June 9, 2008 / 7:44 PM / 12 years ago

ANALYST VIEW: Apple unveils new iPhone, cuts price

NEW YORK (Reuters) - Apple Inc on Monday unveiled a next-generation iPhone with faster Internet access and satellite navigation capabilities.

The new entry-level iPhone will cost $199 with 8 gigabytes of memory, compared with the $399 price of the older-generation phone with similar memory. A new device with twice the memory will cost $299 and go on sale in 22 countries on July 11.

Here are some analysts’ reactions:

SHANNON CROSS, ANALYST, CROSS RESEARCH

This positions Apple well vis a vis other smart phone competitors such as Nokia and RIM.

iPhone is no longer an expensive device. It’s now priced at the mass market.

DUNCAN STEWART, PRESIDENT, DUNCAN STEWART ASSET MANAGEMENT

IN TORONTO

Apple shares will go down because there has been so much hype built into them, that it’s almost impossible for the iPhone to exceed or surpass expectations. It can only meet them.

BEN WOOD, RESEARCH DIRECTOR OF UK-BASED CCS INSIGHT

The distribution footprint is impressive. That’s just a phenomenal ramp-up that Apple will have to manage now.

If it was any other phone manufacturer it would be regarded as a refresh of a successful product.

This is the logical next step for the iPhone and I think it is a reflection of the highly competitive market Apple has now entered.

Repeating the wow experience that iPhone one delivered was always going to be impossible.”

It (Mobile Me) clearly puts them in a competitive position on the services side against Google, Microsoft and most importantly Nokia.”

It is still very much a consumer-centric product.

This could just be a leading indicator for Apple’s desire to offer a phone for business users as well.

For now they’re placating consumers who also have a business life.

The 70 countries is extraordinary.

NICK AGOSTINO, ANALYST, RESEARCH CAPITAL IN TORONTO

The 3G aspect will be no different than what RIM will be doing with the Bold.

Does it make a difference for the business user? I would say no. It’s more the multimedia and surfing features, so the 3G is a nice kicker for the (non-business) consumer.

With Apple and RIM now, more and more the guys that are losing out are the Nokias and Motorolas of the world.

A couple horses from the back field are starting to gallop toward the front.

On a global scale, the guys that are making the inroads are the RIMs and the Apples of the world.

CHARLES GOLVIN, ANALYST, FORRESTER RESEARCH

The new pricing will put iPhone “well within the reach of mainstream users who were previously unwilling to buy.”

Reporting by Sinead Carew in New York, Jonathan Spicer in Toronto and Georgina Prodhan in Frankfurt; Compiled by Tiffany Wu

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