When I am wrong, I will say so. Or type so.

I know of many a first generation iPhone that was NOT rendered a paperweight by today's 3G launch. In fact most people I know have recovered the cost of upgrading to the new phone by selling their old one. Turns out that, because of its unlockability and cheaper data plan, the first gen iPhone is still a fairly hot commodity. My bad.

Already discovered two issues with the new iPhone launch:

1. AT&T did not adequately train their store managers for this. Know of one person already who left the store WITHOUT the phone being active, and a few of the phone reps I spoke to told me it could be done online or by phone. No, no longer the case; it has to be done in the store. Then again, maybe it doesn't. Should be easier, better, more organized but it looks like it is not really AT&T's fault.
2. Apple has not fully prepared for the stampede to the Apps Store and iTunes, as folks are getting that "network connection has timed out" message. Stunned that this was not expected with the price drop, and that extra servers, bandwidth and other technostuff were not tasked for the job. Especially when you consider that the Apps Store will roll out some 500 new applications. And that the phone is entering several new markets such as Canada and Australia, increasing demand on iTunes. This is really bad for Apple.

My favorite complaints about the iPhone itself:

• Battery consumption. If you want 3G speed, you have to supply 3G power.
• Camera. Phone camera, not a Nikon. No it does not have a flash or zoom and I do not care. Video may come later via 3rd party apps, and still don't care.
• Lack of physical keyboard. Some folks just do not get it. I understand mentioning it by way of reminder, but if you want a crackberry keyboard, buy one.

I am the first to say that the iPhone cannot, and shouldn't try to be, all things to all people. It is not perfect and folks make some real complaints:

• Voice dialing. Bluetooth stereo support. Copy and paste. Not because all of these are so in use or in demand; it's just that some of the cheapest phones can do some of these, and I'd like to see the iPhone catch up.
• The hardest pill to swallow is lack of MMS. Even read some chatter about the SDK not allowing a 3rd party MMS app for security reasons. I know I rarely send or receive MMS, but it's that whole "the coolest phone in the world should be able to do the simpliest thing" thing.

Picking nits from AT&T.

• The data plan costs more. More speed, faster downloads, "better" network. So when you upgrade to faster DSL, does it cost more? When you stay at the Hyatt vs. the Clean 'n Cheap, do you pay more? Yes the entry point being lower is "deceiving" but anyone who cannot do math and realize that $30 times 24 months costs more than $20 times 24 months, deserves the "surprise" bill.
• Text messages cost money. I guess it's not enough that local, long distance, and roaming are "free" on many of the big cell phone plans, surely most of the ones with data packages. Texting is a big, fat money-maker for the wireless companies. People want texting and will pay for it, ergo the cellular companies will charge for it.

For the record: I waited in line with my sister, who did the data plan upgrade and her phone was activated in 15 minutes. Came home, updated iTunes and the phone was restored to her settings in minutes. Took about 20-30 minutes for all the data to sync, but that included tons of pictures and several full-length movies. So all is good, and I am having fun playing with the new toy.

Tags:Apple, MAC, iPhone, 3G, Price, AT&T

Here I go with Apple again.

Monday the much anticipated and spoiled announcement about the iPhone 2.0 in all its 3G and Exchange glory was released at the WWDC keynote. And while much of the specs were spoiled, the biggie (price drop) was not (to me at least).

The Good
• 3G speeds, Normal headphone jack, SIM card ejector
• Price: lower price is better for my budget and is sure to lure more people to the MAC side, so patience is rewarded.
• The cash cow: The App Store, iTunes based warehouse for all the cool software applications people have been using on unlocked phones, as well as potentially hundreds more. Productivity, enterprise, entertainment, gaming and a host of other programs will be able to run on the iPhone. While some will be free, others will be a nominal charge, with Apple taking its cut off the top.

The Bad
• 3G: sounds great in theory, but unless you are in one of the AT&T top markets (big cities) it won’t do you any good and you’ll be as slow as ever. Plus all 3G speeds are not the same. Faster speed comes with bigger prices from AT&T so current owners will be paying another $10 a month.
• No MMS: I know they’ve responded to a lot of feedback and feature requests, and while this is sure to have several options in the App Store soon, it should be in there already and not 3rd party.
• Instant Messaging (IM): even if limited to WiFi only; see MMS above.

Galactically Stupid?

Price drop: I get that new things cost a lot more than something that’s been around awhile. But a 66% drop in one year is a lot to take. Apple gave a credit to early adopters, and they need to consider it again.

I know few pundits who’d give the Stupid award to Apple, but it’s hard to see the method in the madness. Making the iPhone “cheaper” than the iTouch is just odd, or is a price drop for it and the entire iPod line coming soon? If not, Apple is trying to kill iTouch sales, or TPTB are that confident that there are enough folks who 1) hate AT&T and 2) are willing to pay more for less.

Not Everyone Drinks the Kool-Aid

Now that iPhone 1.0 has been rendered a paperweight and the company is trying to tout its Greenness, Apple should really come out with a recycling and exchange program, save some face and promote goodwill.

1. Anyone not upgrading to 3G gets another $50 iTunes credit. IMO that should go to everyone, period. Anyone who bought his or her phone in April or May (before inventory ran dry?) paid twice the price (or $200 more for 16GB) versus what folks will in July.
2. TPTB should also create an exchange program for anyone who will trade up to the 3G; recycling plus a larger credit towards the purchase of a new phone.
• Perhaps the old phones can be reworked into “new” 3G service models for warranty exchanges (they don’t just hand you a brand new phone, it’s a service or refurb phone). Maybe they are just recycled for the parts and materials.

The costs for anyone exchanging should be $100 for a new 8GB 3G iPhone and $200 for the new 16 GB iPhone:
• 4GB, originally paid $399 (allowing for the first credit)
• 8GB, $499 with credit, or $399 after the September 2007 price drop
• 16GB, original price $499

For Jane or John Doe who paid $500 for a 16GB in the last six months, paying another $200 to upgrade is a bit less painful than paying $300. (And don’t worry about Apple, they’ll still have $700 of John’s money, even with the discount.)

I know a lot of people may want to see this applied to the iPod line (heck I got stung by the Shuffle upgrade/price drop a month after Christmas), but product changes and price adjustments have taken years to develop. From the word “GO” TPTB were working on improving battery life to support 3G; it was only a matter of time for the iPhone.

Obviously none of the announced changes are bad moves, as the new and improved phones will fly out the stores at the new and reduced prices. With the Exchange possibilities for business use and the Apps Store for anything else, Apple has laid another shiny, golden egg.

But screwing over the faithful is a good way to make people loose the taste for gold eggs, and the Goose may choke on some bad (but not fatal) market strategy and negative PR.

Tags:Apple, MAC, iPhone, 3G, Price, iPod