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Infineon chip causing problems on iPhone: reports

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NEW YORK (Reuters) – An Infineon chip could be at the root of complaints from around the world that Apple Inc’s new iPhone drops calls and has unpredictable Internet links, according to a research report from Nomura.

BusinessWeek also reported on its website on Thursday that the iPhone is suffering from faulty software on an Infineon chip, and that Apple plans to fix the problem with a software update.

Representatives for Apple and Infineon declined comment.

One of the key attractions of the latest iPhone, which went on sale in July and sold 1 million in its first weekend, is faster, third-generation (3G) Web connections when compared to the first iPhone that was launched in mid-2007. Click to continue »

Softbank lowers Japan fee for popular iPhone

The $199 iPhone Challenge

With the new 3G phone, Apple paints a bull’s-eye on BlackBerry.

Steve Jobs, the chief executive of Apple, has delivered on the hopes for the next generation of iPhone: cheaper, faster, and more enterprise-friendly.

The new phone, which will go on sale July 11 in 22 countries, will run off the 3G network, which Jobs said would enable the phone to work 2.8 times faster than it does with the current E.D.G.E. technology.

Pictures of the new gadget displayed at Apple’s annual conference on Monday show it to be even thinner, with a black plastic back, solid metal buttons, and the same display and camera. The announcement that the new device would have a flush headphone jack and dramatically improved audio was greeted by roaring applause.
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| Read All What’s Good for Apple is Better for Everyone Else

Sales show that what’s been good for Apple has been very good for smartphone makers.

As Apple prepares to launch the iPhone 2 on Monday, competitors like Palm and RIM are not worried. On the contrary, they are licking their chops, preparing for a surge in sales, even though Apple expects to sell millions of new iPhones worldwide.

“The way I look at it is there are 1.2 billion cellphones out there, and we’re just scratching the surface,” said Mike Laziridis, CEO of Research In Motion, which makes the BlackBerry, the iPhone’s closest rival.

Steve Jobs is expected to announce the second version of the iPhone on Monday morning during a keynote speech kicking off Apple’s annual Worldwide Developer’s Conference.
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Apple iSued

Sam Gustin says: Talk about bad reception.

Apple has been slapped with a lawsuit over service issues plaguing its new iPhone 3G.

Jessica Alena Smith, of Alabama, has sued Apple with breach of warranty and unjust enrichment, claiming that her new phone — what she refers to as “Defective iPhone 3G” — has much slower service than advertised.

Referring to the ubiquitous television ads touting the device, the lawsuit reads, “Defendant intended for customers to believe its statements and representations about the Defective iPhone 3Gs, and to trust that the device was ‘twice as fast at half the price.’”

Smith, who is seeking class-action status for the suit, also complains of spotty 3G reception and dropped calls, something other iPhone users have taken issue with. On Monday, Apple released a software fix intended to troubleshoot the problems, but it seems the fix may have caused new issues with the phone.

The suit asks Apple to fix or replace all defective iPhones and pay for lawyers’ fees.

Between the activation issues that hobbled Apple’s iPhone’s launch, the issues with its MobileMe Web services suite, and now the iPhone service problems, this is turning into a rocky summer for the company — no matter how many handsets it has sold, or how big its market capitalization becomes.
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