Apple's iPhone 2.0: $199, 3G, On Sale July 11 (AAPL)

So now we know -- or at least we know some of what we need to know: The new iPhone will be fast, cheap, and stocked with cool new apps. And we'll have to wait a month to play with it.

Plenty of unknowns, some of which Dan Frommer tackles in a separate post. Understandably, Steve Jobs didn't get into the economics of the new phone, but at first blush it looks like Apple is now embracing a different model than it tried last summer: It's giving up premium pricing, plus a large monthly revenue stream, in exchange for a chance at mass adoption.

We also haven't heard anything about Apple's non-iPhone plans, but developers -- who the WWDC conference is really supposed to targeting, anyway -- will hear about that later today. I'm going to canvass some real-life developers and get their thoughts about what they've seen today, and will report back.

12:40: The press push through and run to their seats. It's kind of sad, but we were wholly participating.

1:00: No Jobs yet

1:03: Everyone looking in every direction. We don't think Jobs is coming through the ceiling.

1:06: He's on stage! Record 5200 attendees.

1:07: Three parts to Apple. Mac, music, iPhone.

1:08: I'm going to take this morning to talk about the iPhone. SVP of iPhone Software and SVP of Product marketing coming up.

1:08: Snow Leopard coming after lunch.

1:12: Showing a video featuring the business applications of the iPhone software 2.0. Different execs talking it up. (Disney, U.S. Army, etc.)

1:15: Video over.

1:16: SDK: SVP: APIs uses exact same OS10 kernel that formes the basis for Mac OSX. We also have a comprehensive core services layer. We've got a rich media layer -- real-time 3D graphics. Cocoa Touch -- user interface object oriented framework.

1:18: Really powerful set of tools -- Xcode (write, edit, debug code). iPhone simulator (run and debug apps right on your Mac). Tehtered debugging (plug iPhone in to your Mac and run apps).

1:19: Going to demo tools.

1:19: Building a "nearby friends" app. Using built-in address book APIs and built in core location APIs. Dragging in search bar and item bar to sample app using the interface builder.

1:22: The interface builder rotates just like the iPhone (your app goes horizontal when you turn the window sideways.

1:23: Built the interface, wired to code. And now running the full application which tells you where your friends are. Now he's testing it by plugging in actual iPhone.

1:25: We've got a greate set of APIs and a really powerful set of tools. Asked the developers what they think about the SDK so far and responses were unbelievably positive. Quotes from Disney exec, InfoWorld, Fox Interactive Media exec, David Pogue: you're witnessing the birth of a third major computer platform -- Windows, MacOSX, iPhone.

1:27: Bringing developers up to show their apps: Sega -- In March, Sega blew us away with what they had accomplished in two weeks with Super Monkey Ball. They've polished.

1:28: Ethan Einhorn, Sega: 110 stages for the finished game. all four of the classic monkeys. Playing as "baby." Five worlds -- last world Space Case. Terrific opportunity how well the tilt controll can keep up with the game. Has to be ab;e to accelarate, decelarate and turn with pinpoint precision. (The game looks really good).

1:30: game will be available at the launch of the app store for $10.

1:30: eBay -- native iPhone app: Ken Sun -- "Auctions." Started creating app five weeks ago. Searching for "wiifit cheap." Integrated WebKit so you can view the sellers HTML information. Home page tells you what you're watching, what you're bidding, what you're selling.

1:33: eBay app will be available for free when the App Store launches.

1:33: Loopt -- location based social network, Sam Altman -- Where people are, what they're doing. Best version of loopt that we've ever made. Uses a Google Map (I think) to see where your friends are, and look at photos they've uploaded of where they are. Message them. All an example of the power of location.

1:36: Loopt will be free when App Store launches.

1:36: Michael Sippey, TypePad: Largest professional blogging app in the world. Use camera on iPhone and send it directly to blog. Post on any of the blogs you contribute to. Doesn't seem like a great way to write out a treatise, but seems easy to do something quick.

1:38: For free at launch.

1:39: The Associated Press -- Mobile News Network: Already have an iPhone app, but they're building a native app. Can get local news depending on where you are using location API. The photos look super clear. Watch AP video as well. Send "citizen journalism" pictures using the App on the iPhone.

1:41: Mobile News Network will also be free.

1:42: Pangea Software -- 2 Games for the iPhone ported from Mac OSX.. Enigmo -- physics based puzzle game. Game is completely touch based. Extremely CPU intensive stuff to do. Requires a good CPU to do that and "we have a great CPU here on the iPhone"

1:43: Cro-Mag Rally: 3D racing caveman racing game. Only took three days to port the games from OSX. $10 at launch.

1:46: Mark Terry, Cow Music: Independent developer (first!). App called Band: create music on the iPhone. He played "Imagine." Played the drums, blues, and bass, along with piano. You can mix all the instruments together in a song.

1:48: Coming in a few weeks, but no price.

1:48: MLB.com, Jermey Schoenherr. App called MLB.com At Bat. Features not offered anywhere else. All of today's games. Checking out Yankees Game (Top 3 against Royals, 0-0). Use iPhone's media player for real-time video highlights (just watched a Cano double-play). In the app store when it launches.

1:50: MLB didn't slip up and say 3G. "Whether you're on Edge or WiFi"

1:52: Modality Medical App: Find a region of the body and view hundreds of anatomical images (great for med students). Find additional information on the anatomy online simply by clicking.

1:53: Will have a dozen apps available within weeks of the app store launch (Modality).

1:54: MIMVista, Medical imaging app: Moving through CT Scan by sliding with a finger. Using two fingers changes the blending. Change the viewing plane so you can see data from bottom, side or front. Developed prototype after 1 week.

1:56: 3D reconstruction of PET Scan. "Imagine a doctor, sitting with her patient, showing him" the scans. Available at app store launch.

1:57: Digital Legends Entertainment, built app in two weeks. Apple didn't hear about it until last week. Mobile game developer. Graphics are really detailed. It took four days to port the game, and used the rest of the two weeks to make it iPhone specific. Expected to be ready by September.

1:59: Done showcasing apps. Thanking the developers for "their amazing work"

2:00: One feature that developers want: Notifications on apps when the users aren't running the apps. The wrong solution is to enable background processes (app still runs after user thinks he's quit it). Battery life, performance suffer.

2:02: Windows Mobile Task Manager is the bad solution. Challenges the user to use the computer science skills to manually kill an app. "This is nuts."

2:02: Apple is providing Push Notification service. When the user quits the application, there's no connection to the server. Apple will maintain a persistent IP connection right to the phone. Push three types of notificatation -- badges, custom alert sounds, custom textual alerts (like SMS appear on the screen). Provide buttons so if they're selected, they automatically launch the application. Scales to many third-party services but only one persistent ocnnection needed to the phone. Available in September.

2:04: End of SDK update.

2:04L: Steve Jobs back on. New features in iPhone 2.0 Software -- Contact Search, full iWork document support (pages, numbers, keynote). Completed the support off MS Office documents right on the iPhone (added PowerPoint). Added bulk delete and move for e-mail. Turn the calculator into landscape mode and it turns into a scientific calculator (!).

Added parental controls: "Some teenagers may not like this, but that's the way it's going to be."

Added a tremendous amount of language support -- two forms of entry for Japanese and for Chinese (you can draw the character with your finger). "One of the great advantages of not having a bunch of plastic keys as your keyboard" (there goes that theory).

2:08: iPhone 2.0 Software free for iPhones, $10 for iPod Touch.

2:09: App Store: Developer sets price, gets 70% of revenues. No credit card or hosting fees. App Store will be in 62 countries. If your app is under 10 MB, download over cell network, WiFi, iTunes. Over 10MB just WiFI and iTunes.

2:10: Adding a way for enterprises to distribute apps. An enterprise can authorize iPhones in their enterprise and they can then create apps that only run on those phones. They can distribyute those apps on their own Intranet. Users download apps and sync through iTunes.

2:12: Ad-hoc disgtribution. Register up to 100 iPhones and distribute them however you want within those 100 iPhones.

2:13: MobileMe: Phil Schiller (sp?): entirely new. It's like having exchange for the rest of us. New iPhone software uses ActiveSync to sync with Exchange and it works great. Not all of us workin large enterprises not all of us have exchange servers. Everyone can get push e-mails, contacts and calendars. MobileMe stores your info up in the cloud. Get the info on a Mac, PC, iPhone.

Change and address book contact on your phone, it changes it on all your devices. Works over the air. E-mail works built in with contacts and calendar. And works with the native apps on Mac or PCs. Mac: iCal, address book, e-mail. PC: Outlook.

2:16: Built a suite of Web 2.0 applications using AJAX technologies.

Me.com: Brand new Web site full of applications.

2:17: Send photos from iPhone onto MobileMe Web site.

2:18: Showing application interface: Launching Me.com, logging in. The Web app has all your e-mail, contacts, calendar. Drag and drop just like a desktop application. Picture gallery, allows you to skim through photos just like on iPhoto.. Change the size of photos, rotate them, share with friends and family (password protect if you want).

2:21: Share directly on MobileMe.

2:22: Interaction between iPhone an MobileMe. Create contacts directly from Web and save contacts directly to phone. And the contacts are already on your other devices (computer). Everything syncs immediately.

2:25: Immediately is no joke either -- real-time synching took about 1 second. On your photo gallery in your iPhone you can directly send to MobileMe and add it to an existing album.

2:26: Service will be available for $99 per year, comes with 20GB for online storage. 60-day free trial available in early July.

2:27: MobileMe replaces .Mac. USers can continue to use the .Mac services but they'll be auto upgraded.

2:31: iPhone: We need 3G, Enterprise support, to launch in more countries, and more affordable.

2:33: 3G iphone: full plastic back, camera, fushed headphone jacks, improved audio, black back.

2:34: nationalgeographic.com took 21seconds to load on 3G, 59 seconds on Edge 2.8x faster. Only four seconds slower than WiFi. 36% faster than the N-Gage and the Treo.

2:36: E-mail application -- 3G -- 5 seconds, Edge -- 18 seconds, WiFi -- 3 Seconds.

2:37: Battery life: 300 hours of standby life. 10 hours of 2G talk time. 5 houtrs of 3G talk time. 5-6 hours of high-speed browsing. 7 hours of video. 24 hours of audio.

2:38: GPS built in (big cheers). Location services are going to be a really big deal on the iPhone. It's going to explode. Data from cell towers, WiFi, and GPS.

2:39: Enterprise Support on 3G iPhone: full MS Exchange, tremendous feedback from enterprise users.

2:40: Third-Party apps -- best way to distribute them to the world.

2:40: More countries -- All of North America, much of Central America, almost all of South America, all of Western Europe, Much of Eastern Europe, some of Africa. India, Australia, New Zealand, Phillipines, Japan. 70 countries total.

2:44: iPhone 3G will sell for $199 (raucous applause). 16 GB is $299 and comes with a white one. No new models.

2:47 Available in 22 countries on July 11.

2:50 Keynote over.

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