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Apple to Target Broader Market with 3G iPhone Device

Date: 6/11/2008 1:52:48 PM

Apple CEO, Steve Jobs, unveiled a faster, cheaper version of the popular iPhone device on Monday, marking the company’s long-awaited move into the mainstream smartphone market.

“At $199 we can sell it to anybody, and that’s our goal,” Jobs said of the 3G-enabled iPhone, set to hit the market on July 11. Apple’s target is to sell 10 million iPhone devices worldwide by the end of this year.

The new iPhone can download music and other data 2.8-times faster than its predecessor, and includes numerous additional features, including GPS, new games, social networking options, and instantaneous email access (similar to the acclaimed ‘push email’ capability of RIM’s BlackBerry smartphones).

Apple is promoting the new phone as twice the product at half the price, although some bloggers have questioned the accuracy of this pricing claim, due to the higher cost of 3G mobile data service. Everyone acknowledges, however, that the latest price cut is significant, and analysts say it will allow the iPhone to better compete with the likes of Motorola and BlackBerry.

“Apple is now better positioned comparatively on price to gain significant share in the handset market,” explained Merrill Lynch & Co. analyst, Jeff Fidacaro, in a research note.

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