It was just a matter of time. It looks like the Apple, Inc. (NASDAQ: AAPL) iPhone 3G will be coming to Wal-Mart sometime before the end of the year, but probably after Christmas. According to the Boy Genius Report, which claims its sources are reliable and to have come across some internal Wal-Mart correspondence, the iPhone 3G will be sold in 2,500 Wal-Mart locations in about a month from now.
Remember that the iPhone 3G must be activated (unlike the original iPhone), so only Wal-Mart locations that can use a specific ordering and activation system can carry the iPhone 3G. Some Sam's Club locations will also carry the iPhone 3G, but they also must use the Wal-Mart ordering and activation system in-house (several Sam's locations use a different wireless activation system). All in all, this will make the iPhone available to just about every American (well, the ones with good credit at least) as more U.S. shoppers have exposure to Wal-Mart than just about any other store.
The question is whether Apple is forsaking the iPhone cool brand allure by offering it at the largest discounter in the world. At this time, no. The iPhone 3G has been out in the world long enough for the iPhone to make its name. Offering it at Wal-Mart now won't impact its reputation nor affect Apple's cred.
Since Apple pretty much dictates pricing to its retail partners, expect the iPhone 3G to sell for a dollar or two less than the standard $199 and $299 pricing levels seen at all other retailers. Say, something like $197.48 and $297.48, as Wal-Mart is into non-standard retail pricing schemes to try and create the illusion of low prices against the competition. The presumed launch date: December 28th. Get ready.
Google, Inc. (NASDAQ: GOOG) continues to bet that beating the competition in the wireless arena is not a strategy, but a matter of growth survival. If it wants to rule the wireless search and web application universe like it has the world wide web, it has to be everywhere on every device. To that tune, Google has upgraded its search results for the Apple, Inc. (NASDAQ: AAPL) iPhone in an effort to fit better with the device's specific display limitations -- and capabilities.
Yes, Google voice search was just added to the iPhone's capabilities, but Google can't stop there. Google indicated this week that the "side to side" scrolling to view complete search results on the iPhone has been eliminated. In addition, easier "click to call" and "get directions" links are now in place for those mobile searches where Google thinks you may want to call someone or find directions from a web search on the iPhone. Even though the iPhone has a great display, it's nowhere near a standard flat-screen monitor.
Similar to how Google displays itself on a standard cellphone, a "Classic" option exists at the bottom of every Google search performed on the iPhone should iPhone users wish to get the "full Google" experience on the limited screen real estate on the iPhone. For iPhone fanatics (you're probably included if you own one), the new layout will probably be to your liking. And, just like Google wants you too, you'll continue to use Google for all your iPhone web-based search needs forever and ever. At the same time, Yahoo! Mobile employees may be heard collectively screaming.
T-Mobile's G1 mobile phone -- with its Google, Inc. (NASDAQ: GOOG) powered -- may have a bill of materials that's about 10% cheaper than Apple, Inc.'s (NASDAQ: AAPL) iPhone 3G, according to research firm iSuppli. No wonder it retails for only $179 with a two-year contract while the 8GB iPhone 3G sells for $199 with the same two-year contract.
Part of the difference may be in the memory of both units. While the iPhone 3G comes with 8GB of memory already installed, the T-Mobile G1 comes with a paltry 1GB memory card, which of course can be upgraded unlike the iPhone's memory capacity. The cost breakdowns: $144 for the G1 and $160 for the iPhone 3G. Even with the price break of a meaningless $20, can the G1 ever hope to compete with the iPhone's sales numbers?
Doubtful, at least in its current configuration. Apple's iPhone 3G surpassed the Motorola, Inc. (NYSE: MOT) RAZR to become the best-selling handset in the U.S. in this year's third quarter. The G1 is just now hitting the market as of late October. With the prices of the two units within $20 of each other, and with the iPhone's huge lead in being on the market, the G1 won't make much headway against iPhone sales. 2009 - and a second-generation G1 - could see renewed interest in T-Mobile's offering. Right now, it's all Apple.
One of the holy grails for consumer electronics manufacturers has always been to produce a single device that is good at so many things that customers don't need a whole collection of gadgets -- just one. The perfect example of this has been Apple Inc.'s (NASDAQ: AAPL) iPhone. It makes calls, allows web browsing and email, can play music, TV and movies, and do about a jillion other things.
It's not the first device to try and be a jack-of-all-trades, but it's arguable the first to be the simplest and coolest at everything it does. Customers are apparently noticing, as they are dumping other gadgets in favor of carrying and using just one - the iPhone. And we're not talking middle-income families and consumers either, but those with incomes below the median.
This is music to Apple's ears -- its device is being used by all demographics for everything from telecommunications to video and music to web browsing (possibly being the first "portable" computer for many). ComScore stated that iPhone ownership spiked 48% from June 1 to the end of August among households earning between $25,000 and $50,000 a year. Need Apple say more? Not really.
After getting overloaded with economic bailout reading over the weekend, something techie floated to the top of the pile that caught my attention. It seems that Apple, Inc. (NASDAQ: AAPL) is rejecting quite a few submissions to its App Store, where aspiring iPhone application developers send their programs so that iPhone customers can buy them.
The only problem is that Apple is not telling rejected (and dejected) application developers why their programs are not being approved. Also, the non-disclosure agreement the company is sending out prevents these developers from talking about their rejected iPhone app situations. Is this Apple being its usual self: controlling, closed and mum? The company really (really) knows how to design something the consumer wants and markets its sleek goods in a way other companies just can't figure out. But in addition to that, it retains a tight control on the entire ecosystem in which its products exist.
Perhaps it's the best form of quality control -- but it's not freedom. And developers want freedom, or, at the least, communication. Apple seems to be extremely tight-lipped, which is odd but not surprising.
On another Apple-control-freak note, Apple is now restricting reviews of iPhone Apps to people who have paid for them. It seems that the Wisdom of Crowds argument, which says that putting people in control leads to wisdom, isn't working here. Of course, there is also the vocal minority which can't be pleased by anything and trashes everything that doesn't fit a preconceived notion. Apple is turning on the quiet switch in this situation as well. So here's my proposal for a new motto: Apple: Think Different (but don't communicate it).
When Apple, Inc. (NASDAQ: AAPL) released the iPhone 3G back in July, little did it know (most likely) that the device would have issues worldwide connecting to 3G networks, causing consumer frustration on a level we've rarely seen with any Apple product. Well, some consumers have apparently given up and they're moving back to the older, slower, original iPhone, which is causing a cottage industry to spring up around the older device.
NextWorth.com is charging $200 to $300 for a used iPhone (the non-3G kind), which is more than the price of the newer, sleeker and faster iPhone 3G. Why? There's demand -- and lots of it. Some customers don't want to be shackled to AT&T, Inc. (NYSE: T), the exclusive carrier for the iPhone and iPhone 3G in the U.S., as the original iPhone can be unlocked very easily using software tools found all over the internet. Once unlocked, the original iPhone can be used at any WiFi hotspot. There are no 3G connectivity issues either.
Does Apple have a problem now that the older, discontinued iPhone is still in hot demand? No. People using iPhones, new or old, reinforces the brand among other things, and Apple still made the original sale after all. If there is any loser here, it's AT&T. The largest wireless carrier in the U.S. still has the smallest nationwide 3G wireless network compared to its competitors. Launching a product with the magnitude of the iPhone 3G was just asking for problems given AT&T's network, and some informed customers don't want AT&T at all.
Apple, Inc.'s (NASDAQ: AAPL) iPhone 3G continues to sell like gangbusters even with multiple issues and some furious customers. But, if Apple really is bent on selling over 10 million of the now-iconic, do-everything handset, it may need to beef up its sales as best it can. Enter China Mobile.
That's right -- the wireless company that has more subscribers than there are U.S. citizens may be selling the iPhone 3G soon, according to reports. And we're not talking gray market handsets, but an actual partnership between Apple and China Mobile. Talks between the two companies, according to the 21st Century Business Herald, are in "final stages."
China Mobile CEO Wang Jianzhou stated this week at the ITU Telecom Asia 2008 exhibition in Bangkok that "Steve Jobs and I hope the iPhone will enter China as soon as possible ... we are discussing this issue, but we do not have an agreement." If Apple can get its do-everything handset into China Mobile, we've not seen anything yet in terms of iPhone 3G sales.
IPod sales may be on the decline in the near future -- but can the iPhone 3G make up for that? We'll see.
It's so odd to see a developer's conference turn into a PR machine for arguably the world's hottest tech company, but about all of the geek crowd is sitting on pins and needles this morning waiting for the Worldwide Developer's Conference (WWDC) from Apple, Inc. (NASDAQ: AAPL) to begin. Why? Well, the expected unveiling of the iPhone 2, of course.
As I wrote last week, Apple's shares may inch towards $200 today depending on what product bombshell Steve Jobs drops on the world. If you bought shares when they were in the $120 range back at the start of 2008, are you going to take a profit should shares reach the $200 level? Apple, like most of the market, took a beating this past Friday as the DJIA dumped almost 400 points in a single day, but that doesn't mean AAPL shares will not make up for lost ground. Customers are still buying Mac computers and iPhones like there's no tomorrow -- recession or not.
The trick is this: Apple could score a major coup if an iPhone 2 is announced today -- and is immediately available for purchase at Apple stores. This is being predicted, and it's not really out of the realm of reality. The original iPhone was a launch of monstrous proportions, but it was announced in January 2007 and released in June 2007. The hype built in that gap was so large that iPhones flew off the shelves once June came last year. The hype is now for the newer, speedier iPhone that has extended capabilities and a possibly lower cost. If that happens when Jobs takes the stage at 9:30 a.m. PDT this morning, expect the market to take notice and AAPL shares to lift past their ending $186.25 price from Friday's market close.
This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.
Research in Motion Ltd.'s (NASDAQ: RIMM) BlackBerry wireless email device has been a staple of the corporate world for years now. RIM, a Canadian company, took the function everyone wanted -- easy and superb access to mobile email -- and turned that single function into an entire industry. Of course, RIM's wireless units now handle voice calls, pictures, document editing and more, but that's not what customers buy BlackBerries for. The single function of secure, instant and mobile email is still the killer application for the BlackBerry.
Enter Apple Inc. (NASDAQ: AAPL) and its uber-popular iPhone that's been on sale for coming up on a year now. The company has sold way over 4 million of the devices since then and has taken a large swipe at the "smartphone" wireless handset category where the iPhone competes. Reminder: the unit has not even been on the market for a year. Apple has selectively released upgrades to the iPhone to make it more competitive in the business customer arena, and with the possibility of the iPhone being able to handle corporate push email, it may become an even bigger threat to RIM in the very near future.
Apple, Inc. (NASDAQ: AAPL) continues to have some of the most sought-after products in the tech world between the iPhone, its iPods and its Mac computers. Although AAPL shares have swooned down 37% in 2008 after hitting $200 earlier in the year, the good news continues for the company at a time when market volatility has hit it hard.
CEO and company co-founder Steve Jobs is sticking to his guns, saying that Apple still has no plans for releasing a dividend to shareholders nor buy back shares to pump up the stock price. In other words, there's no knee-jerk reaction from Jobs based on silly market antics that have depressed the share price of his company. Apple's annual shareholder's meeting happened yesterday at its Cupertino, Ca. headquarters, and Jobs reiterated that the company will indeed sell 10 million iPhones in 2008.
Still, the market has punished Apple's share price in the last 60 days in severe fashion. The company missed its second-quarter financial expectations, creating a market frenzy around a possible slowdown of consumer cash aimed at Apple's products. Then again, Jobs said that the iPhone would be introduced into Asia in 2008 and Apple CFO Peter Oppenheimer reiterated that Apple's investments have "not had any material losses to date on (sic) our investment portfolio."
It seems that market analysts and pundits can't stop pulling out their anal selves from the woodwork to worry about possible sales discrepancies between Apple, Inc. (NASDAQ: AAPL)'s iPhone sales numbers and accompanying AT&T, Inc. (NYSE: T) iPhone activations. Some have even pointed out what I call the one million plus unit discrepancy.
Is this speculate discrepancy way off the mark? Analyst Ezra Gottheil thinks so. There is some market fear that Apple's iPhone sales not meeting up with AT&T's iPhone activations means that Apple stands to lose out on two years worth of revenue on those "missing iPhones." Apple's sweetheart deal with AT&T gives the tech company a cut of every AT&T iPhone customer's monthly bill, you see.
Does Apple stand to lose future revenue streams by selling iPhones that are not activated by AT&T customers? Sure -- but it's not a huge financial impact to the company according to Gottheil. Although quite a few iPhones have been rumored to have been sold, unlocked (using multiple hacking methods) and used with non-AT&T wireless carriers, these numbers have not been wholly verified by either Apple or AT&T. Has AT&T stockpiled unactivated iPhones that represent Apple's sales numbers and AT&T's lower iPhone activation numbers? That's highly doubtful. Until a solid explanation comes forward, is it that big of a deal to Apple pundits? For the time being, it seems so.
AT&T, Inc. (NYSE: T) will report fourth quarter earnings this Thursday, and the largest phone company in the U.S. is expected to report $0.71 per share on revenue of about $30.56 billion. In the wireless arena, AT&T is expected to gain about 1.85 million customers for the quarter. At the same time its landline telephone business continued to see a consistent decline. Home landlines are going out of style -- and the iPhone is taking over in much of that market.
The gain on the company's wireless side is going to inevitably be linked to the Apple, Inc. (NASDAQ: AAPL) iPhone. Just a week ago, Apple CEO Steve Jobs said that four million iPhones have been sold since its debut last June. With the bulk of those having been sold to AT&T customers, both companies are reaping the benefits from the enormous popularity of the all-in-one wireless and data device.
Add holiday wireless sales plus the second full quarter of iPhone sales into the mix, and AT&T will most likely meet Wall Street expectations this Thursday. The decline of the company's consumer landline business -- which accounts for only about 20% of the company's revenue -- will be overshadowed by iPhone sales and the excellent growth it's seen in wireless subscriber numbers. AT&T's world has changed markedly from a decade ago, shifting from wireline to wireless. Alas, the company has taken advantage of this perfectly and will continue to do so for many years to come.
Google, Inc. (NASDAQ: GOOG) has become a more powerful force on the "desktop" of the Apple, Inc. (NASDAQ: AAPL) iPhone as of this week, changing the way its Gmail web-mail program interfaces with the iPhone's software as well as creating a more computer-like email experience on the now-ubiquitous smartphone.
Gmail now presents itself pretty much like it does on a PC web browser when used on an iPhone (with the most updated software installed, of course). That is, messages are synced across platforms. Read a message on your iPhone, it becomes "read" on your PC's web browser or laptop screen. Sounds like a minor update, but it's really not.
Apple and Google are working to make the iPhone one of Google's premier places for showcasing its content. From email to news readers to maps to documents, expect Google's entire range of online applications to be available on the iPhone soon. Missing from the iPhone is any trace of software from Microsoft Corp. (NASDAQ: MSFT), naturally.
Could Google soon be seen on many new Apple laptop PCs as the "software of choice," even though an internet connection is required to use most of those applications? Seeing as though Google saw more hits to its website on Christmas Day from iPhones compared to other devices, the two companies are making a compelling partnership case-study thus far, much to Microsoft's chagrin.
Apple Inc.'s (NASDAQ: AAPL) stock has lost 15% of its value since it peaked at $202 a few weeks ago. How much further will it drop?
Apple partnered with AT&T Inc. (NYSE: T) for the introduction of Apple's iPhone. Bloomberg News reports that AT&T's CEO see softness in consumer markets. As people foreclose on their homes, AT&T is disconnecting more home-phone and high-speed Internet customers for failing to pay their bills. Are iPhone customers too affluent to stiff AT&T on their bills?
Meanwhile today's introductions of new Mac Pro computer and Xserve server products have not helped Apple's stock which dropped $6.39 today. At a Price/Earnings to Growth (PEG) ratio of 1.6 -- on a Price/Earnings ratio of 45 and earnings growth of 28% to $6.49 in the year ending September 2009, Apple stock does not look cheap.
Does Apple have further to fall or is it a screaming buy at $171?
Although the media and Apple (NASDAQ: AAPL) have pushed the iPhone as a consumer device, apparently some business users are finding out that they like it too. Staunch business customers who are tech-savvy, complain about the lack of email flexibility that the iPhone provides, citing Microsoft Exchange and RIM BlackBerry Server functionality being absent. To some business customers who need mobility in the first place, though, the device is still easier to use than a Windows Mobile device or a BlackBerry.
SAP, the German computer software giant, allows the use the iPhone for business, even letting employees to work on their iPhones outside the office. Salesforce.com (NYSE: CRM) is another company that sees the usefulness of the combination iPod/cellphone as a business tool, regardless of how it's always been marketed -- as a consumer device. So, the large question is this: could Apple's iPhone eat into the huge portable email and web browsing market share Research In Motion (NASDAQ: RIMM) now has with its BlackBerry device line?
When a senior executive from SAP states that "It's fun ... it's so popular," one has to wonder if teenage peer-pressure vernacular and groupthink carries over from Apple's marketing overlords into the business world. After all, Apple is more successful at marketing than anything -- and that's what's responsible for its huge success in recent years. Business users, however, demand logic and ROI, not marketing fluff. The iPhone is the real deal, combining both functionality and marketing. With a real web browser and forthcoming applications, it could indeed become a business tool of choice. Once the iPhone becomes compatible with RIM or Microsoft corporate email systems, watch for sales to become even hotter. Don't think Apple doesn't have this functionality waiting in the wings once a 3G iPhone arrives next year.