Recs

27

Are You Ready for the New iPhone?

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Get ready, iPhone fans: Apple (Nasdaq: AAPL  ) is preparing to dispense that elusive fourth-generation iPhone.

We've known about improvements to the iPhone's software for some time, including long-overdue multitasking features. The hardware has been seen in passing, under furtive circumstances worthy of an industrial spy novel. And of course, one would expect Steve Jobs to introduce the new phone when he takes the stage at the Apple Worldwide Developers Conference in two weeks.

But the evidence is getting more concrete by the hour. Wal-Mart Stores (NYSE: WMT  ) reportedly just stopped taking orders for older-than-Methuselah iPhone 3G handsets and issued a press release that it had dropped the price on the 3GS model from $195 to $97 with a two-year contract with exclusive carrier AT&T (NYSE: T  ) . 3G phones are now hard to come by through Apple's own online store as well. This is often a sign of impending obsolescence, as Apple and its retail partners clear out old stock to make way for the new hardware. And this time, some features of iPhone OS 4.0 are reportedly not compatible with 3G iPhones, making the model instantly expendable.

Jobs doesn't seem to have any qualms about squeezing every last available penny from his customers. The reason he gets so upset when details on upcoming products leak to the press is because that public knowledge can be "immensely damaging" to Apple as "people that would have otherwise purchased a currently existing Apple product would wait for the next item to be released." That's according to court documents, not a rumor or a Tweet. Hey, as long as consumers are playing along, that's just good business sense. In any case, we'll soon see the amazing, magical product Jobs fought so hard to keep under wraps. (Magic wand or flying broom? You decide!)

The onrushing flood of competitors that includes Google (Nasdaq: GOOG  ) Android phones, the Palm (Nasdaq: PALM  ) Pre that Hewlett-Packard (NYSE: HPQ  ) snatched back from the edge of the grave, and whatever BlackBerry tricks Research In Motion (Nasdaq: RIMM  ) might have up its sleeve are up against some formidable competition here. 

The 3GS is a fine phone and arguably a steal at $97 per unit, and the next-generation iPhone will surely have some hitherto undiscovered wrinkles to make it a worthy successor. The summer looks like a fine time to pick up a smartphone, and the coming holiday season should truly separate the wheat from the chaff. With the mobile market coalescing around a small group of winners, the door for major market share moves is creaking to a close.

Would you buy a discounted iPhone 3GS or just wait for something better? Please discuss in the comments section below.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Anders Bylund owns shares in Google, but he holds no other position in any of the companies discussed here. Wal-Mart Stores is a Motley Fool Inside Value pick. Google is a Motley Fool Rule Breakers selection. Apple is a Motley Fool Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 25, 2010, at 5:42 PM, MAURY56 wrote:

    My adult children have been trying to get me an IPhone. My wife gavae me an iPad last week for my 76th birthday. I can play wiht that while I wait for the newest iphone. In technology, always buy leading edge. It will be obsolete soon enough without jumping into the race already one lap behind.

  • Report this Comment On May 25, 2010, at 5:56 PM, Chexi wrote:

    I subscribe to a different philosphy and generally buy only the 1 iteration old technology at a huge discount. If I lived without it before, I can live without it now. If it was awesome when it came out, it's still probably pretty darn good now. The only time I broke this rule was with the 3GS, but I will not be breaking it with the 4G. The 3GS is a fantastic machine. I just wish it would get reception in my office.

  • Report this Comment On May 25, 2010, at 5:59 PM, InfoThatHelp wrote:

    If 3GS was any indication, the newest iPhone coming next month would be nothing short of the event of Christopher Colombus discovering North America !

    Mono-tasking on iPhone 3rd party apps had been a boa constrictor around our necks for too long. Games, for example, had been written with too much kernel restrictions making most of the themes and game actions quite simplistic. With 3rd party app multitasking the iPhone apps will be magnitudes more entertaining and powerful than the current breeds.

    With the much expanded OS 4, database companies will begin developing DBMS like Oracle, Sybase, SQL Server for iPhone. Multitasking is a must for Database engines. With these industrial DBMS iPhone can host most of today's database apps with little more than a good app porting tool. It's a win-win scenario because Apple can benefit from running industrial DBMS engines, and DBMS vendors can benefit from Apple's state-of-the-art UI elements which are superior to non-standard frameworks such as the resource hungry Adobe, and the bug infested HTML5 standard.

    I see the iPhone capable of running a combined Controller and View layer conducive to vast brand new opportunities for apps. Developers are now offered not merely a chance to re-write their apps, but to develop new breeds of apps that will usher in a major new paradigm mainly in model driven development, and amazing 3D UI elements enabling revolutionary user interfacing in meeting much more real world abstraction, allowing people to get much more values from the iPhone and its revolutionary new apps.

  • Report this Comment On May 25, 2010, at 7:17 PM, InfoThatHelp wrote:

    You would be a fool not getting the new iPhone.

    Your iPhone experience is going to go up twofold with new multitasking, higher performance hardware components, better graphics, a cooler and hip OS. In all, you are getting the hottest gadget with the coolest stuff under the hood.

    The new iPhone OS 4 has more cool features on top on of the most advanced OS kernel in the industry now surpassing the OS'es that are now running the world's multimillion dollar superservers such as the HPUX, IBM AIX, Sun Solaris, and all the Linux distributions. Apple's OSX is emerging to be the Unix of all Unixes. iPhone OS packs so much nextgen capabilities and power into its SDK the programmers who can capitalize the iPhone SDK are poised to unravel whole new horizons on the iPhone capabilities thru apps that will force out the current crops of enterprise, commercial, and personal apps. It is highly possible the new generation of iPhone apps would render all the current apps, including the 200000+ iPhone apps, obsolete overnight. Reason being all apps are visible only to the users, or app interfaces. Profoundly different UI or app interfaces will force a sea change in the services provided by the apps or app servers behind. The current crops of apps were developed using client server or monolithic technologies and protocol stacks dated back to the 1990s, Apple is breaking new ground beyond the component, OO, structured, and good old spaghetti paradigms into a real world based abstraction that is supported by newer generations of the Apple Cocoa Framework, I long to see the new paradigm from the Cocoa Framework from Apple, and start developing in genuinely revolutionary paradigms, just like when Jobs' NextStep first broke ground in the 1980s, except this time, it won't be a big revolution like NextStep on a Strange NextCube, but an established iPhone OS on an established iPhone.

  • Report this Comment On May 25, 2010, at 7:25 PM, foolexaminer wrote:

    Obviously full blown DBMS like Oracle, Sybase, or SQL will NOT be practical or work efficiently on iPhones even on an iPhone 4G. However, Lite versions of SQL will work perfectly fine just as they do today for iPhones, Palm Pres, and Android smartphones.

    This will be iPhone's first time trying to implement some form of multitasking within their next OS after complaining about how impractical and inefficient multitasking would be on their iPhones. I would suspect a ton of issues surrounding multitasking on the iPhone 4G considering how new they are to such technology. Meanwhile, webOS Palm Pre and Android smartphones have an edge and a lead in this department as multitasking is a native feature built-in their OS for quite some time now.

    Without Flash support for the iPhone 4G, Apple will continue to lose more and more consumers to leading edge smartphones like the Android HTC Incredible which feature far more robust capabilities than the iPhone 4G. Android, Palm Pres, Blackberry smartphones are expected to all support and run Flash 10.1 by the end of this year while iPhone will repeat the same complaints. But will eventually adapt to consumer trends: Flash Support and Compatibility.

    The future of mobile computing is in the hands of what consumers want. If iPhone 4G cannot support WiFi hotspot tethering or Flash like Android and Palm Pre smartphones, iPhone popularity will continue to decline.

  • Report this Comment On May 25, 2010, at 7:40 PM, InfoThatHelp wrote:

    Multithreading, DBMS and UI technologies are more a function on battery power than CPU and main memory on device. In this arena iPad is by far the dark horse far superior to any Android and the much too inferiror Blackberry architecture. By the way, it is a joke to compare the Blackberry OS to either Android or the iPhone OS. The Blackberry OS and architecture is extremely inferior, I wonder why no OS architect had ever published a detail comparision between the inferiror homegrown Blackberry OS to the industry standard Unix/Linux based iPhone OS and Android?

  • Report this Comment On May 25, 2010, at 7:41 PM, Henry3Dogg wrote:

    Um. I think iPhone popularity would have to start to decline, before it can continue to decline.

    If a beta version of Flash, and tethering (that has been on the iPhone for the last year) are the best that Android can manage then the Android consortium has big problems. It's no wonder HP jumped ship.

  • Report this Comment On May 25, 2010, at 7:47 PM, InfoThatHelp wrote:

    Flash Builder 4 is currently running on Windows AND Mac OSX. Apple had been one of the staunchest advocate of Adobe on the Mac, and indeed nothing else on the market can run Flash better than on an iMac or MacBook.

    Adobe is working on a mobile version of Flash Lite. Great majority of Flash apps do not run on any handheld device, it's like watching the Titanic on a 5" black and white TV.

    DBMS on iPhone is more of a strategic initiative on the iPhone because as American enterprises are increasingly targeting the iPhone as an application an integration platform, it's only right for iPhone to at least provide some industrial DBMS capabilities allowing the powerful distributed processing capabilities of enterprise DBMS on the iPhone than to just cater in for the need to render Flash controls on a tiny screen.

  • Report this Comment On May 25, 2010, at 7:53 PM, InfoThatHelp wrote:

    I agree with Henry. iPhone is indeed approaching global dominance rather than any sign of decline. IPhone OS has the distinct advantage over Android in that iPhone advances need no consensus like Android as a OHA standard requires. iPhone has the freedom and speed because of its homogeity. iPhone OS as a Unix variant is also much more robust and pure bred than the Linux which began as a Helsinki project by Linus Torvald with the goal of producing a poor man's free Unix.

  • Report this Comment On May 25, 2010, at 10:26 PM, InfoThatHelp wrote:

    Again, I stress that the iPhone Os has the same Os kernel as the OS running on the multimillion dollar servers running the American enterprises. Unix was created as multiuser multithreading systems. Apple iPhone is Unix, and Unix is meant to run on a 4K chip as well as the 400 teraflops IBM Roadrunner with 2048 terabytes of main memory doing_ real time weather forecasting. Unix definitely multitask/multithread, the iPhone3 GS battery is not strong enough. People don't know that, but then, people thought the Blackberry os is the same as iPhone os. How wrong can they be !

  • Report this Comment On May 26, 2010, at 6:04 AM, ldanby1952 wrote:

    I don't know anything about os,flash or any other of the technical comparisons, but I do know numbers.The i phone is clearly gaining momentum and the i pad can't be found.

  • Report this Comment On May 26, 2010, at 9:19 AM, sk8ertor wrote:

    Anyone who rushes out to buy this phone just because it's new is out of their mind. I am not going to buy any iPhone because I'm stick of getting screwed around. Why no SD card? They make you pay a fortune to get the additional memory. Also, I've had a bad experience with Apple products (iPod especially). I'm done with their Chinese crap. They need to start manufacturing quality products in the USA and get rid of the "designed in california" BS on the back of their product.

  • Report this Comment On May 26, 2010, at 12:19 PM, InfoThatHelp wrote:

    Quality wise the made in Canada Rim CrapBerrys are the bottom of the barrel. I have 4 dead CrapBerrys rotting in my drawers. Their trackballs / trackpads are gumpy and dysfunction. I sent the Curves to Rim for repairs 4 times !

  • Report this Comment On May 30, 2010, at 11:15 AM, beetlebug62 wrote:

    <<This is often a sign of impending obsolescence, as Apple and its retail partners clear out old stock to make way for the new hardware. And this time, some features of iPhone OS 4.0 are reportedly not compatible with 3G iPhones, making the model instantly expendable.

    Jobs doesn't seem to have any qualms about squeezing every last available penny from his customers.>>

    One, the existing models are not obsolete. Even the first EDGE iPhone runs iPhone OS 3.0. How many other makers' phones from 3 years ago can run a current OS?

    Having said that, iPhone OS 4, since it has multitasking, requires a handset with more ram, and those earlier iPhones, the EDGE model and the 3G model don't have enough ram to multitask efficiently. Jailbroken iPhones have shown it's technically possible, but not very practical. Nevertheless, if you haven't missed 3rd-party app multitasking, since the core apps can multitask, as everyone knows, except analysts, then there's no need to upgrade. Jobs is not forcing anyone to upgrade, so Bylund's snarky insults about squeezing customers is his usual nonsense.

  • Report this Comment On June 02, 2010, at 10:47 AM, AlbertaBorn wrote:

    @foolexaminer

    This is why Apple doesn't use flash - it's a busines decision, and a damn good one

    http://www.apple.com/hotnews/thoughts-on-flash/

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 1192128, ~/Articles/ArticleHandler.aspx, 5/26/2012 12:48:20 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/25/2012 4:00 PM
AAPL $562.29 Down -3.03 -0.54%
Apple CAPS Rating: ***
RIMM $11.00 Up +0.29 +2.71%
Research In Motion… CAPS Rating: *
T $33.69 Up +0.05 +0.15%
AT&T CAPS Rating: ***
WMT $65.31 Up +0.24 +0.37%
Wal-Mart Stores CAPS Rating: ****
GOOG $591.53 Down -12.13 -2.01%
Google CAPS Rating: ****
HPQ $22.33 Up +0.56 +2.57%
Hewlett-Packard Co… CAPS Rating: ***
PALM.DL $5.69 Down +0.00 +0.00%
Palm CAPS Rating: *

Advertisement