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Jonathan Ive Wins Award for Advancing Cause of Mobile Data

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Winning awards for the product design is old hat for Jonathan Ive and his team in the Apple Design Group. The company’s Senior Vice President, Industrial Design has won every honor that a product designer can claim, and then some. But today, he won an award unlike any other. He was recognized for a design that drove the adoption of an obscure technology.

Ive was honored with the Personal Achievement Award by the Mobile Data Association, a UK group that recognizes “those UK companies and individuals who have made an outstanding contribution to the uptake and success of mobile data over the last 12 months.”

The iPhone can be credited for many things — upsetting the existing mobile phone market, increasing demand for cool touchscreen interfaces, creating a new icon to be used as short-hand for innovation — but, as the MDA notes, its biggest accomplishment probably is in driving demand and adoption of mobile data plans. Data plans have been available for a very long time, but the appeal of the mobile web wasn’t obvious to most of us until we first got to try the stupendous Mobile Safari. By itself, the iPhone has made HTML browsers a near-standard feature for a modern smart phone.

And the industrial design is a big part of the success of Mobile Safari. Wiithout the finger-flicking scrolls and double-tapping zooms, the iPhone wouldn’t be what it is and mobile data wouldn’t be so hot. It’s nice that an organization that has been promoting mobile data for years recognizes that design’s contribution to the iPhone goes far beyond aesthetics and software. It was designed to make the mobile web accessible and appealing. And it succeeded wildly.

Via Ars Technica.

iPhone Pricing Explained

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One of the most-asked questions leading up to the July 11 launch of iPhone 3G has been “How much will current iPhone users pay to upgrade to a new phone?” We asked media representatives from AT&T to clarify the upgrade policy yesterday, and were told by Wes Warnock, “Eligibility for the upgrade discount typically involves a number of factors, including how long you have been in your current service agreement, your payment history (for example, prompt payment of bills), and more.”

Asked how that would relate to current iPhone users who can only have activated their phones at most a few days more than one year ago, Warnock would only allow, “In general, you are more likely to qualify [for the discount phone pricing] if you are at or near the end of your current service agreement and pay your wireless bills promptly.”

Because the iPhone 3G is being subsidized by AT&T, their standard upgrade pricing plan is in effect. This allows them to recover the cost of the subsidy over the two year life of the service plan you commit to when you buy the phone. Blogger M. Jackson Wilkinson at Jounce explains, “If you currently use a phone subsidized by AT&T, and you aren’t currently eligible for an upgrade (you aren’t nearing your contact’s two-year anniversary), you will need to pay the full, un-subsidized price for the iPhone 3G. In this case, that works out to either $199+200 or $299+200, hence the $399 and $499 prices.”

So, how does that affect first-gen iPhone users, whose phones weren’t subsidized by AT&T? Under the terms of AT&T’s upgrade policy, current iPhone users should be able to make a good case for being able to purchase the iPhone 3G at the fully subsidized price as long as they are willing to sign on for a new two year service contract.

Blogger Glenn Fleishman has additional details about iPhone pricing arcana at TidBITS

Amid the Hype, iPhone Backlash Building?

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Image via AppleInsider

By any measure of event marketing, Apple’s rollout of its next-gen iPhone 3G has already been a success, with stories having run in every major media outlet, from Time to Fortune to BusinessWeek, CNN, The New York Times as well as on Internet blog sites large and small, covering the phone’s worldwide debut on July 11.

Both Apple and AT&T, the iPhone’s exclusive US wireless carrier and distribution partner, have posted videos hoping to get customers iReady for the big day and, according to a story in Fortune, reporter Philip Elmer-DeWitt says their approaches couldn’t be more different.

The Apple video, shot in the company’s signature stark, simple style, calmly lays out all the feature-based reasons you should believe that owning anything less than an iPhone may leave you unprepared to face the challenges of living in the modern world. As Elmer-DeWitt writes, “It’s hard to watch it to the end and not harbor iPhone 3G lust.”

At&T’s video, on the other hand, calls to mind the chaos and frustration likely to attend your effort to get your hands on one of the new phones on launch day, recommending that you may well want to visit an AT&T store in advance of July 11 to get your papers in order and your background check, uh, credit check out of the way to minimize hassles and delay when you come back to get the phone and have it activated.

As the countdown to launch day nears, more and more people are likely to be liveblogging the event and the pent-up demand for the device will continue to build. Some, however, are thinking more along the lines of Popular Delusions and the Madness of Crowds, like Dameon Welch-Abernathy at The PhoneBoy Blog, who says, “Get iReady to be iScrewed.”

AT&T Reveals iPhone Pricing Details

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Apple’s chosen wireless carrier for the United States revealed pricing details for the iPhone 3G models, set to debut on July 11, according to information posted to the company’s website. New customers signing a two year service contract with the Dallas-based phone company can purchase the new phones for $199 and $299 for the 8GB and 16GB models respectively. Current AT&T customers who are eligible for an upgrade will also be able to purchase at the fully subsidized pricing while those not eligible for an upgrade will pay $399 and $499 for the two models. In typically cryptic AT&T style, the company’s upgrade eligibility requirements are not made public but only to logged in users requesting information specific to their account. The company’s generic message on upgrades reads “Device offers are made available from time to time based on a number of factors: service tenure, spending levels, payment history, usage practices and other factors,” though existing customers nearing the end of a two-year service contract cycle will presumably be able to purchase a new iPhone at the fully subsidized pricing with a commitment to a new two year contract.

In a somewhat puzzling development, AT&T issued a statement today saying it will sell the new phones “in the future” without a service contract for $599 for the 8GB phone and $699 for the 16GB model. Previously, neither Apple nor AT&T had indicated any intention to make the phones available without a service contract. Customers seeking to purchase phones on and near the July 11 launch date will be required to activate AT&T service at either an Apple store or an AT&T outlet, unlike the original iPhones released one year ago, which users could activate for service from their home computers. Existing AT&T customers will pay an $18 activation fee to get service on new iPhones; new customers will pay $36 for service activation.

Apple Turns Green for iPhone Packaging

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Apple has ordered millions of earth-friendly packaging trays from a Dutch company that makes injection-molded shipping products from potato starch, according to The Register. After weathering criticism in the past from the likes of Greenpeace for the company’s use of Brominated Fire Retardants (BFRs) and Polyvinyl Chloride (PVC) in its products, last year, Apple CEO Steve Jobs promised a greener Apple. Turning once again to the company that made shipping trays for the first generation iPod nano and iPod video, Apple plans to ship its new iPhones in cardboard boxes with a fully recyclable tray made from 100% natural sources such as potato or Tapioca starch, according to Hans Arentsen, CEO of the Dutch company PaperFoam.

Questions Abound as AppStore Opening Looms

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Apple’s App Store, the online distribution channel for applications being developed for the iPhone by third-party software makers, will presumably open its virtual doors with the release of iPhone’s 2.0 firmware and the debut of the 3G model hardware on July 11. Phone users and developers alike are understandably excited about possibilities on the horizon, but as developer Paul Kafasis writes for Inside iPhone, many aspects of the way forward remain uncharted.

With Apple having no previous experience in the role of software publisher for outside developers, Kafasis is concerned about uncertain protocols on issues including support, free trials, review copies, refunds, discounts, bulk sales, and upgrade pricing. On behalf of consumers he wonders if software will be tied to a single device, if it will be able to be backed-up and recovered later and what will happen when a user gets a new iPhone.

Most importantly, perhaps are unanswered questions about who will have and control the all-important customer information. “When we sell software to a customer, we can track visitors, hits, downloads, and more. We also get a name and email address we can use to contact the customer later, if needed,” he writes, and then wonders, “will [developers] get any of this from the App Store? If so, what pieces of it?”

Many people felt the initial release of the iPhone last year was badly hobbled by the restriction against native third-party applications. The emergence of such applications soon, and their distribution through the App Store, are thus as likely to be roundly welcomed as it is certain the roll-out will encounter bumps in the road. With a future all three parties – Apple, developers and consumers – would like to see as fulfilling, whether and when that might be the case will depend on the answers to some of Kafasis’ questions.

iPhone 2.0 Software Will Support iTunes Remote Control App?

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Since I first got an iPod, way back when Discmen roamed the earth, my fondest wish has been that I could use it as a quasi-remote control for my stereo. I could point it at a set of speakers, scroll through my music library, press the center button, and — BOOM! — music would pour forth.

Besides a few experiments with an iTrip, however, this has been wishful thinking. Until, perhaps, the next few weeks. MacRumors claims that the Read Me file for a developer release of the imminent iTunes 7.7 will finally make this dream real (well, provided you have a computer hooked to your stereo):

Use iTunes 7.7 to sync music, video, and more with iPhone 3G, and download applications from the iTunes Store exclusively designed for iPhone and iPod touch with software version 2.0 or later. Also use the new Remote application for iPhone or iPod touch to control iTunes playback from anywhere in your home — a free download from the App Store.

It’s pretty typical Apple to offer a few unannounced features on major operating system upgrades, but this one is incredibly welcome. Using the WiFi built into the iPhone and iPod Touch is a natural for this, and it’s much more convenient than using the (let’s face it) fairly inadequate Apple Remote. I just hope it will work with Front Row and AppleTV…

Apple’s Product Orders Surge Ahead of iPhone 3G Debut

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Photo by Silvio Sousa Cabral

Amid reports of a surge in orders for all flavors of Apple gadgetry, anticipation of the iPhone 3g’s July 11 debut has the Apple Retail division preparing for the onslaught and chipmakers such as Broadcom and Marvel hoping happy days are here again.

Wall Street analyst Craig Berger, speaking for FBR Capital Markerts, says the bump in Apple’s supply chain activity “suggest[s] Apple continues to knock the cover off the ball, that its product cycle momentum is ramping, and that any consumer spending malaise in the U.S. or Europe has yet to impact Apple-related product demand.”

In a memo distributed throughout its Apple Stores division, company executives laid the ground rules for interacting with the public as 3G launch day approaches. Among the anticipated issues, the idea of getting on a waitlist for first dibs was shot down definitively by Apple corporate, and retail employees have been told to call any customer who has reserved an iPhone Personal Shopping session on or after July 11th to inform them Personal Shopping sessions will not apply to the iPhone 3G.

At an Apple Store in New York this week, actor Kiefer Sutherland is said to have made a strong case for obtaining a pre-launch iPhone 3G to no avail.

The company plans to hold worldwide retail meetings on July 6th to begin conveying more specific official launch procedures to its staff, according to a report at the Unofficial Apple Weblog.

iPhone v2.0 Software Includes Secure Data Wipe

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Apple is ensuring the secondary market success of iPhones by building secure data wipe into the 2.0 version of its software, according to AppleInsider. Several sources report the Gold Master versions of the software could be released internally at Apple and possibly to developers as early as Friday.

Citing “People familiar with the beta versions of iPhone Software v2.0,” the AppleInsider report says the upcoming release will employ a more foolproof method of erasing all personal data and settings from an iPhone. As is the case with the existing version of iPhone software, the function will be accessible by selecting Settings > General > Reset > Erase All Contents and Settings.

Unlike today’s iPhone software the revised function will wipe data in similar fashion to the “Secure Empty Trash” function of Mac OS X, by which all data is deleted, unlinked, and then overwritten several times to make it irretrievable by even the savviest of recovery tools.

This feature should be welcome to anyone looking to sell their first-gen iPhone and upgrade to the 3G model, as well as to those who will follow the same path with subsequent iterations of the phone.

The caveat is that the new method will take considerably longer than the method available by the current software version, but time seems a small price to pay for piece of mind.

10 Reasons to Hate iPhone 3G Already

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UPDATE: This post originally borrowed liberally from an article written by reporter Dan Warne for APC Magazine. Though I linked to Dan’s piece and indicated the “10 Reasons” were his ideas and not mine, I realize now that reprinting his article with only the slightest changes and editing on my part could be seen as misleading at best and were certainly not in keeping with the standards to which I and Cult of Mac aspire. I ask for readers’ – and especially for Mr. Warne’s – forgiveness for my error — Lonnie Lazar.

People have been dying for the iPhone 3G for over a year, ever since the first user attempted downloading a web page on AT&T’s excruciatingly slow EDGE network. And let there be no doubt, when the phone hits global streets on July 11, people will rejoice, the coffers at Apple HQ in Cupertino will once again groan with excess and mobile carriers from AT&T to Vodaphone to O2 will breathe short-lived sighs of relief.

But in spite of the wow-inducing touchscreen interface, the bright and bold display, the push-synching of email, contacts, calendar, tasks and photos from Apple’s new MobileMe services, and the relative pleasures of speed on the 3G network – as always – Apple will have released a product that fails to meet some consumers’ insatiable expectations.

Herewith, 10 reasons to feel like Steve Jobs is ripping you off once again, as compiled by APC Magazine reporter Dan Warne:

Nokia’s Symbian Play Ups the Platform Developer Stakes

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Photo by Daniel Cheong

Om Malik has a great post up digesting today’s news that Nokia is going all in on Symbian Limited, saying there’s three players now in mobile phones — and Google ain’t one of them.

Noting that today anyone can make mobile phones using off-the-shelf components and factories in Asia, Malik argues the future of mobile computing and communications will focus almost entirely on design, user experience and software. He likens the mobile phone business to the PC business – which Microsoft dominates with its Windows platform –  and says the winners in the handset market will depend a lot on the software developers creating apps for mobile platforms.

According to Malik, “In this platform game, the winner is going to be the one that can attract the most developers,” and the problem, for Nokia and some of the Symbian Fondation’s other members (among them, Motorola, NTT DoCoMo, AT&T, LG Electronics, Samsung Electronics, STMicroelectronics, Texas Instruments and Vodafone) is they are backing a confusing array of platforms, including Linux.

Market for Original iPhones Looks Robust

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Photo by Rinox via flickr

Apple has long been a poster child for the wisdom of Adam Smith’s Invisible Hand. With active trade in some of its discontinued products, such as the iSight camera (which regularly sells on auction sites such as eBay for more than the original purchase price), and high-resale values for “previously owned” and “refurbished” models of its computers, the reality has been that the cost of owning an Apple over the years has not been nearly so high as its reputation for premium pricing might indicate.

The iPhone is providing additional confirmation that, despite complaints about the company’s obsessive desire to control the user experience, they must be doing something right at 1 Infinite Loop.

iPhone Atlas reported recently on the high prices still being fetched at resale by the original model phones, indicating concern over the ability to unlock and/or jailbreak the upcoming model, combined with significant demand in countries where the iPhone 3G will not initially be on sale, including Russia and China.

While the current value of first-generation iPhones may be high, with reports of the bid on 16GB phones near $600, some believe the market for the phones will stay active with prices coming down as the availability of 3G models gets closer. Michael Johnston at iPhone Alley suggests the window for high prices may be closing soon and Dennis Sellers writes for Macsimum News that active trade in the post-3G launch market for first-gen iPhones could see prices come down under $100.

With Apple and AT&T seeming to have foiled the unlocking/jailbreaking movement that flourished in the wake of iPhone’s initial release, Stateside customers who must have the speed and features of the 3G model but still have, or want, service with a carrier other than AT&T, will either have to wait and see if the new models can be jailboken or look to Apple’s deals with a different carrier in almost every country overseas, where the phones will go on sale next month. Across both ponds Apple has had to agree to a wide range of prices and options for selling the iPhone 3G, making it likely that in quite a few countries outside of the U.S., you’ll be able to buy an iPhone without a contractual agreement.

iPhone Finds the Magic Number

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Photo by Das Kaninchen

In the blizzard of numbers being tossed around concerning the much-anticipated debut of iPhone 3G, the most significant one could be the price of the phone itself. As Pacific Crest consumer electronics analyst Andy Hargreaves notes, sales of both Apple’s iPod and Sony’s PS2 gamestation saw exponential gains in the wake of being offered below $200.

Aidan Malley reports for AppleInsider on the explosive growth anticipated for new phone sales in the coming year. “The relationship [between price and sales] is shockingly consistent,” Hargreaves says. “At average prices above $200, Apple never sold more than [6 million] units in a rolling four-quarter period. At prices below $200, Apple never sold fewer than [8 million].”

Should Apple fulfill even industry analysts’ most modest sales expectations, savvy decision-making in the company’s sourcing and supply-chain business units could translate into much higher margins on the 3G models than those seen with the original iPhone, all of which adds up to very good news for Apple investors and shareholders.

Apple Seeks Wider Distribution for iPhone 3G

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Confident now that it’s got a winning product, Apple is set to release the iPhone 3G simultaneously in 22 countries on July 11. And unlike the limited distribution model in the US, where consumers may only purchase phones from the company or from AT&T, overseas customers will be able to find the new phone in plenty of places.

Apple Insider reports that Deutch Telekom, T-Mobile’s German parent signed a first deal which will let Gravis sell iPhones attached to a T-Mobile service plan, allowing customers there to pick up a phone without visiting a T-Mobile retail outlet.

Dutch and Italian consumers will also have a variety of outlets to choose from, according to an item in Macworld. The high-street-availability distribution model appears to derive from the success Apple and UK carrier O2 had in bringing Carphone Warehouse on board to maximize availability of the product.

Pocket Porn Comes to iPhone

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Graphic by mitchener83 via flickr

The newer, faster iPhone 3G, set for release on July 11, promises to chart new frontiers in mobile pornography, according to Time magazine.

The $13 billion adult entertainment industry sees the new Apple phone as a key in the shift from physical distribution (IE. DVDs) to a business model based on downloaded and streaming smut.

The iPhone is “by far the porn-friendliest phone” on the market, says Devan Cypher, spokesman for San Francisco-based porn producer Sin City Entertainment.

The porn industry may have problems with Apple, however. An Apple spokeswoman told Time it does not condone porn on the iPhone and promises to ban adult content from applications being built by third party developers for distribution by the company’s AppStore.

Mercedes Joins the iPhone Party

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Following on the heels of competitor BMW’s optional iPod dock, Steve Jobs’ preferred German automaker Mercedes Benz announced a custom cradle for the iPhone available as an option on nine classes of its vehicles. The interface will allow seamless integration between the iPhone’s music and telephone functions and the vehicle’s systems, Mercedes says.

Placed in the Mercedes’ onboard cradle, the iPhone’s music and phone functions can be controlled with the help of multifunction steering wheel controls, while the vehicle’s display indicates phone status, music functions, etc. The cradle features automatic recharging as well as increased reception with the help of the vehicle’s antenna.

More pics after the jump.

Apple to AT&T: Show Me the Money

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AT&T may be subsidizing up to $425 of the cost of each new iPhone it activates for service when the 2.0 3G models launch next month, Barron’s reports.

According to Oppenheimer analyst Yair Reiner, AT&T will cover an additional $125 premium over the carrier’s typical $200 smartphone subsidy because the company thinks the iPhone will increase subscribers and average revenue per user. Apple will receive an additional $100 bounty for every new AT&T customer who signs for service at an Apple Store.

The early book on the new phone is very bullish, with Reiner calling for 15 million units to be sold in 2008 and another 33 million in 2009.

BusinessWeek Feels Verizon and RIM’s Pain

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BusinessWeek has an interesting but slightly over-the-top story about the misery the iPhone 3G will inflict on the rest of the wireless industry. It’s quite maudlin in its focus on the needs of the establishment wireless service providers. It even seems to mourn threats to the dominance of the existing wireless carriers. Perhaps the only news to glean in between the forecasts of doom is that Palm, once the dominant player in Smart Phones is now too niche to merit a mention in a round-up story like this. Apparently, the hole Palm needs to climb out of is so deep that the iPhone 3G’s coming ubiquity doesn’t even make things worse.

iPhone 3G coming to T-Mobile any time soon? Don’t bet on it.

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AT&T announced to its shareholders that it’s iPhone agreement with Apple underwent some substantial changes with the release of the iPhone 3G. AT&T’s press release reads:

“The new agreement between Apple and AT&T eliminates the revenue-sharing model under which AT&T shared a portion of monthly service revenue with Apple. Under the revised agreement, which is consistent with traditional equipment manufacturer-carrier arrangements, there is no revenue sharing and both iPhone 3G models will be offered at attractive prices to broaden the market potential and accelerate subscriber volumes.”

Now of course this substantive change in agreement between Apple and AT&T has the net all a twitter with the possibility that Apple will begin marketing the iPhone 3G on other networks. Even AT&T’s statement that their relationship with Apple is now “consistent with traditional equipment manufacturer-carrier arrangements…” would seem to imply that Apple’s side of the arrangement is also “typical”, meaning that after a predetermined period of exclusivity, they can market their handsets to other carriers.

There are articles at CNET and MacWorld that arrive at this conclusion, and speculate that Apple soon will market the iPhone 3G on other carriers in the US.

The only difficultly is, that it ain’t gonna happen, not right now or anytime we’d call “soon”.

That’s because there’s only one other national GSM carrier and T-Mobile’s 3G network is Voice Only.

That tends to suggest that there isn’t what we call a “Business Opportunity” for iPhone 3G on T-Mobile’s network right now. Of course original iPhones running software 2.0 would be great to have, except Apple seems to have stopped making them.

(note: there are technical details in the comments that are too boring to include in the post)

Jobs Claims PA Semiconductor Will Make iPhone, iPod Chips

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Steve Jobs made an interesting disclosure to the NY Times yesterday while talking about the remarkable Grand Central technology in Mac OS X Snow Leopard that will allow programmers to get more power out of multicore computers and also to use GPUs for additional performance. In the midst of such talk, he announced for the very first time the reason that Apple purchased processor-maker PA Semiconductor in April.

“PA Semi is going to do system-on-chips for iPhones and iPods,” he said.

Many had speculated that future iPhones could run on Intel silicon, or that PA Semi had been purchased just to recruit some of its talented engineers. Steve says otherwise. Apple’s getting into the mobile processor game. Two years from now, all our iPods and iPhones might be running on their hardware. And if PA’s stuff is as good as everyone says, such exclusive hardware could maintain the competitive advantage that software already offers the iPhone.

iPhone 3G: the day after

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Now the dust has settled, and the excitement has waned, it’s possible to calmly reflect on yesterday’s iPhone announcements. Only the excitement hasn’t really waned, and the only reason the dust has settled is because I can’t run to the nearest O2 shop and grab an iPhone 3G yet.

Ultimately, Apple delivered. Most of the rumor bridge went away satisfied, with the revamp being lighter, more efficient, and including both 3G and GPS support. Yes, the camera is still rubbish, and the lack of a front-facing camera still irks some, but most people are happy with the upgrade. (Well, apart from the idiots web-wide who are rattling on about HOW UNFAIR it is that Apple had the audacity to release a new iPhone when they bought one JUST LAST WEEK, and how APPLE IS EVIL, and so on.)

Also, the pricing rumor turned out to be pretty much spot-on. The iPhone’s going to ship with a price-tag of just $199 (for the 8GB model—the 16GB model is an extra hundred bucks), and so even with the still fairly hefty monthly contract, it’s now a lot more affordable. Clearly, Apple is gunning for market share (its estimate of 10 million iPhones sold by the end of 2008 now looks remarkably achievable), to get its platform ingrained in people’s minds as the obvious choice for anyone after a smartphone.

From a British standpoint, things are looking even more rosy. I recently bitched about Apple’s over-the-odds charging in Europe, and it seems someone was listening. Not only is the new iPhone priced in a straight US dollar-to-Sterling conversion (I was expecting $199 to become £139, truth be told, not £99), but also Brits retain existing tariff pricing (reports suggest AT&T’s raising its prices), and get a new tariff at the £30 mark (even if its minutes and texts allocations are both utterly miserly). Handily, existing iPhone owners forking out £45 or £75 per month also get the new iPhone as a free upgrade.

The only disappointing thing is that I now need something else to complain about. Ideas on a postcard…

UPDATE:  Confirmation about AT&T’s price-hike suggests that there’s still something to complain about, at least if you’re in the US. Despite the hardware price-drop, the overall contract cost for the 8GB phone is now an extra $40 over two years. If anything, this makes the pricing in the UK even more surprising. Still, perhaps Apple will actually be able to sell some iPhones in Britain now.

How to hide an iPhone Purchase From My Wife?

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Update: Reader imajoebob has got a really funny response in the comments. Worth a read.

Trying to write this post on a Blackberry has taught me something, this thing’s web browser stinks. Now that the 3G iPhones will be on-sale in July, I’m gonna hafta break-down and get one. That said, only one-question remains: How to hide the purchase from my wife?

After the break, we’ll talk through my strategy, in the hopes that a fellow husband in a similar pickle might benefit from my experience, or maybe even able to help me devise a better strategy.

Two Intesting iPhone 2 Tidbits

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I heard two interesting tidbits about the possible design of the iPhone 2 at the weekend:

Better Battery Thanks To Better Software

3G is generally assumed to be a drain on battery life because of the hardware, which sucks down juice, but it is actually the iPhone’s software that is the problem, according to engineers working on Google’s Android phone. According to a conversation reported to me by a colleague at Wired.com, Google’s engineers say the first iPhone OS was basically a hack. It was adapted from the desktop OS and had none of the advanced power-management features necessary to properly run the networking chips. But the iPhone 2 will have not only better integrated circuits, it will have proper power-management software also.

The iPhone 2 Won’t Have an All-Plastic Case

There are several rumors speculating that the iPhone 2 will have an all-plastic case, replacing the metal back of the current design. But an engineer I talked to last year said the metal cases of the iPod and the iPhone were probably designed to dissipate heat from inside the device . They were likely big heat sinks. And that’s why I doubt the iPhone will have a plastic back, because plastic doesn’t conduct heat as a well as metal.

iPhone 2 To Cost $200 or Less — Reports

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USA Today, the London Guardian and the Financial Times are all independently reporting that the new iPhone 2 will start at $200, bolstering the rumors we heard last week.

The Guardian says that in some cases, the iPhone will even be free to new subscribers:

… the handset will be offered at lower prices – or even for free. Those who sign up for a contract costing £75 a month will be offered the handset for no extra charge, breaking with Apple’s earlier attempts to avoid the large subsidies common in the rest of the industry. Elsewhere, the gadget is likely to be subsidised to lower the price, which could drop from £269 to as little as £100.