3G Apple iPhone Speed Dilemma: Why Steve Jobs is Praying

It's buzzing out there in iPhone land. While rumors run rampant about the "3G iPhone," enabling fast Web surfing, gaming and other applications, neither AT&T, Apple, Steve Jobs or God know how a 3G-enabled iPhone will perform on AT&T's broadband network. (Well, maybe God.)

My previous experience with AT&T's broadband network--slower than Verizon and Sprint's EVDO nets--leads me to believe there's trouble brewing due to the iPhone's large screen, 3G chipset and battery. That's the main reason, per Jobs, the iPhone wasn't designed for 3G in the first place. (See my iPhone review for background.)

3G mobile phones on AT&T's 3G net already stall and drain batteries quickly when streaming video or surfing the Web. Version one of the Samsung BlackJack is a good example. When first released, the underpowered battery drained like an SUV's fuel gauge. Samsung then released BlackJack II with a more powerful battery, but the trade-off was a thicker phone. (See "Batteries Draining at CES in Vegas.")

Enter the iPhone with its large, high resolution screen--twice as large as the BlackJack II. Each screen pixel from top-to-bottom must activate to render a viewable screen. The larger the screen, the more time it takes to fill it. And, if I'm correct, new iPhone purchasers, who've experienced Wi-Fi on the iPhone, will be greatly disappointed, especially while streaming video on AT&T's 3G network.

Power drain on Verizon's Voyager and Sprint's original CDMA Touch phone and new Touch Diamond, scheduled for release in June, are less problematic due to EVDO's faster data speeds. The Voyager most closely matches the iPhone's screen size and the Touch's screen is considerably smaller. (Click here for a Phonescoop comparison.)

As I've commented previously, Apple entered the mobile phone market without any wireless experience. The company has struggled to please customers and carriers by lowering prices, changing internal memory and trying to understand international mobile phone distribution. Meanwhile, hackers continue unlocking the device, Apple counters with new firmware to disable hacked iPhones and dissatisfied customers continue dropping iPhones on eBay.

Taking advantage of Apple's troubles, AT&T announced an iPhone price reduction on its own, after discovering that 40% of iPhone buyers are new AT&T customers. Training its reps to better understand customer needs is also in the works, due to customers' numerous dismal experiences. AT&T, along with other carriers, continues testing new pricing and contract strategies.

Wireless competition is undeniably fierce. Manufacturers and carriers must strike a balance between form factors, functionality and price. Meeting customer expectations is the key element for success in the smartphone market.