Apple unveils second generation iPhone

June 10, 2008

Apple have unveiled the new generation of the iPhone, it is going to be substantially cheaper.

Apple are hoping this will boost its share in the business model market, which is currently dominated by Nokia and Blackberry. Google are also set to release their android device soon.

Apple boss Steve Jobs has said the new iPhone will be “more affordable” for consumers, with a price tag for the 8GB model being $199 (£100) which will be the same across many countries.

Mr Jobs has said the cost of the first generation I Phone was the “number one reason” that sales were not as high as expected for the device.

Developer Chris Cooksey said Apple would be successful with such a low price for the new iPhone. “It’s a great price. They have made huge improvements to the phone and the fact that you can do third party applications rules.”

Analyst John Delaney was a little more cautious “The fact that its cheaper is interesting. But how is it going to be cheaper? It Apple is doing it by cutting the retail price, it will drastically hit their margins if they sell volume. If the lower price is through operator subsidy, they are becoming a bit more humble. But that’s not clear at this stage. Either way, they are going for volume. But they have got a big mountain to climb outside the US.”

www.apple.com

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