Author

Avatar for 9to5 Staff

9to5 Staff

Apple/VW iCar – the rumours drive on

Site default logo image

We don’t believe it so it may be true, but the latest edition of a German car magazine shows a mysterious new high-tech car on the cover, accompanied by the slogan “So einfach wie ein iPod,” (As simple as an iPod) – and commentators are queueing up to say it might be, but probably isn’t, the so-called ‘iCar’.

What’s an iCar? See, as long ago as last year there were rumours of meetings between Volkswagen CEO Martin Winterkorn and Apple’s Steve Jobs. The two men were alleged to be discussing proposals to jointly develop a compact car that integrated Apple solutions.

These talks reportedly fell apart last December, but the iCar legend lives on. Perhaps Apple simply allowed Jonathan Ive and his design team to offer Volkswagen some advice on the creation of simplified user interfaces? Or perhaps the two firms just wanted a little chat about in-car iPod and iPhone integration?

This iCar, if built, would take on the likes of the Mercedes-Swatch collaborated Smartcar for great gas milage/city maneuverability.  Smart cars have proven extremely popular in European cities and are currently entering US markets.   If Mercedes and watch/design company Swatch could collaborate on a car, why can’t Apple and Volkswagon?

 

The car described on the cover of the German petrol-head’s magazine is extremely futuristic, with round doors and shaped like an unusual white bubble. Is it likely to be the first fruit of any vaunted collaboration?

Not according to iSuppli analyst Richard Robinson, who last year said the huge differences in corporate culture between Apple and the car manufacturer would make any joint project difficult, predicting that even if cooperation was taking place, the first vehicles wouldn’t appear until “at least 2010”.

"Apple is a highly innovative and dynamic consumer electronics company that generates significant profits from living off its wits and supplying niche markets with the next big thing in music players, mobile phones and personal computers. VW, on the other hand, is from an entirely different tradition: the more conservative world of automotive, with its solid four-to five-year development cycles, tight margins and production-standard compliance requirements that would bring even the most enthusiastic designer from Cupertino to his knees," the analyst said.

Germany offers one Euro iPhone 3G

Site default logo image

Apple’s German iPhone network operator, T-Mobile, is fielding one of the most aggressive discounts yet announced on the iPhone 3G – offering it for just one Euro on its more expensive tariffs.

This massive discount is bound to generate significant sales of the next-generation iPhone when it goes on sale on July 11, in a defiant response to claims iPhone sales there didn’t meet expectations.

Deutsche Telekom CEO Rene Obermann last month confirmed that 100,000 iPhones have been sold in Germany since its launch last November, saying it has become the most popular multimedia device the company sells.

Now, customers agreeing to a new two-year contract with their 8GB iPhone 3G will be entitled to the discount cost, on a monthly contract of €69. This model will cost €169.95 on the entry-level €29 tariff. A discount also on the 16GB version, whcih will cost from €19.95 euros with an all-inclusive data plan costing €89 euros per month, rising to €249.95 for customers choosing the lowest-priced, €29/month tariff.

T-Mobile parent company, Deutsche Telekom, says the move is designed to boost take-up and use of its 3G services, offering data transmission speeds of 3.2mbps. iPhone users consume 30 times as much data as users of other Internet-enabled phones.

iPhone 3G makes Russian travel plans

Site default logo image

Apple isn’t ignoring Russia – it just hasn’t had time to clinch an iPhone distribution deal for the country yet, said Apple boss Steve Jobs speaking to CNBC last week.

Apple CEO Steve Jobs told CNBC: "We just didn’t have a chance to close a deal with Russia. And I think you’ll see agreements happen later this year."

Now, reports out of Moscow this morning suggest local networks may be in talks with Apple to introduce the device in Russia, a country where jailbroken first-generation iPhones command as much as $1,000 each, with around 20,000 units smuggled into Russia every month, according to local analysts

Local networks s, Mobile TeleSystems and MegaFone have both been described as being in talks with Apple, but both may be trounced by second-largest network, VimpelCom, as that network moves to switch on its 3G network in Russia this year.

Apple’s so far failure to enter Russia has seen explosive grey market sales of the device, but many anticipate the company will put more technical hurdles to unlocking inside iPhone 3G, not least the demand customers sign a contract with the network they buy the phone from at the point and time of purchase. "It’s looking pretty bleak for unlockers," said John McLaughlin, founder of Uniquephones.com, a company which sells unlock codes for mobiles.

Apple grabs near 5% laptop sales

Site default logo image

Apple took almost five percent of the global laptop market in the first quarter of 2008, new data from DisplaySearch explains, further confirmation of Apple’s continued resurgence.

Apple took 4.6 per cent of the world market for laptops putting the company into seventh place, states DigiTimes, up from its previous number eight position. As the wider market grew 35 per cent, Apple’s sales nearly doublied to to 1.43-million portables from 891,000 units in Q1 2007, the report explains. Apple has also been explained as up 61 per cent in the second quarter overall, Mac sales overall climbed 51 per cent, year-on-year, a rate of growth an astonishing 3.5 times that of the overall PC market. 

Recently, NPD revealed that two-thirds of laptops costing $1,000 or more and sold across US retail chains are Macs. And while that share slides to just 14 per cent for computers costing under $1,000, the news still confirms Apple’s growing footprint in retail Mac sales.

NPD vice president Stephen Baker said, "iMacs are growing and the Windows desktop ain’t. No matter how you look at it, Apple is outperforming Windows,” Baker said.

Apple accounts for 25 per cent of its manufacturer, Quanta’s, revenue, which climbed 18 per cent in the just-gone quarter. "Notebook growth is coming in faster than we expected," said Quanta Vice Chairman C.C. Leung. "There’s some slowdown from the U.S., but Asia and emerging markets are still seeing growth. So far things look positive for overall notebook demand."

 

 

AT&T slowing down iPhone data speed?

Site default logo image

According to AT&T’s new iPhone website, the maximum download speed you can expect to achieve with the device is 1.4mbps.  That is much different than typical 3G phones like the Motorola Q for instance which comes in at a hefty 3.6mbps.  HSDPA data cards can get as high as 7.2 mbps.  What gives?! 

It is unlikely to be a webpage error because the 1.4mbps speed is also quoted in the official press release.  While this may still be twice as fast as the previous iPhone, if true, it won’t impress anyone who has used full 3G enabled devices.

Motorola Q?  3.6 Mbps!!!

 

Update: For more information, check out Gizmodo’s writeup.  According to them AT&T caps all 3G smartphones.  If that is true, why do they list the Q at 3.6mbps?  From Gizmodo:

But the iPhone 3G is rated for 1.4Mbps, a nice clip but not the 3.6Mbps downstream that AT&T’s HSDPA is capable of. (The carrier loves to brag that it’ll have 7.2Mbps by the end of the year.) So why not crank up the iPhone to those better data rates? Turns out, according to AT&T people we talked to, 1.4Mbps is the capped bandwidth for all mobile smartphones on the network for a few reasons.

(UPDATE: AT&T is saying they’re not capping the phone at 1.4mbps, but that’s what its capable of doing now, due to factors below. There’s no difference except intent, and AT&T is careful around words like "Cap" these days.)

A major one is battery life—the faster you burn, the faster your battery dies, so going full steam at 3.6Mbps would cut you well short of that nice round five hours. A second one is cell site congestion and backhaul (carrier-speak for size of the wired dataline that connects cell sites to the actual telecom infrastructure). While everyone at AT&T, from the top down, is adamant that AT&T is "comfortable" with their ability to meet the huge data draw once 3G iPhones hit the streets, it’s not like the pipe is unlimited.

AT&T wasn’t able to give a breakdown as to how many of their towers have fiberoptic pipes as opposed to slower copper T-1 lines. Nor could they say how quickly they could add capacity to a site that is pummeling their demand expectations, since it varies from site to site. Ones in dense urban areas are loaded up with more backhaul and can handle more users than one closer to the edge of their 3G footprint. Still, generally speaking, more users on a site means more congestion, so if you’re slurping from a site that’s really slammed, it will be slower. As with all radio technologies, proximity also matters. (Hint: For the absolute fastest speeds, wait until 3am and then go sit right next to your favorite cell site.)

 

 

digg_url = ‘http://9to5mac.com/3g-iPhone’;

MobileMe backend using Sun's Java Messaging platform?

Site default logo image

It looks like Apple might be employing Sun’s Java Messaging Server (Grid?) for the behind the scenes heavy lifting that enables the new MobileMe functionality.   Performing a telnet to "smtp-mx1.mac.com" on port 25 MacTalk User MacTicks got the following response:

$ telnet smtp-mx1.mac.com 25
Trying 17.148.20.64…
Connected to smtp-mx1.mac.com.
Escape character is ‘^]’.
220 smtpin122.mac.com — Server ESMTP (Sun Java(tm) System Messaging Server 6.3-6.03 (built Mar 14 2008; 32bit))
quit
221 2.3.0 Bye received. Goodbye.

We followed up today with the same request and got the following:

$ telnet smtp-mx1.mac.com 25
Trying 17.148.20.64…
Connected to smtp-mx1.mac.com.
Escape character is ‘^]’.
220 smtpin123.mac.com — Server ESMTP (Sun Java(tm) System Messaging Server 6.3-6.03 (built Mar 14 2008; 32bit))

So it looks like Apple is using Sun for its MobileMe mail platform.  As a background, Sun and Apple have had a long and tumultuous cross-Valley relationship with many technology sharing arrangements
 

Front facing camera in WWDC presentation iphone?

Site default logo image

Gizmodo points us to an interesting little video shot of Phil Schiller’s iPhone during the WWDC keynote. It looks like there is a camera in the upper left hand corner, right?  Obviously lots of journalists have got their hands on real 3G iPhones so it may just be a finger smudge.  However, it is hard to argue with the video – it does look like there is something there.   Maybe Steve’s "one more thing" will come in a few weeks?

http://www.viddler.com//simple_on_site/52c6339b


We can only hope…

Engadget gets information out of AT&T on iPhone

Site default logo image

Engadget got a call into AT&T  rto answer a few user questions about the 3G iPhone.  Here’s what they got:

Can these devices be purchased and given as gifts?

No. You will need to walk out of the AT&T or Apple store with the device activated.

Greekjgg asks: What if I want to buy one for work which already uses AT&T for company account? I can’t activate in store, obviously, so will it be possible to to buy without a contract?

We don’t have details yet but iPhones for business use will likely be provisioned through your company’s IT department.

Tons of people ask: If I purchase an original iPhone from a friend will I be able to get the old data plan pricing? Or will I need to sign up at the new, more expensive rate?

Yes. You can get the old data plan price if someone gives you a device and you establish service for yourself.

Chris and SeditioN VII ask: What’s the no-commitment price?

We have not yet announced the unsubsidized price.

We follow up: So you WILL be able to buy it without the two year commitment?

We haven’t announced whether or not that will be offered.

Vic asks: Will long-time customers who are otherwise eligible for a free or reduced-price handset upgrades be able to lower the price when buying the iPhone 3G?

No one will pay less than $199 for the 8GB or $299 for the 16GB models. As you know, those are subsidized prices.

Matt asks: Say I just recently signed up with AT&T, standard contract. Now I want to get an iPhone 3G — will I have to pay more than $199 for the phone because it’s subsidized? For example, if I were to upgrade to a Blackberry now, I can’t get the advertised $99 price (because I am a new, existing subscriber); my price is $374.

It depends on whether or not you are eligible for an upgrade.

We ask: What is the penalty for not activating the phone in 30 days? How will that be enforced?
More
 

Digitmes speculates on Intel Nehalem Macs based on Snow Leopard features

Site default logo image

Digitimes today speculates on Apple’s future Intel Chip roadmap.  Basically they are saying that Snow Leopard’s Grand Central feature sounds a lot like what Intel’s Nehalem processor will be able to offer with more cores and more threads/core/cycle.

The main optimization Apple describes as a target for Snow Leopard is Grand Central, a technology it says will make all of OS X multi-core aware and optimize it for allocating tasks across multiple cores and processors. Apple also says Grand Central will make it easier for OS X software developers to create programs that make the most of multi-core platforms.

With the adoption of Nehalem, Apple’s server and workstation configurations are likely to jump from eight threads (their current maximum) to 16 threads initially, with the potential to scale to 24 or more treads over the lifetime of Nehalem and its successor Westmere. Meanwhile mobile-based product lines are almost certain to see thread counts ranging from two to eight, up from the current two.

Apple is making it easy for developrs to take advantage of Intels newest technologies.  Digitimes sees Apple’s roadmap as:

If Apple plans to continue with its current product mix, Intel’s roadmap gives Apple the opportunity to hit the ground running with a June 2009 (or thereabouts) launch of Snow Leopard accompanied by a completely revamped Nehalem-based – Clarksfield-based MacBook Pro and iMac, Auburndale or Clarksfield-based MacBook, MacBook Air and Mac mini, and Gainestown-based Mac Pro and Xserve – product lineup.

Canada – is your iPod legal?

Site default logo image

The new Copyright Act in Canada will allow Canadians to copy legally acquired music to their iPods and computers but ban them from circumventing DRM on other media.

The act also exempts ISPs from liability for copyright violations by their subscribers, but does demand they send letters from rights-holders to file-sharers warning them against their actions.

Canadians will also be permitted to record TV and radio shows for later viewing – but forbids them keeping a personal library of such shows.

The bill also reduces Canadians’ individual liability to C$500 from a maximum of C$20,000 for making illegal copies of music or movies for private use. 

However, a huge C$20,000 fine can be made against users who hack their ay past DRM or other digital locks, and against those making music or other media available through file-sharing services.

Measures are also included which make it illegal to “provide, market or import tools used to circumvent digital locks,” causing Red Hat founder Bob Young to warn the act could stymie open source development, criminalizing acts undertaken on a regular basis, such as developing extensions, reverse engineering code and researching security measures.

Firefox 3 ships June 17

Site default logo image

The Mozilla Foundation has announced that Firefox 3 will ship on Tuesday June 17.

The news comes as Mozilla moves toward breaking the Guinness World Record for the largest number of software downloads of an individual application in 24 hours. 

Mozilla has received over a million pledges from users prepared to download the software when it ships, with Firefox users across the world signing-up to download the all-new web browser that day,

For an interactive map with country statistics and to sign up to get Firefox 3 on Download Day click here. Mozilla is also encouraging people to host a Download Day party at their school, office or anywhere with an internet connection on launch day.

Firefox 3 is currently in release candidate 2 for Windows and release candidate 3 for Mac. 

Apple Design Awards winners

Site default logo image

 The winners of this year’s Apple Design Awards were announced last night at WWDC, including new applications for iPhone which aren’t yet available to the public, pending the launch of the App Store.

The awards, which, "recognize technical excellence, innovation, and outstanding achievement in software development," were given to a range of applications from developers both small and large. MacRumors reports this year’s winners, who received two 15-inch MacBook Pros, two 30-inch Apple Cinema Displays, one 16GB iPod touch, one 8GB iPhone and a range of other valuable developer-focused goodies, are:

 

Best OS X Student Project:

Squirrel

Best OS X Graphics and Media Application:

ScreenFlow

Best OS X Application:

ScreenFlow

Best OS X User Experience:

Macnification

Best OS X Game:

Guitar Hero III

Best iPhone Web App:

Remember The Milk

Best iPhone Entertainment App:

AOL Radio

Best iPhone Game:

Enigmo

Best iPhone Social Networking App:

Twitteriffic

Best iPhone Productivity App:

OmniFocus

Best iPhone Healthcare & Fitness Application:

MIM medical imaging software

Interesting iPhone details out of O2…

Site default logo image

We’ve just received some exciting news for our UK readers from an O2 insider.  It seems that O2 is really taking advantage of the 3G iPhone and giving their customers some real value.  Unfortunately AT&T in the US doesn’t seem to be as aggressive with their plans.

  • O2 in conjunction with BTOpenzone and The Cloud are creating a Wifi "wireless mesh network" across London and other UK metropolitan areas.  The coverage is supposed to rival the coverage of cell phone towers.  iPhone users should be able to use this network seamlessly.  Also, O2 customers will be able to log into this mesh with their laptops or desktops.
  • The 3G iPhone WILL allow Bluetooth Tethering for laptops.  We asked about Wifi tethering and got a blank stare.  We’ll take what we can get.  They said that this was 99.9 percent certain and "Apple can always change their minds".  Since O2 controls the network and costs involved the decision would largely be theirs.
  • O2 will control everything network related on the iPhone (APN, etc.).  Their settings will be on the iPhone you buy from the Apple Stores as well.
  • O2 is EXTREMELY happy with the Apple partnership.  They were in a fierce bidding war with Vodafone for the contract to carry the UK iPhone and the underdog.  At the end they settled on giving Apple 15% of their iPhone revenues across the board (for Generation 1) which Vodafone declined.  Had all things been equal, Apple would have gone with Vodafone because of their size and scale.  Their take is that Vodafone is very sorry that they let the deal slip away.  O2 is also happy to be associated with the Apple brand which is helping theirs climb up the ranks in the UK and the world.
  •  They will offer free iPhones (even 16Gb on their largest plan) with a plan and pay as you go iPhones but obviously they won’t be usable with other carriers as we stated yesterday.

Will AT&T and the other carriers follow O2’s lead?  We can only hope!

Update: It does appear that there is a SIM card tray on the 3G iPhone though it isn’t as pronounced as before.  Perhaps there was some miscommunication about "the hammer"…

 

 

Location, location, location

Site default logo image

 Apple’s twinning of GPS location-based features with a full-fledged development system underpinned by OS X for iPhone may not be new in some ways (there’s other mobile platforms with developers and GPS), but may well usher in some of the most innovative uses of location-based technologies ever seen in any previous family of devices.

Numerous examples of the potential Apple has harnessed in its iPhone Software 2.0 move are appearing, with one major move set to transform the way we drive.

Dutch navigation device maker TomTom has revealed it already has a version of its navigation software running on the iPhone, and confirmed it intends selling this to consumers, presumably through the App Store.

"Our navigation system runs on the iPhone already," a TomTom spokesman told Reuters after Apple announced the iPhone 3G, but declined to say when it would make the application available.

That follows last year’s move by Maxens Technology to develop its own Navizon GPS system for the first-gen iPhone.

Beyond this, there’s a new breed of social network-cum-music applications set to appear. Take a look at TuneWiki, a social lyric and karaoke service that’s already available for jailbroken iPhones (and soon also for Google’s Android software-powered devices). TuneWiki lets users read lyrics to songs in real-time, so they can sing along, and also harnesses the location-sensing abilities of the iPhone to show users where others using the software are. You get to listen to YouTube tracks submitted by others, and can take a look at what song they’re listening to.

Want more? Then take a look at Geopedia, software which summons relevant Wikipedia place entries for destinations close to where you currently are, which was revealed in March for jailborken iPhones. And, naturally, we all saw the WWDC presentation of location-based social network, Loopt, onstage during the Apple keynote this week.

What other innovative location-based solutions for the iPhone have you come across? We’re interested – let us know in comments below…

WWDC: Apple software seeds

Site default logo image

Apple has released a plethora of in-development software to developers in the last 48-hours, various reports are explaining.

These include the first public build of newly-announced OS, Mac OS X 10.6 Snow Leopard, Safari 4 and a brand new version of iPhone Software 2.0.

WWDC attendees have been given a top secret physical disc containing an installation of Snow Leopard. The new OS hosts many new features under the hood, but, as Apple has explained, is primarily intended as a technology release from which to build the future of the OS. Speaking to the Wall Street Journal, Apple CEO Steve Jobs explained: "We’ve added over a thousand features to Mac OS X in the last five years. We’re going to hit the pause button on new features."

This may be a white lie, as the future OS will be stable enough, equipped with hardcore features including 64-bit support, support for the ZFS file system and the capacity to handle up to 16TB of memory to be of interest to top level enterprise users. And will ship with out-of-the-box support for Microsoft Exchange 2007. Apple has committed to ship the new system, "in about a year". Reportedly, a system preference lets users decide whether to initiate 64- or 32-bit support in their install of Snow Leopard.

Snow Leopard’s Grand Central technology is designed to facilitate developers who want to build applications that truly exploit multi-core processors. It also offers Open Computing Language (OpenCL), which lets any application use the graphics processor for non-graphics operations. Learn more about what is known about Snow Leopard here.

Safari 4 beta is available now (to developers) for Leopard, Tiger and Windows. Among other things, Safari 4 reportedly lets users save webpages as stand alone "web applications" which launch like desktop apps and is significantly faster than before.

Finally, the latest iPhone Software 2.0 build includes support for MobileMe and ushers in a few other tweaks designed to support the iPhone 3G and to meet the needs of sundry iPhone features as announced on Monday.

Apple confirms Steve Jobs illness, now recovering

Site default logo image

Apple has responded to widely-reported concerns at the health of CEO Steve Jobs, saying the company co-founder has been suffering from a "common bug" in recent weeks.

Concerns as to the health of Jobs, who suffered a rare form of pancreatic cancer four years ago, were raised following his appearance at WWDC this week, when the Mac web noted that he seemed to have suffered some weight loss.

Responding to these concerns, an Apple spokesperson told the Wall Street Journal Jobs was hit with a “common bug” in recent weeks but that he still felt it was important to participate in the Apple conference. Jobs is now recovering with help from a course of antibiotics.

Jobs is seen as nearly irreplaceable at Apple, where he has conducted the most dramatic turnaround of a company in corporate history.

Jobs had what is called the "Whipple Operation" to deal with his cancer…

In the Whipple operation the head of the pancreas, a portion of the bile duct, the gallbladder and the duodenum is removed. Occasionally a portion of the stomach may also be removed. After removal of these structures the remaining pancreas, bile duct and the intestine is sutured back into the intestine to direct the gastrointestinal secretions back into the gut….

…..What are the long-term complications of the Whipple operation?

Loss of weight: It is common for patients to lose up to 5 to 10% of their body weight compared to their weight prior to their illness. The weight loss usually stabilizes very rapidly and most patients after a small amount of initial weight loss are able to maintain their weight and do well.

So all par for the course…

iPhone v.1 resale value secured…

Site default logo image

The resale value of Apple’s first-generation iPhone looks set to shoot higher as the company engages in a new strategy to defeat iPhone unlockers.

It’s a pretty simple strategy, authorisation of new devices will now take place in-store in both the US and the UK. Essentially, when you purchase an iPhone you’ll be asked to sign an contract on the spot, or you won’t be able to buy the device. This means you’re tied into a contract, or you’re paying AT&T or O2 and Apple a monthly fee in addition to the purchase price in exchange for owning an iPhone 3G.

As the all-new model hasn’t hit the streets yet (it launches July 11) we also don’t yet know what hardware locks may have been put into place to secure the new model against being jailbroken, which suggests the original iPhone may become a collector’s item, and seems likely to command high prices once the initial rush of second-hand sales have passed. We anticipate many of the older iPhones will migrate to Russia, where no launch plan has yet been announced.

O2 slanging free iPhones, also pay as you go plans…

Site default logo image

Oh to be in London today.  The sun is shining, the weather is nice (!!) – at least for the moment – and O2 is giving iPhones away for free* with certain plans.  Business plans included.   I am ordering the whole office iPhones!!  From O2:

iPhone is now free on selected Pay Monthly tariffs*
There’s only one thing better than an iPhone. The new 3G iPhone.
*Best of all, the new 8GB iPhone won’t cost you a penny on our £45 and £75 tariffs. And it’s just £99 on our £35 tariff and new £30 tariff.
All tariffs include unlimited browsing on your iPhone, unlimited Wi-Fi access, visual voicemail and reduced roaming rates with our International Traveller Service and are subject to a minimum term contract of 18 months.

 

As far as we can tell, no other carrier has dropped the free bomb yet.  Come on Telefonica!  Our Madrid office needs new iPhones!

Analysts reaction to iPhone 3G trickling out

Site default logo image

Welcome to the cut out and keep guide to first glance reactions to the iPhone, with analysts raising estimates and saying Apple looks good to hit its ten million sales target, and citing the potential effect of the disruptive technology on the smartphone market.

Ralph de la Vega, President & Chief Executive Officer of AT&T Mobility said: "This device is a true game changer. Why? The immediacy of the data at your fingertips is huge. Imagine, looking up anything, anywhere. It (3G iPhone) allows you to leave your computer at home. It totally and completely mobilizes your data. Before this device you weren’t really un-tethered, but with this you are. I think people have tried to build a $100 laptop, and here is a $200 phone that can do all that over 3G. It will have a big impact, and will be ubiquitous."

 

AT&T has revealed iPhone subsidies will cut its earnings per share by 10 cents to 12 cents in 2008 and 2009 with Chief Financial Officer Rick Lindner said the move will put pressure on AT&T’s forecast for double-digit earnings growth this year.

Under the new pact, AT&T will not give Apple part of its monthly service fees, unlike their first iPhone agreement.

"I think that in this type of market asking shareholders to deal with more dilution for the sake of iPhone is a lot," said Crowell, Weedon & Co analyst Douglas Christopher, who has a buy rating on AT&T shares.

Gartner analyst Kenneth Dulaney said the plan to stop paying a portion of revenue to Apple made the hit to earnings all the more surprising. "This says that the product is so hot the carriers have lost all their power to negotiate," he said.

Jupiter Research analyst is excited about MobileMe, saying: "One of the pieces that’s been missing at least from Apple’s portfolio has been a strong social networking play. It’s fantastic to have the sync features across all of my devices. We know consumers want to buy content once, create playlists once, pay for access once, etc. and then be able to access from any device. Apple sets a high bar here that has been challenging to replicate at least with media. (Their "nod" to MS on "Outlook for the rest of us" acknowledges that)"

Ian Fogg, also of Jupiter Research, notes: "Worldwide availability on the same date, just a month from now. This takes some doing. Congrats to Apple for understanding that launching in just the US isn’t the way to win hearts, minds and wallets elsewhere."

Charles Dunstone, CEO, The Carphone Warehouse Plc, said:, "The  iPhone 3G is a massive step forward for mobile internet. The iPhone continues to lead the pack and now customers will have fast, simple access to true internet on the move. It’s rare for a mobile phone to cause global excitement but iPhone sets the standard for others to follow. I’m delighted that we’ll be offering the new iPhone 3G for free on a contract. We’re expecting a huge demand when it goes on sale across our 800 stores on 11 July and there are some great upgrade offers for those that have previously bought an iPhone on the O2 network"

Lehman Brothers this morning raised its price target on Apple to $234 from $202 and cut AT&T’s target to $49 from $54, citing Apple’s announcement of the 3G iPhone at a discounted price tag. "We believe existing revenue sharing arrangement (with Apple) costs AT&T $100 during the life of an iPhone customer", said Lehman Brothers analyst Thomas Seitz. Citigroup also raised its price target on Apple to $287 from $248.

Charles Golvin, a principal analyst with Forrester Research, agreed. "Apple needed 3G, they needed a more attractive price, to make its goal," he said, adding that the prospects of reaching the 10-million mark this year are "pretty much a certainty."

"Apple is competing in more markets at lower price points (again subject to price plans). Therefore, we feel that this time the potential for disruption is greater than before," observed Steven Hartley, senior analyst for London-based Ovum.

Shares tell the news:

HTC, down 57 points at NT$765

RIM. up $2.71 after falling to $132.41 on late trades last night.

Palm, down 28-cents to $6.79 per share

Nokia, fell last night, now at $26.61