’t wait!

 

I love it, but it sucks they are requiring Cingular to be your provider (I’d sooner die), and also that they’re not offering a cheaper version without the phone functionality. I totally want a widescreen iPod and portable Mac OSX/internet, but making me drop $600 for it and signing up with Cingular for 2 years makes me think again.

 

I think it’s brilliant. Sure other phones can do all the things the iPhone can do, but the iPhone looks like it does it just so much better.

While other phone manufacturers make things more complicated and really dragged their feet over stuff like mobile browsers, Apple simplified it, made it work and made it gorgeous.

I wouldn’t be surprised to see other phone companies accelerate the stuff out of their labs to catch up.

I’ll be getting one. It looks like it does a whole lot of the usual things very nicely.

 

i drank apple’s kool aid a long time ago. windows was like a bad marriage - it was scary leaving but once i did i never looked back. the trophy wife may be expensive and she often lets me down on the service side, but i would never go back.

will i buy an iphone - you betcha. will i be disappointed by the battery life - of course. for those who compare this device to an ipaq or some other such windows (trash) device i say you are kidding yourself. this thing will be a work of art and will only progress. safari on my phone - its about damn time. i am tired of pretending that my sony ericsson 850 is cool - next to this baby is nothing more than a hyped up tv remote with a memory stick.

will it be a mass market hit like the ipod? not so sure. in fact here in europe where pay monthy contract customers typically have their phones subsidized - it will be a hard sell to get an operator to subsidize and support yet another handset line. who knows. who cares. all i know is that i want one. cast all self restraint to the wind.

 

2 years contract?
What happens when they release another device next year? :)

Remember the Cingular guy said “this deal will allow Apple to be Apple and Cingular to be Cingular”. Now I am positively scared.

 

I’ve been wondering why does only Apple have genius designers….now I am just more confused…Apple is a sure leader in bring human into real 21th century…by innovating a lot of things that used to exist only in fiction movies.

The multi-touch functionality to me is brilliant…if you see the brief demos on Apple site you would notice how you could zoom in and zoom out photos with two fingers…moving outbound and inbound respectively.

It’s very well refined that hundreds of details are considered and it is the most usable thing I’ve ever seen…as long as the screen-pad is not too fragile….

Criticizers should think if there is no apple…will there be so much advancement in UX in last few years? Apple is the Hero.

 

I think it will be successful. I have a Mac and an iBook and so far, no one has been able to sync anything properly with my computers. The iPhone looks incredible and it has Wi-Fi. Downside in version 1: no 3G. So in Europe it’s not so great but who cares? It will have 3G at some point. Can’t wait to pop in my Orange (Netherlands) SIM card!!!

 

Start loading up on put contracts for Apple stock. Way to big of a move today of what is just a glorified PDA. Who is the market they are going after? The kids who buy ipods? The business sector? Not likely. Apple is not an innovator they just take current products and make them look pretty. The only way this becomes a success is if Cingular offers 4yr contracts and the phone for $99. or 3 years for $199. The best thing is that when my cingular contract runs up the cingular 8525 will be real cheap.

 

I don’t think Cingular will be the exclusive provider on this phone forever. Probably giving them a year head-start and commanding an insane CPA rate from Cingular for all new switchovers ($300 maybe). Just like Grand Theft Auto signed exclusive deal with Sony for a few years before also going to Xbox, (RIM and Treo have done similar I believe).

My guess is that apple has all but conceeded the battle of $400 iPods to their new iPhone, so if they are going to recoup that lost revenue, get it from the phone sales. Hell, the Cingular switchover bounty probably offsets production cost on one iPhone.

 

If the mandatory Cingular thing bothers people (and it does me), hold tight. I guarantee there is an exclusivity period (maybe 6 months at the most) like there was with the Razr phone. Then, just buy another provider’s SIM card in and you’re good to go. This won’t stay a Cingular thing for long.

 
 

Some questions….

1. Usability

Interesting that apple is eschewing its on “targeted-functionality” approach on this one and throwing in everything and the kitchen sink. Not sure if their UI group will be able to tie it all together in the ultra usable Apple experience.

2. Needs Driven

Only a small niche group of power-users will actually make use of many of these features. A halo of early adopters will surround this core group, but I just don’t see the mainstream adopting such a heavily featured device.

3. Culturing

The ipod marketing and development strategy involved a great deal of culturing & education of consumers - the concept of syncing, the relationship between the hardware and software, navigating and using the devices, etc. This was achieved by starting with simple functionality and a very streamlined experience, and slowing layering on features - podcasts, photos, videos, games, etc. Apple has thrown that all out the window. They’re still trying to dumb it down to 4 simple experiences (ipod, phone, music, whatever the last one is), but IMHO there’s still a lot crammed in there.

Conclusion

A niche product - price and feature load position it for extreme power users and early adopters. Limited mainstream adoption until some future iteration. IMHO, this product is 3 years to early….

 

Give. I want it - and I want it now. Give!

 

One last comment for the idiots hyping this up:

iPod succeeded because of piracy. People got sticker shock with a 300 dollar mp3 player but with a $1000 dollar music collection that you can download for free illegally, that initial $300 cost was soothable.

You can’t steal talk minutes. A Cingular voice plan is about 40-60 bucks. A data plan is about 40 bucks. An ATT wifi hotspot plan is another 20 bucks. You’re looking to spend around 100-150 or more just to operate this on a monthly basis.

iPhone is in the wrong position. That is all. I’m more excited about the iPhone-derived Netwon-esque machine or the iPhone-derived video iPod that’s coming. But having the iPhone as my phone? Just not going to happen.

 

Alaska Miller - your assessment of cost supports my asssessment of power-user positioning.

Let’s open a technology analyst consultancy and start issuing press releases!

 

I hate the thought of switching to Cingular again but I’m ready to ditch Verizon and my Q when the iPhone is released. iPod + phone + mobile web device with a great UI and product design… $599 isn’t so bad. Here’s a good article from Time magazine on the iPhone that talks about the “arrogance” and power of Apple/Jobs…

http://www.time.com/time/busin.....10,00.html

 

I watched Danger from its days of 5 ex-Excite engineers to being a robust (driven by celebrity use) product with its Sidekick via T-Mobile. But the headaches that they went through on the device side took several years to work through. Everything from the SIM card to the earplug to the cord to the screen & buttons - you name it, it went wrong at some point.

But everyone has been trying to do the Nokia model or improve on the blackberry, and keep coming up with diff versions of the mousetrap. If you look at Asia, phone interfaces are actually getting much larger - almost like mini computers. People aren’t even using computers in some asian countries at all any more - they use their phones for everything.

This phone is definitely something on the next level. I am impressed. I am sure it will have all sorts of difficulties in the beginning. I’ll buy one.

 

man, do blogs need good ol’ fashioned threaded-messaging, how is anyone supposed to follow these comments/responses…viva 1999!

 

It’s interesting to watch people across the blogo’ start to agree with my reasoning for why it won’t be a major success.

 

There is a ton of bisque on this thread!

“I guarantee there is an exclusivity period (maybe 6 months at the most)”

Cingular CEO stated “multi-year exclusive agreement”.

“it sucks they’re not offering a cheaper version without the phone functionality”

In fact, without the Cungular subsidy, it would cost even more!

“not enjoy the same cultural and social changing magnitude of iPod” equals “failure”???

“will i be disappointed by the battery life - of course.”

16 hours of iPodding *and* 5 hours of phoning sounds pretty good!!

Alaska, this is most definitely *not* aimed at the enterprise!

“A niche product”

True, Apple is only aspiring for 1% share. But that’s 10 million units and $5.5b in sales (possibly more with Cingular subsidy)!

 

aah dangit — too fast send — what I was going on with is that it’s interesting to watch and the cost/monthly fee will be the ultimate killer. but my other reasons appear to be maybe valid too based on what’s others are saying.

 

e.g., i want to respond to alaska millar, but way up the page at 43, it’s out of sight…no-one would get it if i commented now…

 

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