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What's good for Apple Inc. is usually bad for Research In Motion Ltd., and vice versa, since the two companies are increasingly butting heads over the wireless communications market with their respective devices.
But on Wednesday this pattern went AWOL: the news surrounding Apple's iPhone was not particularly positive, beginning with reviews for the new version of the phone, due out on Friday, that pointed out some of the device's downsides.
Writing in the New York Times, David Pogue said that the 3G iPhone does indeed provide much faster Web access for Americans, but only if they happen to live in one of AT&T's 3G network areas, and there are few of them so far. As well, any savings derived from the new lower price for the device is likely to get eaten up by higher service charges.
Over at the Wall Street Journal, Walter Mossberg complained about the lower battery life and said: “If you already own an iPhone, and can usually use Wi-Fi for data, you probably should hold off and get the free software upgrade before deciding whether it's worth getting the new hardware.”
Meanwhile, in Canada, Rogers Communications Inc. relented to criticism over its own pricing strategy for the iPhone – which Silicon Alley Insider called “idiotic” – and cut the rates. While that might look like a positive for Apple, it nonetheless raises the issue of price, not to mention gauging.
RIM, which makes the rival BlackBerry device and may have the most to lose from iPhone mania if it spreads to the business market, should be revelling from this controversy. Yet RIM's stock traded at $122.70 in Toronto, down $1.05. When it comes to the iPhone, it seems that any news is good news.
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Mark Matchen from Thornhill, Canada writes: Why are you saying they cut their fees? It's not true! This is a great case of journalists swallowing a press release like a buffet sandwich. Rogers' VP is clear, the prices are not changing. Instead, for a few weeks, they will try and shut up the activist bloggers (like me) and win over the gullible journalists (like you) with a single, deceptive and flawed "promotional offer". Deceptive and flawed because going this route means no visual voice mail and no text messaging, unlike the bundle plans. So add either $11 or $15 or $20 for that stuff. (Details? No one at Rogers knows.) The data plans listed on the web include unlimited mail via a Windows Mobile client. That's obviously not applicable. What's the trade-off? No one at Rogers knows.
Still three years. (For a phone that will be an old version in six months and obsolete in two years, never mind three.) (Not to mention that the non-replacable battery will have died.) Still an astoundingly high kill fee.
But they sure know how to get favourable headlines from the newspapers!- Posted 09/07/08 at 4:35 PM EST | Alert an Editor | Link to Comment
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