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With recently revealed information and questions regarding about what's going on with Apple and AT&T, I figured I'd take a moment and write out what I know, since some of us are in the "iPhone Generation".
There are two things about to happen that are related but separate. The iPhone software is about to get a major revision (2.0), and there's going to be a new hardware model called iPhone 3G.
Ignoring the new hardware for a moment, the new 2.0 software will be available to all existing iPhone customers. When you connect your iPhone to iTunes, you'll get the update. The main new thing will be the "App Store" where you can look for new applications and games to run on the iPhone, and there will be a lot of enhancements to existing features like the Mail client.
More info on this at: http://www.apple.com/iphone/softwareupdate/
Other than the new 2.0 software, nothing is changing for existing owners. We're still on the same rate plans, bills aren't going up, etc..
What's confusing some people is the new iPhone 3G, because the AT&T plans for the new 3G phone are different from what we have today. Basically, an iPhone 3G user will pay ten dollars more per month because the data plan cost is increased for them. Also, the iPhone 3G plan does not have any SMS text messages included. To get the same 200 messages per month original iPhone users have will cost another five dollars a month.
This is all explained at: http://www.wireless.att.com/cell-phone-service/specials/iphone-info.jsp
So why would anyone want to switch from the original iPhone, to iPhone 3G, if you have to pay an extra $10-$15 dollars each month?
Two new major hardware enhancements are 3G data speeds and GPS.
The 3G data speed comes into play when you're using the internet, like web browsing or checking email, using the cell phone network. The original iPhone is sort of like a dial up modem, 3G is more like a broadband connection. If you normally use the internet by wi-fi spots, then this won't be of much use. Also, not all areas have 3G, and when 3G isn't available then you end up using the same EDGE network that is used today by the original iPhone.
Here's one article that talks about that:http://www.tuaw.com/2008/06/10/list-of-cities-that-are-in-atandts-3g-coverage/
The GPS helps with location pinpointing. The original iPhone can determine location due to proximity to cell phone towers and wi-fi spots, the new 3G adds GPS to the mix.
Apple has some videos that shows the new iPhone 3G features. The guided tour is for people new to iPhone, there's also a "what's new" video. Just remember that the software changes are things current iPhone owners get too: http://www.apple.com/iphone/guidedtour/
Then there is the cost to buy an iPhone 3G.
For those new to AT&T, they can get an 8GB model for $199 and a 16GB model for $299. That cost is also available for current AT&T owners that are eligible for an upgrade discount and existing iPhone users too. For AT&T people who don't have an iPhone and are not eligible for an upgrade, their cost would be $399 and $499. The normal costs for these without a contract will be $599 and $699. There's also an activation fee, $36 for new people, $18 for current AT&T customers.
http://www.engadget.com/2008/07/01/atandt-announces-iphone-3g-pricing-plans/
If an original iPhone user does upgrade to iPhone 3G, there are two things you could do with the original after you switch. First, you could keep it around. Apparently, it will still work for iPod features, etc, so it would basically turn into an iPod touch. Second, you could sell or give it away to someone else, and AT&T will keep the old rate plans around for that device, so the new user won't have to pay for the extra data costs.
If you're not confused by now, then I obviously didn't try hard enough...;P
There are two things about to happen that are related but separate. The iPhone software is about to get a major revision (2.0), and there's going to be a new hardware model called iPhone 3G.
Ignoring the new hardware for a moment, the new 2.0 software will be available to all existing iPhone customers. When you connect your iPhone to iTunes, you'll get the update. The main new thing will be the "App Store" where you can look for new applications and games to run on the iPhone, and there will be a lot of enhancements to existing features like the Mail client.
More info on this at: http://www.apple.com/iphone/softwareupdate/
Other than the new 2.0 software, nothing is changing for existing owners. We're still on the same rate plans, bills aren't going up, etc..
What's confusing some people is the new iPhone 3G, because the AT&T plans for the new 3G phone are different from what we have today. Basically, an iPhone 3G user will pay ten dollars more per month because the data plan cost is increased for them. Also, the iPhone 3G plan does not have any SMS text messages included. To get the same 200 messages per month original iPhone users have will cost another five dollars a month.
This is all explained at: http://www.wireless.att.com/cell-phone-service/specials/iphone-info.jsp
So why would anyone want to switch from the original iPhone, to iPhone 3G, if you have to pay an extra $10-$15 dollars each month?
Two new major hardware enhancements are 3G data speeds and GPS.
The 3G data speed comes into play when you're using the internet, like web browsing or checking email, using the cell phone network. The original iPhone is sort of like a dial up modem, 3G is more like a broadband connection. If you normally use the internet by wi-fi spots, then this won't be of much use. Also, not all areas have 3G, and when 3G isn't available then you end up using the same EDGE network that is used today by the original iPhone.
Here's one article that talks about that:http://www.tuaw.com/2008/06/10/list-of-cities-that-are-in-atandts-3g-coverage/
The GPS helps with location pinpointing. The original iPhone can determine location due to proximity to cell phone towers and wi-fi spots, the new 3G adds GPS to the mix.
Apple has some videos that shows the new iPhone 3G features. The guided tour is for people new to iPhone, there's also a "what's new" video. Just remember that the software changes are things current iPhone owners get too: http://www.apple.com/iphone/guidedtour/
Then there is the cost to buy an iPhone 3G.
For those new to AT&T, they can get an 8GB model for $199 and a 16GB model for $299. That cost is also available for current AT&T owners that are eligible for an upgrade discount and existing iPhone users too. For AT&T people who don't have an iPhone and are not eligible for an upgrade, their cost would be $399 and $499. The normal costs for these without a contract will be $599 and $699. There's also an activation fee, $36 for new people, $18 for current AT&T customers.
http://www.engadget.com/2008/07/01/atandt-announces-iphone-3g-pricing-plans/
If an original iPhone user does upgrade to iPhone 3G, there are two things you could do with the original after you switch. First, you could keep it around. Apparently, it will still work for iPod features, etc, so it would basically turn into an iPod touch. Second, you could sell or give it away to someone else, and AT&T will keep the old rate plans around for that device, so the new user won't have to pay for the extra data costs.
If you're not confused by now, then I obviously didn't try hard enough...;P