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Reining in hype for the new iPhone

Posted May 23 2008, 01:09 PM by Kim Peterson
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We're officially in bizarro world when people start lining up at Apple stores for absolutely no reason. Yet that happened yesterday in New York (Engadget has the details.) Perhaps it's a sign of the inevitable hysteria that surrounds Apple's annual developers conference, slated for June 9. The biggest question is whether the company will announce a faster iPhone, and analysts are weighing in with predictions.

Top Apple analyst Gene Munster of PiperJaffray told investors today to cool their heels. Yes, Apple will show a new iPhone with 3G capabilities, which allow for faster Web access, but it will look almost exactly like the current model, he wrote. Don't expect revamped iPhones until 2009. Apple shares are up slightly today to $178.62. 

It's been a while since we've seen new MacBooks, and Munster said there's a 60% chance they'll be announced at the conference. Odds are higher that they'll come this summer, he said. 

The iPhone uses AT&T's network, and AT&T's CFO said yesterday that a price for the phone hasn't been set yet. That decision is entirely up to Apple, he said.

Update: Two more analysts chime in. Goldman Sachs' David Bailey predicts Apple will sell 11 million iPhones this year. That's 1 million more than Apple's own goal. Bailey raised his price target for the stock to $220 from $185. A Merrill Lynch analyst raised his price target to $215 from $186 and predicts 20 million iPhone unit sales in 2009.

Comments

 

I'm never switching over to ATT, so until they offer an unlocked version they will not see the true impact of this phone. Tmobile and other provider's users are not ready to get bilked by a "dedicated" provider much less a pricy one like ATT.

;{

Perhaps the biggest drawback for many is that even given you have to be on AT&T or switch to it, you CANNOT buy an iphone if you have a business account. What sense does that make?

would like the phone/ not ATT/ so it's still a no go

Although Apple will now allow access to Exchange, it's still a far, far place from being enterprise ready.  MSFT is doing some great stuff with the Mobile Device Manager around systems management, 2-factor auth, etc.  the iPhone belongs in the hands of the latte drinker - it's not an enterprise tool by any stretch of the imagination.  Also when people are writing complex, robust applications in .NET CF, who in their right mind would pay to write the app a second time just to support the iPhone?  Apple - get smart and get off your cheap dev platform.

The IPhone it’s a great phone but the consumer should have the choice of carriers.  AT&T is pricey in comparison and it’s not the best service dollar per dollar. Steve Jobs is doing a disservice to Apple Inc. investor by giving AT&T exclusivity. Unless the IPhone is allowed to work with the other three major carriers his goal of selling 10 million phones by the end of this year is just a dream.

I recently received an iPhone for my birthday on May 25th.  In finding out about the 3G yesterday, I went to my local AT&T store to return my current iPhone so I could buy the new 3G in July.  Even though I missed their 2-week return policy by 24 hours (if you counted Memorial Day as a holiday, yesterday would have been my 2-week mark), they would not take the return or make an exception.  The quality of service at AT&T was not acceptable and it doesn't make Apple look good either.  As a matter of fact, the first thing the manager said to me was "What's up?".  I have been an excellent customer for many years and this has disappointed me a great deal.  I work in Customer Service so I know all about policies, procedures, and "exceptions".  I know for a fact AT&T could take my return but they are choosing not to do so.  I have to say that I agree with the recent posts:  Apple, find a way to make this phone available to everyone; to all carriers.  Limiting our choices limits your customers.  

I experienced the same problem as SJ.  I just purchased an iPhone, but my local AT&T store would not allow me to return it!  I then proceeded to contact AT&T's customer service line for help, and they also disregarded my request to return my phone.  If you look on www.wireless.att.com, AT&T claims that their vision is, "To be the most highly regarded wireless company in the world, with a driving focus around best-in-class sales and service."  Regarding their values, they say that, "We value our customers and treat them with respect, providing friendly, courteous, knowledgeable, and prompt service at all touch points. We seek and are driven by our customers' feedback."  My experience with AT&T has shown the exact opposite, and I would recommend that Apple find a different wireless company to partner with.  I've been a loyal AT&T customer for about 2 years, and the way that I was treated last night has left me wanting to change wireless providers.

"Reining" was that supposed to be "Reigning?"

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