AT&T iPhones finished far ahead of Verizon in 3G network speed, but Verizon's 3G network was much more reliable. Image: CC Erik Van Leeuwen/Wikemedia Commons

AT&T has taken a lot of flack for its iPhone service, but AT&T’s 3G network was faster than Verizon’s 3G network in a head-to-head test. The average download speed on AT&T’s 3G network was about twice as fast as Verizon’s 3G network. While AT&T beat Verizon in 3G network speed, Verizon’s network provided a more reliable connection.

AT&T iPhone outruns Verizon

Dropped calls have become AT&T’s iPhone hallmark, but iPhone users who place a premium on network speed should think twice before switching to Verizon. Ookla, creators of the speedtest.net broadband test, crunched the numbers from AT&T and Verizon iPhone connecting to the Speedtest.net app. AT&T iPhone transfer rates came in at about two times faster than those calibrated for Verizon iPhones. Ookla compiled the speed test results from 42,000 AT&T iPhones  and 14,000 Verizon iPhones around the U.S. Most iPhone users ran the Speedtest.net app several times to total 106,000 AT&T iPhone tests and 40,000 Verizon iPhone tests.

Verizon iPhone wins reliability test

Speed test results for AT&T iPhone downloads averaged 1,769 kbps and uploads averaged 730 kbps. The Verizon iPhone averaged 846 kbps for downloads and 606 kbps for uploads. AT&T iPhones may have the speed advantage, but Verizon iPhones were much more reliable. Other independent reviewers reported that at times AT&T iPhones could not complete the test because they dropped the connection. The Verizon iPhone was noticeably slower but was able to maintain the connection through every test. The test results reflect the claims made by the separate networks in their advertising wars. AT&T touts “the nation’s fastest 3G network.” Verizon touts “America’s Largest and Most Reliable Wireless Network.”

Choosing an iPhone

Before choosing between AT&T and Verizon, iPhone users should think about how they will use their device. If media consumption is a priority, AT&T would be more satisfying. If reliability is at the top of the list, Verizon is the easy choice. The Speedtest.net app is the easiest and best way to test an iPhone’s 3G network speed. The Speedtest.net app is available free for the iPhone at the Apple App Store.

Sources

Wired

NPR

MSNBC

A sudden spike in trading volume sent Apple stock tumbling Thursday in a flash crash that defies explanation. Image: CC dcwriterdawn/Flickr

The value of Apple stock hit a record high Thursday before suddenly diving of a cliff. By the time the Apple flash crash stabilized, the Apple stock price had fallen $10 in four minutes. Analysts guessed that either rumors about Steve Jobs’ health or gaming by short-sellers triggered the flash crash of Apple stock.

Sudden Apple stock sell-off

Apple stock value is expected to only go upward, which makes the Apple flash crash a mystery. Apple stock was cruising along at nearly $360 a share until it started trending down about 1 p.m. Thursday. At 1:39 p.m., Apple stock collapsed from $355 to $349 a share. In four minutes Apple, a company worth more than $300 billion, lost $10 billion in market capitalization. Trading volume of Apple stock spiked upward as hard as the value of Apple shares dove. At the bell, Apple stock was at $354.54, down $3.62, or 1.01 percent from Wednesday’s close of $358.16. Trading volume for Apple stock Thursday was 33.1 million shares, about twice the volume of Apple shares than other day this month.

Previous Apple stock irregularities

Apple stock has handled twice the trading volume without a flash crash. When Steve Jobs announced his medical leave Jan. 18, 66 million shares were traded, and another 40.5 million Apple shares traded the following day. The easy explanation was rumors that Steve Jobs was hospitalized. Another theory was that lines in front of stores for the Verizon iPhone debut Wednesday were not as long as expected. Apple stock analyst Andy Zaky was quoted on several websites saying the Apple selloff was “extraordinarily similar” to the flash crash that sent panic through the New York Stock Exchange last May.

Likely reason for the Apple flash crash

The reasons for the Apple flash crash floated by analysts don’t make sense. When Steve Jobs took a break, the public expected the worst. But he was seen on Apple’s Cupertino, Calif., campus last week and spotted having lunch at an Indian restaurant in Mountain View Tuesday. Concerns about the Verizon iPhone don’t seem credible. The iPhone set a sales record for Verizon the first three hours it was on sale. Analysts also expect Apple could sell between 30 million and 40 million iPads in 2011 for $18 billion to $20 billion in revenue. The most likely reason for the Apple flash crash is sleazy: short-sellers floating rumors for a quick windfall.

Sources

Fortune

IT World

ZD Net

Seeking Alpha

Verizon is coming up with ways to handle increased data with iPhones. CC by Linux insidev2/Wikimedia Commons

The Verizon iPhone is finally on the market, officially. The first reports from customers are that Verizon service is pretty good, if a bit slow. Verizon has officially stated it will follow a policy that is sure to be unpopular: data throttling.

Reports of the Verizon iPhone have come out

Feb. 3 the iPhone was delivered to Verizon customers. The network is being tested by new customers after years of speculation. There aren’t dropped calls in most large cities and high traffic areas yet. Download and upload speeds are a bit slower than AT&T’s peak service, but it does appear to be fulfilling the service promise of “more reliable.”

Data throttling policy

Individual data use isn’t throttled by AT&T, which has been officially stated. However, the company is moving to a tiered data system in which the heaviest users of data will have to pay more for their data transfers. In a memo posted on the Verizon website this morning, the company officially took the stance that it will data throttle, which means it will purposely slow the connections of certain users. There are two reasons to do this. First, the unlimited data plan will be used and maintained by Verizon. Second, Verizon plans to throttle the top 5 percent of users only during peak hours in order to prevent unreliable service for others.

How users are affected by data overuse

During heavy use, Verizon Wireless will throttle iPhone data, but that’s not what’s causing outrage. Verizon plans to throttle service for users who are in the top 5 percent limit of data usage during the month they join the top 5 percent — and the next month as well. In other words, if you get into the top once, your service will be slowed for two months. Customers are really upset about it even though Verizon says it is just to keep things reliable.

Article cited

Venture Beat

A white Verizon iPhone doesn't exist, but Verizon stock would probably still have taken a hit if it did. Image: CC iRicky We/Flickr

Verizon stock did not benefit from the company’s announcement confirming the Verizon iPhone. In fact, Verizon stock fell Tuesday shortly after the Verizon press conference. But Apple stock value, which is partially based on the iPhone, rose 6 percent in the last week driven by Verizon iPhone anticipation.

Verizon stock: buy the rumor, sell the news

Verizon stock was down 2 percent early Tuesday afternoon following the Verizon iPhone announcement. Investment analysts expect Apple to benefit at Verizon’s expense and the market reflects that assumption. They have AT&T’s track record with the iPhone to go on. AT&T stock is down 20 percent from Jan. 9, 2007, when it became the exclusive carrier for the iPhone. People would get a loan to buy Verizon stock when the buzz about a Verizon iPhone started intensifying in October. Verizon shares have risen about 7 percent since then. The slump in Verizon shares was described by the Wall street Journal as a “buy the rumor, sell the news” investor mentality.

The iPhone effect on Verizon earnings

Verizon stock may continue to decline as analysts expect the iPhone to dent Verizon’s earnings in 2011. Apple is notorious for using the immense popularity of the iPhone to pressure its vendors for the best deal. Verizon is also heavily subsidizing the iPhone to lure a maximum amount of customers as quickly as possible. The Verizon iPhone 4 will sell at a lower price than any other iPhone. With a two-year service agreement, the 16-gigabyte model goes for just $199, and Verizon customers will pay $299 for the 32-gigabyte model. An analyst told CNBC that Verizon is shelling out about a $400 dollar subsidy for every iPhone it sells.

Apple stock: the sky’s the limit

Apple is the true winner when it comes to the Verizon iPhone. Apple stock depends heavily on iPhone market share. Verizon iPhone rumors in the last quarter of 2010 drove Apple stock up 19 percent. The iPhone’s share of the global smartphone market increased from 2 percent in 2009 to 3 percent in 2010. The Verizon iPhone could boost Apple’s global smartphone market share to hit 12 percent in the next few years. Even borrowing money to buy Apple stock now is a good debt. The Trefis Team at Forbes estimates that the price of Apple shares could increase another 25 percent from its current market price of about $340.

Sources

CNBC

Wall Street Journal

Forbes

Smart Company

The iPhone is now on Verizon, available on February 10, and it is time to stop talking about already. Image from Wikimedia Commons.

Verizon carries the iPhone now, and this time it isn’t a rumor or a hoax. This time it’s for real, as a recent Verizon press conference confirmed it was happening and almost ready for launch. The Verizon iPhone release date is set for Feb. 10, and orders can be placed starting Feb.3.

iPhone from Verizon ordeal finally over

The tech obsessed have been going on about the iPhone going to Verizon ad nauseum for months on end. Speculation may finally draw to a close, as this time, it is for real. A Verizon press conference was scheduled for Jan. 11, and the Verizon iPhone was said to be the subject. The topic was indeed the much anticipated iPhone on a new carrier. The conference began, according to the New York Times, with Verizon President and CEO Lowell MacAdam taking the stage, and saying that “if the press writes something long and hard enough, it eventually becomes true.” Then he announced that the iPhone had come to Verizon, along with a few more phones in the Verizon LTE line of 4G smartphones that were recently announced at the Consumer Electronics Show.

Features and release date

Most of the iPhone features are going to be exactly the same on the Verizon network. The Verizon iPhone will not be an LTE phone. The 16-GB iPhone will cost $199.99, and the 32-GB iPhone will cost $299.99. The Verizon iPhone release date will be Feb. 10, and early orders can be placed beginning Feb. 3. A data plan is mandatory with the phone, but pricing isn’t available yet. There is an extensive Verizon iPhone FAQ page on Verizon’s website that goes into greater detail. The Verizon iPhone will use Verizon’s CDMA programming, instead of GSM.

The saga finally ends

Verizon iPhones can be pre-ordered or purchased at Verizon and Apple stores in about a month. The Verizon iPhone has been obsessed over for months on end, but it won’t be too much longer until the next cell phone craze takes hold.

Source

New York Times

The Verizon iPhone becomes a reality this week, and speculation abounds about its effect on the balance of power in the smartphone market. Image: CC lecates/Flickr

The long-awaited Verizon iPhone is expected to be announced Tuesday. Some analysts expect millions of Android users to jump ship the moment the Verizon iPhone hits the market. But some are advising Verizon customers to wait until Apple introduces the iPhone 5 this summer.

Verizon iPhone and the Super Bowl

For years the most desirable smartphone in America didn’t even exist. The announcement of the Verizon iPhone will finally answer questions about whether current AT&T iPhone customers and Verizon Android customers will jump their respective ships for the Verizon iPhone. AT&T’s 3G network has become overwhelmed by iPhone users. Verizon is freeing up capacity on its 3G network for millions of 3G iPhones. Meanwhile, AT&T is introducing a flood of Android devices in preparation for a mass exodus of iPhone users to the Verizon network. Some analysts expect Verizon to launch sales of Verizon iPhones in concert with the Super Bowl on Feb. 6.

How the Verizon iPhone may be different

The Verizon iPhone will come several months before the iPhone 5 is launched, likely in June. However, Apple’s reconfiguration of the iPhone 4 to accommodate Verizon CDMA technology presents several opportunities for improvements. Analysts expect Verizon to upgrade its technology to allow users to make calls while surfing the web, an iPhone feature AT&T has touted as an advantage over Verizon. The Verizon iPhone may also allow true global roaming. A better antenna that isn’t susceptible to the infamous iPhone “death grip” is an obvious opportunity. Plus, Verizon’s high standards for connectivity and call quality could require Apple to address a common iPhone complaint.

Holding out for the iPhone 5

Despite pent-up demand for the Verizon iPhone, it may be wiser for current Verizon customers to wait before swearing allegiance to Apple. Most experts expect Apple to announce the iPhone 5 in June, because it has unveiled a new iPhone every June since 2008. Early adopters of the Verizon iPhone will be stuck with yesterday’s news when that happens. Waiting to see if a flood of data-hogging iPhones downgrades the integrity of the Verizon 3G network, much like they have done to AT&T, may also be a good idea. Verizon customers have waited years for an iPhone. A few more months isn’t going to hurt.

Sources

eWeek

PC World

Gizmodo

The white iPhone 4 will not be released until Spring 2011, says Apple. Image from Wikimedia Commons.

Apple devotees will just have to wait longer for the white iPhone 4. The trendiest model of the trendiest phone has been an incredibly rare purchase to secure. Recently, the Apple Store App has added a program that lets Apple users reserve the white model of the phone ahead of its release. It likely will not be available until spring of 2011.

White iPhone 4 delayed, again

The white iPhone 4 model has encountered production delays and will not be released before Christmas. Those patiently awaiting the white iPhone release will have to wait until Spring 2011 at least, according to USA Today. The Apple Store App recently added a reservation feature for the white iPhone, so the Apple faithful can reserve the white model ahead of when it is finally available for purchase. Just like its black counterpart, the white iPhone will be available in 16 GB and 32 GB models. The 16 GB model is tentatively priced at $199, and the 32 GB model will list for $299 through AT&T. The white model of the iPhone was a hot item in previous models, and the white iPhone 4 was one of the big questions when the iPhone 4.0 was released.

Not the first delay

This is not the first delay of the white iPhone 4, according to CNN. Apple Inc. had reassured its devotees that a white model would be out in July, but delays continued to push the release date back. The official reason from Apple for the delay is difficulties in production, mostly in resolving functionality issues. Other rumored Apple projects have been talked about for months on end. The rumored Verizon iPhone is still a hot topic, though there hasn’t been any real confirmation from either Apple or Verizon.

White phone the apple of customers eyes

The release of the white iPhone 4 has been hotly awaited for months, but it appears that Apple acolytes will just have to wait longer. Sales for the iPhone continue to be strong, and unless the white model is buried by the iPhone 5, it will eventually come to those who wait.

Sources

CNN

USA Today

The Verizon MiFi device creates the link that makes a Verizon iPad possible. Image: scriptingnews / Flickr / CC-BY-SA

Verizon Wireless today announced that on Oct. 28 the Apple iPad will be available in its stores. Though the Verizon iPad will not use the 3G cellular network, it will be bundled with cell-network Wi-Fi to provide internet access. This workaround, long touted by iPad users who are also Verizon customers, will be sold for $629 plus access charges.

Verizon’s iPad network solution

The Verizon iPad will not use the CDMA network, despite many who were hoping this would be the first step to getting the iPhone on Verizon. Instead, Verizon Wireless will bundle the Wi-Fi iPad (usually sold for $499) with the Verizon “MiFi” device. The MiFi takes cellular network signals and transfers them into a local wireless network. Sold together, the MiFi and Wi-Fi iPad combination will be able to access Verizon Wireless’s 3G network. The monthly access charge will start at $20 for 1 gigabyte of data transfer.

Verizon iPad means more Verizon iPhone rumors

There has long been a rumor that Verizon wireless would start offering an iPhone. Neither company has officially announced a Verizon iPhone release date, and neither has confirmed any rumor up to this point. AT&T still carries the exclusive contract for the iPhone. AT&T will also be selling an iPad in store. The $629 price will be the same as Verizon, though the data access charges will be $25 for 2 gigabytes.

Creating your own Verizon iPhone

Though it is not yet legal to jailbreak an iPhone, it is possible to create a Verizon iPhone legally. An iPod touch is a Wi-Fi enabled device that does everything an iPhone does, except make phone calls. A Verizon MiFi device creates the mobile Wi-Fi hotspot needed to run it. The Google Voice app and functionality, loaded onto the iPod touch, turns your device into a cell phone. Access charges, depending on your data usage, could even be less than the standard iPhone — and you get Google Voice functionality that not even iPhones can offer.

Apple Inc. stock is shooting through the roof. Image from Wikimedia Commons.

Steve Jobs and other shareholders in Apple, Inc. may be cracking open champagne. The Apple company stock has just hit a record high point. For the first time ever, a share of Apple stock is now going for more than $300. The technology giant has been having a banner year. The iPad and continued success of the iPhone and iPod assure that Apple is going to be a heavyweight for a long time to come.

Apple Inc. hits a new high

It was announced that stock for Apple Inc. has hit a new high point in premarket trading for Oct. 13, according to the New York Times. Apple Inc. stock hit a high point of $301.50 and is holding at higher than $300. It is the highest ever trade price for Apple company stock. Brokerage houses have been raising prices for acquiring Apple stock accordingly. Bank of America is selling shares at $400 per. Oppenheimer raised its price for shares of Apple to $345. The company is having a great year. The iPad has been the first successful tablet computer, despite several previous attempts by other companies. The iPhone 4.0 and the iPod continue to sell. The company is due to release a fourth quarter report soon.

Verizon iPhone rumors will not die

Rumors of the iPhone moving to another network have been persisting for some time. The fabled Verizon iPhone causes a great stir almost once a month. However, neither Verizon nor Apple have confirmed it officially yet. The problem in a Verizon iPhone, according to the Wall Street Journal, is that Verizon uses CDMA technology. The Verizon iPhone will have to be retooled for CDMA use before it can be released. That said, Android has been edging on the iPhone for some time among owners of smartphones.

Apple of the markets’ eye

Apple Inc. has had an incredible year so far. It appears that the company won’t be letting up. The company has hit a record high stock price for good reason.

Sources

Wall Street Journal

New York Times

Rumors that Verizon will support an iPhone have once again surfaced. Image: gt9073a / Flickr / CC-BY-SA

Once again, rumors of a Verizon-network iPhone have been reported following Verizon’s announcement that it is developing faster new networks called LTE 4G networks. This time, it is the Wall Street Journal reporting that a Verizon iPhone is immanent. Verizon and Apple, though, have both made no comment. In other words, keep waiting.

Verizon iPhone as reported by WSJ

According to the Wall Street Journal, Apple plans to produce a CDMA network iPhone by “early next year.” The sources quoted in this story are simply “people briefed by Apple.” These reports indicate that the phone could be released by Jan. 11 of 2011. This phone could be a part of or separate from the new fifth-generation iPhone that may be in development.

Verizon denies iPhone rumors

In a press conference at the CTIA conference, Verizon’s CEO deflected rumors. As with all other questions about an iPhone on Verizon network, he has said that he “can’t give you any insights.” The only unique thing about this Verizon response to iPhone rumors is that the Verizon CEO deflected to Apple. Should a Verizon or CDMA phone be developed for Apple, Apple would have to make that announcement. In short, nothing confirmed — for the thousandth time.

The Verizon LTE announcement

The Verizon iPhone rumors have been re-ignited by a real announcement from the company. Verizon will be rolling out LTE 4G networks in 38 cities and several airports. These faster networks will support tablets and smartphones that are due to be released in early 2011. It is very possible that the next iPhone will work on 4G technology, which is where most of the speculation comes from. It is true that there may eventually be a Verizon iPhone, but it is not yet confirmed by either company.

Sources

Wall Street Journal
PC World

Verizon iPhone rumors surfaced again Monday as the blogosphere gossiped about an Apple Qualcomm order for CDMA chipsets. Think Stock photo.

People love their iPhones. But they hate the Apple/AT&T union. Rumors of a Verizon iPhone have been swirling for years. The latest rumor has “unnamed sources” saying that the Verizon iPhone will be available to consumers in January 2011. The big clue people mention when spreading the iPhone Verizon rumor is another rumor: a big Apple Qualcomm order for chipsets that work on Verizon’s network. Ever since Apple launched the iPhone in 2007 with AT&T as its exclusive wireless carrier, industry insiders have said the Verizon iPhone is not a question of if, but when.

Verizon iPhone rumors based on rumors

Rumors about the Verizon iPhone have become so commonplace that no one really believes them anymore. But Steve Cheney at Tech Crunch, who launched the latest Verizon iPhone rumor, says this time it’s different. Cheney said he was confident that the rumors will finally become fact because of the DNA of smartphone components that are traced through the supply chain. This is a geeky way to say that a huge order by Apple for CDMA chipsets from Qualcomm for a December Verizon iPhone run means the Verizon iPhone is due next January — never mind that the scoop about the Apple/Qualcomm order comes from “sources with knowledge of the entire situation.”

Apple Qualcomm iPhone will be huge

Verizon’s network runs with chipsets tuned to the wireless standard called CDMA, which is incompatible with the Apple/AT&T’ GSM network. Even though Apple’s CDMA order from Qualcomm is still a rumor, Bloomberg joined Tech Crunch in saying that Apple’s suppliers have been ramping up production of components for a phone on Verizon’s CDMA network. Apple has sold more than 50 million iPhones since the phone’s introduction in 2007. The iPhone, which has been the sole domain of AT&T in the U.S., will give Verizon a boost in its competition for smartphone customers, UBS AG analyst John Hodulik told Bloomberg. Verizon customers, who numbered 92.8 million at the end of the first quarter, may buy 3 million iPhones a quarter, he estimates.

Bloggers cry wolf on cue

The latest Verizon iPhone rumor joins a long list of false alarms for iPhone users who regard AT&T service as the only flaw in their ultimate device. PC World offered a history of Verizon iPhone rumors that began in Sept. 2008 when bloggers citing a tipster who had Verizon insider credentials said the rumor would come true in early 2009. Since then, Verizon iPhone release dates emerged in April 2009 (Early 2010), Oct. 2009 (70 percent chance in 2010), Oct. 2009 (late 2010), Jan 2010, (Jan. 2010!), March 2010, (late 2010) and May 2010 (early 2011).

Considering getting this tattoo? Then the Verizon Droid X will make you smile. Image from Picasa.

All fans of the Verizon Droid, your day will arrive soon – the Droid X has been officially announced. The first phone with native Froyo Android 2.2 support, the Verizon Droid X also features a host of other gizmos, gadgets and programs that should prove useful. Some reports also indicate that the Verizon Droid X might just make phone calls!

Verizon Droid X in raw numbers

The Verizon Droid X comes with a dizzying array of numbers and statistics attached to it. The processor is a 1 GHz chip – fast enough to run just about anything except high-end image editing programs. The 16 GB memory, expandable to 40 GB, is enough to store about 5,000 of the 8-megapixel camera’s photos. The eight-hour talk time battery has enough juice to (reportedly) not need charging more than once every day or two. The 3G mobile connection can be used as a hotspot for other devices with the right plan. The 4.3 inch touchscreen has multi-touch input. The built-in video camera includes 720P recording and playback in high definition. Finally, the device will run on the newest Android operating system, which will include Flash 10.1 in the “late summer,” possibly by the July 15 release date.

What you can do with the Verizon Droid X

The attractiveness of the Droid X is, of course, the raw number of things that it can do. Because Verizon Wireless has not announced a data-limited pricing plan like AT&T, it is being marketed as the “better iPhone” or “anti-iPhone.” Verizon’s Droid X marketing campaign is built around the idea that the phone is a “mobile media center in your pocket.” Judging by the raw numbers alone, it seems like that might just be the case. App developers have been adding new programs to the Verizon store on a daily basis, and the functionality of the phone is quickly expanding.

Projects with Droid X

The Droid X has a camera with a physical shutter, which makes the usefulness for school, home or work projects much more realistic. You could also shoot a promotional video for your new project, post it to YouTube, and connect it to your social networks. You could even hook up the Droid X to any TV with HDMI output to show off your new idea. In short, combined with Google Voice functionality, the Verizon Droid X may well help reduce your cell phone bills — and increase productivity. This all comes with a heavy outlay though — $200 with a two year contract, including a $30-a-month add-on data package.

AT&T's new data plan's success will hinge on the reaction of other carriers. Image from Flickr.

AT&T has announced new data plan pricing for smartphones and tablets that will go into effect on Monday. This new AT&T data plan pricing is intended to help reduce network usage while providing more transparency in the billing process. The real question, though, is whether other wireless carriers will follow suit.

AT&T data plans will eliminate ‘unlimited’

When the iPhone was first introduced on the AT&T network, the one-size-fits-all data plan was a $29.99 a month “unlimited” plan. The definition of “unlimited” however, was sometimes brought into question. Some AT&T customers got huge data-use bills that seemed to indicate there was a limit to network usage that they were not aware of. Some customers have claimed that they had to get no fax payday loans just to pay their bills. Heavy use of the data network has also led to dropped calls and slow data speeds that have been a tough sticking point between the carrier and customers.

The new AT&T data plans

The new data plans revealed by AT&T will have three “levels” of data use. The first will be a $15 plan that will allow 200 mb of data per month. A $25 plan will allow 2 gb of data per month. Tethering, or connecting a laptop to the internet through an iPhone, will be an additional $20 per month. These new AT&T data plans will send a free text message to users when they are approaching their data limit. These data limits will not apply when the smartphone or tablet is being used at a WiFi hotspot – only the 3G network. Users that already have a contract with AT&T will be allowed to keep their “unlimited” plans and pricing, even when renewing their contracts.

Effects of the AT&T data plans

While the new AT&T data plans will reduce cost for light data users, heavy data users will feel the strongest effects. Many wireless carriers and app developers have been working to move streaming video and data-intense applications onto smartphones and tablets. By limiting data use so heavily, AT&T will be limiting the available applications on its 3G or 4G network. The chairman of the FCC has expressed repeated concern over the “bandwidth crisis” that smartphones have created. If other wireless carriers do not follow the AT&T data plan model and limit their data usage, then heavy users will probably just switch carriers. Though demand for wireless data services has increased dramatically in the last few years, capacity is growing at a much slower rate.

The Wal-Mart iPhone sale slashes prices nearly in half. Many think this is meant to to clear inventory for Apple's coming 4G iPhone. Flickr photo.

Wal-Mart is slashing prices on the new entry level iPhone. The retailer cut the price of the Wal-Mart iPhone by $100 to $97 with a two-year AT&T contract. Analysts say the Wal-Mart iPhone sale could be a sign that Apple wants to clear out old merchandise ahead of next month’s expected launch of a new 4G iPhone model at Apple’s Worldwide Developer Conference. Other industry developments leading up to Apple’s Worldwide Developer Conference have industry sources buzzing about what’s in store for the iPhone.

The iPhone 4G triangle of intrigue

The Wal-Mart iPhone sale started Tuesday for Apple’s entry level 16-gigabyte 3GS phone. Meanwhile, just a few weeks before Apple’s conference, the Wall Street Journal reports that AT&T will charge smartphone customers fees the size of short term installment loans for breaking their AT&T iPhone contract early — nearly  doubling fees from $175 to $325 beginning June 1. The third point in the iPhone 4G triangle of intrigue is that Steve Jobs will be the keynote speaker at the Worldwide Developer Conference. Jobs usually has a grand announcement up his sleeve when he makes an appearance at a high profile technology event.

Apple bets on future with 4G iPhone

The Wal-Mart iPhone sale confirms that Apple is ready to unveil its 4G iPhone, according to the Silicon Valley/San Jose Business Journal, which reports that such a move signals Apple is confident that the 4G system, not available yet in most U.S. cities, will be widely and rapidly adopted. Analysts say widespread 4G adoption may be two to three years away. The same article reports that AT&T’s iPhone contract decision to hike the cost of terminating service  is being seen as a defensive move to keep iPhone customers from jumping to other carriers.

Verizon iPhone threatens AT&T

In another iPhone 4G rumor, Jobs will not only announce the 4G iPhone at the Worldwide Developer Conference, he will announce the Verizon iPhone. When, not if, the Verizon iPhone happens, the SV/SJ Business Journal reports that AT&T could lose 40 percent of its iPhone customers, about 6 million accounts. The blog techcrunch.com reports that by raising termination fees, AT&T wants to keep customers chained to AT&T for another two years after the Verizon iPhone is launched.

4G iPhone a gamechanger?

The 4G iPhone is generating a buzz because 4G offers download speeds up to 10 times faster than 3G. The exponential boost in data transfer is anticipated to put an end to buffering when content loads for video, music streaming and large format images on smartphones. For the business world, 4G will allow companies to expand mobile workforces without network gridlock and make video-conferencing routine. Media smartphone users will be able to send high quality live video reports.

This is not what the Apple earnings report looked like.

Since the iPod renaissance that followed a reclusive streak in the 1990s, Apple has been a growing empire, and the Apple earnings for the most recent quarter have blossomed.  The company has been shipping huge volumes of the iPhone, and with the iPhone 4.0 and iPad beginning to take off, Apple is set to never need payroll loans again.  Even though recessions mean that fewer people buy toys, Apple posted impressive gains for the first quarter of this year.

Apple earnings from iPhone up over 100 percent

From this recent post on Marketwatch, the first quarter Apple earnings were substantial.  The iPhone drove sales through the roof, selling over eight million iPhones when they were expecting to only sell seven million.  Apple enjoyed a 130 percent sales increase on the iPhone from a year ago.  Since so many people are willing to plunk down money now on one of the most popular technological phenomenons of the last decade, it’s no wonder that Apple should be raking in the cash.  They have become a true success story not once, but twice, as apparently they make some vastly superior products.

They sold some Macs too

The report of Apple earnings also included some heavy sales for Mac computers as well.  Nearly three million Macs were purchased over the quarter, showing a sales increase for their computer brand of about 40 percent.  Apple managed to also sell over 10 million iPods, though the sales for the ubiquitous portable media player were actually slightly down. However, the decrease was in units, rather than revenue (iPod sales revenue was actually up about 12 percent.) The iPod touch has been quite the popular item as well.

What about the iPad?

No official sales figures were given by Marketwatch, but CNN reports that Steve Jobs had told a conference that Apple had sold around 450,000 units for the basic unit alone. The Cadillac model of iPad, set to come out soon, may have access to the AT&T 3G network, instead of the current model’s use of WiFi only.  That will probably send Apply stock through the roof, though they don’t really need the help – according to the Marketwatch piece, Apple stock was trading at almost $260 a share.

So what’s next for the Apple machine?

What is next for Apple is the iPhone OS 4.0, which was involved in the recent Gizmodo leak.  The prototype was returned. The new model iPhone will likely sell a lot of units, and since the iPhone OS 4.0 will also mark the rumored debut of the Verizon iPhone, it is foreseeable that Apple earnings will shoot to the moon by year’s end.