Some early iPhone 3G S adopters subject to $200 "Apple tax"

Some early iPhone 3G S adopters subject to $200 "Apple tax"
by David Martin

Since last year's announcement of the iPhone 3G, customers have grown accustomed to a price tag heavily subsidized by AT&T. Similarly, the jus-announced iPhone 3G S will be offered in a 16GB model for $199 and a 32GB model for $299--but only if you are adding a line to your AT&T service or you are a new AT&T subscriber. Early iPhone 3G adopters seeking to upgrade will be face serious sticker shock.

If you purchased an iPhone 3G on or after July 11, 2009, you will not be able to purchase an iPhone 3G S at a reduced price until you reach your one-year anniversary. (We've determined this cutoff by checking a sampling of existing AT&T accounts via AT&T's myWireless Account Web site.) If you want the new iPhone 3G S early, you will have to pay an additional $200 for the hardware, raising the cost of a new iPhone to $399 and $499 respectively. The only alternative to this price increase is to wait for your first iPhone anniversary before buying. On top of the price increase, you will--as expected--have to sign another two-year service agreement.

The pricing history of the iPhone has been tumultuous from the beginning, hitting its pinnacle quickly: $599 for an original 8GB iPhone. Apple and AT&T significantly reduced in price shortly thereafter, angering enough iPhone buyers that Apple gave away $100 rebates to the angry hordes.

Is Apple trying to take advantage of loyal customers by releasing the new iPhone 3G S nearly a month before existing customers--many who are loyal and anxious to upgrade--are eligible for reduced pricing? Let us know what you think about this situation in the comments.

Source :http://reviews.cnet.com

Apple Cuts Prices Strategically

Apple Cuts Prices Strategically
By Peter Burrows

A $99 iPhone and cheaper MacBook Pro laptops are announced in tandem with the new, pricier iPhone 3G S. Apple also expects higher profits from apps

Throughout the recession, Apple (AAPL) watchers have wondered whether the consumer electronics giant would release cheaper products to appeal to today's thrifty consumers. With sales of many products from other companies in the doldrums, the conventional wisdom goes, Apple could walk off with huge slices of market share for everything from Macs to iPods to iPhones if it would just lower their prices.

Apple ended the suspense at a company event for software developers on June 8, cutting the price on the most recent version of its iPhone and some versions of its MacBook Pro line of laptops. But far from slashing prices willy nilly, Apple made targeted cuts likely to help it win share without sacrificing the earnings gains that have powered an 80% increase in the stock price since mid-January, to 140.

The most dramatic move was to cut by half the price of today's iPhone 3G, to $99. Piper Jaffray (PJC) analyst Gene Munster speculates this cut will double demand for the phone—as occurred after Apple cut the price on the original device to $199 from $399 in June 2008. Apple's most recent reduction came two days after rival Palm (PALM) introduced its much-hyped Pre smartphone for $199. "I figured Apple would come in at closer to $149," Munster says. "They're clearly hungry for market share, and they don't want to give the Palm Pre room to breathe."

Even as it gains share, Apple is unlikely to sacrifice much margin. Analysts believe the profit margin on the $99 device will be roughly as cushy as in the past. Apple is benefiting from falling component prices as demand for displays, memory chips, hard drives, and other components dries up.

And given Apple's confidence in its ability to create hit products, the company has a penchant for convincing suppliers to give it even better prices in exchange for agreeing to buy up lots of units well into the future. Says one partner who asked not to be identified, "They got a very sweet deal from us, because we want to be in their future products." The huge increase in iPhones shipped will let the company better spread some fixed costs, such as for software development and advertising, over more revenue. Analysts figure that AT&T (T), the exclusive partner for the iPhone in the U.S., will pay for some of that $100 price drop, so as to lock customers in to the lucrative two-year sales contract. AT&T spokesman Mark Siegel says "the impact [of the subsidy on AT&T's bottom line] will be minimal," though he declined to elaborate.
Little if Any Impact on Gross Margins

No doubt, there are fewer dollars of profit on a $99 product compared to one that sells for twice that amount. But Apple also announced a faster, pricier new model that could help make up the difference. Called the iPhone 3G S—"the S is for speed," Apple marketing chief Phil Schiller told the crowd at San Francisco's Moscone Center—the device will cost $199 for a model with 16 gigabytes of storage and $299 for a 32GB model. Given that the additional 16GB cost only $24 or so, Apple is clearly keeping plenty of profit by charging $100 more, says David Carey, an analyst at tech consultancy Portelligent.

Apple can also expect a rising tide of profits from software. The company takes 30% of the sales from programs sold in its App Store.

Source :http://www.businessweek.com

Apple Adds Faster iPhone With Several New Features

Apple Adds Faster iPhone With Several New Features
By Mike Musgrove
Washington Post Staff Writer

The latest iPhone, available next week, is faster than its predecessors, has an improved camera, can record videos and appears to be just what many Mac fans have been waiting for this year.

Apple unveiled the latest version of its popular iPhone, called 3G S, at a trade show for Mac users yesterday in San Francisco. The company, known for using the conference to launch new, often game-changing devices, touted its next-generation iPhone as its fastest-running smartphone yet. The "S" stands for "speed," after all.

Speaking from the stage at the company's Worldwide Developers Conference, Apple vice president of worldwide marketing Philip W. Schiller showed how the new iPhone's camera lets users decide what the lens should focus on with the touch of a finger. With a set of voice controls, users can upload an iPhone video to YouTube with a spoken command.

The new device, priced at $199 and $299, will be available at the end of next week, the company said. The more expensive version comes with 32 gigabytes of storage space, a new capacity for the device. The less expensive iPhone has 16 gigabytes.

And the price of last week's cutting-edge model, the iPhone 3G? It's been reduced from $199 to $99.

Tech pundit Tim Bajarin, with Silicon Valley think tank Creative Strategies, said the cheaper, older iPhone should allow Apple to speed up the adoption of the smartphone. As for the new models, iPhone "is evolving into being a PC in your pocket, not just a smartphone," he said.

Chief executive Steve Jobs, who has long been a dominant presence on the stage at this event, was a no-show. A survivor of pancreatic cancer, Jobs has been on medical leave since January and is scheduled to return later this month. Late last week, news sites were abuzz with a report asserting that the event could mark Jobs's return to the company.

Apple had already previewed the third major version of the iPhone's operating system in March. The device's software offers 300 new features, the company said. That includes some long-overlooked basic features that iPhone owners have been waiting for since the device went on sale, such as "cut and paste," which allows users to copy text from one application to another.

Apple also introduced "Find My iPhone," a feature designed to help owners who have misplaced their device. Lose the phone under the sofa, and users will be able to send the iPhone a message ordering it to make a sound. If the device has been stolen, it will be possible to send a command to erase its memory, so that sensitive information is not compromised.

Other new applications include a GPS program that will give users turn-by-turn driving directions, another function that owners or potential owners of iPhone have been requesting. With another application from online car rental agency Zipcar, customers could unlock rental car doors by pushing an iPhone button.

The company unveiled new versions of its MacBook Pro laptops, which will feature longer-lasting batteries. According to Schiller, the number of Mac users has tripled in the last two years to 75 million.

Source :http://www.washingtonpost.com

Apple Rolls Out New IPhone and Cheaper $99 Model

Video: Apple Rolls Out New IPhone and Cheaper $99 Model
The Associated Press

Pay for dad’s upkeep, court tells NRI son

Pay for dad’s upkeep, court tells NRI son

SURAT: Like any doting parent, Aspi Satarawala fulfilled all the wishes of his only son Pesi. Not only did he pay for his education till he got
an MBA degree and got him married, the father spent his entire life’s savings to help Pesi settle in the US. But, at 65, Satarawala is regretting that he did so much for his son.

Since he left for the US in 1998, Pesi has left his ageing father to fend for himself in Navsari, not sending a penny back. Instead of quietly retiring, Satarawala is forced to work as a part-time accountant in a local firm and as assistant to the priest in the Agiary for a meagre Rs 1,500 every month. Satarawala retired as manager of a leather manufacturing unit in Mumbai in 1997.

But, Satarawala has not taken his son’s indifference kindly and dragged him to court. A Navsari court ordered Pesi to pay Rs 5,000 every month as maintenance to this father last year.

“But Pesi did not follow the court’s order,” Satarwala’s lawyer Narendra Desai said. He then approached the Indian Embassy in the US and US consulate in India. The Indian Embassy directed Pesi to go to India and settle the matter. The Navsari court has directed Pesi to remain present in person on June 29.

Pesi is currently in Chennai at his in-laws residence and has trying persuade his father for an out-of-court settlement. “But, Satarawala is in no mood to discuss the issue till Pesi presents himself in court,” said Desai.

Satarawala is among many Parsis, who suffer from the empty nest syndrome after their children fly off to distant shores. “Pesi has not even bothered to talk to me for the past 11 years despite my attempts,” said Satarawala.


Source : http://timesofindia.indiatimes.com

Pakistan tribesmen battle Taliban

Pakistan tribesmen battle Taliban

Hundreds of tribesmen are continuing an offensive against Taliban militants in north-west Pakistan, officials say.

At least 11 Taleban are said to have been killed in the three-day offensive.

It follows the bombing of a mosque on Friday which killed 38 people in Upper Dir district. Villagers blamed the bombing on Taliban fighters.

Nearby Swat valley has been the scene of heavy fighting between the Pakistani military and Taliban militants. Upper Dir has also seen sporadic clashes.

'Tough fight'

Local officials say between 1,000 and 1,500 tribesmen are involved in the offensive against the Taliban.

Tribesmen attacked five villages in the Dhok Darra area which are thought to be militant strongholds, the Associated Press news agency quoted district official Atif-ur-Rehman as saying.

The citizens' militia had occupied three of the villages since Saturday and was trying to push the Taliban out of two others on Sunday, he said.

Some 20 houses of local tribesmen suspected of harbouring Taliban fighters were destroyed, the official said.

See a map of the region

"It is something very positive that tribesmen are standing against the militants. It will discourage the miscreants," Mr Rehman said.

At least 11 militants had been killed by Sunday afternoon, AP quoted district police chief Ejaz Ahmad as saying.

He said around 200 militants were putting up a tough fight but were surrounded by the villagers.

The government has encouraged local citizens to set up militias, known as lashkars, to fight the Taliban in the region bordering Afghanistan where al-Qaeda and the Taliban are known to have hideouts.

This is not the first time a tribal force has attempted to battle the Taliban. In the Salarzai area of Bajaur, just such a tribal force successfully denied sanctuary to the Taliban in November 2008.

But these efforts have come at a cost in the past as Taliban militants have retaliated by targeting tribal gatherings, or jirgas, with suicide attacks.

Taliban members in north-west Pakistan
The Taliban has retaliated with ferocity against tribal forces in the past.

The BBC's M Ilyas Khan in Islamabad says the idea of lashkars had been seen to be futile - particularly when the Taliban were able to punish tribal elders and communities with impunity in areas where government forces were unable to provide adequate security.

But, our correspondent says, the key difference this time is that the present military action in Swat appears to have convinced people that the government is serious about countering the Taliban.

If this impression spreads there may be further examples of local forces taking on Taliban fighters, he says.

There has been broad public support for the army's offensive against the Taliban in Swat valley, including from opposition parties, the media, and even some religious leaders.

Public opinion appears to have generally shifted against the Swat Taliban since they broke a peace deal earlier this year which imposed Sharia law in Swat valley and other parts of Malakand division.

Escalating violence

Friday's bomb explosion killed at least 38 people and wounded dozens more.

Police said a suicide bomber detonated explosives at the mosque in Hayagai Sharki village, about 15km (nine miles) from the town of Upper Dir.

There has been no claim of responsibility for the blast, but there have been a number of suicide attacks linked to the Taliban insurgency in the north-west.

In March, about 50 people died in a suicide bomb attack at a mosque near Jamrud, on the Khyber Pass route to Afghanistan.

There are fears that such attacks are part of a militant backlash across the north-west in response to the army's anti-Taliban offensive. The army says it has captured a number of militant strongholds in the past week.

But the fighting has displaced more than two million people, raising fears of a humanitarian crisis in overstretched camps trying to cope with those forced to leave their homes.





Source :http://news.bbc.co.uk

Chinese passing off fake drugs as ‘Made in India’

Chinese passing off fake drugs as ‘Made in India’

Are fake drugs manufactured in China being pushed into various African countries with the `Made in India' tag? The Indian government
has long suspected this to be the case, but it now has definite evidence for the first time.

Last week, the National Agency for Food and Drug Administration and Control (NAFDAC) of Nigeria issued a press release stating that a large consignment of fake anti-malarial generic pharmaceuticals labelled `Made in India' were, in fact, found to have been produced in China.

New Delhi has registered ``strong protest'' with the Chinese mission and China's foreign trade ministry, according to sources in the commerce ministry.

India's High Commissioner in the Nigerian capital of Abuja, Mahesh Sachdev, had earlier written to then commerce secretary GSK Pillai, alerting him to the large seizure: ``While this is a case of a Chinese company exporting fake `Made in India' labelled medicines which has been accidentally exposed, it is unlikely to be an isolated incident. Indeed there is no reason for Nigeria to be the only country to be receiving such consignments.''

His letter went on to say: ``Fake foreign-made generics carrying `Made in India' label can do tremendous harm to our interests. It not only dents our image and takes our legitimate market share, it also erodes the distinction between generic and fake medicines that we have been campaigning for at WHO and WTO''.

Commerce ministry sources said: ``We have had many complaints about such fake drugs from China being offloaded as Indian drugs in countries like Ghana, South Africa, Ivory Coast and West Africa — in general, where India has a substantial market share. But so far there has been no formal complaint. This is the first time that such a large international consignment has been seized and this will be taken up strongly with the Chinese side.''

Sachdev in his letter said that he had spoken to the director-general of NAFDAC Dr Paul Orhii who said that the Nigerian preference for generics made such cases of fake drugs more common. He expressed NAFDAC's determination to curb circulation of substandard fake medicines.

India and China have been held primarily responsible for fake drugs in the Nigerian market in particular and Africa in general. About 60% of drugs in Nigeria are imported. Between 2001 and 2007, more than 30 Indian and Chinese companies were banned in Nigeria for exporting fake drugs to the country.

However, Dr Mira Shiva of the Initiative for Health Equity and Society (IHES) told TOI that both India and China being large manufacturers of generics, multinational firms would look to discredit the two countries and label their drugs as substandard, so that they would have greater access to the African markets. She warned against the two countries trying to run each other down before ascertaining the full facts in the case to rule out any orchestration, but added that India ought to be more careful to ensure the quality of the drugs exported as well as sold domestically.

Source : http://timesofindia.indiatimes.com