The iPhone is a line of Internet and multimedia-enabled smartphones designed and marketed by Apple Inc. The first iPhone was introduced on January 9, 2007.

An iPhone functions as a camera phone, including text messaging and visual voicemail, a portable media player, and an Internet client, with e-mail, web browsing, and Wi-Fi connectivity. The user interface is built around the device's multi-touch screen, including a virtual keyboard rather than a physical one. Third-party applications are available from the App Store, which launched in mid-2008 and now has well over 300,000[2] "apps" approved by Apple. These apps have diverse functionalities, including games, reference, GPS navigation, social networking, and advertising for television shows, films, and celebrities.

There are four generations of iPhone models, and they were accompanied by four major releases of iOS (formerly iPhone OS). The original iPhone established design precedents like screen size and button placement that have persisted through all models. The iPhone 3G added 3G cellular network capabilities and A-GPS location. The iPhone 3GS added a compass, faster processor, and higher resolution camera, including video. The iPhone 4 has two cameras for FaceTime video calling and a higher-resolution display. It was released on June 24, 2010.


Development of the iPhone began with Apple CEO Steve Jobs' direction that Apple engineers investigate touchscreens.[3] Apple created the device during a secretive and unprecedented collaboration with AT&T Mobility—Cingular Wireless at the time—at an estimated development cost of US$150 million over thirty months.[4] Apple rejected the "design by committee" approach that had yielded the Motorola ROKR E1, a largely unsuccessful collaboration with Motorola. Instead, Cingular gave Apple the liberty to develop the iPhone's hardware and software in-house.[5][6]

Jobs unveiled the iPhone to the public on January 9, 2007 at Macworld 2007. Apple was required to file for operating permits with the FCC, but since such filings are made available to the public, the announcement came months before the iPhone had received approval. The iPhone went on sale in the United States on June 29, 2007, at 6:00 pm local time, while hundreds of customers lined up outside the stores nationwide.[7] The original iPhone was made available in the UK, France, and Germany in November 2007, and Ireland and Austria in the spring of 2008.

On July 11, 2008, Apple released the iPhone 3G in twenty-two countries, including the original six.[8] Apple released the iPhone 3G in upwards of eighty countries and territories.[9] Apple announced the iPhone 3GS on June 8, 2009, along with plans to release it later in June, July, and August, starting with the U.S., Canada and major European countries on June 19. Many would-be users objected to the iPhone's cost,[10] and 40% of users have household incomes over US$100,000.[11] In an attempt to gain a wider market, Apple retained the 8 GB iPhone 3G at a lower price point. When Apple introduced the iPhone 4, the 3GS became the less expensive model. Apple reduced the price several times since the iPhone's release in 2007, at which time an 8 GB iPhone sold for $599. An iPhone 3GS with the same capacity now costs $99. However, these numbers are misleading, since all iPhone units sold through AT&T require a two-year contract (costing several hundred dollars), and a SIM lock.



Product -- According to the description on the AT&T site, the iPhone combine three amazing products- a mobile phone, wide screen iPod, and a breakthrough internet device--into one small, lightweight, hand held device with the best e-mail ever on a mobile phone, full screen with browsing, multi touch screen, and applications. It does look cool and is innovative but does it deliver on the hype? Several reviews have been published, check them out to learn more on features and performance.Iphone_image


Blackberry and Treo users are not willing to give up their devices for now. The iPhone doesn't seem to be equipped for enterprise systems right now. Read more in a Businessweek.com article, Making the iPhones Better for Business.

Place -- AT&T is the exclusive carrier for the iPhone. What is novel about the phone service activation strategy is that consumers sign up for AT&T cellular services via the internet on iTunes. Phones are sold in AT&T stores, Apple retail stores, and Apple online store. Typically carriers make all the decisions on phone prices, how phones are marketed, and which services to offer. This time Apple defined the 16 services that the iPhone has and of course the sign up method on iTunes instead of through AT&T.

Promotion-- Typically Apple announces new products very close to the time when the product is available for sale. Not this time-the iPhone hype has been buzzing for about 6 months when the iPhone announcement was made at Mac World. The halo effect from its popular iPods will have a positive effect on some consumers' perceptions of the iPhone. Apple had kept advertising to a minimum since the announcement in January. According to Apple Insider, TB WA is the new agency of record handling the iPhone campaign.

Price -- The iPhone 4 GB version sells for $499 and the 8 GB version sells for $599. Monthly phone service charges start at 59.99 and you have to sign up for a 2 year service agreement. Read a Businessweek.com article, Taking the iPhone Apart to learn about a tear down analysis that estimates what it costs Apple to make the iPhone.
How have sales been for the iPhone? Analysts estimate that during the first weekend of sales, between 500,000 and 700,000 phones were sold. Apple plans to sell 10 million phones in 2008. Only time will tell if the iPhone meets Apple's sales and revenue expectations.
 
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