Apple's first iPhone software update to arrive shortly

[AppleInsider]

Speaking to analysts for RBC Capital Markets this week, Apple's Vice President of iPod Product Marketing, Greg Joswiak, said the first software update for his company's iPhone handset is due to arrive shortly.

"Management expressed excitement at plans to increase iPhone value over time via new software features, citing 'the sky is the limit' for iPhone software," analyst Mike Abramsky told clients in a research note Tuesday. "An iPhone update patch is expected shortly."

Abramsky speculated that upcoming iPhone software updates would include new widgets, peer-to-peer applications (chat, picture messaging, social networking), location-based services, MMS support, home networking, and possibly some integration with Mac OS X Leopard.

"No word however on integration to Microsoft Exchange," he wrote. "It appears to us that Apple, classically, has more pleasant surprises in store for iPhone fans and investors."

After speaking with Joswiak, the analyst also made changes to his predictions for future iPhone models. Although he spoke of "higher resolution" iPhones earlier this month, Abramsky now says he expects Apple to differentiate its iPhone lineup not by features, but by price and memory capacity. The move, he explained, would be similar to how the company grew its iPod lineup, simplifying market positioning.

"This affirms our view of a lower priced ($349-399) iPhone [in the fourth calendar quarter of 2007 or first calendar quarter of 2008], with a higher priced version at higher capacity, to expand its market opportunity," the analyst wrote.

Based on his chat with the Apple VP, Abramsky also said the company appears firmly committed to EDGE/GSM and will likely carry that strategy over to its European iPhone launch during the fourth quarter of the year.

"Despite 3G's greater prevalence in Europe, 3G iPhones may not arrive until Spring 2008, given battery life and form factor challenges," he told clients, adding that he expects the device will initially see availability only in the UK, Germany and France. "Apple may promote Wi-Fi as its high-speed strategy for now, offsetting slower EDGE."

For its part, Apple's primary negotiation objectives with European carriers are said to focus on securing affordable data service plans (rather than royalties), along with control over pricing and sideloading of apps/updates, to assure the "entire solution at right value."

The RBC Capital analyst reiterated his Outperform rating and $175 price target on shares of the Cupertino-based Apple.

"Apple appears well positioned to achieve/exceed its stated iPhone sales goals," he wrote.

[ View this article at AppleInsider.com ]

[othello]

apple may think it can sell EDGE/GSM to europe, and sure they will sell a few iphones to the mac faithful. but they won't get any series traction unless they release a 3G version.

if this software update does bring MMS support, then the network speed is the only issue remaining for european adoption IMHO

[Footloose301]

Can't wait! Picture messaging and chat, hopefully iChat.

[ajhill]

When Wall Street misses the boat they just simply release a self describe "ruomor" that the iPhone production order has been reduced from 9 million to 4.5 million. This is complete BS.

Apple has stated that they intend to sell 10 million in the first year and a half. Why would they build 9 million up front? They have stated that they are on track to sell 1 million in the first 3 months. Why would they need an extra 8 million on hand?

This is nothing but FUD so that Goldman Sach's customers can get a discount on one of the hottest stocks on the years. Even the 4.5 million number seems high to me.

Greed is alive and well, Goldman creates fear and their customers profit.

[sandau]

i'd like to see:

wifi button on off to main menu (or an option to add it)
games
fix the calendar repeat event bugs

other than that its a damn solid and terrific phone.

[mmmdoughnuts]

Originally Posted by ajhill

When Wall Street misses the boat they just simply release a self describe "ruomor" that the iPhone production order has been reduced from 9 million to 4.5 million. This is complete BS.

Apple has stated that they intend to sell 10 million in the first year and a half. Why would they build 9 million up front? They have stated that they are on track to sell 1 million in the first 3 months. Why would they need an extra 8 million on hand?

This is nothing but FUD so that Goldman Sach's customers can get a discount on one of the hottest stocks on the years. Even the 4.5 million number seems high to me.

Greed is alive and well, Goldman creates fear and their customers profit.

Did you read the same article as I did? How does this get their current customers a discount? This only pushes Apples value higher. If they wanted their customers to profit from future purchases, they would put out a under perform rating buy on the crash and wait for the market to later in the year correct itself at their predicted $175.

This only helps their current investors, in propping up the value. But who would sell apple now? The iPhone ride has not played itself out yet...

[nevenmrgan]

Does anyone have an idea of when and where Joswiak was talking to RBC? I'm unable to find any reference to it - was this a private conversation? Seems odd that this sort of news would be dropped like that.

...Not that it's anything too specific. "Shortly" could mean anything, and we all knew that updates were coming. Abramsky's stab at features to be added is probably just a wishlist, not an educated guess. Apple will take into account our wishes for things to add, but who here would be surprised if they ignored many often-requested features? For instance, I don't see MMS showing up at all.

[noirdesir]

Originally Posted by othello

apple may think it can sell EDGE/GSM to europe, and sure they will sell a few iphones to the mac faithful. but they won't get any series traction unless they release a 3G version.

Well, maybe that means they won't get serious traction until spring 2008 when they possibly will release a 3G version. So be it. Maybe they prefer to release a version now that will sell in limited quantity instead of the two other options of not releasing one at all until spring 2008 (the option apparently chosen for Asia) or of releasing a thicker iPhone with less battery life.

[Hattig]

Abramsky speculated that upcoming iPhone software updates would include new widgets, peer-to-peer applications (chat, picture messaging, social networking), location-based services, MMS support, home networking, and possibly some integration with Mac OS X Leopard.

I'm sure that all these will be added over the course of several updates, but it's a bit brash to think that they only needed a couple of months to finish up all these extra functions.

Chat - very likely, I bet this was a buggy application they wanted to ship with the release

New Widgets - quite likely, especially if iPhone widgets are like Mac OS X widgets and can just be HTML/Javascript things - the porting effort would be quite low. Dictionary, Translator, Convertor, etc...

Internet Radio - this would be a nice feature, even if it was over wireless only, not EDGE. Within the next few software updates, but probably not the next one.

MMS - this is required from a phone these days, although I think there was a lot of integration with the photo library on the iPhone and other things required. Might be too buggy for the next update, but will come in the one after that.

[solsun]

Originally Posted by noirdesir

Well, maybe that means they won't get serious traction until spring 2008 when they possibly will release a 3G version. So be it. Maybe they prefer to release a version now that will sell in limited quantity instead of the two other options of not releasing one at all until spring 2008 (the option apparently chosen for Asia) or of releasing a thicker iPhone with less battery life.

Spring 2008 is just one analysts ASSUMPTION. There is no evidence to support this. It just doesn't make sense to release the current iPhone in Europe for Q4 and then turn around and release the second generation version in the following Q1 or Q2.

[Ireland]

Originally Posted by AppleInsider

"Despite 3G's greater prevalence in Europe, 3G iPhones may not arrive until Spring 2008, given battery life and form factor challenges," he told clients, adding that he expects the device will initially see availability only in the UK, Germany and France. "Apple may promote Wi-Fi as its high-speed strategy for now, offsetting slower EDGE."

Don't give me that shite.

[solsun]

Anyone who doubts Apple's claim about not being able to fit 3G chips and a larger battery in the iPhones current form factor should take a look at this iPhone glass replacement video... Scroll down the page for the YouTube clip:

http://www.gethightech.com/Merchant2...ry_Code=IPHONE

[biggsjm]

He said, "Patch" . . .seems that this is a small update.

I don't get the MMS need. Never thought it was that useful. Maybe someone here can enlightem me.

iChat - yes, I would LOVE to have this. C'mon. Let's make the date August 3rd.

Software fix and bug updates - we who have iPhones, know that there are some bugs out there. I find I can go about 3 or 4 days and then I have to TURN OFF my phone and re-boot it to clear out the funky-ness that occurs. There are also small things like the fact that I can't set an appointment in Calendar for 8:01. Go ahead, try it.

Other stuff - I am sure with leopard we will see more integration. Notes syncing, I mean look at the Leopard site at apple.com THE NOTES LOOK EXACTLY THE SAME. I find it impossible that they wouldn't allow syncing of that. To dos are coming too, so check that one off. All of this stuff is not going to come out on the iPhone until Leopard is available.

So let's talk date. . . what date are we thinking? Next two weeks?

[Buck]

I don't get it: so it took them about a year (?) to implement the visual voice mail on ATT network. How are they going to do it before the end of the year IF they're only negotiating the royalties with the carriers? They have to have an agreement before going into implementing all those iPhone-specific things in the carrier's network.

[noirdesir]

Originally Posted by solsun

Spring 2008 is just one analysts ASSUMPTION. There is no evidence to support this. It just doesn't make sense to release the current iPhone in Europe for Q4 and then turn around and release the second generation version in the following Q1 or Q2.

As long as they are releasing it every four to six month in a different region, they cannot avoid this problem if they don't want to hold of the 3G version until a year after they've released it in Asia.

The only indication, apart from the fact that they will release a 3G version at some point and probably won't wait longer than necessary, for Spring '08 is the fact that they want to release it in Asia around that time (ok, maybe they said '08 for Asia, not Spring '08) and Asia is probably even less forgiving than Europe if faced with a non 3G version.

Yes, Spring '08 is nothing but speculation but so is the 'fact' that the European version is not going to have 3G.

[nagromme]

"he expects Apple to differentiate its iPhone lineup not by features, but by price and memory capacity."

You mean, like Apple ALREADY differentiates the iPhone lineup? Good call

Originally Posted by Buck

I don't get it: so it took them about a year (?) to implement the visual voice mail on ATT network. How are they going to do it before the end of the year IF they're only negotiating the royalties with the carriers? They have to have an agreement before going into implementing all those iPhone-specific things in the carrier's network.

Maybe a lot of the important back-end software for that is now done, and Apple has the rights to use it with other carriers. Or maybe it's just not that hard, once you get a carrier to agree to DO it

[BlackSummerNight]

How about allowing the Camera to be used to record video. I don't know if this is a software limitation or not. But seeing how they pushed the Youtube intergration, it would be a nice feature.

[Krazy0ptic]

Yes please give a date for this update I'm tired of rumors or hearing about "coming soon" mann its like holding a treat in front of a dog and not knowing when your gonna get it!! i can't take it!!!

[onlooker]

Originally Posted by biggsjm

He said, "Patch" . . .seems that this is a small update.

I don't get the MMS need. Never thought it was that useful. Maybe someone here can enlightem me.

iChat - yes, I would LOVE to have this. C'mon. Let's make the date August 3rd.

Software fix and bug updates - we who have iPhones, know that there are some bugs out there. I find I can go about 3 or 4 days and then I have to TURN OFF my phone and re-boot it to clear out the funky-ness that occurs. There are also small things like the fact that I can't set an appointment in Calendar for 8:01. Go ahead, try it.

Other stuff - I am sure with leopard we will see more integration. Notes syncing, I mean look at the Leopard site at apple.com THE NOTES LOOK EXACTLY THE SAME. I find it impossible that they wouldn't allow syncing of that. To dos are coming too, so check that one off. All of this stuff is not going to come out on the iPhone until Leopard is available.

So let's talk date. . . what date are we thinking? Next two weeks?

MMS is like SMS with the ability to send pictures also. It is a picture Phone.

Software fix and bug updates - we who have iPhones, know that there are some bugs out there. I find I can go about 3 or 4 days and then I have to TURN OFF my phone and re-boot it to clear out the funky-ness that occurs.

I have an 8G iPhone but I have not had any troubles at all.

[quinney]

Originally Posted by ajhill

Greed is alive and well, Goldman creates fear and their customers profit.

Perhaps we should all buy GoldmanSachs stock

[neutrino23]

Originally Posted by biggsjm

Software fix and bug updates - we who have iPhones, know that there are some bugs out there. I find I can go about 3 or 4 days and then I have to TURN OFF my phone and re-boot it to clear out the funky-ness that occurs. There are also small things like the fact that I can't set an appointment in Calendar for 8:01. Go ahead, try it.

I have an 8GB iPhone. Overall it works quite well. A few times I've had Safari suddenly quit. A few times when playing songs with the iPod function while surfing with Safari it will suddenly quit and go back to the main menu. Either alone works better.

You have to imagine that Apple was working on other features when they made the cut for the final release candidate for the release on June 29. These could come out any time. There are probably some known bugs that Apple has been working on. I'm looking forward to this first update.

[JeffDM]

Originally Posted by othello

apple may think it can sell EDGE/GSM to europe, and sure they will sell a few iphones to the mac faithful. but they won't get any series traction unless they release a 3G version.

if this software update does bring MMS support, then the network speed is the only issue remaining for european adoption IMHO

It's hard to say. iPod started out relatively small and somewhat limited in capacity, but Apple did keep improving the device. They basically chose to go with less capacity to get a small device and let technology expand their capacity as time goes on. Maybe Apple will still offer EDGE, and then upgrade as the various chips mature.

Originally Posted by Hattig

Internet Radio - this would be a nice feature, even if it was over wireless only, not EDGE. Within the next few software updates, but probably not the next one.

EDGE isn't wireless?

MMS - this is required from a phone these days, although I think there was a lot of integration with the photo library on the iPhone and other things required. Might be too buggy for the next update, but will come in the one after that.

I wonder if Apple is trying to segment themselves away from other devices by not putting in this type of feature. The "Apple Way" seems to be conducive with just providing photo sharing over email, compatibility with competing phones be damned.

[anantksundaram]

Originally Posted by biggsjm

... I can't set an appointment in Calendar for 8:01.

Why don't you just set the calendar to arrive a minute earlier, and obviate the problem?

[Electric Monk]

Originally Posted by noirdesir

As long as they are releasing it every four to six month in a different region, they cannot avoid this problem if they don't want to hold of the 3G version until a year after they've released it in Asia.

and Asia is probably even less forgiving than Europe if faced with a non 3G version.

Actually Asia—or at least the parts of Asia where Apple actually moves product—requires UMTS, full stop. Japan and South Korea, in other words, and 3G penetration in the other high per capita GDP areas of Asia is way above the 15% in Europe.

Oh and I really hope that Apple sticks to a reasonable 6-8 month new iPhone cycle (but with software identical, discounting hardware features, for 24 months from each new model), I can't see any other way to compete in the telecommunications market.

3G American/European/Asian iPhones[1] by Macworld/spring 2008—preferably Xmas 2007 for Europe—, 3G world iPhone by Xmas 2008. Upgrades of storage, camera, screen resolution, and other hardware features (i.e. GPS and an e-cash near field contact chip for Japan) with each new model.



[1] Different models because you need different UMTS bands for North America (850/1900) and the rest of the world (2100) and Australia uses all three of them. A decently sized tri-band UMTS chipset probably won't be out for until mid 2008.

Also people should note the 3G model will have to be bigger if Apple chooses to follow the laws of physics so all this 'they can't fit a 3G chipset in an iPhone' is technically true, they'll make it a little thicker.

Originally Posted by BlackSummerNight

How about allowing the Camera to be used to record video. I don't know if this is a software limitation or not. But seeing how they pushed the Youtube intergration, it would be a nice feature.

Software limitation, but the video would suck since the camera isn't the best. From everything I've heard Apple simply doesn't 'get' social networking. There are a lot of very cool missed opportunities with social networking and the iPhone, and I don't even particularly like social networking.

Originally Posted by JeffDM

EDGE isn't wireless?

(About MMS -Ed.)
I wonder if Apple is trying to segment themselves away from other devices by not putting in this type of feature. The "Apple Way" seems to be conducive with just providing photo sharing over email, compatibility with competing phones be damned.

He meant in bandwidth terms, but I think EDGE would do okay with Internet Radio with some caching. To be fair it doesn't handle OTA podcasts and iTunes store yet (or rich client RSS, sigh), so it might be a little while.

Lots of people's phones have only MMS and no email, so it's kind of silly of them not to provide it but I see your point.

[pjdrsd]

Just plugged into iTunes, hit check for update just for grins, and got a notice that 1.0.1 is available. no idea what it is, but it is still downloading... let the complaining begin!

[Riptide]

Originally Posted by pjdrsd

Just plugged into iTunes, hit check for update just for grins, and got a notice that 1.0.1 is available. no idea what it is, but it is still downloading... let the complaining begin!

It's rubbish.. They may have fixed bugs with basic functions that didn't but should have worked at launch except the critical issues of ringer and ear-piece volume. Still no basic features such as ability to text multiple recipients etc. simultaneously. I'm pissed. Apple doesn't even acknowledge (from what I can gather ) what they have updated or fixed. Does anyone else regard this as simply arrogant?

[kupan787]

Originally Posted by Riptide

Apple doesn't even acknowledge (from what I can gather ) what they have updated or fixed. Does anyone else regard this as simply arrogant?

You mean like this:

http://docs.info.apple.com/article.html?artnum=306173

And as far as new programs and features, it has been barley as month. Geez...updates will come.

[ramsey123]

Actually, Riptide, as we've all read in the papers, an ex-NSA computer expert and a couple other "Security Evaluators" were able to crack enough iPhone code to possibly cause concern for iPhone users that were surfing the web at a local Wi-Fi hot spot. Unlike Microsoft, who would have taken 90+ days to address the issue, Apple addressed it in within days, quite possibly with the patch you just downloaded.

Gripe all you want, but I'd say you're in the best camp possible.

[tomkarl]

Originally Posted by ramsey123

Actually, Riptide, as we've all read in the papers, an ex-NSA computer expert and a couple other "Security Evaluators" were able to crack enough iPhone code to possibly cause concern for iPhone users that were surfing the web at a local Wi-Fi hot spot. Unlike Microsoft, who would have taken 90+ days to address the issue, Apple addressed it in within days, quite possibly with the patch you just downloaded.

Gripe all you want, but I'd say you're in the best camp possible.

Great first post!