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Apple Has a Long History of Screwing Early Adopters

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Nothing Steve Jobs announced this morning was as surprising as the $200 price cut to the 8 GB iPhone and the discontinuation of the 4 gig model (currently blowing out at $299 while supplies last — deal of the century). Less than three months on the market, Apple chopped the price by more than a third.

Readers of the blog (and lots of other sites) are screaming bloody murder, throwing about accusations that defenders of the price cut are Apple employees, demanding refunds and more. I would love to join in on the outrage, but this is entirely typical of the way Apple handles truly new technologies.

The very first Mac debuted in February 1984 for $2,499 with 128k. Just eight months later, the company rolled out the Mac 512k for $3300 in September. That would have been fine, but the Macintosh Plus, with 1 meg of RAM, came out in January 1985 for just $2,600. Anyone who bought a Mac 512k got hosed even worse than the earliest adopters.

When the first iMac came out, it shipped in August with a 233Mhz processor and a stunningly under-powered graphics chip for $1,299. Two months later, a revision tripling the video ram came out for the same price. It was the difference between playing Myth at all and not, on a non-upgradable machine.

The multicolor edition shipped in January for the same price, a 266Mhz chip and a significant better graphics chip. By may, 333Mhz chips rolled for the machines. And then it all got replaced by the iMac DV, which included FireWire, completely obsoleting the previous line.

Perhaps the most egregious recent Apple screwing consumers moment came with the iMac line in 2005 and 2006. The iMac G5 with ambient light sensor shipped in May 2005. Then it was replaced by the iMac G5 with a built-in iSight in October, just three months before the transition to Intel chips, when an identical but much-faster machine came out for the same price.

And, of course, the AppleTV was on the market for just two months before Apple brought out the 160-gig model, with four times the storage of the non-upgradable original.

I’m still paying the price for getting a first-gen Powerbook G4 12″. I got no SuperDrive, no DVI port and no USB 2.0, even though I bought just two months before the upgrade.

At this point, if you buy a first-generation Apple product, you’ll probably see either a huge price drop or feature boost within a couple months of your purchase. It’s nasty, it’s mean and it’s capricious, but it’s the way Apple works. If you want to get the most from Apple, wait for their products to mature and drop in price.

It’s entirely likely that a 3G iPhone with a 16gig drive will be announced in Europe in September. That’s just the way Apple operates. I think the reason it’s so upsetting in this case is that the company always introduces its products with flair and says to the world, “This is the one! This is how it should be done!” And we believe it, we overpay, and watch in dismay as Apple introduces One More Thing after One More Thing…

Jobs Hacks High-End iPhone to $399

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In the most unanticipated news of the Apple “Beat Goes On” event, CEO Steve Jobs announced that the high-end 8 GB iPhone will now retail for $399 with a two-year AT&T wireless plan, a price cut of $200 less than three months after the device first shipped.

Jobs said that the company would ship its 1 millionth phone this month and wanted to make the device more accessible, hence the cut. I have to also see the move as strategic related to the new iPod Touch, which delivers every feature of the iPhone except for e-mail, text messaging and phone calls, and will retail for $299 for an 8GB model. Making the iPhone cost $100 more for the same size and costing the same as a 16GB model is a lot more palatable than a $300 premium.

Still, I wonder what this says about the success of the iPhone. We’re talking about a 33 percent price cut. Is Apple disappointed by iPhone sales or merely competing with itself

Via Gadget Lab

Baby’s Accelerometer Trumps iPhone, Wii

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The accelerometer is the technology of the moment, featuring in the Wii and iPhone, both of the era’s biggest breakout technologies. Jason Kottke, always provocative dares to ask: Do their sensors measure up to those built into babies? The answer may shock you.

So while the Wiimote’s accelerometer may be more sensitive, the psychological pressure exerted on the parent while lowering a sleeping baby slowly and smoothly enough so as not to wake them with the Moro reflex and thereby squandering 40 minutes of walking-the-baby-to-sleep time is beyond intense and so much greater than any stress one might feel serving for the match in tennis or getting that final strike in bowling.

Via Digg.

Unbelievable Homemade MultiTouch Input Device and iPhone Accelerometer Hack

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Hacker genius Erling Ellingsen has made his own $2 multitouch input pad from a plastic bag full of blue dye and an iSight camera. He’s also hacked the iPhone’s accelerometer that allows you to control the phone by tipping, rotating or shaking it.

Ellingson’s jury-rigged multitouch input pad lets him control his computer with his fingers, just like the iPhone or Jeff Han’s futuristic multitouch table. Using a bag of die and an iSight camera beneath it, Ellingson can navigate the Web, move chess pieces and play a virtual keyboard. How it works exactly is not clear, but check out the impressive video:

Ellingsen has also hacked the iPhone’s accelerometer, allowing him to control various homemade iPhone applications by tilting, rotating or shaking the iPhone. Ellingsen has created three demo apps controlled by tipping and shaking: a virtual Steve Jobs bobble-head that bobs its head when the phone is shaken; a maze that is navigated by tipping and turning the phone; and a virtual box of balls that roll and bounce as he rotates the phone. Again, see the impressive video:

Ellingsen has released the source code for the iPhone hack, and he’s asking for people to submit their ideas and vote on suggestions for what to do with it.

So far, he’s thinking about an iPod+Nike-like pedometer, a Labyrinth game, SmackBook navigation for Safari and a virtual pet that’s shakeable, among other ideas.

(Via Waxy)

Trade Kevin Poulsen’s Classic Nissan Z Car For an Unlocked iPhone

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After learning that the teen who first unlocked the iPhone got a Nissan 350Z for his efforts, Wired News editor Kevin Poulsen is willing to trade his classic Nissan 300-ZX for an unlocked iPhone.

Kevin’s car is similar to the car Woz drove (see below), but it needs a bit of TLC, so you might want to offer him an unlocked Razr instead. Or maybe just a regular razor. You know, for shaving. Bids in the comments please.

First Refurbed iPhones Are $100 Less

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The time has arrived. All of us cheapskates who’ve been holding out for cheaper iPhones have been thrown a frickin’ bone. At Apple’s online store, we can now purchase factory refurbished iPhones for a full $100 below retail price. Which makes it just an arm and a bit of a leg instead of the whole limb.

I am surprised to see the refurb discount be so deep — this suggests that Apple has had to replace a lot of iPhones here in the early going. Who’s sent theirs back? Go ahead, you can tell us. No need to be shy.

Via Gizmodo 

Five Amazing iPhone Apps That Don’t Exist

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The iPhone is already a reasonably mature product. Despite persistent reports of dead zones on screens and lots of requests for the landscape keyboard outside of Safari, the real interest is with what Apple can do in software next.

That’s the genius of the iPhone model. Apple created an endlessly flexible interface that can be updated and modified strictly in software. They’ve also made a mostly menu-free system that keeps iPhone apps relatively flat. It’s quite a paradigm shift from the hierarchies we’re now used to in our PCs.

PhillRyu has done a great job synthesizing his thoughts on where Apple should be headed next with iPhone software. My favorite is above, iMovie for iPhone. I don’t know if I can possibly think of a more perfect concept. Fingers crossed, eh?

Via Digg.

Huge iPhone Bill Ships “In. A. BOX!”

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It’s a minor triumph of Apple’s that all AT&T plans for the iPhone include unlimited data services. After all, Blackberries and Treos alike have spendy access plans that dramatically increase their cost of use.

But as Justine Ezarik (a designer based in Pittsburgh known as iJustine who is also a “lifecaster” on Justin.tv) learned recently, AT&T still has a very old-world view of billing for data services. The company broke out as a line item every data transfer her iPhone made, including 30,000 texts, most of which come up as a huge series of $0.00 transactions. The total heft to the package? 300 pages. And it shipped in a box, which can’t have been cheap, even leaving aside the environmental impact of a few hundred thousand folks getting extra-big bills printed on paper.

In response, Justine has put up a marvelous iPhone ad parody that you can view above via YouTube. The message is clear: Get eBilling, and someone talk to AT&T about the way they manage billing for data!

Via Apple 2.0

To Reiterate: iPhone And DS Will Go Head-to-Head

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Nintendo owns the portable gaming market. They have since they created it with Game & Watch in the mid-’80s and then revolutionized it with Game Boy in 1989. Many challengers have risen and fallen over the 18 years since.

But as I predicted the day the iPhone was released, a reckoning is due between Apple and Nintendo in the coming years. As GigaOM reported today, Nintendo has filed a patent for a tilt-sensitive handheld console (a perfect companion to the motion-based Wii). Meanwhile, the New York Times claims Apple is stealthily adding game functions to the iPhone. There’s nothing stealthy about it. You create a portable device capable of gorgeous graphics, pristine audio and driven by a multitouch interface, you’re already there in the first place.

Let’s go back to the prediction from Jan. 9, shall we?

And multi-touch in iPhone is significantly more flexible — it’s made to interpret complex gestures with more than one point of input. There are a number of DS games that could easily be adapted, and it’s just made to host a new rhythm or music game that would require drumming two spots at once. It’s not a threat to the DS, because its price-point is so much higher. It is a threat to crappy games for cell phones, which often cost $6 and suck.

More interestingly, this could begin to threaten Nintendo down the road. The iPhone and its interface are extremely high-end today. By the end of the year, Apple could replace its traditional high-end iPod with one driven by the new iPhone interface and screen and offer it for the same price those iPods sell for today — and even boost the hard drive size, too. Suddenly, you have the world’s premiere media player and rising games star in a $250 package. That beats the PSP any day and hounds the DS tomorrow.

Sounds good. Anything else?

That’s my prediction of the day: As the iPhone seizes the high-end of Apple’s consumer electronics products, the iPod becomes the ultimate PSP-killer, with an interface the DS can’t quite match without the need for a stylus. Tell me you wouldn’t buy that. I dare you.

I’m sorry. Sometimes the smug just gets everywhere.

First Native iPhone Game “Lights Off” Released

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And we’re off to the races. Despite Apple’s interest in restricting iPhone development to themselves and trusted third-parties like Google, clever programmers have delivered native software for the device — including an addictive-looking game called “Lights Off,” released today by Delicious Monster.

It’s a standard puzzle-game — tap the buttons to turn out all the lights in the 5×5 grid — but the presentation is very slick, and the iPhone interface alone makes it more compelling than it would be on OS X for Mac.

As with all unsupported iPhone software, it takes some warranty-voiding mojo to make “Lights Off” install, but the app’s creators, Lucas Newman and Adam Betts, helpfully include full instructions:

 

Installing third-party applications on your iPhone is not for the faint of heart. For more in depth instructions on iPhone modifications, look at the iPhone Dev Wiki.

1. Download iActivator and use it to “perform jailbreak” on your iPhone to allow access to the entire filesystem, which is necessary to upload applications.

2. Use iPHUC to upload Lights Off.app to the Applications folder on your iPhone.

3. Install SSH (or the alternate version) on your iPhone, and run the command: chmod +x “/Applications/Lights Off.app/LightsOff”

Not for the faint of heart, as you can see. But still: Blinking lights! Blinking lights and the satisfaction of walking on forbidden ground!

Via Daring Fireball.

Verdict: iPhone Alternatives Don’t Measure Up

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Several hundred thousand people across the country are now happy iPhone users. They’re also all AT&T users, whether they wanted to be or not. Until Apple shipped their wonder-phone, I was never that interested in phones focused on e-mail and web browsing — then it all changed. However, as a T-Mobile user, my options are limited. Much as I would like to say I’m glad that my service agreement will force me to wait until at least the second-generation iPhone, I’m not. I want a great phone. And so I headed to the T-Mobile store yesterday, in search of hope. And I found none. To read the gory details, hit the jump.

iRovr — The iPhone-only Social Network

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Hot technologies often inspire imitators and detractors. The set of touchscreen iPhone-alikes coming from China are pretty clear evidence of the former, and anyone telling themselves they like their Treos just fine represent the latter.

But nothing’s weirder than the ancillary universes that show up to support the latest buzzworthy devices. And nothing for the iPhone is weirder than iRovr, a social network for iPhones only. It doesn’t seem to be much more than Friendster or Facebook optimized for the device, but it just expands the exclusive advantages extended to iPhone owners.

As you can see, however, there is a way to cheat your way in. Just use Safari 3. Which raises an interesting question: Is it lamer to join iRovr as an iPhone owner — or to cheat your way in as a non-iPhone-owning Safari user because you want the reflected glory?

My money’s on the second one.

Deconstructing the iPhone Battery Lawsuit

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Picture by Ed Dame

The iPhone’s non-user-replaceable battery has been a source of endless controversy since Apple first debuted the device. Some claimed that Apple wouldn’t even be able to sell any iPhones once people realized they couldn’t pop in a spare battery on the road (this idea totally ignoring, of course, the fact that many people, myself included, have never ever swapped cell batteries on the fly…). Others are under the impression that the iPhone’s battery will altogether stop working after either 300 or 400 charges — even though it’s pretty clear that figure states that iPhone battery capacity is more likely to fall to 80 percent after that time. Which is a bit different from 0 percent.

Now, of course, all of this confusion has yielded a class-action suit. Perhaps if everyone would just talk to Philip Elmer-Dewitt at Apple 2.0, this would all get cleared up. He’s put together a very detailed account of the entire battery saga. Check it out, and try not to lose your mind. That way lies madness.

A Brief Overview of eBooks on iPhones

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Very few promising technologies have taken as long to catch on as the ebook. Everyone seems to be under the impression that electronics will one day replace printed books. But almost no one wants to actually read their books that way.

The sole users of ebooks tend to be people with PDAs — and now iPhones. A new site, TextOniPhone has sprung up to meet people’s needs to read works of literature on their revolutionary Internet Communicators. The site purports to have more than 20,000 books and novels optimized for reading on the iPhone. All the texts are public domain, and, as seems to be the norm these days, the site only works on iPhone (or a user-agent-spoofed browser). IPhone Dispatch has a nice review.
Gerry Manacsa, a senior designer at WOWIO, checked out a bunch of PDFs on an iPhone to test the platform’s viability as an ebook reader. His results were fairly good, particularly for comics, which is where I see the iPhone excelling, personally. This will be an interesting thread to watch.

Via Digg.

Apple Sent Out Pre-Release iPhones in Disguise

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Despite the best efforts of folks like me, bonafide iPhones didn’t show up in the wild until a few week prior to release. As it turns out, that’s because Apple was smart enough to hide iPhones inside of other devices. This according to Richard Burns, AT&T’s President of Wireless Networks, in an interview with the Louisville Courier-Journal.

So secretive was the project that he didn’t even show the phone to his wife. And when AT&T’s team of testers hit the streets to try the phone in ballparks, subways and skyscrapers, Burns said they used a contraption to cloak the device so nobody would know what the testers were holding.

Burns declined to offer a description of the cloaking device, calling it “something that looked like something else.”

That’s how you know Apple is brilliant: They made it look like “something that looked like something else.” How visionary. Or not.

My best guess is that Apple made the iPhones look like Zunes. Any other guesses?

Via Digg.
Image from Hideapod.

Apple Q3 A Blockbuster –10 Million iPods Sold

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Chart: MarketWatch.

Apple’s Q3 was the company’s best ever. It raked in $5.41 billion in sales, posting a $818 million in profit. Gross margins — the amount of revenue that is profit — is up to a whopping 36 percent. This surely is the highest in the industry. By contrast, Dell reported Q2 2007 margins of just 4.3 percent, earning $605 million profit on revenues of $14.1 billion.
Apple also reported 10 million iPods sold — up 21 percent on the year before; and 1.76 million Macs, up 33 percent year-on-year.

Apple’s stock is rebounding on the news: it’s up 6 percent after taking a hammering yesterday on AT&T’s iPhone numbers.

270,000 iPhones Shipped on Opening Weekend — Apple

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Picture by Ed Dame.

Apple sold 270,000 iPhones on the opening weekend, according to Apple’s Q3 results.

See the data PDF here.

AT&T’s quarterly results said only 146,000 were activated in the first two days — so it looks like 124,000 people either waited a few days to activate their phones, or had trouble activating them, as was widely reported.

“Disappointing” iPhone Results Are Misleading

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We now have definitive proof that a business world built on the quarterly earnings report is destined for self-destruction: Apple’s stock fell almost $9 because its partner AT&T “only” managed to activate 146,000 iPhones in its first day and a half on sale. Not that the activation figure directly reflects the number of iPhones sold.

Yes, I’m serious, and I’m totally bewildered. Analysts and investors are pretending that the second quarter, which closed June 30, would be the one that reflects the impact of the iPhone. Which is nice, except that the iPhone went on sale at 6 p.m. on June 29, and AT&T had serious network issues that prevented people from activating their phones until well into the next week. Which means that anyone who couldn’t or chose not to activate their iPhone until after midnight on June 30 got left out of this report.

Which is obviously a clear sign that it’s time to sell all of your shares in AAPL. Obviously. You know how, in movies, we’ve gotten to the point where people talk about the highest opening 5.5-day gross ever by a film released on a Tuesday in a month with a full moon that falls on a Saturday? This is the opposite. This is the smallest 1.5-day activation ever for an incredibly successful product. They chopped off Sunday, for heaven’s sake!

But this is the world that exists. It’s all about the quarterlies. And maybe that means that Apple did AT&T a disservice by not launching a week sooner. It shouldn’t have any impact on the long-term health of either firm. But it’s idiotic. Especially since AT&T experienced — wait for it — 61 percent total revenue growth!

Grrrr. Anyway, don’t read too much into these numbers. Apple will release its sales numbers soon, which are a clearer indication of how well the iPhone did in its first day and a half. Not that a day and a half of sales matters. It’s stupid. Can we talk about this in October?

Image via TechDigest

Exploit of iPhone Relies on Social Engineering; Threat Exaggerated

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Watch the video up top. It’s a pretty terrifying video of a totally compromised iPhone through a new exploit of Safari, both on iPhone and likely PCs and Macs. A fix is already in the works, but I have to say I’m not that bothered. Why? Because it, like every other really dangerous exploit of a Mac or Apple product I’ve seen is heavily reliant on social engineering. For your iPhone to freak out and possibly shoot your cats with an iLaserbeam, you first need to go to a website specifically designed to make your iPhone freak out and kill your kittens. And I’m sorry, there’s no amount of protection that can protect people who are dupes for fraud. You can only go so far. This hole needs to close, no doubt, but if people vulnerable to harm on the web don’t know to only go to links they can trust, they probably shouldn’t be using the web at large.

Now, when people can make this happen over WiFi without the use of an exploit-focused website, then I’ll panic. And probably go back to landlines.

Via NY Times.

Custom-Colored iPhones Now On Sale

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Color customizers extraordinaire Colorware are now offering iPhone paint work. For $150, they’ll take your iPhone and remake its look in your image. They’re also selling pre-colored iPhones for the same premium over stock models. I’m always surprised that Colorware’s work looks so good — color’s such a tricky design element, especially when it’s literally an after-thought — but their work is hot.

That said, it’s not for me. I’m still scraping together the money for an iPhone, so…

Via Infinite Loop

Read Newspapers in Print Layout on iPhone

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We’ve all seen Apple use the New York Times website to demonstrate the iPhone’s tremendous facility on the Internet. But the Times site works so well in part because the newspaper’s web page somewhat mimics the look of a real newspaper front page. What about the hundreds of terrible newspaper web pages that we read for local content?

Enter PressDisplay. The company takes the original layouts of newspapers and turns them into browseable web objects. And it’s now compatible with iPhone.

As you might expect, it’s optimized for crazy zooms, rotations and all of the other interactions that just make iPhone special. It is a commercial service, but it’s free through the end of August, so there’s really no better way to read the Washington Post or the San Francisco Chronicle on the train to work until then!

Chill-Inducing Video: Two-year-old Runs iPhone Flawlessly

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I think we have a new usability standard. The above YouTube clip shows a 2-year-old girl named Anna very fluently flipping through modes on the iPhone before heading to the YouTube tab to watch a favored Coldplay video. Apple’s current ad campaign is working just fine for the time-being, but when they want to go for the jugular, they should call this family up.

Anyone else still have goosebumps?

Via Digg.

MSNBC Feeds iPhone Nano Rumor Mill

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We’ve officially moved beyond skepticism that Apple would be able to get a foothold into the mobile market to full-on speculation for how the company will follow up the breakout success of the iPhone. According to MSNBC, it will be with the iPhone Nano. Which they make sound like…the iPod Nano. With a phone on it.

Kevin Chang, a JP Morgan analyst based in Taiwan, cited people in the supply channel that he did not name and an application with the U.S. Patent and Trademark office for his report.

Apple filed a patent application document that refers to a multifunctional handheld device with a circular touch pad control, similar to the Nano’s scroll wheel.

Yeah, I’m sure that will be exactly what Apple does. I’m sorry, there’s no way Apple ever releases a product with a click-wheel. The company has sent clear messages that it considers that to be the iPod interface and the iPod interface alone. The iPhone is about multitouch. You don’t get the name otherwise.

The iPhone will quite obviously eat into iPod sales. That’s kind of the point long-term. It doesn’t mean Apple’s ready to roll out a bad product to replace good ones.

Via Digg.
Image via Information Architects