We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
80,258 News Articles

Apple faces 3G iPhone challenge in 2008

Analysts discuss technical challenges of iPhone 2

The highly anticipated 3G iPhone will be with us in mid-2008, according to Apple analysts in the US.

However, American Technology Research analyst Shaw Wu pointed out that, despite the hype and (in some areas) the coverage, 3G access - and usage - isn't yet mainstream, certainly not in the US.

"Even in Europe and Japan, where the technology is more available, network coverage is somewhat spotty," said Wu. "While there are a decent number of 3G phones (10-15 percent) being shipped, the untold reality is that they use much more prevalent 2/2.5G wireless infrastructure most of the time. In addition, 3G is not as field tested. We think a particularly important data point is that RIMM, the leading smart phone vendor, has experienced a lot of success with 2/2.5G BlackBerries."

See also:

Apple iPhone review

Wu points to the cost of setting up, manufacturing and using 3G devices as market inhibitors, estimating the cost of such support as adding around $15 or more to the cost of a 3G device. "We believe these price points need to come down a bit before 3G can be widely deployed."

Echoing Apple, Wu also observes that 3G uses "too much power", saying: "Our sources indicate that 3G requires 35-40 percent more power to run. This is a key issue as Apple seeks to deliver as much battery life as possible on its highly functional iPhone."

Despite these limitations, Wu thinks a 3G iPhone is likely to appear in the "mid- to-second half 2008 timeframe".

He says: "We believe by then, the network coverage, price points, and battery life issues will be better addressed. Should Apple decide to ship earlier, it will likely be positioned as a high-end smart phone and allow the company to reposition the current 2.5G iPhone as a more mainstream product."

Wu rates Apple as a stock to buy with a 6-12 month target price of $210 per share.


IDG UK Sites

Windows 9 release date, price, features: Videos leak as Microsoft sets 30 September unveiling

IDG UK Sites

Why local multiplayer gaming is rapidly vanishing: we look at the demise of split-screen and LAN...

IDG UK Sites

IBC 2014 news: video post, CG and VFX news from Adobe, Blackmagic, Eyeon and more

IDG UK Sites

Retina MacBook Air release date rumours and specs: Gold 12in Retina MacBook Air almost 1cm thinner...