Looking to both boost its sales and make its popular iPhone a better rival to the BlackBerry smart phone, Apple has previewed its iPhone 2.0 software, opening its software development kit (SDK) to third-party developers and adding business-application-oriented support via Microsoft Exchange ActiveSync.

Open SDK application programming interfaces (API) and tools include programming interfaces for Core OS, Core Services, Media, and Cocoa Touch technologies; Xcode for source code editing; and the iPhone Simulator to run and debug applications for the iPhone and iPod touch. Apple also introduced its iPhone developer program and the App Store, a new application that allows users browse, search, purchase, and wirelessly download third-party applications directly onto their iPhone or iPod touch. Apple said developers will set the price for their applications and will keep 70% of all sales revenues. Free applications will be downloaded at no charge to the user or developer. Further, Apple said enterprise customers will be able to create private pages on the App Store that will be accessible only by their employees.

The iPhone 2.0 beta release also includes built-in support for Microsoft Exchange ActiveSync for out-of-the-box iPhone connection to Microsoft Exchange Servers 2003 and 2007 and Cisco IPsec VPN technology. The 2.0 software moreover provides new e-mail features, such as the ability to view PowerPoint attachments, in addition to Word and Excel, as well as the ability to mass delete and move e-mail messages. A configuration utility is further provided to allow IT administrators to set up iPhones, including password policies, VPN setting, installing certificates, and e-mail server settings, via Web link or user e-mail, Apple said.

With its efforts, Apple hopes to see its iPhone compete more seriously in the corporate world, a market that has huge spending power and that currently favors the BlackBerry smart phone. If the company can snag a bigger piece of the corporate market, it has a better chance of reaching its goal of selling 10 million iPhones this year. From its late June 2007 launch to January 2008, Apple sold approximately 4 million iPhones, mostly to the consumer audience.

Apple also announced a surprise partner, investment company Kleiner Perkins Caufield & Byers (KPCB), which has launched the “iFund,” $100 million in venture capital that it will invest in companies developing applications and services for Apple's iPhone and iPod touch. The iFund will be managed by KPCB and Apple will provide KPCB with market insight and support.

Apple said that during the beta iPhone SDK program, a limited number of developers will be accepted into its iPhone developer program and offered the ability to get code onto iPhones for testing. The standard program costs $99 per year and the enterprise program costs $299 per year.

Apple said it plans to release the final iPhone 2.0 software as a free software update for all iPhone customers by the end of June. iPod touch users will be required to purchase a software update to run third-party applications. The free beta iPhone SDK is available immediately worldwide and can be downloaded at developer.apple.com/iphone/program.

By: DocMemory
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