Anyone who has had to deal with snail-crawling 2G or 2.5G-limited Internet access would want 3G on their iPhone, too. "Where'd my SMS go?" wouldn't even begin to cover the network grief experienced with the multimedia-enriched mobile phone, but it appears that in order to have 3G, you'd have to get another iPhone.

 

Or so they say. While many rumors have flown around dubbing European phone buffs as the lucky ones to get the extra G, none have proven factual or true. And while Steve Jobs himself admits that iPhone 'surfing' on AT&T isn't as fast as preferred, Apple is going to be hard-pressed to come out with a simple 3G solution.

Another bit of interesting developments was a mention of AT&T, Apple, planning, iPhone and 3G in one sentence. PBS' Robert Cringely wrote in a column that he believes "Apple and AT&T are planning a fall rollout for full 3G iPhone service, with technical trials already underway in certain AT&T markets," although there were no factual statements to support his claim.

He goes on further that the iPhone has a 3G capability tucked within its innards, ready to burst open at Christmas when a new firmware rolls out and flicks the magic switch. Some folks have turned their iPhone inside out and have yet to spot a piece of hardware that rings 3G-capable, pointing against the speculations of Cringely.

3G needs a transceiver with 3G capability, blogs Philip Elmer-DeWitt, which means that another iPhone with the hardware would be needed before being able to even use 3G capabilities. In turn, that would also require more power for the additional hardware. 

But instead of scrambling over the comm for Scotty, Apple considered battery life was first and foremost in their list of priorities. Apple has assured customers that Wi-Fi Internet access can still be used as a faster alternative to AT&T's current EDGE network, but while hotspots are few and far between, there's nothing more you can do to speed up your iPhone 'surfing' experience.

Apple's iPhone is a commercial success but if the magnitude of that success escapes you, here's a little hint: It has set a new record for AT&T sales by selling more phones than the Motorola RAZR did in a month.

In addition to this, the demand for the iPhone doesn't seem to be slowing down with iPhones going on eBay from US$ 705 to a whopping US$ 12,500.

Throughout all this, Apple has been making a killing. Industry researcher ISuppli Corp. declared that Apple is selling the iPhone for more than double its manufacturing costs. Thus they have profit margins of over 55 percent, excluding logistics and royalties.

That's just an insane amount of money moving into the company, and it shows. As a testament to that, Apple shares soared by US$ 5.91 to US$ 127.17 or 4.9 percent in NASDAQ Stock Market trading.

However, it should also be noted that AT&T shares dropped by US$ 35 cents, which is rather peculiar considering AT&T has sold out of the phone in almost all its 1,800 stores. It may have something to do with the EDGE network crashing for a short time, but this has not been confirmed by any of our financial analysts.

So it looks like the iPhone is off to a good start, it should be noted that Apple isn't expecting to be making a large profit now but expects it to come over a span of two years. Is this a sign of things to come? If you'd care to read more on this, click on our read link.

We found the other day that Apple and AT&T are not totally transparent regarding the true capabilities and compatibility status of the newly-released iPhone. It was found that owners can actually opt to go prepaid after tinkering with iTunes sign-up service and social security number.

Anyway, here's another "exploit" for all you iPhone freaks out there: removing the SIM that comes with the phone and/or putting in an inactive SIM will automatically convert your mobile phone into a a contract-free WiFi-enabled sixth generation iPod.

The key word there was WiFi as it allows you to do Mail and Safari without a phone connection. Pretty sneaky, eh? We thought so, too. In case you want to know how the trick is done, here's the test performed by the good guys of online blog TUAW:

• Removed SIM and replaced it with an invalid, unactivated, no-account SIM: Still works as 6G WiFi iPod. Still Synced properly to iTunes. Tried placing call. It failed (as expected).
• Removed SIM entirely: It complains but works at 6G WiFi iPod. Tried placing call. "No SIM card installed". Failed. Connected to iTunes. Synced without any problems I could detect. WiFi fine.
• Removed activated SIM and placed into a cheap disposable AT&T cell phone: Worked fine. Was able to place calls. Good way to save your iPhone from danger on ski or bike trips.
• Placed SIM from cheap disposable AT&T Pay as You Go phone into iPhone. Call failed. WiFi fine.

Do you think that the iPhone is a great gadget to have? And are you willing to shell out money to get yourself one, though you're not up to the idea of getting a 2-year postpaid contract along with your iPhone?

After a grueling process of trying to set up her own account, Erica Sadun posting on The Unofficial Apple Weblog (TUAW) signed up instead through iTunes, and entered 999-99-9999 as her social security number when prompted (at the suggestion of an AT&T employee). Doing so failed the credit check on purpose, and she was offered the prepaid plan (see screenshots of the prepaid plan option prompts).

She just followed the steps outlined for the prepaid plan, and voila! Her account was placed into the activation queue. All she needs to do after choosing to use prepaid now is wait for the activation to be completed.

We haven't heard news of someone actually on an iPhone prepaid plan, so we'll just have to wait and see if Erica's application for one gets approved. "Til then, we'll file this one under Rumors. More news as we get them.

 

There's no doubt that the Apple iPhone's launch was a runaway success, and new owners of the handset couldn't be happier. But Gizmodo reports some flimsy incidents that might dampen the parade a bit.

According to the report, AT&T might be cashing in on the launch by forcing consumers to buy two accessories if they want to get the handset. This happened in two stores in Seattle, one in California, one in New York and a weird variant of the act in North Carolina.

According to sources, consumers who waited in long lines to buy the iPhone were required by shopkeepers to purchase two of the product's accessories. If they didn't, they were simply denied the privilege of trading. In the New York branch, it took a man hollering that AT&T was doing illegal stuff to get them to sell without forcing accessories.

In one Seattle store, a source reports that AT&T had 20 units in stock and declared them sold out after 10 people entered the shop. However, they did offer the remaining people that they could get them handsets through "special deals" within a couple of days if they ordered two accessories along.

Gizmodo also reports that there are sources saying that AT&T personnel were required to sell products on a given quota. Unless they perform according to the company's benchmarks, they were subject to termination.

In Greensboro, North Carolina, accessories weren't forced on buyers but accessories were placed within the package of the iPhone. This way, the store was able to charge an additional 10 percent for restocking if the box was reopened.

 

To make buying an iPhone easier for the market, the Apple Store online has been updated with a product page of their latest world-dominating baby, the iPhone. It was released in retail just a few hours ago over at the east coast, and at that time, the online store went down for a bit to make way for the iPhone's online debut.

It's US$ 499 for the 4GB model, while the 8GB is clocked at 600 greenbacks. All relevant information relating to the mobile phone's features and AT&T rate plans are found behind the Read link below. You might also want to check out the Accessories tag of their product page - that's a snazzy looking Bluetooth headset. The Gallery section contains not just pictures, but even video walkthroughs that tour you through the iPhone's interface.

Shipping is free, but the downside is you'd have to wait around two to four weeks for it to arrive. Oh and don't forget to read the fine print: "iPhone orders limited to two per customer." Makes sense to echo the rule they've set up in their actual brick-and-mortar stores. Besides, stocks are limited.

Doesn't that Read link just tease you? Must... Resist... Urge..

In a few days, Apple's highly-anticipated iPhone will finally hit the streets. In anticipation of this much-talked-about event, the Cupertino-based company has put up a page detailing the iPhone's rate plans.

The rate plans are divided into three different categories: Individual, Family and Existing Customers. The lowest available number of minutes for the Individual plan is 450 for US$ 59.99 (Family: 700 shared minutes for US$ 80), while the most is 6000 minutes for US$219.99 (Family: 6000 shared minutes for US$ 310). All plans get 200 SMS text messages, but consumers can always choose to add more.

All iPhone service plans include voicemail and unlimited internet and email, so those who plan to get one only have to choose a rate plan for how many minutes and SMS text messages they need. The plans will be selected upon activating the iPhone through iTunes.

Existing AT&T customers who want to keep their current voice plans can also get choose to add unlimited data and visual voicemail for US$ 20 to US$ 40, with the only different being the number of SMS text messages. US$ 20 gets you 200, US$ 30 gets you 1500 and for US$ 40 you can get unlimited text messages.

For the full list of rate plans, click on the "Read" link below.

No doubt Apple took over the portable music player (PMP) industry by storm; but can it do the same and take on the mobile phone industry kings such as Nokia and Motorola with iPhone's release? Chicago Tribune says that Nokia and Motorola will have no problems with market shares... for now. These companies' Research and Development teams should be ready though for a lot of headaches to come.

Nokia, one of the dominant mobile phone manufacturers owns about 36 % market share, with Motorola trailing behind with its 17 % share. Indeed, with the iPhone expecting to grab only 1 % of the cell phone market shares by the end of 2008, they don't have to worry about Apple removing them from the top spots.

Roger Entner, senior vice president of IAG Research's communications sector agrees.

It will not be a financial disrupter, but it will be a psychological disrupter, a research and development disrupter. Mobile phone industry competitors will find themselves getting nagged by people to imitate the iPhone.

The iPhone's audience may be limited in its initial launch. Most of the general market may consider the first generation iPhone as too pricey - the exclusive contract with AT&T may mean shelling out around an extra US$ 150 to pay off contract termination fees for Sprint and Verizon customers - which may deter them from getting one. But consumers will eventually be drawn to the iPhone's concept of simplified design and user interface, in effect asking for the same value and features from other phone manufacturers.

Apple may become a considerable threat to mobile phone manufacturers if the company decides to roll out cheaper versions of the iPhone, like what it did with the iPod. Doing so will mean that Apple will eat up most of the mobile phone market shares, and more people besides Apple supporters, tech enthusiasts, and the rich will find themselves running their thumbs across the iPhone's glass screen.

Motorola isn't batting an eyelash for now, though. "Really, the iPhone benefits the entire industry," said Brian Stech, Motorola phone division's global marketing director. He further explains that the iPhone will direct more consumer interest towards multimedia phones, which Motorola is also specializing on.

This may be Apple's first foray into the mobile phone business, but analysts are already convinced that the iPhone will most certainly change the cellphone industry landscape.

With the high base price of the iPhone and AT&T deciding not to subsidize the cost of the phone, the cost of owning one when it comes out is pretty steep. If for some reason you decided to cancel your subscription early, it gets even more expensive. How expensive? Try an additional US$ 175.

It was recently announced that AT&T has decided to place a US$ 175 fine for those who decide that they want out of the two-year contract with the company. This move has sparked the outrage of many an iPhone fan interested in picking up a unit.

As most would know, when people cancel their subscription to a cellular service they have to pay a fine. The reason for this is because the company sells the phone for a cheaper price and subsidizes the cost over the two years or more as dictated in the contract.

AT&T spokesman Mark Siegel gave word that these termination fees pay for more than phone subsidies. His exact explanation for this is that "there are certain fixed costs we incur in serving every customer who establishes service with us." However, he declined to specify exactly what these costs were.

The Vice President of Jupiter Research in New York Michael Gartenberg spoke about this issue and gave a theory on why this was the case. Considering that other networks do sell music through their wireless service, iTunes will be getting revenue that AT&T could have gotten.

However, he also noted that while this may be the case, those who will be adopting the iPhone are those who will most likely be using more data and voice services, which would give a nice boost to AT&T as well.

Is AT&T trying to milk more money out of this deal? It wouldn't have been so bad if they didn't charge such a huge amount for the cancellation considering the simple fact that you're already paid for the entire phone out of your pocket. I believe it's time for AT&T to decide on having one or the other. If they choose to subsidize it, I doubt many will complain but asking for both is pretty excessive in my book.

We are all just a few days away from the official launch of iPhone and Apple's marketing efforts are as fierce as ever. There are a lot of reports coming in about big iPhone displays that can be spotted over at the official Apple Stores. Aside from that, there have been also been talks of AT&T updating its own line of stores to accommodate the new mobile phone.

All of these began when people started noticing large, covered rectangular display on different Apple stores. Despite the white cover sheets, it is unmistakable that the displays are actually towering "iPhones". When the covers were lifted, the promotional displays turned out to be video demonstrations for the much-anticipated gadget.

Apple employees at Apple stores still wouldn't give information regarding the phone's rate plans and other details. iPhone is expected to hit retail stores this coming June 29.