New 3G Apple iphone Almost Here

From Forbes
BURLINGAME, CALIF. -

Apple outraged many of its fans last year when Chief Executive Steve Jobs dropped the price of the 8 gigabyte model of the phone by $200 just two months after putting the phone on sale in June. They were angered again last month when the company upgraded the software for the iPod Touch--and then demanded $20 for the upgrade from anyone who had already purchased the widescreen video player.

But if anyone complains when Apple introduces faster, better iPhones later this year, they'll have only themselves to blame. So, here's a bit of advice: if you haven't bought an iPhone yet, do yourself a favor and wait a little longer.

The signs are all there. While Apple's secretiveness is legendary, it can't keep its partners from discussing their own plans. In a move that must have rankled Jobs, AT&T Chief Executive Randall Stephenson let it slip in November that AT&T and Apple would offer a version of the iPhone this year that works with AT&T's third-generation wireless network.

Apple did not immediately respond to a request for comment.

That will be a big improvement. The EDGE network used by today's iPhones allows users to download data at average speeds of between 75 and 150 kilobits per second, according to AT&T. By contrast, those on AT&T's new HSDPA network can get data at more than a million bits per second--roughly 10 times as fast as today's EDGE networks.

While a high-speed wireless connection is a nice plus for users of typical mobile phones, it promises to do wonders for widescreen iPhones, which combine the ability to play movies and surf the Web with features found on more traditional mobile phones, like the ability to send text messages.

To be sure, a 3G iPhone likely won't pop up over the next several weeks. The Unofficial Apple Weblog reported this week that Apple is hiring a television production firm in preparation for a high-profile late February announcement. That event, however, will likely detail the widely anticipated release of a software developer's kit for Apple's iPhone and iPod Touch.

But the wait can't drag on much longer. AT&T is building out its high-speed wireless network as quickly as it can, announcing Wednesday that it will expand its 3G wireless broadband service to more than 80 additional cities by the end of the year for a total of roughly 350 markets (See: "AT&T's Stealthy Plans"). Meanwhile, iPhone chip supplier Broadcom last year began cranking out samples of a power-sipping, 3G-friendly chip, the BCM21551, that could give the iPhone access to AT&T's new network without sucking the gadget's battery dry too quickly.

Finally, there are even a few smoke signals coming from Apple itself. The Cupertino, Calif.-based company quietly upgraded the storage on its highest-end iPhone to 16 GB for an extra $100 this week. That extra memory would give the phone the ability to handle fatter video downloads. And even Steve Jobs has shown his frustration with the slow pace at which some Web sites show up on the iPhone, muttering about the slow loading time of the nytimes.com during his last keynote.

And, as anyone who has ever worked at Apple can tell you, when Jobs gets frustrated, things get changed.