The New Apple 3G iPhone is Here

The revolutionary Apple 3G (3rd Generation) iPhone

After a week of intense rumors and Photoshopped photos of an elusive Apple iPhone, the waiting is finally over.  Yesterday Apple’s Guru took center stage at the Worldwide Developers Conference (WWDC) 2008 to give the keynote address from the San Francisco Moscone West venue.  He spoke and everybody listened.

As expected, Apple CEO Steve Jobs used his time on stage at the WWDC to announce a new version of the iPhone.  Apple plans to introduce a new version of the iPhone in July that comes equipped with support for faster 3G networking.  The new version of the popular smart-phone will be available for a dramatically lower price.  Apple new slogan for the iPhone is “Twice as fast – Half the Price”.

The iPhone will be a next-generation phone with faster Internet access that will run on advanced wireless networks and sell for as low as $199.00—half the current entry-level price.  Steve Jobs indicated the company was going after the mass market with the new model.

The new phone also marks a dramatic departure for how Apple will make money in its third major business alongside Macintosh computers and iPod media players.  Wireless network companies will no longer pay Apple part of the subscription fees they get from iPhone users, but instead will subsidize the devices up front to make them cheaper.

Improved e-mail features for the iPhone are intended to woo business people, while its ability to run on faster networks is key to Apple’s push to gain market share in Europe and Asia.

The 3G iPhone will sell for US$199 for the 8GB model and $299 for the 16GB model. That’s a $200 discount from the previous $399 and $499 prices for the 8GB and 16GB iPhones, respectively.  The 8GB version is available in black, and the 16GB version is available in both black and white.

The handset will also include built-in GPS.   Apple’s website says that the GPS can be used to “find a location, get directions, and, if you like, follow your progress along a highlighted route with live GPS tracking.“

Physical changes to the new iPhone include a curvier design, full plastic back, solid metal buttons, and a flush headphone jack.

The new phones will go on sale on July 11 in 22 countries and regions, expanding to 70 by the end of the year.  Unfortunately Panama is not included on the list, so I’m afraid we’ll have to play the waiting game.

Another rumor that has turned out to be true is that Apple is replacing .Mac with MobileMe. MobileMe looks pretty impressive with push email, contacts and calendars. Data gets synched automatically between all of your devices, both ways including PC’s, Mac’s, iPhones, etc. The new location for this is found at me.com. A subscription fee of $99 will be charged and users will get 20 GB of online storage.

It’s not clear whether Apple will introduce technology changes into the new iPhone that makes it harder to jailbreak, then unlock, but it will at least require U.S. iPhone buyers to sign a two-year contract and activate the iPhone on AT&T’s network before they can take it home. This won’t eliminate unlocking, but could discourage it to some degree.

In my opinion, Apple has created what can be called the iPhone era.  So far in its iPhone era, Apple has wisely tackled the hard problem first—making a great product, and continuing to improve it—and is now making the kinds of changes to its business model to make sure the iPhone really does turn into the third leg of the company’s business some day.  Apple’s three legs are:   Macs, music and iPhone.  Simple and profound.