The document discusses the release and success of the Apple iPhone 3G. It was released on July 11th in two versions starting at $199-299 with a two-year contract. Over 1 million were sold in the first three days. While very popular, some customers experienced activation problems due to high demand. Rivals like Samsung and Verizon released competing smartphones, but analysts say the iPhone 3G still has advantages in features and battery life. Apple expects to sell over 10 million units by the end of 2008 and sees the iPhone 3G off to a great start.

1. Changing The Wireless Game
Brad Weisberg
Summer Intern
UBS Financial Services

2. What’s All The Hype About?
“Twice as fast, half the price”
- Apple Inc., one of the leading retailers in the
technological world, has done it once again. At
their MacWorld conference in early June, the
much anticipated and rumored iPhone with 3G
capabilities was announced.
- The new 3G iPhone released July 11th at Apple
Stores, AT&T Stores, and various other wireless
carriers globally at 8:00AM.
- Comes in two versions, the 8GB which comes
in black and retails for $199.00 with a two-year
service agreement and the 16GB, available in
both black and white and will set you back
$299.99 with a two year service contract
agreement from AT&T.
Features a 3.5” diagonal multi-touch
- Includes stereo headset with mic, dock screen, lightning fast data with 3G,
connector to USB Cable, USB Power Adapter,
Cleaning/polishing cloth, SIM eject tool, and maps with GPS, push email,
documentation.
calendar, and contacts with Microsoft
Exchange ActiveSync, App Store, 2MP
camera and much more.

3. 1 Million 3G iPhone Sold Worldwide
During Its’ First Three Days
 Apple reported on Sunday
that one million 3G iPhone
handsets had been sold.
 In 21 states, Apple Stores
are completely sold out of
the 3G iPhone in both sizes
and are unsure when they
will be restocked.
 Consumers nationwide are
lining up hours in advance
for the opening of AT&T
and Apple Stores in hope
to be able to purchase an
iPhone 3G. Lines are
blocks long and have wait
times up to ten hours.

4. A Hiccup In The Process
What Others Are Saying About
-Hundreds of thousands of These Problems?
customers experienced
numerous problems with the -Analyst Rob Enderle of The Enderle
release of iPhone 3G. Group said Apple was foolish to try such
a huge launch, especially since the initial
-PROBLEMS iPhone launch last year had its own
problems with customer overload
-Activation problems. bogging down the network. "For a vendor
to do this mistake twice is stupid," he
- Underestimated the told InternetNews.com. "They should
have staggered this launch. There's no
possible problems for both
advantage to a global launch other than
new customers and existing bragging rights."
customers with activating -Ken Levy says, "I think they would have
the iPhone 3G, which was frustrated customers a lot less if they
done in order to prevent had to wait 24 or 48 hours rather than go
people from unlocking the through this," he said. "If they would
have distributed the update only to new
iPhone 3G which would people and 1.0 [iPhone customers]
enable it to be used on waited, it's possible all the new
other GSM carriers. customers would have had a better
experience."

5. Can the Others Stay in the Game?
 Sprint and •Verizon And Their
Their “Instinct” “Glyde” Into The
-Sprint, the nation's third top Game
wireless service provider - Verizon Wireless, the nation's
has teamed up with top provider for CDMA
Samsung to create what
Sprint calls the "iPhone technology, has entered the
Killer". Featuring voice- battle with the Samsung Glyde.
enabled GPS, full web
browser, mp3 player and Featuring a glistering 2.8" full-
other modern day color touch screen, 2MP
capabilities such as camera, Bluetooth and many
Bluetooth, the Samsung
Instinct is all and much more added touches, this phone
more in the palm of your is identical to the Samsung
hands. Samsung has tried to Instinct, with the exception of it's
replicate the iPhone, even
with their similar full slide-out QWERTY keyboard.
advertisement and pricing. Starting at $249.99 with a two-
The Instinct retail for year service contract
$129.99 with a two-year
service agreement. agreement, this ultra-modern
telecommunication product does
not create any intimidation for
it's competitors.

6. Comparing Apples to Oranges user rating is
-The average
about 3.3 out of 5 stars for
the iPhone 3G. The only
phone to beat the iPhone
3G review ratings is the
Instinct which has been
out longer and has had
more time for testing.
- Sprint says that the
Samsung Instinct is the
fastest selling product that
they sold so far.
- However, the Samsung
Glyde is nothing to do
cartwheels over. Editor of
PHONEMAG says, "The
Verizon Glyde isn’t a bad
cellphone, but it’s
outshone by its rivals

7. Huge Success or Another Loss?
 "IPhone 3G had a stunning opening Reasons For Success:
weekend," said Chief Executive Steve -Lower price, starting
Jobs at $199, the 3G
iPhone is 60.0%
 "It took 74 days to sell the first 1.0 cheaper than the first
million original iPhones, so the new iPhone
iPhone 3G is clearly off to a great - Wider range of
start around the world.” availability. The first
generation iPhone
was only available in
 "However," Abramsky said, "iPhone very few countries.
3G's features/battery life still At launch, Apple
outpaces other 3G phones and the released the iPhone
iPhone remains unmatched by 3G in over twenty
competitors." countries.
Future Projections: - Faster internet
-Apple expects to sell over 10 connection. When
million units by the end of 2008. compared to
Others estimate sales of 12 competitors, the 3G
million units by the end of 2008. iPhone stacks up.
-Caris& C0. estimates Apple’s
year-end earnings to be $5.33 a - Apple shares gained $1.30, or 0.8%,
share and $6.23 a share for 2009. closing Monday’s session at $173.88.
Both higher than the estimates
made by Thomson Financial

8. You know what they say, “An
apple a day keeps the doctor
away.”
Have you consumed an Apple
iPhone 3G yet?