I would have liked to do a full-featured “translation from PR-speak to English” on this, but I lack the talent.
[Engadget] ask: Why not 3G networks?
Steve: “The 3G chipsets are real power hogs. Handset battery life cuts power to 2-3 hours.” … “Our phone has a talk time of 8 hours and that’s really important when you want to use your phone for internet and music. 3G needs to get back up to 5+ hours, something we think well see later next year. … WiFi is way faster than any 3G network. Energy efficient EDGE with better, faster WiFi. That’s why we chose it.”
My comments: huh? My E61 has 3G and lasts as long as any other phone. So does my wife’s Sony Ericsson. The real battery hog for me is WiFi.
I suspect the real issue is O2’s lack of good 3G coverage, and the fact that Apple hasn’t been able to shoehorn a 3G chip into the iPhone. Expect a “1984” moment when they are able to do so, and will introduce a new rev of the iPhone. This will be priced higher, and suddenly EDGE will be really really bad.
Q: What’s the contract length, and does unlimited usage truly mean unlimited?
Matthew [O2 CEO]: “18 months contract. There is a limit: 1,400 internet pages per day would break the deal as part of fair usage agreement.”
Engadget comment: “Wait, what?”
Me: ditto. That comment makes no sense. I can buy some sort of limit, but why not express that in hard megabytes? I’m guessing the rest of the sentence is garbled and won’t try to parse it.
Q: What’s the revenue sharing from data and device sales between Apple and O2?
Steve: “Unfortunately, we’re not going to go into that, but good question!” Laughter. “…Sometimes you get what you pay for.”
Rumour has it that Apple is getting about 40% of the revenue for the iPhone from O2. That’s insane.
Q: Is unlocking a concern?
Steve: “It’s a constant cat and mouse game — we have the same thing with the iPod with music.” Steve looks at Matthew, “Are we the cat or mouse?” ‘We have to stay one step ahead of them.”
The same thing with the iPod and music? It’s not the same at all!
Q: To Matthew, what do you have to do to get your network ready for the iPhone?
“We’re investing in EDGE. As many people have noticed, hey I have EDGE! By launch we’ll be north of 30% and build from there.”
The world has moved on to 3G. O2 is being left behind.
Q: Have you thought about opening the iPhone to 3rd parties?
Steve: “Yes, we’ve already done that with Web 2.0. We’re looking at more intimate apps. But people hold their phones to a higher standard than their PC. The more open you are, the less predictable.”
We’ve heard this before. The iPhone is less open than other smartphone platforms, but the question is if people care.
Q: Do you feel a 2 megapixel would be a concern to European customers?
Steve: “No, the camera is great. More megapixels don’t make a better camera, the iPhone is actually a great camera especially, with great lighting.”
I don’t know how much megapixel figures sell phones, but only 2 mpx sure doesn’t look good on the spec sheet.
Rui:
Underwhelming, and bordering on the ridiculous.
Tarek weighs in with good comments regarding the pricing in the UK compared to the US.
It seems as if Apple/O2 are going even farther than in the US in positioning the iPhone as a premium product. The terms of the contract are rather less generous in the UK than in the US, but this is not reflected in a lower handset price.