
Post by dpd
Rumour has it the iPhone will be released this Monday. WTF?
Sources report that the iPhone will bs a GSM/EDGE (2.5G) phone and not a UMTS (3G) device. Apple's decision to go with 2.5G lies in the technology's advantages over 3G: physically smaller components and more reliable communication.
Apple is also said to be courting as many GSM providers as possible across major markets in North America, Europe, and Asia in an attempt to maximize its initial opportunity in the mobile phone market. Sources say the iPhone's price tag has been a particular point of discussion for Apple with providers, as the company would like to see the same price offered for the device across all carriers. In addition, Apple does not want to see carriers subsidize the cost of the iPhone to customers, bucking an industry trend.
Apple's pricing intentions lie in its desire to maintain the high level of perceived value iPods currently enjoy in consumer minds. Were carriers to subsidize a large percentage of the iPhone, the device itself would be reduced to more of a commodity.
One source familiar with the iPhone explained that it is more accurate to think of the device as an iPod with phone capabilities, rather than a phone with iPod functionality. As such, appropriate iPhone pricing will be critical to protecting the iPod brand. Although less important, passing on the full price of the phone to consumers would also reap the added benefit for Apple of strengthening its negotiating position with carriers.
The iPhone will likely ship in two capacities, other sources say, packing 4GB or 8GB of NAND flash in the most likely scenario, identical to Apple's mid-range and high-end iPod nano. Pricing for the iPhone will accordingly be higher than the similar iPod nano, although sources have not heard specific prices mentioned. Citing his own sources, Kevin Rose of Digg.com recently said on an episode of the Diggnation podcast that the iPhone will ship in a 4GB version for $249 and an 8GB version for $449, representing a $50 and $200 premium, respectively, over the iPod nano.
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