Finally, Steve Jobs unveils iPhone 2.0 and iPhone 3G

UPDATE 6:10 P.M.: What's missing from the iPhone? Here's another chance to weigh in.

UPDATE 2:50 P.M.: Some of our astute readers have noticed that we originally said Steve Jobs described the new iPhone as thinner than the previous version. They noted that Apple's iPhone specs page says the 3G version is .48 of an inch, compared with .46 of an inch for the current model. But during his keynote address Jobs definitely touted the new iPhone as "thinner." So which is it? Thicker or thinner?

The answer: Both. Jobs threw in a caveat -- it's thinner at the edges. The specs, however, list the device's thickness by measuring its thickest point. So, although the new iPhone is a bit lighter (4.7 ounces vs. 4.8 ounces) and feels a little less bulky in the hand, it's technically thicker than the older version.

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UPDATE 12:10 P.M.: Enough with the new software, time for a new iPhone! Due in about a month, the iPhone 3G is thinner at the edges and cheaper and runs on a faster data network, Steve Jobs says.

Jobs says the new version runs on AT&T's 3G (industry-speak for third-generation) network. That should help shoot down one of the biggest criticisms of the iPhone: It's a great Web-surfing device when you're within range of an open Wi-Fi connection, but it's brutally slow when you're on AT&T's standard cellular network, Edge.

AT&T's 3G network is almost three times as fast as Edge, Jobs says. He loaded a page from the National Geographic website -- it took 59 seconds on the Edge network and only 21 seconds on the 3G version. "It's amazingly zippy," Jobs said.

The iPhone 3G also has built-in GPS, which he said would lead to new services that target you by location.

Oh, and Jobs says it has got better battery life: five hours of talking, six hours of Web browsing, seven hours of video-watching or 24 hours of audio-listening.

Whoa! It's going to cost $199 for an 8-gigabyte version and $299 for 16 gigabytes of storage. That's a lot cheaper than the least-expensive model's current price of $399.

It's launching on July 11 in 22 countries.

Keynote over!

Analyst Ken Dulaney of Gartner told us that Apple was clearly going after the cellphone industry's top dogs. "With these announcements today, [Apple is] making a statement they want to overtake Nokia," he said.

"Price is the big surprise," said his Gartner colleague Mike McGuire. "If anyone needed proof that Apple wanted to go after a broader market, they have it now."

More reaction later.

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Apple Chief Executive Steve Jobs ended the guessing game this morning and is, at this moment, unveiling the second version of the iPhone.

Jobs said iPhone 2.0 -- the next version of the software that runs the device -- would be available in early July. It’s free for all iPhone owners and will cost $9.95 for owners of the iPod Touch, which has many of the same features except the cellphone service.

Partway through his keynote speech at Apple’s developer conference in San Francisco, which boasted a record 5,200 attendees, Jobs has shown off jazzed-up calculators, additional parental controls, the ability to delete e-mail in bulk and other iPhone features that will come with the software update. It's going to support Microsoft Exchange, so more people can use corporate e-mail on their iPhones. Users also will be able to write in Chinese and Japanese, in some cases drawing characters with their fingers. "It’s one of the advantages of not having a bunch of plastic keys for your keyboard," Jobs said.

He also showed off video games and other programs that outside developers had created for the iPhone 2.0. Internet company Six Apart has shown off how to do live posts on its TypePad blogging service. A company called Loopt showed how iPhone users could meld social networking tools with a map to find out which friends are within 10 miles of them. Major League Baseball showed what it had created specifically for the iPhone: nearly real-time tracking of baseball games, including video highlights.

He said 4,000 developers had been admitted to the program for selling iPhone applications. The so-called App Store is going to be available in 62 countries. Developers get to set the price (free, if they want) and keep 70% of the revenue. Apple won't charge them for credit card or hosting fees.

So far, it's been only software updates –- no thinner or faster version of the phone itself. But we expect that’s coming. Stay tuned.

-- Michelle Quinn

Photos: Apple CEO Steve Jobs during his keynote speech to show off the new iPhone. Credit: Eric Risberg / Associated Press

Comments

[tony b]

I bought an iPhone in March. 16 Gig for $400. While I'm lamenting the loss of $100 and fewer features...I now have an excuse to give my old one to my son and get a new 16 gigger for $300...with (the very undervalued) GPS! I wish Apple wouldn't have such strange pricing but they seem to be passing on cost savings. That's not a bad practice.

[dhuyd]

I see what's going on here. Apple is trying to kill off the I-touch and possibly eventually the I-pod making the I-phone the main star of the show. The marketing plan is to lead buyers to this easy $199 and $299 price as the less powerful devices (I-phone,and I-pod) are kept at higher prices which will eventually kill them off. This isn't a bad thing. They just want to get rid of the old and bring in the new.

[bob Francella]

If I could use sprint, I would buy one right now, not with ATT

[Jeff M]

To Adam O:

Welcome to the consumer's electronics market. There's ALWAYS something better and cheaper 2 months down the road.

AND there's always something better and more functional than Apple products that are more geared to the style minded and not the technical minded.

[Petch]

Very bad for existing customers. I felt like Apple slapped me at the face.
May Apple shares go down to hell.

[Dan]

Anyone else kind of pissed? I just dropped $300 on an iTouch, and now I figure I could have saved $100 and got something way better? It sucks that they can do that, I mean I basically got ripped off.

I am going to sell my iTouch and get the iPhone, and just not activate AT&T service!

[KDB]

How is that bad for existing customers? You're getting the new OS & apps. Every piece of consumer electronic gets cheaper and/or better after you buy it. Deal with it. Apple doesn't owe you anything.

I've been with AT&T for awhile now. They're better for me than SprintPCS was. I can't speak for any other carrier, though.

I'll probably pick up the new iPhone. It'll be a nice jump from the RAZR I'm currently using...

[Ben]

So if I have a tech nutty friend who is upgrading to the iPhone 2.0, how much should I offer him for his 1st generation device?

[John]

I hope they include address transfer from sms. For contacts, if I add a birthday or aniversery it adds it to the calander. I'd like to be able to transfer voice msgs to the computer. Anyone here if Flash or Java is gonna be added?

[Tupac]

swweeeet can not wait to get my hands on that!
iam livin thuggglifeee babbyyy

[Ken]

i have to agree with the many previous comments....as long as AT&T is the only provider offered then Apple will not make an iPhone sale with me. Keep in mind that I own six iPods, 2 iMacs, and started buying Apple products with the very first 128KB Mac. If you've had the privilege of using Verizon's network after using AT&T you'd never go back either...regardless of how cool, slick, or "zippy" the iPhone is.

[W]

Let us also remember that the upgrade to the new software is *free*. How many companies do that? None of my older phones have ever done that, and my computers never gave me the next OS at no charge.

[marc]

can't steve get another colored shirt?

[Marcos El Malo]

@the dude that is unhappy because he bought an iPhone last month: Dude, even that tribe that they just discovered in the Amazon knew Steve Jobs was unveiling a new iPhone today. Why do you think they broke cover?

@the feature list people: A feature list does not make a viable PLATFORM, nor is a feature list a substitute for the user interface. If that were not the case, the iPod would have been a resounding flop. The phone itself is just a small part of the story. The big news is the software (although most of this news has been out for a while). There is a reason that Apple announced this product at the World Wide DEVELOPERS Conference.

The only serious competitor at this point is Google's Android platform, but there isn't even a phone out yet and won't be until the end of the summer. Apple has a a year + head start. What are the other platforms? Windows Mobile? Symbian? What a joke! Both of these endeavors have had years and have gone nowhere.

[Joan Reden]

does anyone know how long apple is contracted to at&t? i would rather wait until i can choose my own carrier. i left at&t 1.5 years ago for inferior service.

[Roy]

What I want to know is: Does this new Iphone have a phone that is worth a flip?
I took my first Iphone back as the cell phone did not have:
1. Missed call alert
2. Voice activated dialing (without a fee)
3. Decent ringtones
4. User replaceable battery.
If they did not fix these things, then it is worthless if you depend on a cellphone and care about missed calls.

[Roy]

Dont know about anyplace else, but around Columbia, SC, AT&T cellular service is absolutely the best. I used to have Verizon and it would not work at my house 3800 feet or so from their tower. HAd to go outseid to make a call holding phone a certain way to get through. Tried Alltel with same results, different phones with same results. Got AT&T and have super coverage in all areas of my home.

[Jason griggs]

does this mean the 2.0 download will enable my iPhone I bought in April to be 3g and the gps feature or will I have to buy a new one? The salesman at the Apple store told me that the new iPhone is mostly a software upgrade so I would be fine with getting it then. I hope this wasn't BS because.

[SS]

Quick question for old iPhone users: I have the old iPhone, if I upgrade the the software to 2.0 (when ever its available) am I going to get 3G network? or this 3G network can be accessed through new iPhone only?

[Telli Desiere]

Absolutely understates:
this phone is a disappointment. I say this as an iphone 1.0 owner.

* still no flash - its not happening w./ iphone 2.0 sdk people: it has to happen at a system internal level.
* still a crappy camera (low mp / no flash)
* rumor on video-conference never materialized
* still no video recording
* essentially unchanged batterly life (which is not great - good for 3g maybe, but not great overall)
* f'd up plans from AT&T are back - where did the 'apple simplicity' promise go? what happened to the 'streamlined experience'
* and they're requiring a NEW 2-year commitment to purchase one, even if you are a current iphone owner. No thanks.
* and they dropped the price so now ever chav in the world can own one.

Not happy. Expecting a 'true 2.0' in 2009. I honestly think this was a piecemeal offering from Jobs to hit sales targets. But I think in the back of his head, he's had a good look at the telecom industry players and realized 'a. they don't know customer service, b. i can beat them at their own game, and, c. apple will be better for it'

Expecting a revolutionary (rather than evolutionary) iphone 2.0 in 2009. 802.11n for near / wimax for far with inbuilt voip. Jobs basically gives AT&T et al. a big 'f you' I'll be first in line to buy. But not this meager offering. Sticking with 1.0 - looking forward to software upgrade though.

Additional pet peeve (to add to my rant): for the love of God, people in the media and the market, please understand: the ORIGINAL iPHONE WILL ALSO GET THE SOFTWARE THAT THE iPHONE 2.0 receives. I've heard more people talking about the 2.0 as offering a new software experience. This is just idiotic. It tells me that they don't really know the product. They read a fact sheet and typed out their story.

[Chris]

Flash, Flash. Flash!!! whats the point of going online without it, most websites are flash, how hard is it, its just a simple program. To make an upgrade without looking at what people complained about the first version is stupid!

[tommy]

MOST IMPORTANT:

Will the software update 2.0 allow existing iphones to use the 3G network?
I just bought one and feel like im being punished for paying out my ass

[Graeme]

cant wait for this got a text message from 02 (uk network) giving me a free upgrade to the 8gb iphone or for $130 i can go onto the 16gb which i will be doing great value and no increase on my tariff plus i get it in july and it only goes on sale to non iphone customers in october here!! iv jailbroken my current iphone and its been great getting MMS and video phone apps so with the GPS and other improvements this phone will definatley be worth the money plus im sure with the SDK available i wont need to jailbreak my phone again(thats if apple allow some apps to go on your phone). my only question is will it have a flash player to view vidoes on the web other than you tube?

[Richard]

To SS: Your comment 'does the new software upgrade let my old phone to use the G3 network' is interesting. Of course not. G3 capability is a HARDWARE feature. This type of comment is typical of non-tech users who are also 'outraged' about the price drop.

Jeez, do some reading... or let a friend help you shop who at least knows how to set an alarm clock...

R.

[den]

does this mean the 2.0 download will enable my iPhone I bought in April to be 3g and the gps feature or will I have to buy a new one? The salesman at the Apple store told me that the new iPhone is mostly a software upgrade so I would be fine with getting it then. I hope this wasn't BS because.

Posted by: Jason griggs | June 10, 2008 at 08:19 AM

Quick question for old iPhone users: I have the old iPhone, if I upgrade the the software to 2.0 (when ever its available) am I going to get 3G network? or this 3G network can be accessed through new iPhone only?

Posted by: SS | June 10, 2008 at 09:09 AM

did anyb0dy answer these questi0ns?