Glad iPhone tidings: lower prices, copy/paste and over the air iTunes?

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Glad iPhone tidings: lower prices, copy/paste and over the air iTunes?

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By Peter White (Thursday, 13th November 2008)

It seems to be good news all round for iPhone lovers in Europe you should be able to get your hands on the device for a bargain price before Christmas, at least in the UK and France; plus a new release of the iPhone operating system is due next week, promising such delights as over the air iTunes downloads, Google Street View, and even a copy/paste function.

Version 2.2 of the smartphone's software, set to be released on November 21, will include an over-the-air iTunes retail application, according to screenshots and reports leaked to Silicon Alley Insider in the US. These focus on podcasts being downloaded from iTunes directly over 3G, rather than 'sideloaded' from the PC first. However, it would make little sense to support a free podcasting service and not allow the same much-demanded capabilities for the premium music offering.

Such features will become increasingly important as iTunes comes under pressure, for the first time in the mobile world, from plans like Nokia's to extend its unlimited Comes With Music service to video and games. Also, in September Amazon.com said its US MP3 digital music store would be preloaded on T-Mobile's G1 Android phone, which is trying to steal some of the iPhone's marketing thunder.

According to the Apple blogs, release 2.2 of the iPhone OS will also feature a redesigned MobileSafari interface, and will enhance location-based services, adding Google Street View, transit route information and walking directions. There is also speculation that a copy/paste function much asked-for by users, but only available as a third party add-on from App Store will be included at last. It will be an essential addition if the iPhone is to live up to the recent claims of Apple chief Steve Jobs, that he had no need to launch a netbook, as the iPhone was basically the same thing.

For consumers who are less interested in new features, and more concerned with price, there is good news from Orange in France, which has slashed the prices of its iPhones, with O2 in the UK supposedly set to follow suit in time for the holiday buying season.

O2 has been reportedly struggling to hit iPhone targets in the UK, and is trying to persuade Apple to let it negotiate on iPhone deals, something that is outlawed by the terms of their deal with the device maker. O2 is also rumoured to be considering cutting its cheapest iPhone deal, £99, to £75; or offering the device for free at lower monthly data rates, around £40 or £45. It could also reduce the contract-free cost to £199 from £249.

Orange has blazed the trail, in a bid for a pre-Christmas sales boost, which it seems to think it will not achieve at current pricing. It has slashed the price of the 8GB iPhone 3G to just €99 (£84), and the 16GB model to €129 (£109) with one-year contract, and only until January 14 2009. The handsets were previously priced at €149 and €199 respectively. Operators are estimated to pay about $500 per handset to Apple. The cuts may also reflect excess inventory at Orange.

Apple may have problems with price expectations in one of its newest markets, Bulgaria, where Deutsche Telekom-controlled Global has launched the 8Gb phone for a massive €640 (£540).