iPhone Mafia | Get Latest News and Views about iPhone, iPod and iTunes

SIM-free iPhone 3GS now available online

2010-04-04T06:39:00.000-07:00

TheApple iPhone 3G S is now available online in 16GB and 32GB varieties priced at £799.99 and £899.99 respectively. There's probably not a whole heap of people that don't know the 3G S' vitals by now, but in case you've been in a cave, its particulars include:

3.5-inch 320x480 touchscreen
Video capable 3.15-megapixel camera
3G HSDPA connectivity (7.2Mbps)
WiFi
Bluetooth v2.1
A-GPS with Google Maps

Naturally, a large appeal of the iPhone lays in-waiting at the iTunes app store, with thousands of various functional and gaming apps.
With a seriously steep price tag that's roughly equivalent to a decent spec laptop, you're going to have to have a fairly serious phobia of O2 and contracts in general to shell out the reddies for this up-front.
If that sounds like you, then head on over to the Play.com website to peruse its wares.

Would you pay $9.99 a month for AT&T's GPS service iPhone App?

2010-04-03T06:38:00.000-07:00

AT&T sent out a message yesterday to its subscribers touting its new voice-guided turn-by-turn navigation service, operated by TeleNav. For "just $9.99 a month," the message said, subscribers can "get there faster, safer and without any hassles."
Turns out the monthly fee is a hassle to some. True, AT&T is simply the conduit for the underlying service from TeleNav in Sunnyvale, Calif. But the carrier still is getting some grief from consumers. One reviewer at ComputerWorld argued that the "free" iPhone app was a "Trojan horse into your wallet." (It's free to install but costs $9.99 a month to use.)
The broader question is whether consumers, who have grown used to free or very inexpensive apps that do a dizzying array of high-tech tasks, will still go for a subscription model. For AT&T and TeleNav, their competitors are TomTom, which showed off its turn-by-turn app last month at the Apple Worldwide Developer Conference but has yet to announce a pricing structure, and Google Maps, which provides directions for free but doesn't have some of the bells and whistles of TeleNav. There are also the traditional GPS devices, which cost as little as $99.99, no monthly fee required.
Tell us where you would turn for directions. Would you pay 10 bucks a month for a service on your iPhone? Or would a frills-free Google Maps app work just as well?

iPhone OS v3.1 Improves iPhone Video Edits, Voice Controls

2010-04-02T06:37:00.000-07:00

Apple already is gearing up for a new OS update
It didn't take Apple long after the release of its iPhone OS v3.0 to begin preparing for the first major update to the new OS. Apple has announced the availability of a beta of its OS v3.1 along with a 3.1 version SDK, for its developers.

IPhone OS v3.1 will improve video editing, one of the hot new features on the iPhone 3G S. The 3G S allows users to edit videos by selecting or deselecting series of frames, however, the edits automatically overwrote the original. Now the system prompts the user with the option to save a copy, when saving your editing work.

Arranging icons on the home screen also has had a cool vibration effect added. Another little OS level tweak is the boot time -- the phone now boots considerably faster.

Another nice addition is the inclusion of paste into the dialing screen. Users can now paste phone numbers into the dial box. Alphanumeric numbers, such as 1-800-MY-APPLE, will be properly converted to phone numbers.

MMS functionality is supported in the beta, though it is still not supported on the network by AT&T. The beta's final major addition is the ability to use Voice Control via a Bluetooth headset.

Your dog wants you to download some Free iPhone Apps

2010-04-01T06:37:00.000-07:00

Lately, the number of travelers who are accompanied by their canines has increased so dog friendly information has become a hot commodity. In the past there were informative but not necessarily mobile user friendly Dog Lovers Companion guide books, the Dog Friendly website and Bay area’s Dining with Sophie website. More recently, lucky iPhone mobile users have found imper

Apple's iPhone can be Infected with SMS messages

2010-03-31T06:35:00.000-07:00

iPhone SMS vulnerability could allow malicious users to install and execute malware.

Recently, Apple has struggled with the security ramifications of a higher commercial profile, and seeing an increasing number of OS X malware. Now another security flaw has been found, this time in the iPhone OS. The flaw allows attackers to gain root access to the iPhone's underlying OS, allowing them to install and execute malicious programs at will.
The iPhone apparently automatically executes binary code sent in SMS messages. Messages are limited to 140 bytes, but this is little deterrence as longer programs can be broken up into several messages, which the phone automatically reassembles. While other applications such as the Safari browser on the phone only enjoy access to their sandbox, the SMS system is automatically granted root access, and SMS commands execute as root.
Charlie Miller, during a presentation at the SyScan conference in Singapore on Thursday introduced the vulnerability to the public. He declined to go into specific details or offer his proof-of-concept code to the public, as he has entered under an agreement with Apple. Mr. Miller did state, "SMS is a great vector to attack the iPhone."

iPhone 3GS Overheats and Dies with Sunlight says Apple

2010-03-30T06:36:00.000-07:00

Apple finally responds to reports about its heat issues
Apple has been having plenty of headaches lately with its MacBook Pro displays failing and experiencing distortion. Worse yet is the iPhone 3G S's quality problems, which include reported overheating and signal issues.
The overheating was first noted in Apple support forums. Soon, though, writers at several tech publications -- PC World, Wired, Le Journal Du Geek and The Telegraph -- began to notice the problems on their own phones. The Le Journal Du Geek writer posted pictures of a white phone and noticed that the overheating was so severe that it colorized the plastic. The heat tended to turn the case pink or brown.
Now, Apple has at last issued a response and it is assigning the blame for the problem on its users' behavior, sunlight, and on the seasons. Apple says that leaving the device in a car on a hot day is one possible culprit causing its phone to overheat. Apparently, like a vampire the phone is no friend of the sun -- Apple states that "leaving it in direct sunlight for extended amounts of time" may cause it to overheat

Free iPhone App: TweetDeck

2010-03-29T06:33:00.000-07:00

One of the most popular desktop Twitter clients now has a little brother. The free iPhone version of TweetDeck will no doubt be greeted with open arms by users of its older sibling, but I'm not convinced it's the best iPhone Twitter client. Though it looks great, it lacks some cool features found in TwitterFon and Twitterrific, which were designed from the ground up for Apple's mobile phone. But I do like TweetDeck's support for multiple accounts, as well as the clever, if gimmicky, shake-to-update feature.

Top iPhone Games Reviewed

2010-03-28T06:34:00.000-07:00

The iPhone is hot, and not just because it's overheating -- its also hot because it has some of the best handheld games on the market. In this first edition of our iPhone gaming update we look at what's new on the App store scene and what games are selling the best.
This week's top 15 paid apps are:

Hero of Sparta (Gameloft)
Sally's Spa (Games Cafe Inc.)
Flight Control (Firemint)
StoneLoops! of Jurassica (PlayCreek)
Real Soccer 2009 (Gameloft)
Fast & Furious The Game (I-Play)
Bejeweled 2 (PopCap Games, Inc.)
Doom Resurrection (id Software)
Bloons (Digital Goldfish Ltd.)
Knights Onrush (Chillingo Ltd.)

Honorable Mentions:
Tetris (17), Sally's Salon (13), The Sims 3 (20), and F.A.S.T. Fleet Air Superiority Training (11)

Hero of Sparta continues to be the App store's hottest seller, priced at $0.99. This hack-and-slash adventure released in December 2008 features some pretty impressive 3D graphics and slick storytelling cut-scenes. The game will give you about four hours of solid gameplay, or about 6-10 for obsessive types -- not bad for the price. This one is recommended for fans of the God of War, Gauntlet, or Diablo franchises.

iPhone 3GS Jailbroken! A Teenager has Hacked It!

2010-03-27T06:31:00.000-07:00

George Hotz, an enterprising teen hacker who goes by the name Purplera1n, won fame and infamy in 2007 when he became the first to free the iPhone from its AT&T U.S. SIM card restrictions. As a reward, Mr. Hotz won a hot set of wheels -- the Nissan 350Z and a paid consulting job with CertiCell, a cell phone services company.

Now a little older and taller, Mr. Hotz, age 19, has distinguished himself again, becoming the first to publish a jailbreak solution for the iPhone 3G S -- a fix to allow the phone to run apps not approved by Apple. The first step is to visit Mr. Hotz's page and download the "purplera1n" app. Mr. Hotz describes the following steps on his blog, writing:

Connect your iPhone normally. Click “make it ra1n”. Wait. On bootup, run Freeze, the purplera1n installer app.

The Freeze installer will install an app called Cydia which allows you to run any application on the iPhone -- Apple approved or not.

Using this newfound freedom, the iPhone's SIM card can be unlocked to run on any network by using the previously released ultrasn0w by the Dev Team. The Dev Team, not affiliated with Mr. Hotz had published the ultrasn0w app, but had declined to release a fix to jailbreak the iPhone, essentially rendering the app useless (as it was not Apple approved).

The Dev Team had stated that it would release a jailbreak with the OS update v3.1. Mr. Hotz was frustrated by this, so he took matters into his own hands. He accuses the Dev Team of delaying the jailbreak release for fear of an Apple patch, chastising, "Normally I don't make tools for the general public, and rather wait for the dev team to do it. But guys, whats up with waiting until 3.1? That isn't how the game is played. We release, Apple fixes, we find new holes. It isn't worth waiting because you might have the "last" hole in the iPhone. What last hole...this isn't golf. I'll find a new one next week."

A Windows-compatible version of the iPhone unlocking tool came last week, and this weekend brought a Mac compatible version. The Windows version is not compatible with Windows 7, according to Mr. Hotz's blog, and it requires the iPhone to be running OS v3.0 and for the latest version of iTunes to be installed.

IPhone 3GS is a Top Smartphone

2010-03-26T06:32:00.000-07:00

The iPhone 3G S was one of the biggest gadget launches of the year when it hit store shelves last month. Other notable launches during the month included the Palm Pre, hyped as one of the best competitors to the iPhone.

Consumer Reports has released its top smartphone rankings reports InformationWeek and the ever popular iPhone 3G S has taken the top spot in the rankings. Consumer Reports does point out that while the iPhone 3G S has taken the top spot; the rankings were very close with the Palm Pre and the Blackberry Storm on its heels.

Consumer Reports ranks the iPhone 3GS tops based on what it calls "top-notch" multimedia navigation, web browsing, and battery life. The publication also reports that the 3G S excels in display quality. The Pre on the other hand was bolstered in the rankings with superior multitasking, while the Storm bested the iPhone in messaging.

Consumer Reports also changed its ranking criteria with the new smartphone rankings release. The change in scoring means that some smartphones like the Blackjack II from Samsung and the Pearl Flip from Blackberry dropped in ranking while the iPhone 3G rose in the ranks.

Latest Free iPhone Apps: Sirius XM, VLingo, Travel Diary

2010-03-25T06:30:00.000-07:00

If you are the owner of an iPhone or iPod touch and would like to download an app or two onto your device today, but don’t know which one, maybe we can help. We’ve picked out three of the most recent apps added to the iTunes App Store. They’re all free to download and install, as long as you have an iTunes account.

Sirius XM

Confirmed as downloaded over a million times, Sirius XM lets you listen to exclusive music with dedicated artist channels, live performances, and music covering every genre right on your device, anywhere you are. As a Sirius or XM subscriber, streaming to your iPhone and iPod touch is free with your Premium Sirius Internet Radio or Premium XM Radio Online subscription.

To start listening, simply type your Premium Online Username and Password into the application. Although the application is free to download and install on your device, Sirius XM does require a paid subscription.

Download Sirius XM via iTunes (Free)

Vlingo

Using innovative speech-recognition technology, Vlingo lets iPhone users dial their contacts, search the Web, look up numbers and maps for local listings, and send status updates for Facebook and Twitter – all with the power of voice, according to the developer with the same name. Users do not need to change how they speak, or to memorize a list of commands, as the application captures the results word for word. With more features to be added in the following months, Vlingo currently offers the following benefits:

- Initiate calls to anyone in one's address book.
- Search for anything through Yahoo! or Google.
- Look up and map local listings.
- Update one's Facebook and Twitter status updates without typing.

Download Vlingo via iTunes (Free)

Travel Diary

Travel Diary works to your benefit, as it allows you to take a picture and immediately save it with details including location, the time it was taken and even comments. Instead of using the iPhone's camera application, simply fire up Travel Diary and take your pictures.

The app also allows you to browse through your pictures either from an interactive list or in full-screen mode. Since it uses your device’s camera, the app is not supported on the iPod touch.

Free iPhone GUI in Photoshop PSD Format

2010-03-24T06:29:00.000-07:00

An update version of iPhone 3.0 graphic user interface (GUI) in Photoshop PSD format is released along with Apple’s official release of the new iPhone 3.0 software as new soft came with a number of new graphic elements. It’s all still fully editable. Download from here.

Some of the changes and additions in the 3.0 PSD include:
• Map and map elements including curl
• Copy and paste elements
• Timeline bar editor
• Horizontal iPhone
• Horizontal Panels bars and keyboards

What's It Cost To Be A Top iPhone App? $1,875 A Day

2010-03-23T06:28:00.000-07:00

If you plan to use advertising to promote your iPhone app, don't expect to break the top 100 without paying a pretty penny.

To do so, it will cost $1,875 a day, according to Adwhirl, which aggregates a handful of ad networks to help publishers monetize their apps on the iPhone. (If you remember, Adwhirl recently got attention for sparing with AdMob about its policies on aggregators).

Since paying that big sum is not practical, Adwhirl has another suggestion: develop a free iPhone app that will generate a large user base, and then leverage those users it to drive traffic to your paid app. The idea is not super original. Game companies commonly offer free versions to get people hooked in hopes of converting them over to paying customers. However, Adwhirl does a good job of explaining why. More on that after the jump....

Adwhirl writes in its blog that this approach works because it takes about only 2,500 downloads a day to become one of the most downloaded free apps for a particular category-which is more attainable than becoming a top paid app. "For us, the solution was simply to release a few free apps, which quickly gain many ?throwaway? users and offer an effective channel to advertise the apps that were important to us." But why are free apps easier to get users for? Because right now, only a quarter of all apps are free, even though they generate 95 percent of all downloads.

Who (or what) Killed the iPhone's Battery Life?

2010-03-22T06:27:00.000-07:00

The iPhone 3G S has enjoyed tremendous popularity thanks to its powerful hardware, slick (and abundant) applications, and new features. However, it has also had its problems with overheating and signal strength. Now a new problem has been rearing its ugly head -- poor battery life.

For a mobile gadget, especially cell phones, battery life is critical. And when it comes to battery life, many are finding the iPhone to come up unexpectedly short. Apple's support forums are seeing a large volume of battery-related gripes. Writes one user, npshenoy2, "My charge did not last from morning to evening with a very moderate usage of checking mails just 5 times in a day and 10 minutes of YouTube video. All this was on Wi-Fi with 3G turned off."

Theories about the cause are becoming abundant as well. Brian X. Chen of Wired.com believes that the problem is caused by a defective batch of hardware. Meanwhile, The Examiner's Daniel Nations blames the iPhone OS v3.0 update for the problems. He based this theory on the fact that the first reports surfaced after the update.

Best Free iPhone Twitter Apps

2010-03-21T06:25:00.000-07:00

There's only one Twitter, and there's only one iPhone OS, but for some reason there are more iPhone Twitter apps than you can shake a stick at. We took a look at the best free ones, and discovered that you can get quite a lot for your lack of money—as long as you don't mind an occasional banner ad or prompt to upgrade to a paid version.

Twitter may be simple—posting 140-character messages and reading them from your contacts isn't very involved—but you'll still need to ask a lot of questions to find the mobile app that's right you. Can it display hot trending topics? Does it let you follow and unfollow others? Does it have an integrated Web browser? Can it shorten your tweets? Does it let you easily post a Web address you saw in Safari? Does it allow multiple accounts and UI themes?

Some iPhone apps even let you do things you can't when tweeting from your PC. Most can display "nearby" tweets, even letting you decide how near or far their maximum distance should be. You can include your exact location with your tweets; some apps, such as the excellent Twitterrific, also let you include a map link.
These apps also let you tweet a photo taken on the spot with your iPhone, but none of the free ones lets you post video from your 3GS —currently only the exorbitant ($5) Twittelator Pro lets you do that. We'll be posting an in-depth review of that as well as of another paid app, the crowd-pleaser Tweetie, in the near future. But as you'll see in the reviews below, there's a free Twitter client that will please all but the most demanding tweeps.

Best Automotive Free iPhone Apps

2010-03-20T06:26:00.000-07:00

The newest version of the iPhone was just released and over 1 million units have already been snatched up. Besides the games your kids will probably load on it for you, a ton of valuable apps will make your life easier. Here’s 3 more automotive iPhone apps everyone should add to their phone. These applications help you shop for used cars, help reduce the stress of an accident and help locate the lowest gas prices in your area. And the best part, they’re all free.
Web2Carz
Browse used cars with this simple, yet detailed search application. Enter the desired make/model and the distance to search based on your current location; sort the results by price, year or mileage for quick organization. Add additional filters based on your maximum price or maximum mileage.

Access More Than 180 Apps or WebClips via Spotlight on iPhone 3.0

2010-03-19T06:24:00.000-07:00

For some, even the newly expanded 11 Home Screen, 180 (including 4 fixed dock) app slots under iPhone 3.0 isn’t enough. It’s not about need — it’s about want. Luckily, iPhone 3.0 offers another handy, theoretically unlimited way to access apps: Spotlight. According to David Pogue:

You can install UNLIMITED APPS! Only 180 show up as icons—but Spotlight can find and open all of them! (And yes, we tried. Stopped at 250!)

So, check off every single one of your 56,000 (maybe?!) apps and sync them over. Then, instead of swiping right through 11 pages only to find the excess unaccessible, swipe LEFT to go to the Spotlight Search screen (or just press the home button again to get there super quick)

The Best FREE iPhone Games

2010-03-18T06:22:00.000-07:00

Did you know that owning an iPhone makes you a better person? It’s true. The Department of Made-up Statistics and Lies (DMSL) recently published a study, which claims that male iPhone users who identify with the “gamer lifestyle” are happier, healthier, and have slightly larger penises than their non-iPhone-owning counterparts. Surprised? We are. Because even though we’ve been spending more time gaming on our iPhone, our penises never felt smaller.

Another more concerning problem: most of the Lite demos and free game apps we’ve come across are just too miserly with the amount of content they give you. There’s something about getting slapped in the face with an advertisement to upgrade after we’ve only played for a few minutes that makes us want to delete the app and forget that we ever downloaded it in the first place. Plus, we’re broke from buying an iPhone in the first place! That’s why we sorted through all the free apps we could find to bring you the real gems that are actually worth downloading.

Top 148 Free iPhone Games

2010-03-17T06:21:00.000-07:00

The following are the top 148 free games in all sub categories in the iTunes App Store based on downloads over the past 24 hours by iPhone users in the United States. An RSS Feed is also available.

Wooden Labyrinth 3D Free
Price: $0.00
Released: 2009-02-21 in the Games category

Rope'n'Fly Lite
Price: $0.00
Released: 2009-07-07 in the Games category

Assassin’s Creed Altaïr’s Chronicles Free!
Price: $0.00
Released: 2009-06-22 in the Games category

Top 40 Free iPhone Music Apps

2010-03-16T06:20:00.000-07:00

Its easy to forget sometimes that the iPhone is also an iPod, but with the ever growing collection of music applications, you can get yourself an endless supply of music for “the best iPod yet” (as Steve Jobs like to say).
The iPod Touch and iPhone can give you as much free music as you can handle with the following 40 applications we’ve gathered up for you. We also included a few free ones that can help you figure out the lyrics are to your favorite songs, or even help you identify a song you hear on the radio. Why not turn your iPhone into the ultimate music machine?
Please note that all of these links go directly to the page in the iTunes store so clicking them will launch iTunes.

iPhone International Music Applications

95.8 Capital Radio: A top radio station from London, England.

Classical Philippines Radio: Plays a selection of classic Philippines musical styles

iBZH: Five radio stations serving all of the Brittany territory and surrounding area featuring a mixture of music and news.

Life Radio: Life Radio is the number one radio station is Austria, and this application features multiple streams from the popular station including 1980’s, love songs and more.

Mx3.ch Mobile: An app featuring streaming music from Swiss musical acts and information on upcoming gigs around based on your iPhone’s GPS location.

RadyoD: A privately owned radio station in Turkey streaming music and news from the country 24/7.

RMC2: Radio Monte Carlo comes out of Italy and features portions of the programming in English and Italian.

Rock Antenne: Broadcasting out of Germany, Rock Antenne broadcats in English, German, Italian and
Spanish.

SlowTurk: A Turkish station broadcasting nothing but love songs.

iPhone Lyrics Applications

Lyrical: Lyrical will automatically find the lyrics for the song you are listening to as soon as you launch it. The app will also let you search for lyrics for songs not in your library by entering the artist, song title or even just a few words from the song.

LyricMate: Powered by LyricWiki, LyricMate will show you lyrics for a song you are listening to, cache lyrics for offline reading and more.

iPhone Prototype Disappears - Chinese Worker Commits Suicide

2010-03-15T06:18:00.000-07:00

Apple is apparently hard at work cooking up what will become the successor to the iPhone 3G S. In China, an army of parts designers are working on the phone's circuit boards and components. Leading them is Foxconn in Shenzhen, a city in the industry-heavy Guangdong province near Hong Kong.

At Foxconn, a 25-year-old college graduate working in product communications, Yong Sun Dan, was in charge of the phone's prototypes. On Thursday, July 9, he set out to pick up 16 prototype units from the factory. He would later discover that one was missing according to DigitalBeat. His theory was that he left it at the factory. On Monday, July 13 he unhappily reported it to his boss.

Two days later, three Foxconn employees broke into his apartment and searched it. Sun, according to an IM exchange, also may have been detained and physically abused during the search.

The story came to an end of Thursday at 3 a.m. when Yong Sun Dan leapt from the window of his apartment building to his death. The tragic story showcases the potentially deadly game of intrigue and leaks that blog sites play. On the other side of the aisle, it shows the tremendous pressure that manufacturers like Foxconn feel about defending the secrecy of its star products.

Top 5 Free iPhone Music Apps

2010-03-14T06:17:00.000-07:00

1. Pandora

Pros: Straightforward and easy to use; saves user data to account; nice interface with prominent album art; good music selection
.
Cons: Skip limits; pop-up ads on every track; no community features.
The gist: If you only get one music streaming app for the iPhone or iPod Touch, make it Pandora--it's a great introduction for those who are anxious to hear some new tunes

iPhone is "Incredibly Insecure", says Hacker

2010-03-13T06:15:00.000-08:00

Jonathan Zdziarski, an iPhone developer and a hacker who teaches forensics courses on recovering data from iPhones, hasn't been very impressed with the iPhone's security -- or lack thereof. Mr. Zdziarski has indicated that iPhone OS v3.0 is a bit better when it comes to security, but he says with only a few pieces of readily available freeware you can easily crack it in under two minutes. That news must be concerning for the corporations and government agencies that support the hundreds of thousands of business iPhones Apple says it has sold.

Mr. Zdziarski says the iPhone's security woes are entirely unnecessary and are the result of incompetence. He states, "It is kind of like storing all your secret messages right next to the secret decoder ring. I don’t think any of us [developers] have ever seen encryption implemented so poorly before, which is why it’s hard to describe why it’s such a big threat to security."

His statements stand in stark contrast with Apple Chief Operating Officer Tim Cook's cheerful news that 20 percent of Fortune 100 companies have purchased 10,000 or more iPhones apiece and that multiple government organizations had purchased 25,000 iPhones apiece. Mr. Cook had bragged, "We’re seeing growing interest with the release of iPhone 3.0 and the iPhone 3GS due in part to the new hardware encryption and improved security policies. The phone is particularly doing well with small businesses and large organizations."

iPhone can be VERY Dangerous if iPhone is Unlocked

2010-03-11T06:11:00.000-08:00

Apple says terrorists could use iPhones to attack cell phone towers
Apple has tried everything to stop iPhone unlockers. Bricking iPhones didn't work -- it just generated more headaches and bad PR. Apple's internal protection technology turned out to be just as weak and poorly implemented as its consumer security on the iPhone -- the hackers quickly overcame the latest protections Apple threw at them. Now with its shiny new iPhone 3G S becoming yet the latest handset to be freed, Apple has turned to none other than the U.S. government for help.

The company has submit a report to the U.S. Copyright Office suggesting that iPhone unlocking be outlawed (and jailbreaking from the AT&T network, essentially as well as it would be impossible without unlocking) as Apple claims it threatens cell phone towers across America. Apple claims that unlocking the iPhone provides easy access to the iPhone’s BBP — the “baseband processor” software, which enables a connection to cell phone towers.

AT&T and iPhone -- Exclusivity Might End Soon

2010-03-10T06:14:00.000-08:00

No one can deny the business sense that AT&T used when it locked up the iPhone from Apple as an exclusive back in 2007 when the phone first debuted. The iPhone has helped AT&T grow significantly since it debuted.

According to AT&T CEO Randall Stephenson, the partnership with Apple will inevitably end and ultimately the only differentiator between the wireless providers in America will be network quality. The exclusive agreement between Apple and AT&T is believed to end next year.

In Europe, O2 is facing the same problem as AT&T with its exclusive period ending. Apple is allowing O2 to keep the exclusive on the iPhone 3GS in the UK while opening the iPhone 3G up to other carriers. Reuters reports that AT&T added 1.4 million new subscribers in the second quarter and out of those subscribers about had more than 2.4 million iPhone activation during the quarter.

The prospect of losing the exclusive on the iPhone has to raise eyebrows at AT&T and with Wall Street. Research firm Pali Research issued a sell advisement on AT&T stock in June because it was believed to be losing its iPhone exclusive. At the same time, the research firm issued a buy order on Verizon, believed to be picking the iPhone up on its network.

Pali Research wrote in a report, "Our buy rating on Verizon is based on our view that its market share gains will lead to profit growth that tops other telecom companies and Wall Street consensus estimates. Our sell rating on AT&T is based primarily on our belief that its wireless business will enter a prolonged period of erosion after being propped up by the iPhone for the past two years.