Summary:

Apple’s Steve Jobs announced the fourth iteration of the iPhone today, called the iPhone 4. But don’t be confused by the naming, while this…

Apple iPhone 4 WWDC 2010
photo: gdgt

Apple’s Steve Jobs announced the fourth iteration of the iPhone today, called the iPhone 4. But don’t be confused by the naming, while this is indeed the fourth version of the iPhone, it does not mean it runs on a 4G network.

In a brief recognition of the Gizmodo iPhone leak, Jobs joked to the crowd that some people may believe that they’ve already seen this phone already, but he assured them “You haven’t seen anything like this yet.”

Some of the highlights include an all new handset design, better battery life and a new camera system, including HD video. Apple (NSDQ: AAPL) has also added Microsoft’s Bing as an search option, but has maintained Google (NSDQ: GOOG) as the default search engine. The big surprise came at the end when Jobs made the first phone call on a iPhone 4 via video chat. The iPhone 4 16 GB is $199 and the 32 GB is $299. If your AT&T (NYSE: T) contract expires in 2010, you are immediately eligible, but must sign another two-year contract. It’s available June 24 with pre-orders starting June 15. The iOS 4 will be free to 3GS users on June 21.

The phone’s hardware includes three stainless steal bands wrapped around the edges that serve as the primary structural element of the phone, but also serve as the 3G, Bluetooth and other radio antennas. It also has a forward-facing camera, and what Jobs calls a “retina display,” which makes the display even more clear. He’s making a big deal about this screen quality, and while the phone does look crisper on the screen, it’s by a degree. Jobs: “It’s your window to your internet, apps and media and software. It’s the most important component of the hardware.”

Video Chat: it’s iPhone 4 to iPhone 4 using WiFi only in 2010. You can use the front or rear camera, so people can see what you are seeing. Portrait or Landscape. The app is called FaceTime (NYSE: TWX). “Apple will ship 10s of millions of FaceTime devices this year, so there will be lots of people to talk to.”

Battery life: Up to 40 percent more talk time on 3G; six hours of browsing, 10 hours of wi-fi browsing, 10 hours of video.

The Gyproscope: This provides six-axis motion, including gravity. Basically this means it takes your body motions also into consideration. As you turn around, so does the structure on the screen.

New camera system: 5 megapixel camera, and “backside illuminated sensor.” The camera also records HD video at 720p and 30 fps. To help, Apple has created iMovie for iPhone. Record, edit and share all from the iPhone. The video adds location automatically and even provides some background music. The app costs $4.99.

iOS 4: Apple is renaming the iPhone OS to iOS because it’s also running on the iPad and other devices. This was announced in April already, and includes 100 new features, including multi-tasking, background functionality and folders.

Search: Apple has added Microsoft’s Bing to the options of internet search. Google is still default, but now you can search by bing in addition to yahoo.

iAd: The new advertising platform will be available on iOS 4. The first day is July 1, and the brands have committed $60 million in mobile advertising for the second half of the year. Morgan Stanley believes that the entire mobile ad display business equals $200 million for the year. Brands include: DirecTV (NYSE: DTV). TBS, Disney (NYSE: DIS), BestBuy, Target, JC Penny., Nissan, citi, Unilever, AT&T, Chanel, GE, Liberty Mutual, State Farm, Sears, Etc.

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By Tricia Duryee

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