World of Apple

During an interview at the Web 2.0 Summit with TechCrunch’s Michael Arrington AT&T Mobility President and CEO Ralph De La Vega stated that AT&T is working with Apple to allow the iPhone to tether to computers. Saying it will be available “soon”.

AppleInsider is also noting that an iPhone 3G owner had sent an email to Steve Jobs in the past calling it “ludicrous” that “such an advanced device” can’t tether with a computer.

Jobs reportedly wrote back saying, “We agree, and are discussing it with AT&T.”

AT&T has officially announced that they are offering free WiFi access to all iPhone subscribers in the U.S.

WiFi spots can be scouted out using an online tool, WiFi is also available in Starbucks restaurants which can be found here. The following steps are required to make use of AT&T WiFi.

- Activate Wi-Fi from the settings icon on your iPhone
- Select “attwifi” from the list of available networks
- Enter your 10-digit mobile number and check the box to agree to the Acceptable Use Policy. Tap ‘continue’
- You will receive a text message from AT&T with a secure link to the AT&T Wi-Fi hotspot. You will not be charged for the text message.
- The SMS link will only be valid for 24 hours at the location it was requested. Another request must be submitted when using another hotspot location.
- Open the text message and tap on the link for 24-hour access to the AT&T Wi-Fi hotspot

AT&T reported on Wednesday that its third quarter profits were boosted by a larger number of iPhone activations that was initially predicted.

The US iPhone carrier reported a 5.5 percent rise in profits to $3.23 billion and EPS of $0.55. AT&T also noted that it gained an added 2 million subscribers to its network to end the quarter with 74.9 million.

Growth was driven by the activation of 2.4 million iPhone 3Gs, 40 percent of which were new to the network.

“I am particularly pleased with the customer response to the iPhone 3G,” said AT&T CEO Randall Stephenson. “The new customers we’re winning are high-value, with attractive revenue and churn profiles.”

Apple announced on Tuesday that it had sold 6.9 million iPhones worldwide in its previous fiscal quarter.

Gizmodo has posted an email purportedly from Steve Jobs in response to a complaint about AT&T not offering tethering on the iPhone even though many other smartphones offer it as a $30/month add-on plan.

The email from Jobs read:

We agree, and are discussing it with ATT.

Sent from my iPhone

The USA Today is reporting that the latest iPhone firmware which was released yesterday aims to fix issues related to 3G signal strength.

The newspaper cites reported from iPhones users who state that they are experiencing issues with calls being dropped. The newspaper goes onto speculate that this could be an hardware issue with the Infineon chip used within the iPhone; a possibility that Infineon itself has stated as unlikely.

The article explains that the iPhone 2.0.2 update released yesterday aims to fix the reported issues by addressing how quickly the iPhone 3G will drop a weak 3G signal and begin using a stronger EDGE signal. Often resulting in dropped calls and frustrated users.

Apple spokeswoman Jennifer Bowcock said on Tuesday, “The software update improves communication with 3G networks.”

AT&T stated Wednesday that the first twelve days of iPhone 3G sales were double that of last year. Adding that despite severe shortages the company is seeing backorders of one to three weeks at retail stores.

The information was disclosed by AT&T during its fiscal second quarter results in which company profits rose 30-percent to $3.77 billion (63 cents per share) on revenue of $30.9 billion for the three months ended June 30.

“The Apple iPhone 3G is a dramatic example of this transformation,” said chief executive Randall Stephenson. “In the days following our exclusive U.S. launch of this new device, powered by the nation’s fastest 3G wireless network, customer response has been everything we had anticipated and more.”

Today marked the release of the iPhone 3G across the world, New Zealand began the process and the launches slowly spanned the globe.

The first cracks began appearing when the iPhone was set to launch in the UK, as customers queued through the early hours of the morning they were quickly disappointed as stocks dwindled at O2, Carphone Warehouse and Apple Stores across the country. Most O2 stores reporting that they had less than 50 units.

These issues and frustrations were nothing compared to what would occur as US purchasers began hammering the iTunes activation servers. Not long after the 8AM launch of the iPhone 3G on the East Coast Apple’s servers began slowing and eventually died leaving thousands queuing across the country.

Reports emerged that some were being sent home with un-activated units, instead being told to activate them at home through iTunes.

The problem was increased by magnitude as Apple simultaneously released the iPhone and iPod touch 2.0 firmware update causing a flurry of users to attempt to download the software.

As servers failed many iPhone owners in AT&T and Apple stores were left with half “bricked” iPhones and users at home trying to update were also suffering with non-functional units.

The problems come after a significant delay in the release of MobileMe which took over 24 hours to fully come online and is reportedly still sluggish.

To ease confusions for those wishing to purchase an iPhone 3G on July 11, AT&T has posted videos offering information about the upgrade process for existing AT&T customers as well as new customers.

The iPhone 3G will go on sale at 8am in AT&T stores across the US on July 11.

AT&T offers a video for existing customers in which the company outlines that current iPhone owners backup their iPhone using iTunes prior to purchasing an iPhone 3G. The video also notes that voicemail will be deleted when upgrading.

In a second video AT&T advises those wishing to sing-up with AT&T for the first time to visit a store before July 11th and complete a credit check to save time on launch day.

AT&T has today announced detailed pricing information for the iPhone 3G, the official carrier of the iPhone in the US also confirmed that the iPhone 3G will go on sale at 8AM on July 11th.

AT&T also confirmed that the 8GB and 16GB iPhone’s will sell for $199 and $299 respectively, prices require two-year contracts and are available to customers who purchased before July 11, customers activating a new line with AT&T and current AT&T customers who are eligible, at the time of purchase, for an upgrade discount.

The iPhone 3G will cost $599 and $699 to customers wishing to opt out of any form of contract and will be sold sometime “in the future,” AT&T said.

iPhones will go on sale at 8 a.m. local time on July 11.

Oppenheimer equity research analyst Yair Reiner has noted to clients this week that AT&T is paying Apple a $325 subsidy on each new iPhone 3G sold in the US.

The analyst also adds that AT&T is paying Apple an added $100 for each new subscriber to AT&T signed up through Apple’s brick-and-mortar stores.

The subsidy on the iPhone is said to be more than 50-percent higher than most other smart phones which are typically subsidised by around $200.