I was looking forward to a 3G-capable iPhone first launching in Europe (AT&T in the U.S.A. has little 3G coverage), but FT reports that iPhones in Europe will run on the slower 2.5G mobile networks, rather than on the faster 3rd generation (3G) networks. Why was I looking forward to that? because it means that a 3G capable iPhone will be out soon.
One way or the other, it makes sense from Apple’s perspective to release the same phone that was launched in the U.S.A on June 29th:
- Apple would have negotiated volume pricing for iPhone components that are geared to run on 2.5G networks, and there’s likely plenty of 1st generation iPhones (2.5G) yet to be sold.
- 3G circuitry will be costlier than 2.5G electronics. After all, 2.5G has been around for a long time and there are many manufacturers. 3G is the domain of Qualcomm and Qualcomm usually charges a significant premium for 3G chips and 3G Patent licensing and reaps gazillions in Intellectual Property. So why increase prices and lose some customers or keep the same price on more expensive phones and lose margin.
- Why not release a first generation iPhone first, then create some more awe for the 2nd generation iPhone.
I think it would be a terrible move to release a 2.5G iPhone in Europe. If the world sees the dismal sales numbers in Europe that would result, AAPL would be ruined. I give the execs at Apple more credit than that…and I’ve seen the guts of an iPhone and I can tell you this:
The 2.5G chip in the iPhone, made by Infineon, has a 3G big brother that can be dropped in in place of the 2.5G. Here’s the rub: Infineon hasn’t actually released the 3G version yet, but it’s slated for release in Q3 2007.
There’s plenty more evidence, but I’m holding out (well, ok I bought one already, but it was for “work”) for the 3G version too. Anyway, I have more details, I’ve written this up here: http://www.iphonedope.com/index.php/3G_iphone_coming