Covering the digital giants, by Jon Fortt
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June 9, 2008, 3:23 pm

What’s still missing from the iPhone

The new 3G iPhone is a great update, but it doesn’t come with enough of a software breakthrough to make it revolutionary. Image: Apple

So there’s a new iPhone. (Yawn.) Big surprise. Any groundbreaking software to run on it?

For me, that was the big question during Steve Jobs’s keynote address at Apple’s (AAPL) Worldwide Developer Conference, and it’s still unanswered. Sure, Apple and its partners made a flurry of interesting announcements, including the 3G iPhone everyone expected. Several of the announcements even involved slick-looking new iPhone software. But was any of it groundbreaking for a mainstream audience? Hardly.

I’ll admit that I’m holding Jobs to a high standard. Under his leadership Apple has been on a tear, mastering the market for music players, gaining share in PCs, and shaking up the cell phone industry. Jobs has led the company so effectively that right now the iPhone, the linchpin of Apple’s growth strategy, faces a critical test: Will it redefine the mobile industry, giving Apple the sort of clout in phones that Microsoft (MSFT) has in PCs? Or will it simply occupy a high-fashion niche, and leave the real profit making to others?

The difference between a dominant or dwindling iPhone will be software. Or more plainly, the ability of Apple and other software companies to make the iPhone do amazing things that couldn’t be done before. Jobs & Co. have achieved this feat at least twice in the past. The first time, with the original Mac, Apple joined with Adobe Systems (ADBE) and others to usher in the era of desktop publishing, allowing people to create and print professional-looking documents with a computer. The second time, with the iPod and iTunes, Apple worked with the recording industry to offer the first intuitive system for acquiring, organizing, and listening to music.

The iPhone hasn’t yet proven it has the same spunk. It does a beautiful job surfing the Web, but that’s a cool feature, not a killer app. It’s handy for corporate e-mail and address books, but Research in Motion’s (RIMM) Blackberry got there first. It’s got multimedia features, but so does my iPod.

For this device to truly fulfill its potential, I believe it will have to offer something totally new – something like on-board photo and video editing, or a videoconferencing app, or (most likely) something too cool for me to dream up. By reaching out to software developers, Apple has put itself and its partners in position to achieve that kind of breakthrough eventually – but I didn’t see it this morning.

Does the Iphone work as a torch? If not, I’ll stick with my Nokia 1100…

Posted By Nanette ACT Australia : June 14, 2008 4:29 am

I got the killer app, several in an integrated whole, wouldn’t take a lot to develop it but I am extremely lazy, being a programmer and all…

Posted By Dreamdeceiver, Silcone Valley : June 13, 2008 8:10 pm

“4. GPS….the new feature added. Its just rocking (Costs u $300)”

not even close to a full-fledge navigation system… it’s google map plus showing where you are. period.

the marking guy tries to give consumers an impression that it does everything like a real navigation system.

Posted By J. Newman, Tucson, Arizona : June 13, 2008 3:55 pm

The thing it is missing – It is still locked in with the AT&T service. Apple should start selling the device without forcing us to choose a particular service. And I will be the first one to buy this unlocked iPhone. Until then I will hold on to my BlackBerry.

Posted By Govind, Piscataway, NJ : June 11, 2008 3:06 pm

After reading all the comments. I could see that people have following problems:
1. Its too pricy
2. No Additional Features.

But you will see above problems if you havent gone through their presentation happened on 9th June completely. Dont just read some comments by somebody and conclude anything.

Do you know what Today’s iPhone 3G has? I will highlight:
1. Phone which has now Enterprise Capability that means now you can check your office emails, calendars and all other on that… and dont worry if your employer approves, you get it for free. (Blackberry costs you at least $150)
2. iPod with video (costs u $200)
3. Digital Camera 2.0 MP (costs u at least $99)
4. GPS….the new feature added. Its just rocking (Costs u $300)
5. Web Browsing, wi-fi enabled, just those activties mostly u use ur laptop\desktop ($700)
6. Bluetooth, etc..etc…
so the total cost of all these seperate devices become apprx. $1500 whereas u get ur iPhone in $200

About AT & T service, you have to get a plan anyways even if you own any other phone.

I think I have said enough and dont want to say even a word more.

Posted By Seema, Cleveland, OH : June 11, 2008 2:59 pm

Get an Ipod Touch. All the fun of the iPhone, without the phone hassle!

Posted By Neil, WiFi Outhouse, Canada : June 11, 2008 8:12 am

The ‘killer app’ is the App Store itself. So many of the silly things that people here consider problems will be addressed by 3rd party developers, leaving Apple to think about the future. So it needs a better camera. Well did you see the recent job listing where Apple was looking for an expert in cell phone cameras? So the battery isn’t user replaceable. Well I’ve had my iPhone since day 1, and my battery still does very well. And I use it heavily most days. Sure there may be other phones with better specs, but like it or not, Apple has shown the way to mobile computing future. It’s far from perfect, and you can bash it all you want, but consider that imitation is the sincerest form of flattery, and YOUR cell phone manufacturer is scrambling to come up with a touch screen ‘iPhone killer’…

Posted By Kevin Charlotte NC : June 10, 2008 11:56 pm

The apps will come – that’s the whole idea. I feel like I was taking crazy pills reading this. There is so much possibility! This video will explain:

http://www.youtube.com/watch?v=irXCMdRprfw

Apple is leaving the groundbreaking up to US!

Posted By John, Cincinnati Ohio : June 10, 2008 10:20 pm

Jon, of course the phones will sell out at first and will probably remain fashionable, but everyone needs to pay attention to two things: increasing memory for storage and 3.0 bluetooth. You know that apple will jump on both when available and with the new bluetooth standard you will be able to stream your audio and video to whatever bluetooth device (leading to more memory requirements). Then everyone will want one even more and iPods (and lesser MP3 players)will go the way of the Dodo. Apple is just setting the stage for another coup.

Posted By Jay Ratliff, Atlanta, Ga : June 10, 2008 6:51 pm

Somebody wrote another article telling us what the iPhone is missing (yawn).

You don’t what that magic app should be but if Apple was as good as they are supposed to be they would have made it right? Give me a freaking break.

Apple focussed on making the iPhone a corporate friendly phone and they focused on making the iPhone available in as many countries as possible. They also lowered the price making it available to many more people. 3G, GPS and mulippe enhancements to the existing software. The sdk is out and in one month we will see a plethera of new apps for the iPhone. Me.com will add a lot of features as well.

All that and today 75% of the stories are bagging on Apple. Big surprise (Yawn).

Posted By Nodack Phoenix AZ : June 10, 2008 4:49 pm

Seriously? You want the moon at $200 while still on a phone network? Where will the bandwidth to handle video conferencing come from? I m sure you will then complain about paying too much for data services!
Its a well done device that does browsing nicely and has music/video/smart apps/GPS. If you were seeking the 8th wonder, don’t call it a phone!
An avg user will take these any day over video camera

Posted By manish, nyc, ny : June 10, 2008 4:39 pm

Where is the stereo bluetooth (a2dp)? for a device that is supposed to be “changing things” why do I still have to use a cable, that is so 1990’s…

Posted By The Voice of Reason, Memphis, TN : June 10, 2008 3:38 pm

I have the killer app! Its so simple I’m suprised apple haven’t thought of it yet.

Unfortunately I don’t have the knowledge or cash to develop it.

Hey Steve, can you spare me a few million to get it rolling? ;-)

Posted By jammydevil, sarasota, FL : June 10, 2008 3:14 pm

If they want to make it revolutionary… Make it a remote for my TV. I’ll have it with me at all times, make phone calls, do all the other stuff. Why not a universal remote as well?

Posted By Adam, St. Louis, MO : June 10, 2008 2:37 pm

Jon, speaking as someone who worked at Palm and PalmSource for six years, the search for the “killer” mobile application is a waste of time. These devices aren’t PCs; they are much more personal, and different people have dramatically different, conflicting needs. The killer application for me may well be repulsive for you, and vice-versa.

Apple’s approach is the right one — get a diverse set of applications, make them easily available on the device, and let the users sort out what they like best. Diversity is the killer app, and I think Apple is making a good start at encouraging that diversity.

From Jon Fortt: Michael! It’s been a long time. You might be right, in which case Apple may have a harder time gaining and keeping market share with the iPhone. But like you said, by opening up the platform they’ve increased the likelihood that someone out there will dream up a killer app — and all the better for Apple if that happens.

Posted By Michael Mace, San Jose, CA : June 10, 2008 1:32 pm

Are you on flippin’ crack, Jon? The next time Treo or Blackberry upgrades their products substantially, and sets the price point within the reach of consumers, you let me know. A $199 iPhone? I’m not a Apple fanboy by any stretch, and haven’tt bought an Apple product since OSX, but I’m buying Apple Stock today, because they are going to sell 2 or 3 million on July 11th alone. Wait and see.

Posted By Gary, Highland CA : June 10, 2008 11:46 am

Come on…give some credit where credit is due. Apple had the best financial results in the company’s history for 2Q08 — revenues were up 43% YOY. According to IDC, the iPhone grabbed an impressive 20% market share for “smartphones” in the North America market in 1Q08. The iPhone is easy to use, sleek, packed with multimedia features, and slowly but steadily is improving the SDK for consumer and enterprise apps. I say Jobs is on the right track.

Posted By Peter J. Stewart, Atlanta, GA : June 10, 2008 11:41 am

Its not weather or not apple iPhone has features ?..its weather or not it meets the needs? Answer is clear loud YES!

I would love to have one of the new 3G Version, iPhone is the piece of “old” technology packed in the desing that the so leaders in the phone industry has everthought off. I admire Jobs and Co one thing…..steave you made every phone makers head turn and mimic the legend iPhone. Apple did a great job with iPhone, i wish 10 million sales target is not big! , espeacially i living in India have one i Phone and seen many in hands of people at public places than i have seen in US. Launch it in India and china, brazil, Russia (BRIC’s) i am sure apple is going to double this target. Apple is the only phone maker with ONE SINGLE MODEL in their portfolio. Cheers Apple fans, and best of luck , waiting for my New 3G.

Posted By Pradeep Reddy,Hyderabad,AP, India : June 10, 2008 10:21 am

Why are they comparing Iphone 3G with Nokia N95?
These are the true iPhone rivals: HTC Diamond Pro and Sony Ericsson XPERIA x1.

Posted By Adriano Coelho, Porto, Portugal, Europe : June 10, 2008 10:07 am

I’m an first gen iphone user and I have to say that the ability of the iphone to sync with itunes and have full software updates that redo the whole operating system is one of the most revolutionary facts that people keep jumping right past. I had a razr and it blew hard, and I know people who have blackberry’s and treo’s who constantly bitch about the software and hope that someone will come change something.

Apple has developed a product that they can alter at their whim. Never before has a handheld product been so editible. And that is worthy of great praise.

That being said, it sucks that my iphone that I got for christmas from the wife is now seemingly obsolete.

(First Gen Iphone: Born December 25, 2007 Died June 9, 2008)

Posted By Tom J., Dallas TX : June 10, 2008 10:04 am

One of the most disappointing features of the ipone is that it doesn’t take pictures that you can enlarge nor does it take viedo.
I also have more dropped calles and disconnects then verizon to the point that I have often thought of changing back.
I did hear that soon you would be able to have verizon with the Iphone, but had not heard more about that, yet.
Instead of creating a new IPhone with more capacity, Don’t you think they should have made the original capable of expanding to do the same things?

Posted By David M. Nicolau, Provincetown, Ma 02657 : June 10, 2008 9:42 am

Why am I seeing PC vs MAC all over again? One thing for sure.. I use devices I like… Not what others tell me to like.

Posted By Hilmar, Reykjavik, Iceland : June 10, 2008 6:01 am

I’ve been an Apple fan since 1984 when I bought my first Mac but I have not purchased an iPhone for the simple reason it does not support the Flash 9 Rendering Engine. Flash 9 is reported to be on 98% of the World’s computers and is the key technology for bringing Rich Internet Applications (RIA’s) to the user. If Apple really wants to ignite the iPhone platform they need to team up with Adobe, the new proud owner of Flash and Flex.

Posted By tygraphics, Cuyahoga Falls, Ohio : June 10, 2008 5:02 am

Mobile services are dirt cheep in India. for eg. my usual spend is roughly USD 20-30 (thats right) which includes 300 minutes of voice and 5-6 MB of data. Data charges are only 0.25 cents per MB. Despite this, companies are making 40% EBITDA margins. I wonder how much the new iphone will cost here, because there is no cusion to subsidise here. We will know later this year when its ‘officially’ available.

Posted By Rishi, Mumbai, India : June 10, 2008 4:56 am

for a fun phone, the iPhone is superior. The service from AT&T is S*#%! NO BARS IN MORE PLACES! Makes my iPhone an iTouch w/ sporadic cell service. Gonna see if the 3G makes the new phone better- otherwise, will get the boot!

AT&T – might be time to go back the ‘telegraph’!!!

Posted By Robert – Phoenix, AZ : June 10, 2008 4:24 am

they need it on more than one damn service, like t-mobile or verizon then they would sell alot more of them

Posted By AJ Camarillo, CA : June 10, 2008 2:42 am

I’ve had an iphone from day 1. It’s the best technology I’ve ever owned. It’s not perfect, but it continues a steak of innovating advances. Now web apps are coming! Add advanced gaming console to it’s feature set. The AT&T service has been great. It has limitations, No Flash, Video, MMS, etc., but it does what no other devices has. It consoldated 3 gadgets for me…ipod, phone and pda. I think non-users are envious. Blackberry does not come close.

Posted By clay, Las Vegas, NV : June 10, 2008 2:25 am

NO QWERTY KEYBOARD…Anyone whos tried to text on an iphone knows that the touchscreen technology isnt the best for repeated text messaging. I send thousands of texts a week and no qwerty just wont cut it.

Posted By Diego, San Jose, Ca. : June 10, 2008 1:17 am

Lots of b!tching going on here…

I have been using Cingular/ATT for several years and find it leaps and bounds better than Sprint and T-Mobile. I’ve never had Verizon and honestly don’t care to as they wanted a HUGE deposit from me with no explanation. I live in Western NY and and haven’t had any issues with service, even when I took my phone Florida.

While the iPhone is by no means perfect, I have found the software written for jailbroken phones to be pretty decent for adding functionality that should’ve been included. I know people will think, “But I shouldn’t have to do that”, well, then I think they’re missing out. There are a lot of extra little utilities that just do not seem to exist on any other platform.

All-in-all, I am very happy with my choice. I’m not a Mac/Apple snob (I am very much a PC person) but this phone, to me, was the best phone purchase I’ve made so far.

Posted By rvs, Buffalo, NY : June 10, 2008 12:49 am

Iphone is a junk. In fact common Chinese immitation fones are better than ifone. Too much monopoly. No free access to memory-flash memory, no access to chip-sim card, no voice recording, no video. its just a mess. stealing from innocent americans. ifone was a flop in other countries.

Posted By was, col, oh : June 10, 2008 12:37 am

Your writing. YAWN.

Posted By Fred, LA, CA : June 10, 2008 12:24 am

I won’t be buying it until and unless it allows me to send/receive faxes and I can use it to heat my food instead of a microwave.

Posted By MKazmi, Boston, MA : June 10, 2008 12:19 am

Video editing. Are you f’n serious?

Posted By Bryan, Seattle, WA : June 9, 2008 11:58 pm

The money here is in capturing business users as well, and iPhone can’t do that. I chose the AT&T Tilt because I have over 2,000 names in my address book, and the iPhone can only sort on last name, not company. Nor does the iPhone have external storage, so I can pop in presentations for my sales calls. The Tilt also has a built in GPS. Apple has a better user interface, but the Tilt has the features I need.

Posted By Phil, Valpo Indiana : June 9, 2008 11:33 pm

i have flawless att service where i live

Posted By TS, baton rouge, la : June 9, 2008 11:32 pm

You’re all wet! To “truly fulfill its potential” it must appeal to a very broad set of users. On board editing photo and video editing hardly meet this criteria. Mobile web, photo library and audio library mgmt, auto synch, GPS apps, very complete, compatible, and friendly PDA functions, speed,large screen, pocket size, reasonable cost — these are what users want beyond phone functions in a single device, and nothing alse comes close to the iPhone in delivering it all.

Posted By Joe McNamara, Hudson, MA : June 9, 2008 11:09 pm

It’s got multimedia features, but so does my iPod.

Um… You kinda said it right there. It is a phone AND an iPod. Oh, and it’s an internet machine.

People will find so much to complain about.

Posted By Drew, St Paul MN : June 9, 2008 11:09 pm

Only thing missing is availability at Verizon.

Posted By Mike, Orange, CA : June 9, 2008 10:58 pm

Good support for Bluetooth BR/EDR (3Mbps) with PAN and A2DP profiles is critical- i want to be able to use iPhone as modem, and listen to music thrugh full stereo channels. Also syncing over Bluetooth without the USB cable is a must.

Posted By Paul, Laguna Niguel, CA : June 9, 2008 10:24 pm

I purchased the iPhone when my iPod broke and
figured it would be great to have 2 for 1. Well, my
blackberry was a better deal, what is missing?

The ability to create or edit office documents
the ability to cut and paste
a search button for ms office
the ability to play any games puchased from
the istore
and lastly, to view my outlook categories .

I was hoping some of the issues would be addressed if not
I am going back to rim.

Ps until they address the office issue I don’t see fortune 500 companies switching to just view document :(

Posted By carls , nyc, by : June 9, 2008 10:07 pm

Copy & Paste??????

Posted By Mandy, Monroe, OH : June 9, 2008 9:47 pm

Wow, 200 dollars cheaper for the phone but you still have to pay 40+ a month extra on top of your plan to use it? I think I’ll still to my blackberry and put the extra money in my gas tank

Posted By Valerie, seattle, WA : June 9, 2008 9:23 pm

I agree. AT&T has the worst service on the market… when is the iPhone going to be sold by better carriers like Verizon?

Posted By Charlie Washington, D.C, : June 9, 2008 8:59 pm

Wouldn’t it be nice if Apple could add on basic features such as “cut and paste” or a “search on keyword” feature. That would enable them to compete with the Palm Treo phone. I can’t give up my palm until they do :(

Posted By Roland, New York, NY : June 9, 2008 8:52 pm

Latest version of iphone a big disappointment with dismal battery life in 3G and lack of features now widely found on even the cheapest of Samsung & Nokia “N” series devices. How can anyone be ignorant enough to fall in apple trap of blowing their hard earned money on rarely used data plans $45, preauthorised itune downloads and $99 iDisk. Apple should realize thats its high time they should stop fooling naive customers by wrapping any pre-existing technology using “i” prefix. I can only symphatize with users of this inferior technology device spending their fortunes without them even realizing it. Technology is not only about using buzz words like 3G,”i” and not even have basic functionality in a prehistoric 2MP camera like video recording leave aside conferencing.

Posted By Sunny, Austin, TX : June 9, 2008 8:48 pm

the phone is great, but their is something they must change, that is the size of the phone it’s to big i think the brick phone era is over.

Posted By Anonymous : June 9, 2008 8:37 pm

The next killer thing is getting all these little boxes we have to carry into one little box: cellphone, camera, gps unit, mp3/radio player, credit card/id that plugs directly into my car stereo system and my home stereo system and my computer and it all synched up nicely without any cords. I would be very happy.

Posted By mountain town, cal : June 9, 2008 8:35 pm

Only two questions from me…….can I replace the battery myself ?…….will it synch with my vista lap windows mobile device center ?……….oops 3 accessories ?

Posted By Rick, Coram, New York : June 9, 2008 8:32 pm

Wow, 36% faster than the Nokia N95. That phone only came out 18 months ago. Aside from the touchscreen, is there anything that the iPhone brought to the market? It doesn’t have many of the basic features that phones have had for years. One thing the iPhone does have, that is one great looking calculator Steve.

Posted By Bob, Boston MA : June 9, 2008 8:21 pm

AWESOME!

Posted By John, Washington, DC : June 9, 2008 8:19 pm

Great! Now my spouse will want the new model and I will get the “old” one.

Posted By Spouse, Scottsdale Arizona : June 9, 2008 8:19 pm

I hate ATT’s service. I have to go outside my house to use my cellphone now. I can’t see paying money for Iphone if it won’t work in my house.

Posted By mike santa monica,ca : June 9, 2008 8:19 pm

Just for info. http://www.openmoko.com linux based device. Never used nor intend to use such devices, plain old character mode cellphone sounds sufficient.

Posted By Jalesh Dikshit, Sunnyvale,CA : June 9, 2008 8:10 pm

You can’t make everybody happy!

Posted By Charles. NYC New York : June 9, 2008 8:07 pm

I need a more reliable service provider.

Posted By Anonymous : June 9, 2008 7:51 pm

Will it have GPS?

Posted By mp, Santa Clarita, CA : June 9, 2008 7:48 pm

3G Technology is a cool feature used for videoconferencing. You can talk on the phone and see who you are talking to.They will also see you on the other side if they are using a 3G phone.

Only problem here in the US is that the plan available are way so expensive. In 3rd world countries this is so cheap. In the states you should at least pay $100/month just for a plan that allows internet. I would expect it to be more when videoconferencing is added. That’s the reason why India is more advance in knowledge with regards to technology than an American.

And the phones in the states…its way sooooo obsolete…

Posted By Jet, CA : June 9, 2008 7:36 pm

I demand full 1080p resolution on my iPhone.

Posted By Dreamdeceiver, Silcone Valley : June 9, 2008 7:25 pm

I don’t want video editing on my phone – it would become a distraction like a game – not an application.

Posted By chris, melbourne australia : June 9, 2008 7:13 pm

Still waiting on Flash to run on the iPhone! That would open up the door to be part of a Adobe Connect – Breeze Meeting on an iPhone. What about a Yahoo IM client? What about another phone carrier in the US? These are things that would allow me to consider an iPhone.

Posted By Chris White, Greensboro, NC : June 9, 2008 7:12 pm

I have a 16gb iPhone, the only complaints I have about the product are the lack of a video camera, and the design of the headphone jack which requires you to use the cheap Apple headphones unless you purchase a extension and give your phone a tail. That being said, more and more companies are coming out with iPhone specific headphones, but it would be nice not have to purchase additional hardware to hear my music clearly and comfortably. Video conferencing would be a nice addition, but all other ideas stated in this article are absolutely ridiculous. Photo/video editing on a 6 square inch screen what a moron, who would ever want to do that.

Posted By Sean, Philadelphia : June 9, 2008 6:58 pm

Still ATT/Cingular only? I need something reliable; that means another service provider.

Posted By meltemi, hull, ma : June 9, 2008 6:53 pm

seriously i think this article (and all the comments below) have completely missed the most important part of WWDC… MobileMe which finally allows you to sync your PC at work (and most more importantly any Exchange work life), with your iPhone and your Mac at home.

This has been the only reason I (and any Blackberry users I know), haven’t switched to an iPhone. I know people that have been frustrated using one or the other, or even both, but this completely eliminates the last major hurdle that real business people have faced with an iphone.

Now the dream of an all-in-one phone/ipod/camera/computer that gives the user a fluid tech lifestyle is finally here.

Posted By Jay NYC : June 9, 2008 6:48 pm

The biggest problem with the Iphone is that it is solely exclusive to AT&T…a pretty darn crappy service if I must say. If they really want to hit the jack, get Verizon and the others involved

Posted By St, Tampa FLorida : June 9, 2008 6:40 pm

Well the iPhone is simply THE BEST!

YAWN!

Why can’t Apple figure out that the best phone should be a Upgradable phone… 16gigs won’t hold Too Much nowadays and it certainly will not hold much in the future… Why not a Memory Expansion Slot or something like that? Won’t that be better than a FIXED amount of Memory? Memory prices are going down like NO tomorrow… 32 Gig flash drives are here… for about 150 bucks… 64 gigs for 2000 or more but in six months… They will be the same price as 32s… It doubles each time (usually)! Maybe a usb connection like a mini usb? Software I can live without and I probably will never use ALL the apps it has but why not make it a little customizable… Replace iPods for instance?

Posted By B Comp, Las vegas NV : June 9, 2008 6:35 pm

No Flash Player?

If you don’t have Flash, you aren’t really surfing the web. Might as well be a text-based browser.

Posted By flompers, SF, CA : June 9, 2008 6:32 pm

Till the iPhone comes with at least 80 Gb memory, I don’t see why I should get one (and still have to carry my wonderful 80 Gb iPod around). My iPod holds the whole of my vast music library, and plus. My cell phone does the rest. I like to travel light and easy.

Posted By Wilbur Benson, Paris, France : June 9, 2008 6:29 pm

Where is the support of FLASH? It’s only on every webpage out there.

Posted By Bill, NewYork, NY : June 9, 2008 6:29 pm

This must be a provocative statement,
you are kidding?? This is the best mobile phone in years

Posted By JFM, Santiago, Chile : June 9, 2008 6:25 pm

You all slammed the obvious biases well !! Thank you it was a sweet read.

by the way, my Razor V3 ( Jan ‘06 ) could send pic & video clips to another capable phone.

What the author really wants, is a DNA analyizer that can show him what children with prospective mates would look like.

Posted By JR, Austin Texas : June 9, 2008 6:22 pm

How about regular picture messaging (MMS), the industry standard that every $50 phone has but that AT&T and apple block from working!!!!

Posted By Stuart, Emeryville, CA : June 9, 2008 6:19 pm

“Apple PIE” what a cock.

Posted By Chris, United Kingdom : June 9, 2008 6:18 pm

no video conferencing?!?!?!

what’s up with that?!?!?

Japan’s been on that for years now….i love Apple but I’m kinda disappointed in the new iPhone to a degree. Nice upgrades but there could’ve been more additions to the hardware.

I just hope they don’t come out with a better 1 in 4 months like last time…imma be f*ckin pissed!!!

Posted By me, NYC : June 9, 2008 5:52 pm

Wow. is stupid a prerequisite for writing at Forbes? Video editing on a cell phone? WTF?
the iPhone is simply the best, most intuitive cell phone on the market. that alone is enough to justify the purchase. the fact that it also browses the web, organizes email, contacts, and calendars, plays video and audio, takes and stores pictures, has GPS and 3G, etc. etc. only makes it the most phenomenal mobile device of the century.
stick with your Razor and a windows PC, Jon – you deserve them.

Posted By kevin, dana point, CA : June 9, 2008 5:51 pm

What’s missing is a decent 3G data plan.

Posted By Fred Washington, NY : June 9, 2008 5:48 pm

The major reason that I will not buy an iPhone (yet) is the tie-in to AT&T. I currently have a blackberry on T-Mobile and I am close to renewal time. Yet to switch my family to AT&T and for the two black berry users to switch to iPhones would cost me an additional $100+ / month based on current voice, data and sms usage. Not to mention about $500 in equipment charges. Or about $3000 over the next two years.

It does not matter how good the new iPhone 3G is, the increased costs are not worth it to me to make the jump.

(if you want to do the math, we have four phone lines including 2 blackberries on a family/myfaves plan with unlimited data and txt messags, we spend $152 / month (inc taxes etc), AT&T quoted me $248 / month (plus taxes) for the services and usage based on two recent bills. This is for two iPhones and the others two Nokia candy-bars)

Add to that the extremely poor customer service that I experienced with AT&T/Cingular/AT&T over a six year period and frankly it would take more than 3G and GPS to woo me back.

I am looking forwards to the release of Android on a decent HTC platform, but figure that the blackberries that we have will probably get replaced next year with new blackberries :)

Posted By Mark Nelson, Mission Viejo, CA : June 9, 2008 5:46 pm

Come on folks, lets me realistic. It’s a bloody phone! Are we so hung up on “killer app” and other techie buzz words? What do you want it to do wash the dishes and take out the trash too. I’m amazed that they expect people to watch video and surf the net on those mini screens. It can’t be all things to all people and I wouldn’t want it to be!

Posted By Norbert von der Heidt, Cairns, Queensland, Australia : June 9, 2008 5:46 pm

I would just like to be able to send/receive PIC and Video text Messages. That’s ALL. Is it really too much to ask for?

Posted By Jon, Greeley, CO : June 9, 2008 5:45 pm

I THINK THE I-PHONE HAS BEEN REALLY GOOD BUT SAME PROBLEM AS EVERYONE ELSE, THE WEB…I ALWAYS ENCOUNTER PROBLEMS EITHER IT’S TOO SLOW OR IT FREEZES…:(…ANOTHER PROBLEM LIKE ANY OTHER PHONE..WITH THE I-PHONE I AM UNABLE TO FORWARD ANYTHING OR ABLE TO RECIEVE ANY PICTURES….OTHER THAN THAT THE I PHONE HAS BEEN SATISFACTORY!!!!

Posted By SANDRA, CLIFFSIDE NJ : June 9, 2008 5:43 pm

O, Come On. Are you freekin nuts..
‘Blackberry got there first…’. Really, where? you mean e-mail..so does a $20 cell phone get you to the yahoo e-mail, but you cannot compare that to Iphone.. Blackberry is yesterday and IPhone is way way tomorrow, if you have ever even held IPhone in your hands.
The features that you are talking about – video conferencing and such, I am confident IPhone will get there too, but if you understand the product delivery lifecycle and aligning it with what people have been looking for, Iphone has done exactly that and lot much more..
Next time, when you write a comment, make sure that you note that it is completely your personal opinion and does not match with facts and what other 99.999% of folks around the world are thinking

Posted By Kuldeep, Clive, IA : June 9, 2008 5:37 pm

I think it may take a few weeks for the real implications of the software to be felt. I believe the share price will return to fair value when the fair weather investors move on. I was impressed by the software presentation. To be able to have someone at home or office update my calendar, contacts, and have it instantly on my phone is significant. GPS was a key feature lacking. The price drop would be huge news except if you’re AAPL (and then it’s a mistake). Giving software developers 70% of the profits will accelerate developments for the phone in coming months. Ebay bidding should not be overlooked. And isn’t blogging step one of the development for video conferencing? I’m not sure who has a need to edit video on their phone, perhaps Mr. Fortt has some need for this. Had AAPL announced Leica lenses and full digital AVID support it would have left Forbes asleep. Let’s not wake them. Good buying opportunity for AAPL.

Video editing?

Posted By zeke richardson, Los Angeles California : June 9, 2008 5:31 pm

receiving photos via text is annoying, as it requires logging on to a website to view the photo. also, recieving and recording video should be something elementary for a product as advanced as the iphone.

Posted By C, Chicago, IL : June 9, 2008 5:28 pm

Come on! 3G and the dramatic price drop to 200 is HUGE. Add to that GPS, Exchange for the enterprise, MobileMe for the home user and the coming tidal wave of 3rd party software and you have to be impressed by how hard and fast Apple is moving.

Posted By RJW : June 9, 2008 5:24 pm

The new iPhone must significantly improve battery life

Posted By Fred, Atlanta, GA : June 9, 2008 5:19 pm

“Apple PIE”. (Apple Personal Information Experience). An Iphone is not for every one. In my case; it has to meet 100% of my “Apple PIE”. What does it take to meet your “Apple PIE”?

Posted By Danimal. H, Chicago, IL : June 9, 2008 5:18 pm

Gosh it sounds like you haven’t seen a phone that has had jailbreak put on it to allow you to install a host of applications. I have one that does MPG for me and a converter calculator that converts money for me when I travel.I have a dictionary program and an eBook reader. It even has a great video program that lets me email video to friends. There are a LOT of great applications that a jailbroken phone can run. All of these are applications that run on the phone even in airplane mode. Try it.

Posted By Keith Wills, Santa Cruz, CA : June 9, 2008 5:10 pm

great. a year after introduction a newer, faster model at 1/2 the price. too bad the year old phone is not compatible. maybe some interphase should be made possible.

Posted By harvey s chicago illinois. : June 9, 2008 5:09 pm

at least they should have a user replaceable battery. yeah, batteries fail. And forget the “thin” line. Just have make a non-breakable iphone. People do drop things.
And free apps upgrades! nothing is more annoying than having to go online and pay for some tiny upgrade to make the phone more usable. Speaking of upgrades, memory upgrades too, easily.

Posted By Ken, winter park,FL : June 9, 2008 5:06 pm

Wow. Another obviously biased article concerning Apple.

I own a Windows Mobile device (TMobile Dash) and it is without a doubt the buggiest piece of garbage I have ever owned. If I didn’t have a contract with my current carrier, I would have replaced it with the iPhone a long time ago. I have NEVER met an iPhone user that didn’t absolutely love the thing.

When my contract is over (Nov 2008), I will be switching to ATT and buying the new 3G version of the iPhone. Soon after, I will probably be throwing out the other electronic piece of garbage in my life (the PC), and replacing that with an iMac.

Posted By SRogers, Allen, Texas : June 9, 2008 5:04 pm

This is an embarassing article written by someone who has no understanding of technology or users.

Yeah, that’d be great, video editing on my phone.

Surfing the web with the iPhone is a huge jump from basically plain text sites people were used to. That’s a hell of a lot more than a cool feature. Jesus, has this guy ever worked in the tech sector?

Also, it’s not just apple and other software companies that are going to contribute to the phone. It’s the community of developers that is going to make it huge.

Fortune, like Time and Newsweek, is ridiculous to go to for any kind of tech news.

Oh, you guys can stop saying killer app now.

Posted By Steve, Los Angeles, CA : June 9, 2008 5:04 pm

Seriously, this article is ridiculous. And what’s up with all the people not realizing that the iphone does support bluetooth??

Posted By sam, arlington, va : June 9, 2008 5:02 pm

To really take off it needs to be available to those using networks outside of AT&T

Posted By dick newton mass : June 9, 2008 5:01 pm

NEWS FLASH: There is already an invention that does everything mentioned here; it’s called a LAPTOP! Yes, we all have one but now I guess they’re too big and uncool to use while sipping lattes at Starbucks.

Posted By Wil, Decatur GA : June 9, 2008 4:59 pm

Lets see, Apple announce (taking the words directly from Fortune) ‘…a faster, cheaper iPhone’, and the pundits start complaining that they expected more and that in turn drives the stock down!

Apple delivered what the USER wanted. Maybe we should be running the US stock market cause you iDiots done get it.

Posted By jammydevil, Sarasota, FL : June 9, 2008 4:59 pm

No, what’s still missing is simple…

Copy/Paste

Posted By Dwayne, Boston MA : June 9, 2008 4:48 pm

Does this version of the phone run JAVA apps?

Posted By Cheshire CT : June 9, 2008 4:46 pm

where is Flash 8 Video? VP6?

MoveNetworks Player?
ABC, FOX, ESPN360 ???

Posted By Ted, DC, DC : June 9, 2008 4:41 pm

How about someone bring up the fact that the new iPhone comes with a price INCREASE. Don’t get blinded by the $199 and $299 price tags. AT&T slipped out a press release stating that the new data plan for the iPhone 3G would be the same $30/month plan that they offer for other phones. That is a $10/month increase over existing iPhone plans and $240 over the lifetime of the contract making that $199 phone $439 or $140 more than the previous generation iphone with the same 8GB of memory.

Posted By kclendaniel : June 9, 2008 4:39 pm

I think Apple is building a beautiful platform. It needs to get all the cutting edge hardware together and then just keep rolling with the software updates. I agree with allot of what you said. To me the only hardware now missing is a front facing camera for teleconferencing. Perhaps even 3g is still a little slow to support this feature and stay true to Apples quality standards. I wouldn’t be a bit shocked though to see it in iPhone 3.0.

Posted By Frank, Philly PA : June 9, 2008 4:39 pm

How long did it take before the iPod reached critical mass? Better yet, how long did it take for desktop publishing to move to the PC?

I don’t think we have hit the point yet where the “killer” app has hit, but to be honest, why do you have to have one essential app for everyone? If the old mac was only a desktop publishing tool then it never would have moved into the space it is in now.

If the iPhone is truly a new platform then it isn’t about a killer app, it is about making the apps that users want/need to be accessible. GPS may not mean anything to me but for someone else that might have a much higher value.

Just like the old days when I didn’t care professional print pieces, but a nice word processor and Sim City. In today’s world how many non-video editors and science labs buy a desktop tower because it helps them do “whatever” better, faster, easier than if they had a Windows machine.

Posted By Brooks, Dallas, TX : June 9, 2008 4:32 pm

I must have been watching a different demo. What I saw was a perfect storm of new hardware, new software, new network, new corporate support, a non-business “cloud” application (MobileMe) that I will actually use, and an about-time applications store. This is the kind of tour de force that will win over the world.

Posted By Dave T, Minneapolis, MN : June 9, 2008 4:32 pm

Where’s handsfree, voice-recognition? It’s a veto until it gets that.

California, New York and other states mandate handsfree mobile phone use when in the car. Without voice recognition, it really isn’t ready convenient mobile use.

Posted By Steve Amerige, Morgan Hill, CA : June 9, 2008 4:32 pm

I don’t think the iPhone has to do anything more amazing than it does already. Rather, it has two pedestrian faults that turn it into a killED app, at least for me.

1: Not enough memory. 16GB is not enough for a real music fan; the Classic iPod has the right idea, with 80 and 160GB models.

2: Sealed, non-changeable battery. What are they thinking? Of COURSE the battery will fail!

BOTH of these issues could be resolved if they would drop the idiotic obsession with “thin.” I would happily “sacrifice” another 1/4-1/2 inch to include these features. It would be nice, too, if they would add Bluetooth, but I’ll settle for the two issues already mentioned.

Posted By Richard Factor, Kinnelon NJ : June 9, 2008 4:19 pm

Another Fortune tech columnist, another basher of apple.. you guys are gettin pretty friggin old.. try looking at Apples fundamentals and marketing prowess instead of writing FUD pieces on it just because the newest IPhone doesnt cure cancer or some BS.. get a clue

Posted By DM, Culver City, CA : June 9, 2008 4:15 pm

oh paaaleeease.. this phone was going always disappoint those that wanted to be disappointed, even if it could wash you car!! the key to this is not necessarily all the onboard features.. it’s the distribution, price cut and apps network support that will drive total dominance in this space..

Posted By twohuts, SF CA : June 9, 2008 4:11 pm

Groundbreaking is “on-board photo and video editing” ! How many focus groups did you moderate?
The mea culpa “something too cool for me to dream up” only allows you to say “away on vacation” – rather than fill in your punch card quota.
Admittedly we hold you to a low standard – but you dropped it there.

Posted By Norm, New Haven CT : June 9, 2008 4:09 pm

RE:For this device to truly fulfill its potential, I believe it will have to offer something totally new – something like on-board photo and video editing, or a videoconferencing app, or (most likely) something too cool for me to dream up. By reaching out to software developers, Apple has put itself and its partners in position to achieve that kind of breakthrough eventually – but I didn’t see it this morning.”
True and yet irrelevant.
3G IS the breakthrough for this update and that puts it in my ‘Buy’ column. It’s a feature that made me right off the first iteration. With reference to “Killa Apps”. I do agree that there are some apps and device extensions that are wanting, but I believe that Apple will be the first to introduce them and no- you haven’t a clue what they will be ;)

Posted By Aten Imago- Geneva, Switzerland : June 9, 2008 4:09 pm

so you’re going to edit video on your phone? man, i’m glad you’re not the guy who puts together the iphone strategy.

Posted By dig, Brooklyn NY : June 9, 2008 4:08 pm

Something is missing, but you don’t know what. Very lame.
What has been missing is INTEGRATION of all those disparate technologies – music, video, phone, PDA, miniature game machine, camera, camcorder etc. Yes it’s been done, but it hasn’t been done with the style Jobs and his lackeys bring to the table. That is why Apple is so successful and why you are writing nebulous blog entries with misleading titles to generate traffic. The beauty of this device is that it puts together the technology in a way what isn’t cumbersome (like the Pocket PCs are), with a fairly slick interface and now the ability for 3rd party apps. Perfect? Far from it, but a lot better than most stuff out there, and good enough that other manufacturers are ripping off the design.

Posted By Cary Barker, Towson MD : June 9, 2008 4:07 pm

It’s all about the Enterprise, which is just a lowball barrier to entry. You can’t possibly do the things you want to do when it comes to groundbreaking software until you have the foundation – 3G. One might consider that iPhone 1.0 was really just a beta product, not yet ready for primetime.

I imagine that patience will be rewarded in this case.

Posted By Jonathan, Gahanna OH : June 9, 2008 4:03 pm

your a retard. You already have an ipod? this phone is as expensive as a touch and inlcludes a phone, web browser, ect. They redefined wireless when the first one came out. I sell these things and it has completely disrupted all other carriers.

Posted By matt, rochester ny : June 9, 2008 4:03 pm

Its always easy to complain or critque… enjoy using your Windows Mobile phone

Posted By SGJ, Chicago, IL : June 9, 2008 4:01 pm

I’d like to see GPS capability incorporated so I can use my iPhone like I use a portable GPS Navigation system…combine all my fancy resources into one iDevice. I love it and think Apple will be the first to do it.

Posted By Karen, Germany : June 9, 2008 4:00 pm

can’t please everybody ….

Posted By Joe Soslo Stockton, CA : June 9, 2008 4:00 pm

Talk about really missing the point. This is the World Wide Developers Conference, after all. Apple has opened the iPhone to thousands of third-party developers, so Apple doesn’t have to come up with all this software on its own.

A suggestion: go back and do a little historical research about a product called “VisiCalc.” If ever there were a “killer app,” that was it.

Posted By George Slusher, Eugene, OR : June 9, 2008 3:59 pm

this is the most stupid thing i’ve read in a month. video editing on a cellphone? what’s wrong with you?

Posted By Anonymous : June 9, 2008 3:57 pm

Are you kidding me? Grow some brains…

Posted By Ben Seabrook, NH : June 9, 2008 3:56 pm

Uhhhh did you not see the handful of demos of the 3rd-Party apps? Did you think that that was all that is going to be offered? Are you aware that there are going to be thousands of 3rd party developers offering application for the iPhone? Do you get this company at all?

I’m still amazed that people with no understanding of what Apple is doing are allowed to write articles about it.

Posted By Mr Apple, Cupertino, CA : June 9, 2008 3:55 pm

Wow, Jon…the keynote’s only been over for an hour and you’ve already found the time to write two “articles” for Forbes commenting on how uninspiring the announcements were in your opinion. I wish I could get paid to spout off about things I clearly don’t understand. Then again, maybe you are just jealous of Apple longs like myself who will make even more money in the coming months. Sorry if missing out on the gravy train has left you miserable.

Posted By Steve, SF, CA : June 9, 2008 3:55 pm

Looks like you never worked with any Photo editing software… You don’t do any Photo or Video editing on such a small screen.

But I agree with you on the Video Conferencing!

Posted By Sam : June 9, 2008 3:54 pm

This writer may have played with the iPhone, but he doesn’t use one. The iPhone debuted as the best consumer telephone ever, and it’s still by far the best. Around the world, cel phone users are discovering how insufficient their phones are compared to iPhone, which is the new standard. Full Browser functionality is a cool feature, not a killer app? Do you understand this technology at all? Where else do all of these features co-exist on one device, and work beautifully and seamlessly. Today’s new 3G iPhone, although it may not be sexy to you, means that iPhone will be faster, it now has GPS, it will have a host of applications built by developers around the world, and a proven distribution model to get those apps online. Enterprise support is happening, and growing. And now the price point, which at $200-300 means that this phone will be as ubiquitous as the RAZR, a device that is an abacus compared with iPhone. Go ahead — sell your stock. Sell it all, or just 75% as was irresponsibly recommended by Jim Cramer today. I will be laughing at you all as the company, the products, the stock continues to grow upwards of 50% a year in a global recession. This is the international business success story of the new millenium. Ride the wave, or eat sand.

Posted By David, Santa Monica : June 9, 2008 3:52 pm

What a doofus!

Watch this phone fly off the shelves this year.

The critics come out of their caves to attack the achievers.

Go back to your dark lair!

Posted By Joe Bellevue, WA : June 9, 2008 3:50 pm

How about just getting rid of the camera. Others have failed to penetrate the smart phone market because of this. Those of us who work with Intellectual Property are forbidden to have a camera, and our customers and vendors are deprived of their communications when visiting.

Posted By Anonymous : June 9, 2008 3:48 pm

first

Posted By jack cali : June 9, 2008 3:47 pm

—and so the big push to minimize the 2.0 iPhone begins, as well as the concerted effort to sink its stock.

But it ain’t gonna work this time!

The 2.0 is nothing short of phenomenal, and anyone who doesn’t buy Apple south of $200/share is just plain missing the boat.

$250 here we come!

Posted By Sacto Joe, Sacramento, CA : June 9, 2008 3:43 pm

It’s a great phone, that just got better in almost every way. Would you really want to edit photos on your phone? Do you need that feature in a toaster as well?

Posted By C.S., New York, NY : June 9, 2008 3:43 pm

What about the simple, good old multimedia messaging? You can’t take photos and text it to a friend and vice versa. That’s a huge sucky letdown. Will the new one be able to do this?

Posted By Rebecca, New York, NY : June 9, 2008 3:43 pm

You are kidding, right?

Posted By melbourne, fl : June 9, 2008 3:36 pm

*yawn* .. other then fantastic pricing (interesting if this is true retail or after at&t discount) I didn’t get blown away by anything .. I’ve been in the 2.0 beta so most of this is old news to me but everything is something Blackberry already offers:

Location based services
Internet Service with Push everything
Push Notification (duh!)

Funny cracking on that MS Connector that will get you acceptance into the Enterprise .. then again ask anyone who supports Windows Mobile how crappy ActiveSync is anyways. MobileMe is a neat idea for those not bound to an enterprise email system .. but $99 on top of your carrier charges .. pricey.

Posted By MobileAdmin, New York, NY : June 9, 2008 3:32 pm
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Jon ForttA senior writer for Fortune, Jon Fortt focuses on technology and innovation in Silicon Valley - a subject he's been reporting on since his days as a rookie reporter for the Lexington (Ky.) Herald-Leader. Before joining Fortune in 2007, Jon had reporting and editing stints at Business 2.0 magazine, and the San Jose (Calif.) Mercury News, Silicon Valley's hometown newspaper.
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