The Wall Street Journal-20080206-Beefed-Up iPhone Is Likely a Precursor To Diversified Lineup
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Beefed-Up iPhone Is Likely a Precursor To Diversified Lineup
Full Text (364 words)Apple Inc. added a new model of the iPhone to its product lineup, in a possible prelude to a new version of the cellphone later this year that will be capable of surfing the Internet at faster speeds.
The Cupertino, Calif., company also began selling a new version of its iPod touch device, which comes with more storage. The new version of the iPhone is the first step in what many analysts expect to be an effort to expand the gadget this year into a broader family of products, possibly with a less-expensive model and a version that's compatible with "3G," a fast, wide-area networking technology that lets users access the Internet at broadband speeds.
Apple's new $499 iPhone has 16 gigabytes of storage, double the capacity of the previous $399 model. It also now offers a $499 iPod touch with 32 gigabytes of storage, joining the existing $399 16 gigabyte model and $299 eight gigabyte model.
Apple found mass-market acceptance for the iPod by similarly diversifying its product line, and the same evolution is expected to hold true for the iPhone. A 3G version of the product will be especially important for Apple as it seeks to expand the iPhone to Japan, one of the biggest and most sophisticated mobile-handset markets, later this year.
Apple Chief Executive Steve Jobs has previously said he expects the underlying technology necessary to make a 3G version of the iPhone with acceptable battery life to be available later this year. Some analysts predict a 3G iPhone will come out as early as the middle of the year.
Greg Joswiak, Apple vice president for world-wide iPod and iPhone product marketing, declined to say when a 3G iPhone will be available. "We couldn't be more happy with the results of the iPhone to date," Mr. Joswiak said.
Apple says it has sold more than four million iPhones so far. In data released yesterday, market-research firm Canalys said Apple nabbed 28% of the U.S. "converged device market," which includes smartphone and wireless handhelds, with the iPhone. That put Apple in second place in the U.S. behind Blackberry-maker Research in Motion Ltd., with 41%, and ahead of Palm Inc., with 9%.
