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2:38 AM
Vodafone has reached an agreement to sell Apple's popular iPhone in the UK.
The announcement follows news that network operator Orange had secured a similar agreement with Apple.
The deals mark an end to the exclusive UK arrangement between O2 and the US technology firm, which has been in place since 2007.
Vodafone says users can register an interest online, with the handsets becoming available to customers from early 2010.
Orange said its customers would be able to buy the phone "later this year" but did not specify a date or pricing.
Vodafone is one of the biggest mobile operators in the world with an estimated 300 million customers world wide, making it the second largest carrier after China Mobile.
The agreement sees both Orange and Vodafone selling both the iPhone 3G and iPhone 3GS.
A spokesperson for Vodafone said the firm was "delighted" at securing an agreement with Apple and that the phone was going to be primarily for existing Vodafone customers.
This is a different model from that adopted by O2, which used the iPhone as an incentive to attract new customers.
Exclusivity
O2 has offered the handset in the UK since its launch in 2007. In February, it said it had sold more than one million of the handsets.
The launch of the latest iPhone 3GS in June significantly boosted sales, with many stores running out of stock.
The phone has also allowed the firm to win subscribers from other networks, according to analysts.
Dave McQueen, principal analyst at Informa Telecoms and Media told BBC News said that the smartphones - which have the ability to surf the web and send e-mail - has put a burden on the O2 network.
"IPhone users to tend to use data quite extensively - perhaps more than anticipated," he said.
O2 will continue to sell the handset in Britain, alongside iPhone rival the Palm Pre.
The Palm phone, described by some as an "iPhone killer", will be available exclusively to O2 from 16 October.
O2 said that it always knew that its exclusive deal was for "a limited period of time".
In countries where exclusive deals still persist, such as the US, some customers choose to "unlock" their phones using third party software so they work on an unlicensed network.
However, Apple has warned that the practice can cause "irreparable" damage to a handset and has engaged in a game of cat-and-mouse, releasing periodic software updates which prevent unlocked phones from working correctly.
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2:35 AM
Apple has shrugged off the recession with profits surging on demand for its iPhones, laptops and desktop computers.
The technology giant made a net profit of $1.67bn (£1bn) in the three months to 26 September, up 47% on a year earlier. Sales rose 25% to $9.87bn.
Computer sales grew 17%, and iPhone sales climbed 7%, though there was an 8% drop in the number of iPods sold.
The results come ahead of rival Microsoft launching its new Windows 7 operating system later this week.
Shares in California-based Apple closed at $189.86 on the Nasdaq index, but rose to above $200 in extended trading on the results, which were well ahead of what analysts had forecast.
Premium products
Apple Chief Executive Steve Jobs said he was "thrilled" at selling more Macintosh computers and iPhones than in any previous quarter.
The company sold 3.1 million Macs, a 19% rise from the same period a year ago.
Analysts said that Apple's unveiling of a faster iPhone in June, and cutting the price of the previous version of the phone had helped it boost iPhone sales to 7.4 million devices, half a million more than last year. 
The launch of Apple's latest operating system, Snow Leopard, had also driven sales of new computers, said Dan Akerman, senior editor at CNET.com.
"They concentrate at higher-end premium products at a higher margin so they're aiming at the premium consumer."
Meanwhile, Jane Snorek, analyst at First American Funds described the results as "huge numbers" and that they bode well for sales in the next couple of months.
"This makes me think Apple will have a great Christmas."
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2:31 AM
Nokia, the world's biggest mobile phone maker, has said that it is suing its US rival Apple for infringing patents on mobile phone technology for the iPhone.
Nokia said it had not been compensated for its technology, and accused Apple of "trying to get a free ride on the back of Nokia's innovation".
The 10 alleged patent infringements involve wireless data, speech coding, security and encryption.
Apple, which did not comment on the news, saw its shares dip slightly.
The breaches applied to all models of the iPhone since its launch in 2007, Nokia added.
'Basic principle'
Finland's Nokia said that it had agreements with about 40 firms - including most mobile phone handset makers - allowing them to use the firm's technology, but that Apple had not signed an agreement.
"The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for," said Ilkka Rahnasto, vice-president of legal and intellectual property at Nokia.
"Apple is also expected to follow this principle." 
He added that during the last two decades, Nokia had invested approximately 40bn euros (£36.2bn; $60bn) on research and development.
Earlier this month, Nokia posted its first quarterly loss in a decade amid falling sales.
Analysts said that the poor results had come partly as customers turned from Nokia models to the iPhone and RIM's Blackberry.
Meanwhile, Apple reported profits of $1.67bn (£1bn) in the three months to 26 September - partly due to a 7% growth in iPhone sales.
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2:26 AM
So a mobile phone network is getting a new phone - or rather a phone that's already been available elsewhere for a couple of years. No big deal, eh? Well, think again. When the news broke this morning that O2 was losing its exclusive contract to sell Apple's iPhone, and that Orange would be selling the phone in the run-up to Christmas, there was huge interest.
It went straight to the top of the list of most-read news stories on our site and social networks were buzzing with the news. Clever old Apple - the whole marketing strategy around the iPhone has been masterful, and now it's scored another winner.
By keeping the phone exclusive to one network since its UK launch in November 2007, it's given it an air of, well, exclusivity. O2 has worked extremely hard to promote the iPhone over the last couple of years - and, it seems, has handed over quite a lot of cash for the privilege. Now, just as the shine is beginning to fade, Apple hands the phone to a network with a huge incentive to give it another massive marketing push.
But here's the key question yet to be answered by either Apple or Orange this morning: what is going to happen to tariffs?
You can't believe that Orange will go into this market charging the same as O2 - and if it does, questions may be asked by the competition authorities. So there's the juicy prospect that an iPhone price war may break out by Christmas - though given the big subsidy operators hand over for a handset like the iPhone, don't expect too much.
Customers will also be glad to have a choice of operators given the strain that the flood of data from the iPhone appears to have put on O2's network. They may find Ofcom's research on mobile broadband coverage in the UK [667 Kb PDF] a useful guide to whether Orange or O2 is stronger in their area.
But what of the operators? This morning, O2 was putting a brave face on things, stressing its pride in its record with the iPhone - but also the fact that the network is about to offer the Palm Pre. As one analyst put it to me, "you knew they were losing the iPhone exclusivity when they unveiled the Pre deal."
Orange is of course punching the air, delighted that months of painful negotiation have ended with it winning the prize. But should the network really be celebrating?
A few months back, a telecoms consulting company which has long been sceptical about the importance of the iPhone and its value to operators released a pretty devastating report. Strand Consult's The Moment of Truth: A Portrait of the iPhone set out to demolish what it said were 10 myths about the "miracle" handset:
"1) The iPhone drives data traffic into mobile operators networks2) The iPhone helps operators attract new customers3) The iPhone is good business for mobile operators4) The iPhone is dominating the mobile services market5) App store is a huge success that has revolutionised the services market6) There is money to be made by developing applications for the iPhone7) It is iPhone customers that are generating the majority of online mobile surfing traffic8) The iPhone has a large market share9) The iPhone was the first mobile phone
with a touchscreen10) The iPhone is a technologically advanced mobile phone"
Now I'm not sure that the Strand report's one-sided view of the phone's significance to the industry really bears too much scrutiny. I don't see, for instance, how you can deny that the App Store has been a huge success, and one that has been imitated by the rest of the industry. But one thing does seem true - the iPhone appears to have done far more for Apple, both in financial and marketing terms, than it has delivered for the operators around the world which have fought for the right to sell it.
So today's news is good for consumers and good for Apple - but does it really mean a brighter future for Orange?
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2:21 AM
Remember the price war that was supposed to break out once O2 lost its exclusive contract to sell the iPhone in Britain?
Well, the price plans that Orange has published for the phone show little sign of an eagerness for hand-to-hand combat.
Apart from an entry-level £30 tariff which promises twice as many minutes as O2's deal, the two firms' offers look virtually identical.
Look at what's likely to be among the most popular tariffs, a 24-month contract for a 16GB iPhone 3GS at £34.26 a month, where you pay £87 for the device.
That's identical in every respect to the O2 deal, except for the cost of the device - which is £87.11.
As we suspected, the high price that Apple extracts from operators leaves them little margin to undercut their rivals - about 11p in fact.
But what does stand out when you examine Orange's price card more closely is what it says about the unlimited data that has been an essential part of the iPhone's appeal.
An asterisk next to the "unlimited" leads to a note saying "Fair Usage policy of 750MB/ month applies." Cue plenty of grumbling from potential customers, particularly on Twitter.
The cap appeared to apply to data downloaded via wi-fi as well as via the 3g network, so some concluded that Orange was planning to curb their customers' use of their own home networks.
I called Orange to check this out - and found the company slightly confused about its own fair usage policy. More than four hours later, the press office finally returned with chapter and verse.
There was a 750MB cap for 3g mobile data, and a separate 750MB for data downloaded with their wi-fi partner BT Openzone - you are free to do what you want on your own network.
So how does this compare with O2? That company came back with its own statement, confirming that its "unlimited" data policy did in fact have its limits.
"We reserve the right... to contact customers about their usage if we believe it adversely affects the service of our other customers, eg if a customer uses their SIM in another device for which it is not intended."
So O2 looks to be a little less restrictive than Orange.
But will many really run up against Orange's limit? At first 750MB may seem an awful lot of data to use on a phone - I reckon I get through about 200MB in a heavy month.
But what we've seen so far is that once you offer people "unlimited" data, they rush to use it, and software developers provide them with new data-rich applications.Streaming audio and video are increasingly popular on the iPhone, and they can chew up your data allowance at an alarming rate.
Last night someone pointed me towards this clause in Orange's Terms and Conditions:
"Not to be used for other activities (eg using your handset as a modem, non-Orange internet based streaming services, voice or video over the internet, instant messaging, peer to peer file sharing, non-Orange internet based video). Should such use be detected notice may be given and Network protection controls applied to all services which Orange does not believe constitutes mobile browsing."
It sounds as though services like Spotify, AudioBoo, Ustream and even Facebook messaging - increasingly popular with O2 iPhone customers - will be out of bounds for Orange users.
The operator is caught between a rock and a hard place. With little room for manoeuvre on prices, it will be hoping that better network coverage will be one factor winning over iPhone customers from O2.
But if too many power users start streaming TV and playing online games on their phones, the Orange network may buckle under the strain - hence the need for a fair usage limit.
Just hours after publishing its price list, Orange appeared to be having second thoughts about that 750MB cap, admitting that plenty of e-mails had been coming in and that
it had noticed the rising tide of Twitter comments.
A spokesman told me the cap would be "reviewed" to make sure that it was at the right level.
The problem for the operators is that users no longer see the iPhone and similar devices as phones but as small computers. And who wants to be told 25 days into each month that they must now stop playing around with their computer and just use it to make calls?
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2:15 AM
IPhone 3G and 3GS handsets will be available to Orange customers from 10 November, marking the end of a two- year exclusive deal with operator O2.
Orange said it would offer the handset to pay as you go, pay monthly and business customers.
Customers taking out 24 month contracts worth £30 or £45 a month will get the 8GB standard handset for free.
The Orange tariffs are very similar to O2. The cheapest 24 month contract is £29.36, compared with £34.26 with O2.
"Since we announced the iPhone on Orange we have already seen more than a quarter of a million customers register their interest on our website," said Tom Alexander, head of Orange UK.
In September, both Orange and Vodafone announced that they would be offering the iPhone. Vodafone said the phone would be available on its network from 2010 but has yet to confirm pricing details.
O2 has offered the iPhone since its UK launch in 2007. By February 2009 over a million handsets had been sold.
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1:26 AM
Capping literally years of speculation on perhaps the most intensely followed unconfirmed product in Apple's history -- and that's saying a lot -- the iPhone has been announced today. Yeah, we said it: "iPhone," the name the entire free world had all but unanimously christened it from the time it'd been nothing more than a twinkle in Stevie J's eye (comments, Cisco?). Sweet, glorious specs of the 11.6 millimeter device (that's frickin' thin, by the way) include a 3.5-inch 480 x 320 touchscreen display with multi-touch support and a proximity sensor to turn off the screen when it's close to your face, 2 megapixel cam, 4GB or 8 GB of storage, Bluetooth 2.0 with EDR and A2DP, WiFi that automatically engages when in range, and quad-band GSM radio with EDGE. Perhaps most amazingly, though, it somehow runs OS X with support for Widgets, Google Maps, and Safari, and iTunes (of course) with CoverFlow out of the gate. A partnership with Yahoo will allow all iPhone customers to hook up with free push IMAP email. Apple quotes 5 hours of battery life for talk or video, with a full 16 hours in music mode -- no word on standby time yet. In a twisted way, this is one rumor mill we're almost sad to see grind to a halt; after all, when is the next time we're going to have an opportunity to run this picture? The 4GB iPhone will go out the door in the US as a Cingular exclusive for $499 on a two-year contract, 8GB for $599. Ships Stateside in June, Europe in fourth quarter, Asia in 2008.