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Apple Debuts Aggressively Priced iPhone 3GS, Macbooks

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Apple on Monday delivered several major announcements at rapid fire, including iPhone and MacBook upgrades, significant price cuts and an in-depth look at its next-generation operating system.

The most anticipated announcement was that of the iPhone 3GS smartphone, the successor to Apples popular iPhone 3G. The S stands for speed, referring to the performance boost of the new iPhone up to two times faster than its predecessor, according to Apple.

Other items that inspired wows from the audience revolved around price. The current iPhone 3G is remaining in the lineup with a $99 price tag down from $199. Mac OS X Snow Leopard, Apple next-generation Mac OS, will cost $29 for current Leopard users. Also, Apple upgraded the hardware of its MacBooks and lowered their prices by hundreds of dollars.

The OS wars have finally begun, said Mike Gartenberg, technology strategist and vice president of Interpret. The bar has been raised once again. Apple is very well positioned in the PC space for consumers, and we can expect Apple to begin its first major onslaught in the business market.

Traditionally, Apple has focused its Worldwide Developers Conference on software, as the event is devoted to training developers to code for Apple platforms. However, this years sold-out event included a heavy load of hardware-related news tailored toward impressing consumers, demonstrating that Apple is at no loss after choosing to abandon the Macworld Expo trade show.

WWDC is the only real, public venue for Apple now, said Tim Bajarin, principal analyst with Creative Strategies. Its their only opportunity to talk to their larger community.

The big star of WWDC was iPhone 3GS, whose improvements are internal, as the overall physical design remains the same as its predecessors. The 3GS introduces a digital compass for improved GPS navigation, enabling the iPhones Maps app to display directions based on which direction a user is facing. Another major addition to the handset is an improved, 3-megapixel camera, which includes auto-focus, auto-white-balance and video-recording capabilities.

A less expected new feature of iPhone 3GS is a voice-control interface. By loading an app, users will be able to dictate commands to perform various tasks, such as calling a contact or playing a song in their iTunes library.

Looking ahead, the iPhone 3GS includes support for 7.2Mbps HSDPA, a faster, next-generation network standard that many carriers plan to adopt.

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