Apple introduces the iPhone

[ZeoBandit]

Apple: Hello, iPhone
Jobs unveils device that plays iTunes, searches Web and makes calls; company also announces video download player, will offer Paramount films on iTunes.
By Owen Thomas, Business 2.0 writer
January 9 2007: 2:36 PM EST


SAN FRANCISCO (CNNMoney.com) -- Consumers will finally get the chance to own an iPhone, a $499-$599 device that plays iTunes and searches the Web, electronics maker Apple said Tuesday.

Company chairman Steve Jobs, speaking at the company's annual Macworld expo, called the iPhone, which will be available in June, a "revolutionary mobile phone" that will feature an iPod, phone and "Internet communicator."

Jobs also disclosed that Apple's (up $5.73 to $91.20, Charts) iTunes will sell Paramount films, and that the long-awaited AppleTV device to view downloaded videos will be available beginning in February.

The phone is rectangular, with the entire front surface a touch screen. The device is run entirely by touch. It runs the Mac OS X, scaled down to a cell phone.

"This is a day I've been looking forward to for two-and-a-half years," Jobs told the crowd at San Francisco's Moscone Center.

The phone will come in two models, a $499 version with 4 gigabytes of memory and a $599 one with 8 gigabytes.

Jobs especially touted the device's Internet browsing capabilities.

"It's bad out there today," says Jobs of mobile Web browsers. "It's a real revolution to bring real Web browsing to a phone."

As a example, Jobs called up The New York Times Web site. The full page displayed, not a special version or oddly formatted page that most smartphones show.

He then called up Google Maps to find a nearby Starbucks. He actually prank called it and ordered "4,000 lattes to go."

Jobs says the "killer app is making calls." The iPhone will operate on the GSM protocol, but will not have third-generation broadband initially. It will sync with the Mac's Address Book application.

Cingular, a unit of AT&T (up $0.25 to $34.06, Charts), will be Apple's sole U.S. partner. It's an exclusive multiyear agreement, which means no other carrier will be able to sell the iPhone through 2009.

In a move that could strike at BlackBerry maker Research in Motion (down $8.07 to $134.09, Charts), Apple will offer free push e-mail from Yahoo (down $0.14 to $27.78, Charts) on the phone device. RIM currently charges for its e-mail service.

Jobs played a voicemail on the phone from former Vice President Al Gore, a member of the company's board, congratulating the Apple chairman on the new device.

The product formerly known as iTV will now be called Apple TV. This device has a wireless connection for up to five computers to stream or download movies and TV shows. It can connect to a large-screen hi-def television screen. The 40 gigabytes of memory can store 50 hours of video.

Apple TV will ship next month, and will sell for $299. Jobs said the company is accepting orders.

Jobs announced that there have been 2 billion iTunes sold for iPods. He said it took 3 years to sell the first billion and ten months to sell the second billion. He says 1.3 million movies have been sold for video iPods.

There was some question as to whether Apple would be able to use the iPhone name for the device. But Cisco Systems (down $0.13 to $28.50, Charts), which owns the rights to the iPhone name, said Tuesday it expects to reach agreement with Apple later Tuesday on using the name for its device.

"Given Apple's numerous requests for permission to use Cisco's iPhone trademark over the past several years and our extensive discussions with them recently, it is our belief that with their announcement today Apple intends to agree to the final documents and public statement that were distributed to them last night and addressed a few remaining items," Cisco said in a statement obtained by CNN. "We expect to receive a signed agreement today."

The company also disclosed that it is changing its name to Apple Inc. from Apple Computer Inc. to reflect the changing nature of the company's product list.

Apple shares surged nearly $7, or more than 8 percent, to $92.44 on the announcement.

[hatchetforce]

Man I love Macs.

Looking forward to checking this out (especially how it compares to the Bang & Olufsen Serene cell phone). Interesting that they are changing their name, makes sense with the diversification.

I've still been hooked since this:

[hatchetforce]

Pretty cool intro to the iPhone right at www.apple.com

[Axxman300]

Great, now instead of having to loose my Black Berry, I-Pod and cell phone I can now just loose this phone. Cool.

Needless to say, you won't be able to say that you didn't hear the phone because you have you headphones on.

[Dr5115]

I'm sure it's cool, but Damn........thats alot of $$$ for a phone!

[seenbad]

This is Apple's move to take over the world. I think they have a great shot at it.

[Majestic]

Here's a link for you guys:


http://www.engadget.com/2007/01/09/the-apple-iphone/

I won't have the cash for this in June, nor will I be switching to Cingular, but to me, this is damn cool!

And no, you don't use a stylus with it. Yes, it has "widescreen", in fact, it's got an accelerometer that detects which way you're holding it, and adjusts the screen accordingly. It can automatically connect to any available WiFi signal. It senses ambient light, and adjusts the screen brightness accordingly. It senses when you're moving the phone up to your ear, and disables the touch screen. You can browse the internet with it, you can send SMS messages, you can send video messages, the list goes on & on.

It's funny.....Palm did nothing wrong today, other than get out of bed. Their stock went down 6%, and Apple's shot up 8%. No, I'm not a "hater". I own a Treo 650.

[Majestic]

One other thing that is neat about it, is it uses something that is apparently called "Visual Voicemail". No, not video messaging.

Dig this: it assorts your voicemails as icons associated with the pictures of the different people who call you, and you can sort through them that way, as opposed to banging on the "next message" option all the time.

Certainly not "revolutionary", but very common-sense oriented. I wish the voicemails I got through Verizon were sorted like that on my Treo's screen.

[onefootoutthedoor]

I just read up on this on the Apple website. This thing is killer! I can't wait to see this thing in person, because right now I want one for myself! The only thing I wonder about is the memory. 8gb seems small to me.

[Dennis]

I'm picking this up....it has real internet access too. Looks like I'll be dropping tmobile for cingular if that's what it takes.

[ZeoBandit]

I'll wait for the price to come down first.

[onefootoutthedoor]

Ok, so I sat and watched the Apple keynote from macworld just now. Seeing all of these apps in action was amazing. The reason the memory is so small is that it's flash memory instead of hard drive.


I already have Cingular and wouldn't you know - I'm able to upgrade my phone in June! Time to save those dollars...

[Majestic]

I already have Cingular and wouldn't you know - I'm able to upgrade my phone in June! Time to save those dollars...

You sonofab*tch!!!

Actually, my contract w/ Verizon is up in June as well. I'm debating on waiting for a version of the iPhone that's.....erm....without the phone. In other words, a plain 'ole wide-screen iPod. It would be cool if it kept the WiFi.

My main thing is.....and most will probably disagree.......I think I was happier when my planner/media center/document holder WASN'T connected to my phone (I own a Treo 650).

[Wolfgang_'99]

First crappy computers that you can make talk/squeal.
Then the coolest music players around.
now a touch screen phone that holds tons of music!

[mistershow]

I hope that a ton of people get this phone. I am so tired of people thinking that Apples are harder to operate than pcs. Hopefully once this comes out there is another surge to buy Apple computers like the one that happened when the ipod became so popular.