APPLE fans applauded the changes to the iPhone 3G, but businesses gave more muted praises, concerned about limitations like data encryption and security.
First, the rah rah.
No devices were available for reviews at Apple's developer conference last week - journalists present had only a few seconds to hold and feel the second-generation iPhone.
But what Apple's charismatic chief executive Steve Jobs unveiled, upped the usage and cool factors. Design and usability, hallmarks of the iPhone, are complemented by a refreshed hardware and an enhanced software called iPhone 2.
About 3g have been shaved off, the edges are curvier and it nestles in the palm comfortably. The metal-like scratch-resistant casing at the back of the first-generation iPhone has been replaced by plastic, possibly to reduce costs.
In the US, Apple has slashed prices to US$199 (S$273) for the 8GB model when it goes on sale on July 11. This is US$200 cheaper than the US$399 iPhone 8GB that was launched a year ago. The 16GB model, available in black or white, will empty your wallet by US$299.
There's no second camera so video conferencing is out. The 2-megapixel camera is miserable, but the 3.5-inch display makes up for it. On a screen this size, photos look good.
Receiving MMS is still a no-go, but users would be able to mass move or delete messages. And it still can't forward messages to other people. You'll need a third-party software for that.
But it can filter sensitive websites that parents don't want their children to see through a parental control feature.
It will also have Chinese language support and - hold on for this - using the touchscreen, you can even write Chinese or Japanese characters on the iPhone 3G!
It has been seven days since Apple's chief executive Steve Jobs lifted the wraps on the new iPhone, and some issues have emerged.
Firstly, Singapore is not in the first batch of 22 countries where the iPhone 3G will sell in three weeks' time, on July 11. Fans here will be in the next lot of 48 countries that will get the iPhones before the year's end.
For businesses concerned about data security, the iPhone lacks data encryption. So while, it has built-in Cisco VPN feature, corporate security czars may worry about information loss if a corporate iPhone is misplaced or stolen.
But where customer sales are concerned, telcos expect their cash tills to ring loudly as the new iPhones bring in increased data traffic as users download games and get e-mail messages or maps for directions.
In January, a New York Times report said that traffic to Google from iPhones surged on Christmas last year, higher than that of any other mobile device. While traffic has since slowed down, the data traffic from iPhones was higher than from other smartphones, said the newspaper, quoting Google's internal measurements.
Part of this data traffic surge will come from the availability of third-party applications on the online App Store. It will appear as a new icon on iPhone 3G's screen.
For Apple's business, the iPhone 3G has opened a new revenue stream. Developers who list their applications on App Store will pay 30 per cent of their revenue to Apple.
By year's end, the App Store will be available in 62 countries. Apple's revenue from App Store will grow as the number of iPhones go on sale worldwide.
It is likely that Apple will exceed its aim of hitting 10 million iPhone users by the end of 2008. After all, it already has six million users to-date.
Apple has also shrewdly backtracked from its original stand of working with exclusive telcos in each country and to launch progressively around the world.
Apple's chief executive Steve Jobs has admitted that while the iPhone is only officially sold in six countries today, the phone is in use in many more countries worldwide.
Hence, Apple has resorted to the conventional method of working with telcos, allowing them to subsidise the handset's price. It has also ramped up production allowing the new phone to be sold in 70 countries this year and, in many instances, it is working with multiple telcos in each country.
There have also been reports that the iPhone 3G will eat into the video gaming revenues of Xbox, PS3 and Nintendo DS. While this remains to be seen, the new iPhone will surely hasten the increase of casual gaming.
Exciting new games from Sega like Super Monkey Kong will entice a new generation of gamers who will play these games while riding the train or waiting for their children to finish tuition.
chngkeg@sph.com.sg
This article was first published in The Straits Times, Digital Life on 17 June 2008.
