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The Honolulu Advertiser
Posted on: Wednesday, June 27, 2007

iPhone's assets outshine flaws

By Connie Guglielmo
Bloomberg News Service

ALL ABOUT THE IPHONE

What it'll cost

If you're chatty, the rate plans will be costly. But if you like to use a phone to watch videos or as a mobile e-mail device,

it will cost roughly the same as any other smart phone.

The phone itself

  • iPhone: Retails for $499 for the model with 4 gigabytes of storage, and $599 for the 8-gigabyte version.

  • Starting up: Customers will be able to activate their wireless service — including transferring existing cell numbers to the handset — from home, using Apple's iTunes software. Apple's Steve Jobs says that will only take minutes.

  • When and where: The phone will go on sale at 6 p.m. local time Friday at Apple and AT&T stores as well as Apple's Web site. At some locations, people started lining up on Monday.

    Monthly plans

    Three monthly plans with a minimum two-year service contract will be available:

  • $59.99: includes 450 minutes of voice time;

  • $79.99: 900 minutes;

  • $99.99: 1,350 minutes.

    All three offer 200 text messages, unlimited data services, minutes that roll over month-to-month and mobile-to-mobile calls. There also is a $36 activation fee.

    Competition

    The iPhone's price — which doesn't include any kind of carrier subsidy commonly offered for other cell phones — lands on the high end of the smart phone market, but analysts say the service plans are very competitive.

  • Sprint Nextel: Also charges $59.99 a month for 450 minutes of talk time, $79.99 for 900 minutes and $99.99 for 1,350 minutes along with unlimited data service. However, its plans allow up to 300 text messages, and they start unlimited evening calls at 7 p.m. instead of AT&T's 9 p.m. start time.

  • Verizon Wireless: Plans to launch new "premium" plans in July, starting at $79.99 for 450 minutes with unlimited calls on a Verizon network, unlimited nights and weekends and unlimited messaging and data services.

    Sources: Apple, AT&T, Sprint, Verizon

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    Apple Inc.'s iPhone is a "beautiful and breakthrough" mobile device that lives up to the hype and will inspire lust in technology shoppers.

    That's the word yesterday from reviewers for the Wall Street Journal, New York Times and USA Today, who each praised the software and design of Apple's melded mobile phone and iPod media player. They said the product's strengths outweighed problems, such as spotty network service and a price of as much as $600.

    "Despite some flaws and feature omissions, the iPhone is, on balance, a beautiful and breakthrough handheld computer," said Walt Mossberg, technology columnist for the Wall Street Journal. "Its clever finger-touch interface, which dispenses with a stylus and most buttons, works well, though it sometimes adds steps to common functions."

    The nod from technology reviewers will help Chief Executive Officer Steve Jobs meet his goal of selling 10 million iPhones in 2008, giving the company a 1 percent share of the mobile-phone market. The gadget will be Apple's third major business, along with the Macintosh computer and iPod, whose combined sales more than tripled in five years to almost $20 billion in 2006.

    "If the device lives up to the hype, then that will be a pretty big positive because the hype has been quite large," said Andy Hargreaves, an analyst at Pacific Crest Securities in Portland, Ore.

    AT&T SERVICE

    Mossberg, USA Today's Edward Baig and David Pogue, a columnist for the New York Times, all said one of the iPhones main drawbacks is its exclusive tie to AT&T Inc., which delivers inconsistent coverage. AT&T's network ranked either last or second-to-last in 19 out of 20 major cities in providing a signal, Pogue said, citing a Consumer Reports survey.

    AT&T, which has a multiyear license to distribute the phone in the U.S., requires iPhone buyers to sign up for a two-year service plan. Prices for the plans will range from $60 to $220 a month, AT&T said yesterday.

    The iPhone relies on AT&T's Edge service, a network that delivers slow speeds compared with the fastest so-called third-generation, or 3G, data networks. While the Edge network failed to match the broadband data speeds home users may be accustomed to, Baig said, the iPhone is still a "glitzy wunderkind worth lusting for."

    "Apple has delivered a prodigy — a slender fashion phone, a slick iPod and an Internet experience unlike any before it on a mobile handset," Baig wrote.

    'FORGIVE ITS FOIBLES'

    Pogue concurred, though he took Apple to task for failing to include chat software. He also said many users would prefer tapping out messages on Research In Motion Ltd.'s BlackBerry rather than on the iPhone's touch-screen keyboard.

    "Even in version 1.0, the iPhone is still the most sophisticated, outlook-changing piece of electronics to come along in years," Pogue wrote. "It does so many things so well, and so pleasurably, that you tend to forgive its foibles."

    Apple will begin selling the iPhone on Friday at 6 p.m. in each U.S. time zone through its 162 stores. AT&T will offer the device through 1,800 company-owned stores.