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Apple may be planning to release a 3G version of its hugely popular iPhone as early as the middle of the year, according to reports.
An industry analyst's note reports that Apple has lined up the German chipmaker Infineon Technologies to supply parts for its next-generation phone, and may release the product as soon as June or July.
Speculation has been fuelled by the reports that Apple has begun to reduce its focus on the current iPhone platform - which runs on the 2.5G network known as EDGE - in favour of developing software for the newer device.
Steve Jobs, Apple's chief executive, has previously hinted that a 3G version of the device could hit the shelves later this year. A June launch would come 12 months after the iPhone's release in the US.
The 3G iPhone is expected to trigger a flurry of sales to fans who are enamoured of the iPhone but feel that its most innovative features - such as the web browser - are hampered by the slower network.
The UBS analyst, Ben Reitzes, also said that the business appeal of the iPhone will be improved with the release of a new software kit that will allow developers to write applications for the iPhone - much as they do for the networking site Facebook.
“We believe new features could help address issues that are limiting iPhone penetration in the enterprise," including compatibility with Microsoft's e-mail applications, Mr Reitzes said.
A separate note issued by Morgan Stanley suggested that Apple could be on the cusp of some major announcements because Mr Jobs had been travelling more than usual. In the past three quarters, Mr Jobs had spent $550,000 on air travel - nearly three times more than the average spent over the past year and a half, a Morgan Stanley analyst wrote.
Because Mr Jobs was "integral" to any negotiations with phone networks vying to win the contract to supply the iPhone, the extra travel was likely to relate to the release of the iPhone in new countries, including in Asia and Europe.
"We'd point to a 34 per cent year-on-year increase in R&D and 170 per cent year-on-year increase in Steve Jobs' airplane expense in the December quarter as signs Apple is preparing for meaningful product launches," the analyst, Kathryn Huberty, wrote.
Apple is due to unveil a "software roadmap" for the iPhone at a meeting at its headquarters in Cupertino, California, next week.
Yesterday Apple shares gained more than 4 per cent on the back of optimism that the company can counteract the effects of an economic downturn by encouraging software developers to write applications for its iPhone, triggering greater demand for the device.
After a meeting with Apple's chief operating officer, Tim Cook, on Wednesday, David Bailey, an analyst at Goldman Sachs, said: "Apple’s industry-leading product cycles should help it overcome softer seasonality and sets the stock up for a strong second half.”
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Edge is not available in most areas so GPRS isain service and it'd very slow!!!
C.K,, essex, UK
Calling 2.5G/Edge an "unusable crawl" is going a bit far. Speed-test sites show 256kb/Sec which is 5x faster than a 56k modem and dialup is still marginally usable. I find Edge speed "adequate" for web browsing. It's not like P2P filesharing is really what a handheld device is about after all.
Andy Pugh, Basildon, UK
Now they have announced that the 3g iphone will cost just 199$ . Those would be roumours I guess . Oh well , whatever , nevermind. I just fear that with such a low price tag , iphone features may be slashed . I'm eager to buy 3g iphone. for lates updates on the 3giphone,http://www.buy-3g-iphone.com
John Bigs, London, UK
Lack of 3G is the only reason I haven't swapped my Sony Ericsson P990 for an iphone. P990 is a disappointing lemon (especially after the earlier models which were excellent), but I cant stand the thought of going back to a 2.5G crawl.
Eric Worrall, Southampton, UK
3G will make a MASSIVE difference compared with 2.5G.
It basically makes the service go from pretty much unusable to being a very useful tool.
True there are lots of wifi networks, but anyone in a big city knows you have to hunt round for one which totally defeats the point of connectivity.
Rob, London, UK
the iPhone is revolutionary and as for being less than £100,find me a 8gb Internet capable touch screen phone for that much
Chris pugh, Staffordshire , staffs
I always find it funny when you get these "experts" telling us about the problems with iPhones and then find out they don't have one. Owning an iPhone is a "user experience" not a "technical spec " competition which is EXACTLY why its totally in a different league the term iPhone killer is like the term iPod killer and is a statement that this is now the industry standard ...but is a year ahead and choosing the entire direction of the market which is that iPhone is not just a phone but the next big operating system ..and that means the winner takes all !! Get an iPhone and stop trying to justify your bargain hunting.
Brett Schlesinger , London , UK
I bought my iPhone on day 1 one of its release in the UK. It has changed the way I work and run my business, sure other phones are now doing similar things. But not one them is as simple or elegant to use, it is a pure joy. Well done Apple for once again taking a different view on a stagnating copy cat market.
Peter House, Bristol, UK
The IPhone is so over rated, compared to other phones on the market it should cost less that £100 on PAYG even with 3G.
Its got a touch screen? So what, why would you wanna get a screen all grubby with your fingers and then try and read a text from it anyway?
But its Apple!? Yes apple are an extraordinary company that have worked their magic in the attempt to wipe windows and i fully support that. However the iphone has only sold because of its i. Their are many other phones on the market with the much better features and a touch screen but have failed because they are not branded with the famous i.
I have an Ipod nano and a Samsung G600 and it works fine like that. No MP3 playing wearing down my phone battery :)
Apple need to step up the game because Sony Ericsson and Samsung are light years ahead of them and i can soon see the iphone frazzled out.
Sam, Rugby,
I agree that lots of locations now do free wi-fi and many city centres are implementing wi fi.
Therefore, the appeal of 3g is not a purchase maker for me. What will make me purchase an iphone? Cheaper handset cost.
Chris, London, United Kingdom
Steve will buy himself a learjet after this
MMartins, Lisbon, Portugal
Of course, everyone who bought the pre-3G iPhone will be quite disappointed. I guess that's the price they had to pay to get the cool new gadget.
Personally, I bought the iPod Touch. I don't use my cell that much and it has all the applications of the iPhone. I love it.
Kyle, McDonald, Ohio, U.S.A.
3G isn't worth get exciting about. 3.5G is already in use. WiFi is available in every major town through BT OpenZone and The Cloud.
The real showstopper will be WiMax on devices like the Nokia N830 with VoIP.
NM, Leeds, England
Apple COO Quote "Developers will only be limited to their imaginations"
Looks like their imaginations are then limited by Apple Inc, Cupertino CA
ryan, uttoxeter,
i think it is really good idea.i think that the iphone should have more great new feature's example,navagation system,higher great quality of camera.But apart from that i think the Iphone will be a great hits for poeple!
mohamed, hayes, UNITED KINGDOM
My hunch is they'll launch 3G phones in Spain and Italy first
Jason, London, UK