SAN FRANSISCO — Apple Inc. slashed the entry price for an iPhone in half and lowered some laptops by $300 Monday, the company's first dramatic price cuts since the recession began a year and a half ago.
With co-founder and CEO Steve Jobs absent until his medical leave is over at the end of June, Apple's biggest unveiling at its annual conference for software developers was a new model of the iPhone, the 3G S. It looks the same but sports a faster processor, longer battery life, an internal compass, a video camera and a photo camera with better resolution and auto-focus.
A 16-gigabyte version of the 3G S will cost $199 and a 32-gigabyte version will be $299.
The 8-gigabyte iPhone 3G, which came out last year, now costs $99, instead of $199. When the iPhone debuted two years ago, eager Apple fans had to shell out $499 for a 4-gigabyte version and $599 for 8 gigs.
Apple is known for ending events with a last-minute surprise, leading to some anticipation that Jobs might make a cameo in Monday's two-hour presentation. But he did not take the stage, and Apple's top marketing executive, Philip Schiller, exited without uttering the company's signature line that there would be "one more thing."
The latest iPhones go on sale June 19, just as two-year contracts for the buyers of the original models are expiring and Apple faces tougher competition from the likes of Research in Motion Ltd. and Palm Inc. On Saturday Palm came out with a well-regarded iPhone rival, the $200 Pre.
Industry analyst Michael Gartenberg, with the Interpret market-research firm, said the new iPhone pricing breaks through an important barrier for consumers. It will likely cause other smart phone makers to offer something similar, he said.
"Every $100 you move down in consumer electronics brings in a lot more customers," he said. "Ninety-nine dollars is a psychological price point, so that's a real barrier to move through. It becomes something people can afford — it becomes an affordable luxury."
Shares of Cupertino, Calif.-based Apple slipped 82 cents to close at $143.85.
Schiller said in an interview that $99 iPhone will reach people just joining the smart phone market. But lowering the price could be risky for Apple unless its new versions have enough appealing features to keep them selling briskly at higher prices. AT&T; Inc., the exclusive carrier of the iPhone in the U.S., said Monday it's confident its wireless profit margins will hold steady overall. AT&T; shares fell 16 cents to $24.40.
Apple might also be banking on expanding the profits it reaps from taking 30 percent of the revenue from downloadable applications on the iPhone and the iPod Touch. A new version of the iPhone operating software, available for download June 17, lets software developers sell additional content, like electronic books or extra levels to a video game, within applications.
Among other upgrades, the new iPhone software will let people download movies and TV shows using the device's cellular connection. It will let users send photos and videos the same way they send text messages, bringing the iPhone in line with other smart phones. (AT&T; won't offer this feature until late in the summer.) And the new software will let parents limit the kinds of applications kids can download.
Apple had already announced other new features in the new software — such as the ability to cut, copy and paste text — and the ability for "tethering," which means using the iPhone to connect a computer to the Internet. Twenty-two wireless carriers will enable tethering. AT&T; says it will also have tethering some time in the future.
For its MacBook line, Apple showed off new laptops that boast longer battery life and faster processors. The company rolled out a new 13-inch MacBook Pro that starts at $1,200, or $100 lower than an existing similar notebook, and a 15-inch Macbook Pro that starts at $1,700, $300 less than the current model.
It also lowered the price on the ultra-thin MacBook Air to $1,500 from $1,800. The 17-inch MacBook Pro, unveiled in January, costs $2,500 and up, though it now has a faster processor at the same price.
Apple also is trying to steal share in the computer market by enhancing its Mac operating system. The next version, Snow Leopard, comes out in September, before Microsoft Corp.'s next edition of Windows hits PCs Oct. 22. Among Snow Leopard's improvements is built-in support for Microsoft's Exchange Server software, so Apple programs for e-mail, calendars and contacts could become more useful in corporate settings.
One thing looming over Apple is the growing popularity of cheaper, stripped- down laptops sometimes called "netbooks." They are one of the few segments of the overall PC business that has been growing in the recession, while Apple's Mac revenue dropped 16 percent in the most recent quarter.
Jobs has said Apple doesn't know how to build a sub-$500 computer "that's not a piece of junk." That doesn't mean Apple won't someday try to enter that market, but on Monday at least, Schiller sounded similar themes. He said in the interview that netbooks are merely "very underpowered, poorly designed cheap notebooks."
"They have poor keyboards, poor screens, and none of the features and capabilities to do what a MacBook, for example, can," he said. "We think those products are below the quality standards of something Apple would like to make."
Jessica Mintz reported from Seattle.
Local News
Related Photos
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Philip Schiller, Apple senior vice president for Worldwide Product Marketing, speaks about the voice control features on the new iPhone 3GS at an Apple Worldwide Developers Conference in San Francisco on Monday. Jeff Chiu
Discussion
Apple drops entry iPhone to $99, unveils new model
- Cleburne
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Front, from left, are Grandview’s Caleb Hollingsworth, Cleburne’s Zach Haler, Joshua’s Jordan Garrett, Alvarado’s A.J. Castillo, Xavier Holbert, Kenny Adams and Marcus McNeil, Cleburne’s Conner Martyniuk and Godley’s Drew Benge. Standing, from left, are Alvarado’s Ronald Thomas, C.J. Johnson and Alex Gentrey, Grandview’s Austin Wylie and Caleb Armstrong. Not pictured is Alvarado’s Marcus Villarreal.
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First team offense, defense features host of area standouts
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
The first-team offense included Alvarado quarterback Kenny West and Burleson quarterback Barrett Cain. -
Cleburne, Grandview, Burleson lead second team offense, defense
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
The second-team offense was led by Cleburne’s Quade Coward and Godley’s Rhett Brawner as the second-team quarterbacks. -
Cleburne pulls away from Burleson, 62-48
The Cleburne Yellow Jackets beat Burleson, 62-48, on Friday night at Yellow Jacket Gym to move to 2-7 in District 7-A play. Burleson fell to 2-7 in league play with the loss.
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Lady Jackets pick up first District 7-4A win
On Friday night at Yellow Jacket Stadium, Cleburne picked up its first win of the District 7-4A season, 66-60, over Burleson, which fell to 3-8.
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Up-and-down Yellow Jackets split Friday’s matches at Little Elm Tourney
Both Cleburne soccer teams had mixed results on Friday in their respective tournaments.
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First team offense, defense features host of area standouts
- Johnson County
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Stage 2 drought plan still in place
Johnson County Special Utility District will keep its Stage 2 drought plan in place despite this week’s rain.
- Tuesday marks property tax payment deadline
- Drought no more
- Number of sex offenders increases
- Council approves trash truck purchases
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Stage 2 drought plan still in place
- Alvarado
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Standing, from left, are Grandview’s Ryan Breton (offensive most valuable player) and Austin Martinez (Ironman award winner), Alvarado’s Wayne Onderdonck (county MVP) and Brazos Fuller (co-newcomer of the year), Burleson’s Ayinde Alaajiy (co-newcomer of the year), Godley’s Blake Washinton (co-linemen of the year), Alvarado’s Tyler Bates (defensive MVP), Alvarado Head Coach Jeff Dixon (coach of the year) and Grandview’s Davis Scarbrough (co-linemen of the year).
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Indians on top of selections
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
Four of Johnson County’s eight football teams qualified for the postseason in 2011 with Alvarado making it all the way to the Class 3A Division I state championship game at Cowboys Stadium against Tyler Chapel Hill. - Dixon repeats as AJC coach of the year
- First team offense, defense features host of area standouts
- Cleburne, Grandview, Burleson lead second team offense, defense
- Upcoming sports schedule
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Indians on top of selections
- Burleson
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Standing, from left, are Grandview’s Ryan Breton (offensive most valuable player) and Austin Martinez (Ironman award winner), Alvarado’s Wayne Onderdonck (county MVP) and Brazos Fuller (co-newcomer of the year), Burleson’s Ayinde Alaajiy (co-newcomer of the year), Godley’s Blake Washinton (co-linemen of the year), Alvarado’s Tyler Bates (defensive MVP), Alvarado Head Coach Jeff Dixon (coach of the year) and Grandview’s Davis Scarbrough (co-linemen of the year).
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Indians on top of selections
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
Four of Johnson County’s eight football teams qualified for the postseason in 2011 with Alvarado making it all the way to the Class 3A Division I state championship game at Cowboys Stadium against Tyler Chapel Hill. - First team offense, defense features host of area standouts
- Cleburne, Grandview, Burleson lead second team offense, defense
- Cleburne pulls away from Burleson, 62-48
- Lady Jackets pick up first District 7-4A win
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Indians on top of selections
- Godley
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Standing, from left, are Grandview’s Ryan Breton (offensive most valuable player) and Austin Martinez (Ironman award winner), Alvarado’s Wayne Onderdonck (county MVP) and Brazos Fuller (co-newcomer of the year), Burleson’s Ayinde Alaajiy (co-newcomer of the year), Godley’s Blake Washinton (co-linemen of the year), Alvarado’s Tyler Bates (defensive MVP), Alvarado Head Coach Jeff Dixon (coach of the year) and Grandview’s Davis Scarbrough (co-linemen of the year).
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Indians on top of selections
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
Four of Johnson County’s eight football teams qualified for the postseason in 2011 with Alvarado making it all the way to the Class 3A Division I state championship game at Cowboys Stadium against Tyler Chapel Hill. - First team offense, defense features host of area standouts
- Cleburne, Grandview, Burleson lead second team offense, defense
- Upcoming sports schedule
- Lady Cats win, Wildcats fall to Peaster
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Indians on top of selections
- Grandview
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Standing, from left, are Grandview’s Ryan Breton (offensive most valuable player) and Austin Martinez (Ironman award winner), Alvarado’s Wayne Onderdonck (county MVP) and Brazos Fuller (co-newcomer of the year), Burleson’s Ayinde Alaajiy (co-newcomer of the year), Godley’s Blake Washinton (co-linemen of the year), Alvarado’s Tyler Bates (defensive MVP), Alvarado Head Coach Jeff Dixon (coach of the year) and Grandview’s Davis Scarbrough (co-linemen of the year).
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Indians on top of selections
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
Four of Johnson County’s eight football teams qualified for the postseason in 2011 with Alvarado making it all the way to the Class 3A Division I state championship game at Cowboys Stadium against Tyler Chapel Hill. - First team offense, defense features host of area standouts
- Cleburne, Grandview, Burleson lead second team offense, defense
- Upcoming sports schedule
- Tuesday basketball roundup
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Indians on top of selections
- Joshua
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Front, from left, are Grandview’s Caleb Hollingsworth, Cleburne’s Zach Haler, Joshua’s Jordan Garrett, Alvarado’s A.J. Castillo, Xavier Holbert, Kenny Adams and Marcus McNeil, Cleburne’s Conner Martyniuk and Godley’s Drew Benge. Standing, from left, are Alvarado’s Ronald Thomas, C.J. Johnson and Alex Gentrey, Grandview’s Austin Wylie and Caleb Armstrong. Not pictured is Alvarado’s Marcus Villarreal.
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First team offense, defense features host of area standouts
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
The first-team offense included Alvarado quarterback Kenny West and Burleson quarterback Barrett Cain. - Cleburne, Grandview, Burleson lead second team offense, defense
- Upcoming sports schedule
- Tuesday basketball roundup
- Kicking into high gear
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First team offense, defense features host of area standouts
- Keene
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Upcoming sports schedule
A look at the sports schedule for Thursday, Friday and Saturday.
- Tuesday basketball roundup
- Burleson leads AJC superlatives
- Grandview, Burleson, Cleburne lead first team selections
- Centennial places two on second team; Alvarado lands three players
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Upcoming sports schedule
- Rio Vista
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Front, from left, are Grandview’s Caleb Hollingsworth, Cleburne’s Zach Haler, Joshua’s Jordan Garrett, Alvarado’s A.J. Castillo, Xavier Holbert, Kenny Adams and Marcus McNeil, Cleburne’s Conner Martyniuk and Godley’s Drew Benge. Standing, from left, are Alvarado’s Ronald Thomas, C.J. Johnson and Alex Gentrey, Grandview’s Austin Wylie and Caleb Armstrong. Not pictured is Alvarado’s Marcus Villarreal.
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First team offense, defense features host of area standouts
The 2011 Lone Star Chrysler Dodge Jeep Autoplex All-Johnson-County football team has been announced. The team was chosen by the Times-Review sports department based on all-district selections and coaches’ nominations.
The first-team offense included Alvarado quarterback Kenny West and Burleson quarterback Barrett Cain. - Cleburne, Grandview, Burleson lead second team offense, defense
- Upcoming sports schedule
- Tuesday basketball roundup
- Burleson leads AJC superlatives
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First team offense, defense features host of area standouts
- Venus
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Fallen deputy Clifton Taylor’s sister, Megan Davis, takes a picture of a painting of her brother on Monday during a dedication to the deputy. The Johnson County Sheriff’s Office renamed its building to the Clifton Taylor Law Enforcement Center in honor of the deputy who lost his life during a disturbance call in April. The picture was painted by Fort Worth artist Gary Crouch. Three pictures were made and one will hang in the Clifton Taylor Law Enforcement Center. The other two paintings were presented as gifts to Taylor’s parents and his fiancee.
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Never forgotten
The eyes of fallen deputy Clifton Taylor’s family began to swell with tears during a dedication hosted by Johnson County Sheriff Bob Alford and the sheriff’s office.
- Man defends himself against two suspects
- Venus registers minor quake
- USGS registers minor county quake
- Trained rescue dogs look to be adopted and loved
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Never forgotten
