Apple Inc. added new iPhone
and iPod touch models to its lineup of phones and music players Tuesday by doubling
the maximum amount of storage space in each to 16GB.

The new top-of-the-line iPhone is priced at $499, Apple said. This is the first
time since September, when Apple dropped the 4GB iPhone from its sales sheet,
that the smart phone family has had multiple models. Apple continues to sell
the 8GB iPhone for $399.

The iPod touch -- for all intents and purposes an iPhone that cannot make or
take calls -- now sports a 32GB model, also priced at $499, as a third option.
Older models, including the $299 8GB and the $399 16GB configurations, remain
available.

"This is just a bigger, faster kind of announcement," said Ezra Gottheil,
analyst with Technology Business
Research Inc., speculating that the timing was in part driven by an attempt
to pump iPhone sales during a traditionally slow period. "Mobile phone
[sales] aren't as seasonal as iPods, but they are seasonal."

Gottheil said he still expects Apple to make major changes to the iPhone in
2008, adding 3G capability and perhaps even true GPS functionality. "I'd
put that around the middle of the year," he said today.

The larger-capacity iPhone and iPod touch are available immediately at Apple's
own retail stores, its online outlet and at resellers in the U.S. The upgraded
models sell for 499 Euros in Europe and 329 pounds in the U.K.

The new iPhone's price tag is the same as the 4GB model's when the latter debuted
in June 2007. Just over two months later, however, Apple CEO Steve Jobs ditched
that model and slashed the price of the 8GB smartphone by $200, to $399.

Several users who said that they had recently bought 8GB iPhones asked on Apple's
support forum whether they would be allowed to swap their purchase for the larger-sized
model. Apple's policy is to accept returns within 14 days, although a 10% restocking
fee applies if the iPhone box has been opened.

Other recent customers complained of the bump in storage. "I brought my
iPhone about a month ago so I have no way of exchanging my phone," said
a user pegged as SimonLee. "But Apple don't [sic] care about that because
they just want me to go and buy a new one."

That kind of comment got little love on the forum. "Blah blah blah, go
cry somewhere else," said Goshia on the same thread.

"Maybe the solution is to never bring out a new product. Oh, but then
you'd complain too," said Simon Taylor. "So Apple, please stop developing
new products or improving the ones you have. You are upsetting your customers.
They would obviously prefer to use the original Apple II."

» posted by abennett

Computerworld

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