AT&T slates iPhone MMS launch for Friday

3G and 3GS owners must first download an update via iTunes

AT&T will officially launch the long-awaited MMS service for the iPhone on Friday, but some users have reported it's already working, according to messages on the company's Facebook site.

"We know you've been eager for this service so we wanted to offer a quick update on the launch plans for MMS on Friday, Sept. 25," AT&T said in a short message on its sanctioned Facebook page. "Late morning, Pacific Time, on Friday, the new carrier settings update enabling MMS should be live and ready ... to download through iTunes. We'll provide the steps and all of the details you need right here at that time."

Several users, however, noted that AT&T had already flipped their MMS (Multimedia Messaging Service) switch. "MMS is working on my iPhone in New York," said Eliezer Quinones Wednesday evening in a message on AT&T's Facebook page.

Two weeks ago, other users claimed that AT&T had enabled MMS for their accounts, a move some credited to limited testing by the mobile service provider.

iPhone owners have blasted AT&T for not offering MMS -- which lets users send photos, video and other content attached to text messages -- when the iPhone debuted in 2007. Critics stepped up their complaints in June, when Apple said the new iPhone 3.0 software would support MMS, but implied that AT&T would not immediately offer the service.

Originally, AT&T had pegged MMS availability by the end of summer, which officially ended on Monday.

Several times since June, AT&T explained the delay as necessary to beef up its network to accommodate the expected "record traffic" of MMS.

iPhone 3G and 3GS users will be able to use MMS starting tomorrow; owners of the first-generation iPhone won't, however, due to hardware limitations of the original model.

AT&T 's tethering plans remain unclear. Earlier this month, an AT&T spokeswoman said only that tethering -- which lets mobile phone users access the Internet from a laptop by linking it via Bluetooth to an iPhone's wireless data connection -- would be offered at some point "in the future." However, she did confirm that tethering would not be included in tomorrow's iTunes update.

As AT&T noted, iPhone owners must update their phones using iTunes before using MMS.

Hackers Can Launch iPhone Attack Via SMS

Security experts at the Black Hat conference said Thursday that hackers can break into an iPhone to intercept text messages, deliver spam and deliver malware.

Charlie Miller, Independent Security Evaluators researcher, and Collin Mulliner, a Ph.D. student at the University of Berlin, demonstrated during a Black Hat presentation that hackers can break into an iPhone via the SMS protocol to launch a denial-of-service (DOS) attack or take control of a victim's phone.

"Its lots of fun to kick friends off the network, but it's even more fun to own their phone," Miller said, who demonstrated the exploits on both the iPhone and Android.

The hack is enabled by memory issues in the way the iPhone handles the SMS protocol, Miller said. Miller demonstrated Thursday that the attack can be used to launch a DOS attack, which could be used to shut off an iPhone, deface text or otherwise reconfigure the keys.

The DOS hack is launched by flooding the iPhone with hundreds of SMS control messages, which allows hackers to keep their victims off the network indefinitely.

A similar SMS hack can be conducted on the Google Android and the Windows Mobile platforms.

"Basically what happens, you send a bad SMS, you can't use your phone," Miller said. "Literally the phone is working, you just can't press any of the buttons."

And unlike previous types of mobile attacks, which required a hacker to entice users to open a malicious Web site, iPhone users could become infected with no intervention.

These kinds of attacks will likely be used to send spam, researchers said. "It could be used in a spam game," said Mikko Hypponen, chief research officer for Finland-based F-Secure. "SMS is cheap but it's not free."

Unless you hack into someone's phone, that is. One of the biggest impediments to launching spam campaigns via SMS is that it costs money to send a text. However, hackers who can break into a victim's phone can launch an attack that could send out millions of spam text messages free of charge.

Miller, however, found a way to test the SMS exploit while incurring minimal costs. "We paid for 100, and we got the effects of half a million," he said.

Perhaps even more menacing, researchers said, is the possibility of launching a malware attack via SMS. An attack could be used to distribute malware once the hacker is able to penetrate the victim's phone, which would spread to everyone on the victim's contact list. Mobile Trojans could be used to steal information or make the mobile phone into a remote spying device, Hypponen said.

iPhone Pushes Mobile Gaming To $5.4 Billion

Apple's smartphone is leading the pack, as developers and mobile gamers are attracted to the App Store and its business model, according to one research firm.


Mobile gaming was once simple games like "Snake" that were meant to kill time, but the market is rapidly becoming a lucrative business. Thanks to smartphones like Apple's iPhone 3G, mobile gaming rose 20% and hit $5.4 billion in 2008, according to a new report from JupiterResearch.

The report said overall game downloads were flat in the U.S. and Western European markets, but volumes rose in developing markets like India and China. While Java-based games saw a steep decline, those volumes were offset by a sharp increase of iPhone game downloads.

"The combination of iPhone and the Apple App Store has galvanized the mobile games industry," said report author Dr. Windsor Holden in a statement.

"Apple has provided an innovative device which enables developers to create smooth, compelling, visually attractive games for the mobile users, together with a business model offering a highly competitive revenue share for developers."

The touch input, robust hardware, and graphics capabilities have given the iPhone an advantage over its rivals on the mobile gaming front. Users of the iPhone also download apps at a higher rate than other phone users, and the platform has drawn high-profile developers like Electronic Arts and Sega.

One of the advantages the iPhone has over its competitors is the tight integration of the App Store. This makes browsing, buying, downloading, and installing games over the air easier than on most rival platforms. Additionally, users with an iTunes account already have a credit card on file, which makes buying games easier than on other platforms. For example, Google's Android Market uses Google Checkout, and Research In Motion will use PayPal for its BlackBerry App World.

The report also said that more than half of games downloaded by 2012 will be funded by advertising. This could drive additional business opportunities for the likes of Medialets, which has a rich media ad platform for iPhone apps.

iPhone Launched in Thailand with Poor 3G Network

The iPhone 3G has arrived in Thailand with the mobile operator True Move. According to the website iPhones Talk, Apple reportedly negotiated for some time to get the phone into the country. Despite its potential appeal in the Thai market, there is speculation surrounding how many Thai users will be able to take full advantage of the iPhone 3G's rich features due to spotty 3G coverage and lack of education about the phone's advantages, in addition to the lack of heavy data related usage there.

Given its price tag, another question arises: Does the iPhone make sense for consumers and operators in countries where voice calls dominate mobile use, and data/Wi-Fi usage isn't very high?

Due to a decision made by leading Thai mobile operators last year the country has scaled down their investment on 3G network upgrades, which could result in a large group of iPhone users without a fast, native network on which to use their gadget. According to Reuters India, however, True Move expects to launch 3G mobile services in Bangkok this coming April.

Apple Expected to Cut Production of iPhone, Peak Popularity of iPhone May Be Over.

Analysts Project Decline in Apple iPhone Sales Going Forward

The days of exceptional popularity of Apple iPhones may be over as the company is expected to reduce production levels of the highly-discussed device, some analysts claim. On the other hand, there are holiday sales ahead and Apple may enjoy at least another quarter of unprecedented success, other industry watchers believe.

Production of Apple iPhone to Drop by 40% in Q4 – Analysts

“Previous checks indicated that iPhone production would fall about 10% sequentially in calendar Q4, but our new checks indicate that iPhone production could fall more than 40% sequentially in Q4,” said Craig Berger, an analyst with FBR Capital Markets, in a note to clients, reports Reuters news-agency.

Apple sold 6.9 million of iPhone smartphones in Q3 2008 thanks to expansion of Apple iPhone 3G into 51 countries, but the question is whether the company can be as successful going forward selling its handsets at price-points (the final price end-users have to pay according to the terms of contracts) that well exceed even the premium-class mobile phones by companies like Nokia.

In Q4 2008 there will be holiday selling season as well as expansion of Apple iPhone 3G into 15 other markets. But carriers have about 2 million of iPhone devices in inventories and the initial rush for the products is over, claims Needham analyst Charlie Wolf, reports Barron’s Online. That fact “suggests that iPhone sales might decline in the December quarter”, even though the expansion into new markets could provide some offset.

Still, Mr. Wolf believes that the “iPhone could effectively take over the smartphone market” if Apple lowers pricing of its device that is presently adopted by fans or gadget lovers.
Sales of Apple iPhone Could Hit 8 Million in Q4

There are also those who believe that actual sell-through figures of Apple iPhone in Q4 2008 may exceed those in Q3 2008, although such claims hardly look realistic in current market conditions.

Rethink Research suggests that back in the third quarter Apple and AT&T sold about 2.4 million iPhones, whereas 2.5 million were sold through by Apple’s partners outside the U.S. The market tracking firm also believes that approximately 2 million were still in stock across the world in late Q3 2008. While Rethink admits that sales of Apple iPhones in the USA will drop because of economic downturn, it believes that there will be no impacts of financial crisis in countries like Argentina, Brazil, Greece, Hungary, India, the Philippines, Poland, Russia, South Africa and Turkey for Apple, which will result in double the sales of the iPhone gadgets.

“If only 2.5 million actually shipped last quarter to customers outside the U.S. then the chances are that even without Christmas coming (it is not celebrated in all of these countries), this would still double, as advertising begins to bite in each of these countries. So make that 5 million, plus another million for stacking the retail channels. Under those conditions, even if AT&T only sells half the number as the recession bites harder there, the last quarter of the year will still outstrip the September quarter with well over 7 million iPhones. A more reasonable number would be closer to 8 million,” a report by Rethink suggests.

Still, even the optimistic Rethink Research claims that in Q1 2009 iPhone sales will, perhaps, collapse, falling back to 3.5 – 4 million units per quarter, which is inline with predictions by FBR and Needham.

iPhone’s Indian Reception: Small But Enthusiastic

Maharajas, rich kids, and entrepreneurs: so that’s who’s buying the iPhone in India, according to a Reuters report from the front line, which found that the launch of the iconic handset in India had “none of the mass hysteria” that accompanied its debut in the US, Europe and other parts of Asia in July.

Priced at $700-$800 in India, or twice the monthly salary of a white collar middle manager, the iPhone response was predicted. Still, it was an “enthusiastic reception,” and for those who can afford it, the phone gives them bragging rights in a country where mobile phones are still seen as “symbols of status and success,” and where the phone has already enjoyed a strong run in the black market. As 14 year-old high school student Rudra Khurana, standing in line with his father, said, “I can’t wait to show it off at school, it’s way better than having a PlayStation.”

Why The iPhone Has Stumbled In India

The original iPhone generated a lot of interest in India, selling well on the grey market, so it went to reason that when the 3G version launched officially in the world’s fastest growing wireless market, that it too would sell well. But apparently, that’s not what happened, with sales of the iPhone 3G falling far short of Apple’s own internal goals of moving 100,000 units by December 2009. Livemint.com reports that analysts tracking the Indian handset market estimate that half that number has been imported, with just a fraction—11,000 phones—sold so far. Given that every handset marker from the market leader Nokia (NYSE: NOK) to up and coming HTC have been anxious to capture the rapidly expanding Indian market, it seems odd that Apple (NSDQ: AAPL) hasn’t taken sales in the country more seriously.

So what hurt the iPhone 3G’s uptake in India? For one, pricing was always going to be part of it. At $800, the gadget was without a doubt, expensive, especially considering a typical IT worker’s annual salary ranges from $12,000-$24,000. But cost isn’t the entire reason. As Livemint points out, Nokia’s N96, Samsung’s Omnia and BlackBerry Bold all cost even more than the iPhone.

“Pricing communication” was a bigger reason. Indian consumers were well aware that the iPhone was selling in the US for $199, but Apple made no attempt to explain the sizable cost difference—that subsidizing handsets isn’t common practice in the Indian market as it is in the US. Even worse, the phone was locked to the carrier, despite consumers being charged full price. Apple also left too much to its operator partners—Bharti Airtel and Vodafone—which didn’t have the experience of aggressively selling handsets. They only sold the phones in their own stores, instead of branching out to the numerous retail phone outlets in India that sell 50 percent of all handsets. Marketing was another downfall. Again, it was left to Vodafone (NYSE: VOD) and Airtel, which didn’t push the phone that hard, and certainly didn’t position the iPhone as a “lifestyle” product, or make it seem “aspirational.” (Apparently, selling the iPhone as a lifestyle product could have compensated for the fact that India doesn’t yet have 3G networks, rendering the phone’s 3G capabilities useless).

Nokia, meanwhile, will be happy to learn that Apple’s strategy “was not to sell a million phones in India” and that “it only wanted to establish a presence in the country,” as Airtel’s CMO Sanjay Gupta told Livemint. Nokia dominates the Indian smartphone market, with research firm Gartner estimating they have an up to 70 percent share of it.

In a separate story, Reuters reports that India added a record 7.7 million mobile users in October to its GSM-based networks, according to the Cellular Operators’ Association of India (COAI). Total GSM mobile users at the end of October numbered 241.4 million, up 3.3 percent from 233.7 million in September. The number does not include India’s CDMA mobile users. At the end of September, number two network Reliance Communications, which is CDMA-based, had 56.1 million users.

Apple recalls iPhone 3G tiny power adapters

Apple yesterday advised iPhone 3G users in the United States and other countries to replace the device's power adapter on reports that the metal prongs broke off and stuck in power outlets, creating the risk of electric shock.

Apple said it will exchange the ultra-compact USB adapters for a redesigned model, without charge, in retail stores and online starting Oct. 10.

In the meantime, iPhone 3G users who received the tiny USB adapter with their phone or who bought one should immediately stop using it. Apple said iPhone 3G owners should use the standard USB power adapter, which has fold-up prongs, or charge the iPhone by plugging it into a computer.

Adapters with a green dot on the bottom are safe and don't need to be replaced.

iPhone Hobbled by High Prices in Japan, Lack of 3G in India

Apple's iPhone may be giving competitors a run for their money in North America but when it comes to three of the biggest telecom markets in Asia — Japan, India and China — the company seems to be coming up lame.

The latest sales figures suggest the Jesus phone is struggling to find new converts in Japan. Not far away in India (the second largest telecom market after China) sales of the device are also lackluster thanks to prices that are pushing seven Benjamins for the entry level 8-GB version. And Apple has yet to finalize a deal with Chinese telecom carrier, China Mobile, to bring the iPhone to the People’s Republic.

A combination of high pricing and a marketing strategy that fails to take into account the needs of local markets has left Apple selling just a few hundred thousand units in countries where millions of other phones are sold every month.

Take India, one of Asia's fastest-growing telecom markets. Between 2006 and 2007, sales of smartphones within the nation grew an estimated 31.4 percent. The data-centric convergence device segment exploded at 89 percent, while voice-centric devices shot up by 26.3 percent. As of July 2008, the Telecom Regulatory Authority of India reported total wireless subscribers of about 296 million. About 9.2 million subscribers were added in July alone.

Nokia is the market leader in India but other players like Research In Motion (makers of Ur-smartphone BlackBerry), HTC and Sony Ericsson are gaining traction. But not Apple.

It isn't for lack of interest in the iPhone, says Naveen Mishra, an analyst at IDC India.

Apple's brand and the iPhone's design have captivated Indian consumers but the high cost of the device and the lack of a nationwide 3G network has kept away users from buying the phone.

"The iPhone has a large fan following," says Mishra, "but when it comes to buying the device not a lot of people want to spend that kind of money."

Apple CEO Steve Jobs introduced the 3G iPhone with the promise of $199 price tag at which it retails in the United States along with a two-year contract with the service provider.

But in India the device has been priced much higher at 31,000 Rupees ($673) for the 8-GB version and 36,100 Rupees ($785) for the 16-GB model.

The reason for the higher cost? Wireless customers in India flat out refuse to sign legally binding mobile phone contracts. Because they’re not obligated to stick with a service provider, handsets on the subcontinent are always full priced, never subsidized.

The iPhone's limited availability through a contract with just two mobile service operators has cramped sales, says Mishra.

Unlike the United States, India's telecom market is skewed in favor of prepaid users, who comprise at least 70 percent of total cellphone users in the country.

Most cellphone users in India buy their handsets from a retail store and activate it with the carrier of their choice; cellphones are generally sold unlocked.

The iPhone is the exception. It is currently available only on Airtel and Vodafone leaving potential iPhone buyers with limited options. India does not offer number portability and switching carriers means existing users could lose their phone number as they move to a new carrier.

India also does not have the 3G … yet. Analysts expect the first 3G networks in the country to be available mid-2009.

For the iPhone in India, sales are unlikely to pick up unless the service providers slash the price of the device, make it available through retail stores and launch their 3G network, says Mishra.

"There's going to be very limited uptake for the device unless the carriers do one or all of these things," says Mishra.

Despite weak sales, it is unlikely Apple will push for significant price cuts in the country, say analysts. "Apple throughout its family is willing to forgo large market share for profitable market share," says Ezra Gottheil, an analyst with Technology Business Research.

Meanwhile in Japan, Apple has partnered with Softbank, Japan's third-largest mobile service provider to sell the iPhone 3G. After the initial buzz, demand for the iPhone has fallen to a third of what it was as users cringe at the high cost of ownership for the phone and the unavailability of some features, says a report in The Wall Street Journal.

As for China, despite speculation, Apple seems no closer to signing a deal with China Mobile to offer the iPhone 3G in the market.

For Apple, it may be time to take a closer look at its business in Asia. Unless the company can move swiftly to change its strategy, it may find itself locked out of the largest telecom markets of the world.

Nokia Launches N96 as iPhone Alternative in India

Apple's iPhone has got more competition in one of the world's fastest growing mobile phone market after Nokia announced the launch of its multimedia phone, Nokia N96 in India.

iPhone is already facing competition from Samsung's Omnia i900 and will now have to deal with the N96 which is bound to excite the gizmo-mad population in the country. Nokia has packed the N96 with a number of multimedia features including built-in 3D stereo speakers, headphone connector, media keys and a stand on the other side for hands free viewing.

An in-built TV tuner card allows users to access digital TV even on the move. Users can store more than 18,000 songs, over 20,000 images or 60 hours of videos including full length movies. They are helped by a 16GB of internal memory with an option of extending it to 24GB by adding a microSD card.

Other features include a 2.8-inch display screen, high speed USB 2.0 including support for WLAN and HSDPA, a 5 megapixel camera with the ability to make video calls once 3G arrives in India and an advanced navigation mode with the availability of A-GPS and the Nokia Maps.

Nokia India marketing director Devinder Kishore revealed that the N96 will be available in the markets by September 15 and will be available for a price of Rs 35,000.

The iPhone 3G dilemma: To buy or not to buy?

Well, if you use your mobile phone just to make calls, send text messages or click photographs — the iPhone 3G is not for you.But in case you are a tech freak who loves tinkering with gadgets, this Apple smartphone might be your dream come true.

Downloadable GPS, games, AIM, Facebook on the go and of course 24-hour access to the iTunes store are just some of its pluses, but at 30,000 rupees (give or take a few hundred) for the 8GB model, the iPhone certainly doesn’t come cheap.

Slight problem though. Added applications are great on a phone that provides basic features like message and business card forwarding and video recording.

Unfortunately, these very basic features are not available on Steve Jobs’ latest offering as default.

Chayan Hazra, 30, is one iPhone owner who says he is willing to switch brands if something better comes up.

“If Nokia comes up with a phone that allows you to download applications and has a touch screen I will switch to it in a heartbeat because I know it will have all the basic features that I have become accustomed to in addition to these cool new apps,” he said.

Hazra fits right into mobile service provider Airtel’s category of “Achievers - young working, corporate professionals,” a target segment for the iPhone.

An Airtel spokesperson said they are also focussing on the “Funster segment” — tech-savvy individuals between the ages 18-35.

But for 20-something Soheil Engineer, his newly-acquired iPhone 3G doesn’t really live up to its name since 3G technology is yet to make an entry in India.

“I want to be able to live stream my favourite television shows on my phone while I am on the move,” he said.

That left me wondering. Just how many people are interested in the iPhone?

Both Vodafone Essar and Bharti Airtel, the two iPhone 3G retailers in India, are not revealing how many of the much-hyped smartphones have been sold in India since its launch last month.

A grey market dealer in Mumbai said he has sold 25-30 iPhones in two weeks and uses one himself.

I am sure that’s not good news for Apple… Unless they reduce the price by at least 10,000 rupees and India heralds in 3G technology, I certainly won’t buy one. Would you?

Announce Proprietary iPhone 3G Software Compatibility

Specialist software developer Unlock-The-iPhone.com (www.unlock-the-iphone.com) has today announced the launch of proprietary software integrated within their iPhone unlocking solution, designed to unlock the latest iPhone handsets as easily as possible, without damaging the iPhone handset.

(1 September 2008) – Specialist software solutions provider Unlock-The-iPhone.com has today announced a new version of its proprietary unlocking software; the only available software product capable of unlocking the iPhone 3G.

The iPhone unlocking specialists have designed a unique update to their software application which unlocks every available model of iPhone to date, including the iPhone 3G, allowing the user to select alternative networks without jeopardizing features or damaging the handset.

The Unlock-The-iPhone.com unlocking solution is compatible with both PCs and Macs, and comes with guaranteed customer support around the clock to facilitate any technical queries. The software also comes with lifetime updates to all future Unlock-The-iPhone.com solutions, allowing users to benefit from freedom of network choice with future generation iPhone models.

Daryl Smith of Unlock-The-iPhone.com (www.unlock-the-iphone.com) told consumers he was proud of the ease of use of their iPhone unlocking software, and the ‘one click solution’ to unlock all models in the iPhone range.

“We find a growing number of consumers are keen to transform their iPhones through unlocking. Choosing a network is something we most definitely take for granted until we’ve been denied that freedom, and our unlocking solution provides the answer to that problem, without running the risk of damaging the iPhone handset.”

“Our software is reliable, easy to use and effective. There’s no margin for error here – thanks to this product, even iPhone 3G models can be unlocked without any technical experience or know-how. And if you do get stuck, we’ve got comprehensive customer support to deal with any queries. That’s why we’re leading the field in the iPhone unlocking market.”

With over one million copies sold to customers worldwide, Unlock-The-iPhone.com is one of the most successful cross-model iPhone unlocking software providers.

‘Unlocking’ enables the user to contract with any network provider, regardless of the default installed factory network settings .