As you might have seen in our real-time WWDC post, Apple has finally announced the iPhone 3G. The real shocker is the price, which starts at $199 (8GB). This is only partially surprising: first, the hardware itself is cheaper than the one in the original iPhone. Apple also had the time to cost-reduce its hardware platform and negotiate better prices overall. Finally, the real money that Apple will make is in the wireless subscriptions, not the hardware itself. By selling its devices cheaper, the company will obviously end up making even more money by selling to more people and more carriers. The increased installed base and will allow apple to open a new money making venue: 3rd party apps distribution… This is brilliantly executed and I must say that they have managed the expectations very well.
Highlights: 3G network, GPS, cheap, more countries, more apps.
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