Android's gift to Apple

Google may, paradoxically, be making the world a better place to sell iPhones

Source: Asymco

You might think that the almost viral spread of Google's (GOOG) free and open-source Android operating system would eventually drive down smartphone prices and put pressure on Apple's (AAPL) proprietary iOS -- and on Steve Jobs' enviable profit margins.

But an analysis of the eight largest mobile vendors' average selling prices posted overnight Monday by Asymco's Horace Dediu suggests that something quite different is happening.

Apple's average iPhone prices have actually gone up since Android was introduced, and although there has been some price erosion among the other top vendors (orange line in the chart above), it is surprisingly small.

What's going on?

According the Dediu, the smartphone market is growing so rapidly (90% per year), that there is limited direct competition between smartphones and a lot of competition between smartphones and so-called feature phones. It's the feature phone makers who are having to slash their prices to compete.

"The only correlation with pricing power is whether you build smartphones or dumb phones," he writes. "The more smartphones you build, the more price you can charge. This is regardless of platform."

Dediu has long argued that the phone market should be studied as a whole because the competition is not between platforms but between smart and non-smart. "Android," according to Dediu, "is expanding the market without crushing pricing."

"In a way, this is all good news -- even for Apple," he concludes. "A world full of smartphone users is a better addressable market for iPhones than one filled with voice products. iPhone's traction was always in markets which had been seeded by some smartphones: the U.S. with [Research in Motion (RIMM)] and Europe with [Nokia's (NOK)] Symbian. Such a smartphone-soaked world will have better mobile broadband infrastructure, users with more demanding tastes and awareness of the value that a smart device can bring."

Maybe letting Google CEO Eric Schmidt sit on Apple's board of directors wasn't such a bad idea after all.

Apple MacBook Leaked – New Model Could Arrive this Week

The Vietnamese website Tinhte seems to be the source of Apple [AAPL] leaks this past week. Just last week they managed to get hold of an Apple iPhone 4G and now this week, they seem to have their hands on a new Apple MacBook.

The new Apple MacBook will more than likely have a 2.4GHz Intel Core 2 Duo processor, run an NVIDIA GeForce 320M graphics card that has 256MB RAM and be more in line with the MacBook Pro (13.3 inch model).

Some rumours around the internet indicate that the next gen Apple MacBook could go on sale as early as tomorrow, or perhaps sometime this week.

Right now the pricing for the MacBook is $999. We do not know if this price will stay the same or perhaps change for the better side (ie, cheaper). Previous updates to the MacBook did bring a slight increase to the cost of it. We'll find out more than likely in the next few days.

The video below shows the Apple MacBook being unboxed. Unfortunately it isn't in English although you do get to see what's in the box and how it all looks.

Clear's iSpot Is a WiMax Hotspot For iPhones and iPads

With more cities being blanketed in the warm glow of WiMax every month, 3G speeds are going to start seeming primitive, fast. Clear's iSpot hotspot lets iPhones, iPads, and iPod Touches get a taste of the delicious 4G future.
Clear's iSpot can serve as a hotspot for up to eight Wi-Fi enabled devices at a time—its site says it was optimized for Apple's mobile devices, whatever that means—while running on its rechargeable battery or juicing up over USB. 
The device, which looks a lot like a Mighty Mouse, or a bar of soap, will be available August 10 for $99, with a no-contract, $25 monthly plan for unlimited data. Not too bad, if your city has already been given the WiMax treatment. Because there's no buzzkill worse than waiting for a snappy new iPhone or iPad to suck down a page over 3G. [iSpot via SlashGear]
Update: Today and today only, you can net the iSpot itself for $29—70% off.
Update 2: Ars discovers why this is so cheap, when the standard CLEAR plan is $40. It's dedicated to just Apple devices—in that, it detects what devices are connected and can only let them connect if it's an Apple device. If you want to unlock it to all devices, they'll bump you up to the $40 a month plan.
Of course, if you're on a laptop, it's probably rather easy to mimic an Apple device by changing some settings, but harder if you're on, say, a BlackBerry. [Ars]

Vodafone Releases iPhone 4 UK Prices

Mobile operator Vodafone has released its prices for Apple’s new iPhone 4, leaving only T-Mobile and 3 still to declare how much they will charge for the device.

Vodafone will give the iPhone 4 away for “free” if a customer will pay £60 a month for two years, according to the tariff which has just been published. Like other operators, Vodafone is not yet publishing its pay-as-you-go contract details. O2 published its prices yesterday, and Orange published rates on Wednesday - it has been rumoured that 3 UK intends to declare its prices last, in order to undercut the other players.

T-Mobile and 3 still to go

Although broadly similar to O2’s, Vodafone’s plans have differences which could benefit some users. The biggest difference is that, unlike O2, Vodafone charges the same upfront cost for the phone whether it is bought on an 18 month plan or a two-year contract.

The use of Wi-Fi is also differerent. Where O2’s is unlimited, Vodafone customers get 1GB of Wi-Fi data, along with 1GB of 3G data, on a contract for a 16GB iPhone 4. The device has an upfront cost of £219, and then costs £25 a month on a two-year contract, or £30 a month on an 18 month plan.

The deal also gives users 75 minutes of talk time and 250 texts.

To get the phone “free, users have to either pay £60 a month for two years, or £65 a month for 18 months. On a business plan, users can get the phone free for £50 or £55 a month - for 24 or 18 months respectively. These details have turned out to be the same as those released in error on Monday, when Apple released its SIM-free pricing.

3 to undercut competitors?

Last year, when 3 announced it intended to sell the iPhone, chief executive Kevin Russell promised to negotiate hard on price, so many potential customers hope the 3 network will undercut the others when it brings Apple’s smartphones to a traditonally less-extravagant audience.

The iPhone 4 is selling fast: in the UK, Apple’s pre-order stock ran out in 24 hours, while in the US, AT&T and Apple servers failed under the pressure of 600,000 pre-order sales in the first day.

The iPhone 4 has a larger battery capable of 7 hours of talk time and runs the fourth version of the iPhone operating system (iOS4), which is the first to include features such as multitasking. It also has a thinner body, a front-facing camera for video conferencing and a built-in three-axis gyroscope.

One Solution for China’s Early IPad Adopters

Electronics sellers in China are pushing wireless modems as a solution for Apple iPad users who can only get online when close to a Wi-Fi hotspot.

Huawei

The Huawei E5

Apple has yet to announce a release date for the iPad in China, but some estimate that as many as thousands of early adopters in China have already purchased the iPad. Consumers can get iPads with both Wi-Fi and high speed 3G capabilities, but 3G iPads cost more and the SIM cards used to go online, which can be purchased from Chinese carrier China Unicom, must be cut in half to fit the slot in the iPad.

A growing selection of wireless modems now offer a cheaper way to connect iPads to the Internet anywhere, and also include the option of connecting multiple devices simultaneously — and according to vendors, people in China are snapping them up. Huawei’s E5 modem, which can connect to China Unicom’s 3G network, is particularly popular. The modem creates a Wi-Fi hotspot, allowing up to five devices to connect wirelessly to the 3G service, similar to devices currently being sold in the U.S. like the Novatel MiFi 2200 Intelligent Mobile Hotspot from Verizon Wireless and Sprint.

The devices and services are far cheaper in China, making them a more worthwhile proposition than pairing a Wi-Fi-only iPad with similar devices in the U.S. An E5 device and one year of service, including a monthly data allowance of one gigabyte from China Unicom, costs less than $300. In the U.S., a MiFi 2200 with one year of service from Verizon Wireless, including a monthly data allowance of 250 megabytes, costs $650 excluding taxes and fees. In effect, purchasing a Wi-Fi iPad in China with an E5 modem and 3G service costs less and has more capabilities than purchasing a pricier 3G iPad with 3G service for only the iPad.

A Huawei spokeswoman said the company had sold 1.5 million E5 wireless modems as of the end of the first quarter, since the third quarter last year, but declined to say how many were sold in China, where the device was released in the first quarter of the year. She added that the E5 is also available in other regions including Europe and the Middle East, and will be released in North America later this year (though service plans vary by operator).

– Loretta Chao, with contributions from Bai Lin

Newest iPhone 4.0 Beta Implies That AT&T Is Finally Ready For Tethering

Yes! Yes! Yes! Those sounds you heard moments ago are the horrified screams of your nearest AT&T towers. Why? Because iPhone OS 4.0 Beta 4 brings us a new option in the settings menu: Tethering.

How-To: Use Your iPhone as a Wireless Laptop Modem

I travel a lot. And if you’re a geek like me, you can’t go a full day sans internet access without experiencing some severe withdrawal symptoms. Luckily, my iPhone, with all its WiFi and 3G goodness, has been instrumental in feeding my addiction while on the road. But though Apple’s smartphone provides the best mobile browsing experience out there, the small screen and touch controls still don’t compare to the pixel real estate and tactile qwerty speed of a laptop. Not to mention such luxuries as Flash compatibility, page caching, and tabbed browsing.

So the next time you’re stranded without an open WiFi network (but your 3G signal is going strong), you’ll be glad you installed Addition’s iPhoneModem 2 (free to try, full license is $9.99). Unfortunately, Apple has apparently deemed the app to be in conflict with its App Store Terms and Conditions, so it is only available for jailbroken phones via Cydia. Here’s a quick guide:

1) Jailbreak your iPhone.
Download and install QuickPwn, an easy-to-use jailbreaking application for Windows and Mac (the latest version works with iPhone OS 2.2.1). Run the software and follow the onscreen instruction very carefully!

2) Install iPhoneModem by Addition.
QuickPwn installs an app on your phone called Cydia, which is essentially the App Store for apps that were rejected from the official App Store (or, for whatever reason, the developer chose not to release through Apple). Run Cydia, search for iPhoneModem by Addition and install it. Keep in mind you can only delete Cydia installed apps via Cydia’s Manage-Sources function. Now download and install the helper app on your laptop and you’re almost ready to go.

3)Set up the network.
Run the helper app and hit Connect. The helper app sets up an ad hoc wireless network that can be accessed via iPhone. The default network it creates is called “iPhoneModem” and does not have a password (you can change this in the Preferences of the helper app). Now open up your iPhone’s Settings and tap WiFi. Make sure WiFi is turned on and select the network “iPhoneModem” (or whatever you called it). Type the password if you assigned one. Open up the Modem iPhone app and everything else will configure automatically. After a few moments the helper app and the iPhone app will confirm that a connection has been established and you can browse away with all the comforts of your laptop!

Shortcomings:
While 3G seems plenty fast on a phone, it feels a little slow on a laptop. Also, most major web browsers work but not all are supported. In addition, a lot of other internet applications aren’t supported, but for all intents and purposes, you should be able to browse just fine.

*Note: If you haven’t already discovered, jailbreaking your iPhone opens up a world of possibilities, including themes and apps that aren’t allowed in the App Store. While it technically voids the warranty, you can easily return your device to its original state with the “Restore” feature in iTunes, wiping all traces of the jailbreak hack.

So There's a Sprint WiMax iPad... Case

Presented without comment: Sprint's 4G Case for iPad, with room for its WiMax Overdrive box. [Sprint via iLounge]

Since Apple's acquisition of Quattro Wireless in January, both parties have been keeping mum on plans for Madison Avenue domination, but now MediaPost claims to know a thing or two about the newlyweds. According to the report, Apple will apparently unveil "a new personalized, mobile advertising system" which will go by the underwhelming name of "iAd" on April 7th. The article speculates that the service could be heavily focused on location-aware advertising, though that angle could hit some snags as apparently coffee-partner / arch nemesis Eric Schmidt and a little company called Google hold patents on said functionality. Of course, something that drives a wedge between these two players wouldn't exactly be a surprise at this point -- and we'd be happy if Apple doesn't cash in on those ad-supported OS ideas it's recently had.

Really, we're not surprised to hear this may be coming, as a tipster just pinged us with info that an "AdKit" reference has shown up in a special file on Apple's public "Phobos" server. This file, which is called StoreBag, provides a public XML interface into iTunes. That interface describes how applications and web browsers can "call home" to either retrieve iTunes information pages or to request that iTunes jump to a given product listing.

What you see here is a key-value pair from that file. The URL string that follows after the "adkit-product-url" key suggests that Apple is about to introduce a way to link ads with product URLs. How will this URL work exactly? It's hard to say without any further details, which are regrettably sparse on the ground, but it suggests that ad sourced product links can be used in a similar way to affiliate-driven links.

adkit-product-url
http://ax.itunes.apple.com/WebObjects/MZStore.woa/wa/adkitProduct

Not much else is known about Apple's first venture into the ad business at this stage, but Steve Jobs has allegedly told some executives that this will be "revolutionary" and "our next big thing." Frankly, we're starting to get a little concerned with just how often the folks in Cupertino are bandying around the word "revolutionary" -- but we'll hold our judgments until after this announcement happens (if it happens at all).

MacRumors

MediaPost

Eternal optimist Verizon calls iPad launch 'an opportunity' to sell some data plans

That's the "glass is half full" attitude we like, Verizon -- always looking for a way to sign a few more of those lucrative data contracts, no matter the circumstances! Turns out Big Red is tipping off its staffers on how it can encourage customers to go with the WiFi-only version of the iPad and pair it up with a device like the MiFi rather than shelling out $130 more for integrated AT&T 3G and waiting a few extra weeks. As usual, Verizon's keen on playing up the anti-AT&T sentiment it's cultivated in its recent ad campaign by openly calling its biggest competitor's 3G network "overloaded," but we see one big hangup: 5GB of data on a Verizon MiFi is going to run you $60 a month, twice as much as AT&T will be charging for its dedicated, unlimited iPad plan. Then again, AT&T's own boss thinks WiFi's a bigger deal than 3G for this thing, so who knows -- maybe this is a zero-sum game for both of these guys.

[Thanks, Mark]

Rogers to launch 21Mbps HSPA+ network

Rogers on Tuesday became the first North American cellular carrier to start deploying HSPA+ on its 3G network. A gradual rollout will bring the Canadian provider's network up to the standard's peak download rates 21Mbps, or about three times the speed of its existing 7.2Mbps network. While unstated, the network should also provide upstream speeds of up to 5.76Mbps in peak conditions.

The combined speed is enough that performance on the improved 3G should feel more like a home landline connection, Rogers claims. Actual speeds will likely be significantly lower but should still be within the multi-megabit range in both directions.

HSPA+ will be available in August but comes first to Rogers' largest market, the greater Toronto area. It should move "quickly" to other larger cities in the next few months. Rogers hasn't said whether it will increase the data caps for these users, but a change may be necessary as the company's most expensive service offers just 5GB for $80 per month; a more typical plan provides just 1GB for $30.

In the US, AT&T has promised HSPA+ sometime this year but has yet to signal that it's getting close to this deployment. The move mostly requires a software upgrade but may depend on finally adding 850MHz 3G to major cities like New York and San Francisco, where heavy iPhone activity has rendered the much narrow 1,900MHz 3G spectrum all but unusable. Such an upgrade may not be completed for several months.

Optus: $9.99 to use iPhone as modem

Optus today put an end to speculation over whether it would charge for tethering — a feature made available in the OS 3.0 update Apple issued today which enables the iPhone to act as a mobile modem.

The telco has opted for $9.99 per month flat fee which applies to all data packages and unlocks the tethering feature, and will only be available to post-paid customers, Optus said tdoay. For example, iPhone customers on the $59 500MB cap would pay an additional $9.99. To activate the feature, customers needed to call customer service. They won't be able to use the feature until Monday 22 June, however.

The telco has yet to announce pricing for the iPhone 3G S, which has been released in the US but is due in Australia on 26 June.

Optus has not yet posted full details about the terms and conditions but said it expected to do so via its website on Monday.

http://www.cnet.com.au/optus-9-99-to-use-iphone-as-modem-339297015.htm