Jackson Miller

I have to admit I am excited about both iPhone 2.0 and iPhone 3G.

Those that are not quite as obsessive about mobile technology news may be wondering what the difference between iPhone 2.0 and iPhone 3G are. While they both sound like the new version of the iPhone that is not quite true. iPhone 2.0 is the software on the iPhone; this will be available to both existing and new iPhone handsets. iPhone 3g is the second version of the iPhone itself that includes a 3G (faster internet) chip.

iPhone 2.0
The next version of the iPhone software is exciting because it is the first version to really run 3rd party applications. Sure, there are other big announcements like MS Exchange support and VPN connectivity, but 3rd party apps are what will keep the iPhone separate from the wannabes. Phones like the Samsung Glyde and the HTC Touch Pro are getting pretty close to the iPhone’s appearance and ease of use. Sure, I would still prefer Apple hardware, but they are close enough that the market could fragment. The critical mass of the 3rd Party applications will be too much for fragmented devices to keep up with (especially with Windows Mobile, but this could change with Andriod).

iPhone 2.0 seems poised to change the way that we approach our mobile tools. Location Based Services are FINALLY going to explode. The Associated Press news application for the iPhone will use your GPS location to deliver relevant news. Google Maps will show the addresses of your friends from Address Book. Someone is going to create a twitter-like application but instead of following individuals you will follow a radius around where you are. It may take off or it may not, but there will be new killer-apps that are created because of the iPhone 2.0 SDK and the critical mass of users (including many early adopters).

iPhone 3G
While iPhone 2.0 is about 3rd Party Applications, iPhone 3G is about two things: near-broadband internet and GPS. This will be a true convergence device. We have seen GPS devices start to connect to the internet and we have see internet devices start to provide services typically associated with GPS (navigation), but the iPhone 3G is where the two will really combine. Other devices have combined GPS and 3G, but I really think iPhone 3G is the perfect storm (unless of course it turns out to be Android, or more likely both Android and the iPhone).

There are some other niceties added in on this next iteration of the iPhone like fixing the flawed headphone jack. However, the most amazing feat that Apple pulled off on the iPhone 3G is giving close to double the performance for close to half the price. I can’t think of another product that doubled functionality and halved cost in a single release. That would be mind boggling if it weren’t for the crafty accounting that is also taking place as the Apple <-> AT&T contracts shift away from revenue sharing to a more traditional model.

All-in-all I am impressed with what I heard from Apple today. I am still speculating that there will soon (6 months) be Android hardware that I prefer to the iPhone 3G (I like hardware keyboards like on the Blackberry and Treo). Still, I cannot resist the iPhone 3G, it is just too great a device for such a small (relatively) price. My Treo and Blackberry Curve each cost over twice what the iPhone 3G costs. TWICE.

BTW, what a brilliant move on Apple’s part to time a 50% price drop with an economic slowdown.

On a related note: Almost 2 years ago (before the iPhone was announced) I wrote “Why Apple Will Release a Cell Phone“. In that post I claimed that .mac would be an integral part of the iPhone. I guess I was a little early to the party on that one.