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Bells and whistles (and hammers) mark iPhone launch

Publish date: 04 July 2007
Issue Number: 1190
Diary: Legalbrief eLaw
Category: eCommerce

After all the hype over the past few months, there are few people who don’t know what an iPhone is.

But for the record, it’s Apple’s multimedia and Internet-enabled mobile phone that is protected by more than 200 patents. E-Brief News reports that about 525 000 phones have been sold since the launch in the US last weekend. While the process of getting their hands on Apple\'s new iPhone was easier than previously thought, some customers complained of problems activating the device. CNET News reports that an innovative process utilising Apple\'s iTunes was intended to streamline activation, but customers grew frustrated waiting several hours for an activation confirmation message. It took Apple more than six months to build the iPhone, but curious gadget fanatics needed only minutes to tear one apart. Within hours of the first iPhones going on sale on Friday, enthusiasts scrambled to be the first to discover what makes the devices tick, posting photos and videos of disassembled phones on the Internet. According to a report on the Boston.com site, the information is more than just academic. Apple keeps a tight grip on information about parts suppliers so ‘tear downs’ of its products are closely watched by investors keen to figure out how to place their bets. In the past, word that a particular part was being used in Apple\'s popular iPod music players has sent that company\'s shares higher. By Sunday afternoon, a video on YouTube showing two men banging away at an iPhone with a hammer and nail had garnered 56 000 views and was the 13th most-watched clip on the site. Full CNET News report Full Boston.com report

The iPhone hype makes it a natural target by scammers looking to sell Apple\'s first cell phone for a huge markup, and also by hackers looking to add to their bot networks. Within hours of the iPhone\'s release, a social-engineering e-mail went out with the subject line, ‘Congratulations, you have won a new iPhone from our store’. Following the link in the e-mail takes an unsuspecting user to a Web site that attempts to load a rootkit on the user\'s computer. The attack is one, according to security vendor Secure Computing Corporation, that was used in a widespread attack on about 10 000 Italian Web sites about two weeks ago. Adtagmag reports that the attack ‘is a two-phase download’, according to Paul Henry, vice-president of technology evangelism for Secure Computing. ‘A user gets the e-mail, and clicks on the link to get the iPhone. That takes them to a Web site in Malaysia.’ The Malaysian Web site looks for Active X exploits, and if it finds a hole, the browser is directed to a second Web site, this one in New Jersey, that loads the rootkit on the computer. Full adtmag report

The iPhone is the sought-after smartphone of the moment, but it\'s outside the reach of some people and not ideal for everyone. Information Week reports that not only is the iPhone expensive at $499 to $599, but some IT departments won\'t support it. Fortunately, there are many iPhone alternatives, including those with media players for music, video, and streaming content. At prices ranging from $75 to $450, they\'re cheaper than the iPhone as well. While Americans have been swamped with news about the iPhone’s debut, many in South Korea’s and Japan’s technology industries initially greeted Apple’s flashy new handset with yawns. Cellphones in these technology-saturated countries can already play digital songs and video games and receive satellite television. But now that analysts and industry executives are getting their first good look at the iPhone, many here are concerned that Asian manufacturers may have underestimated the Apple threat. The New York Times reports that analysts and executives in South Korea say that the iPhone, with its full-scale Internet browser and distinctive touch screen with colourful icons, is more than just another souped-up cellphone. They fear this Silicon Valley challenger could leap past Asian makers into the age of digital convergence by combining personal computing and mobile technologies as no device has before. Full Information Week report Full report in The New York Times

In other developments, South African ICT solutions provider LGR Telecommunications has entered into a deal with AT&T to capture data, and process and generate reports based on call data records (CDR), following the launch of the iPhone. AT&T has exclusive US distribution rights for the iPhone for five years and will use LGR\'s CDRlive solution to capture information and gain insight into every aspect of iPhone usage. This information is expected to drive AT&T\'s understanding into new ways to keep customers and expand its presence in a rapidly-maturing market. ‘Apple has no real history in the telecommunications space,’ says LGR chief marketing officer Paul Hartley. ITWeb reports that the CDRlive solution is capable of dealing with over 7.5bn records a day, at a rate of more than 80 000 per second in real-time. Full ITWeb report

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