The upgraded iPhone has a tremendous list of features! I’m looking forward to the integration with Exchange Server, which ought to let my clients with Small Business Server have a live, over-the-air connection to their contacts, calendar, and inbox. I’ll write more about the new iPhone after I have some experience with it.

There are two things worth noting that may get lost in the excitement next month.

  • It’s not really any cheaper. The sales price is cut in half – welcome news indeed! But it’s not really a discount. Instead, AT&T is subsidizing the sale price and making it back by increasing the monthly fee by $10 for the data plan. Since a two year contract is required, that means the new iPhone will be slightly more expensive than the original iPhone over the life of the contract. Most people only focus on the original sales price; AT&T is focused like a laser on your signature on the two-year contract.
  • You still have to sign up with AT&T. Their much-vaunted 3G data speeds won’t do any good if you don’t live in the major metropolitan areas where AT&T actually provides that service. And in a recent poll, 65% of the people who had called AT&T for customer support said they would rather “have their eyes plucked out by crows” than go through that experience again. Well, something like that – I can’t find that survey now, but you get the idea.
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