$99 iPhone 3G = game changer...iPhone 3G S = dud

By Tim Conneally | Published June 9, 2009, 3:22 PM

The Cult of Mac's rumor maw out-talked Apple and has made the 3G S look even more like a lame incremental update than it actually is. Yes, it rocks a faster processor, faster data connection, improved camera, includes video recording and magnetometer, but the new product is disappointing. After all, prior to the keynote, Mac rumors included a new tablet, an "iPhone Nano," an iPhone on Verizon, a 64 GB iPod Touch, and of course, the return of ailing Apple CEO Steve Jobs. Expectations were high, and were left unfulfilled.

However, behind the smokescreen caused by the new device and its "battle" versus the Palm Pre, the only one year-old iPhone 3G with its new $99 price tag casts an ominous shadow over the entire handset business.

In technology pricing, 99 is the magic number, as devices that cost $99 are typically received warmly. In the recent past, devices such as Roku's Netflix set top box, the Peek email reader, and the Palm Centro all proved to be breakthroughs at that price point. With the current economic condition, a sub-$100 device has the the best chance of reaching a huge audience.

While the iPhone has taken the smartphone market by storm, consistently placing in the five top-selling handsets there, those constitute only about 25% of the total mobile phone business. Conquering the $0-$100 phone segment is the biggest task, and could potentially help convert the entire mobile handset business into the "smartphone business."

What we are looking at is a potential repeat of the iPod's sales eruption. After four years of making the popular media player, Apple eventually released an iPod in the sub-hundred dollar price range. Two years later, the company had sold its 100 millionth iPod with the $99 iPod Shuffle leading the charge.

Comments

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Off base much?

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OSX Snow-Leopard seems like it will be a similar upgrade as the iphone 3g s. It won't have much new functionality but they are going through fixing TONS of bugs and tweaking inefficient algorithms. This should be a free service pack upgrade, but you will have to pay for it.

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Apple just make more TV Commercials. It's nice to see how much better apple people are then other people. (OR how much apple wants people to believe they are better then other people)

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The Mac-olytes (fanatics) build up everything in rumours and tear down the truth but the new iPhone is hardly a dud. It's simply an incremental hardware upgrade that will be further enhanced with the new software.

Personally, I think the software is taking as long as Mac OS X did to become fully functional and a lot of phone users will continue to go elsewhere, but in the U.S.A., there aren't as many good choices.

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Some say the upgrade from the original to the 3G wa bigger than the 3G to 3Gs.

Yes, you got faster network access on the 3G (at a higher data plan price) and a GPS.

THe 3Gs gets faster speed (CPU and graphics), probably more application ram (though not confirmed) a better camera and video. Also double the ram at the same $199 price.

I have to say its the added cost of data plans that is a big hurdle for some people. And thats something that is on a monthly basis.

Might be bigger than the difference between $99 and $199 IMO.

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Tim are you nuts? Are you TRYING to sacrifice yourself to the rabid Apple sheep?

I'm not impressed by the 3G S myself as a 'new' Iphone. The upgrades aren't worthy of a new name. Calling the S a dud however is pretty harsh, I suppose in the context of the article it is, since you're speaking in terms of what the rumor-mill promised. But the Iphone 3G S is what the Iphone 3G should have been at release and is finally imo a worthy 'smartphone'. While I still wouldn't get one without a physical keyboard, I'm certainly more open to owning a 3G S vs. 3G.

I agree that the $99 price point is a game changer. There's really no reason not to get the Iphone at that price.

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rabid. apple. sheep? really?

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What's the deal here, faster procesor and faster Internet with HSDPA (3.5G) esp. last one gives a big jump forward here in Asia where everybody basically uses their mobile phone for internet connections... Up till now the Iphone was just a baby toy but now gets serious with speeds up to 7Mbps... Wait and see how many Iphones will be sold here in Asia with this superb. upgrade!!

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Tim you are an idiot and you are wrong. This thing is not a dud, it is not a "lame incremental upgrade". Are you serious? With serious upgrades to the camera, operating system, double the hard drive space and a 50% better battery for the same cost as the 3G which was released a year ago, these are major updates. Again, the last phone came out less then a year ago. Your arguments make absolutely no sense. The 3GS is a dud because it doesn't work for Verizon? Hello? AT&T has exclusive rights until at least next year. A new tablet? That has nothing to do with the phone (same with the Ipod Touch).

Why are you publishing a crappy article with this title that has nothing to do with the IPhone 3GS? You wasted my time...

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iPhone 3G S = dud?

Yeah...let's see the purchase stats over the next 3 months between the 3G S and the Pre. Or the 3G S and -any- other smartphone.

Why all the Apple hate, people? Jealousy? :)

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I'd like the upgrade, if only for a faster processor. Safari can tend to lag a little on complex websites, so that would be a useful improvement. Faster 3G is probably not useful enough - it's rare my network actually supports speeds of 3.6Mbps, let alone 7.2.

I think I'll stick with the original though, depending on local upgrade offers. 3.0 software will make the old iPhones new ones again.

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$99 plus $60 a month, this is quite expensive people

Aviv M
http://www.getmycharger.com

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How much is the monthly plan ?

Aviv M
http://www.securityguardtx.com

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Hey apple.. Add something simple like a SD slot!!!

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The did add it to the Macbook Pro.. Yay. They advertised that like it was something amazing.

Just do the default and add it to your devices like everyone else.

Then they make fun of "other" laptops that didn't have a webcam. Give me a break.

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I disagree regarding the 3GS. I am not an apple fanboy. I don't own a single apple computer. I am a PC through and through. But when I recently bought an ipod touch, I was stunned at how much I liked it. So when I learned of the new iphone I made the plunge and will be transferring from V-zon to ATT in order to use my new 3GS coming soon. Already ordered.

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Um, your mom called and asked for you to go back to your room.

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Nobody cares. The iPhone will sell, sell, sell, and possibly take over the world.

I available for an upgrade on 8/21. I can't ****ing wait.

I mean, have you seen the apps for this thing?!?! Christ!

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