iPhone 3G Price Makes Bigger Splash Than Specs

Just prior to Steve Jobs announcement of the new iPhone 3G, he mentioned challenges faced by Apple and "the next mountain we have to climb". Jobs outline the need for 3G, Exchange support and third party apps along with a new price. Early feedback from our readers about the iPhone 3G has been mixed, but it certainly appears that price was the biggest part of today's announcement.

The form factor of the iPhone 3G is not a big departure from the first generation, adding a more curved back. A glossy plastic back now replaces the aluminun of the first generation iPhone. All iPhones will get the iPhone 2.0 software update treatment which will bring third party applications and Exchange support to all iPhones. The iPhone 3G does differ from the original by including GPS, however it's unclear as to how useful this will be in the real world. Engadget is reporting that TomTom has GPS Navigation software working on the new iPhone, so this could possibly be a killer feature. Surprisingly, Jobs keynote focused on tracking capabilities, which didn't excite the masses.

With everyone expecting 3G, the most important usuability feature of the iPhone 3G had almost become an afterthought. Apple did score points with the pricing of the new iPhone 3G and in a big way. Priced at $199, Apple has improved the iPhone and cut the price in half. According to Apple's findings, 56% of those surveyed did not purchase an iPhone due to price. In early results of a member poll, over 86% found price to be the biggest part of today's annoucement. Those who were considering the purchase of a new iPhone will probably make the leap given the new price point. It's also likely that a large number of early adopters will find the $199 appealing for the 3G upgrade. Apple typically uses these events to wow people with technology. Today it was all about price.

Discuss the release in our new iPhone 3G forums.