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JUNE 10, 2008
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Apple Chief Executive Steve Jobs said Apple has sold 6 million iPhones since the first model
launched nearly a year ago and 700,000 since March. That points to a steady slowdown in
sales starting in the fourth quarter last year as customers waited for a 3G version.

Jobs showed off the new models of the iPhone and about a dozen new applications for the
device at Apple's Worldwide Developers Conference in San Francisco.

New applications range from video games that use the iPhone's motion-sensing technology
to guide characters to study tools for medical students and a program that allows users to
find nearby cell-phone-carrying friends on a map.

One program brings real-time video highlights and game stats from MLB.com; another
receives news from The Associated Press and participating newspapers based on the
user's location — and lets the user submit news tips and photos to the AP.

Apple also announced a new Web-based service called "MobileMe," which the company
describes as "Exchange — for the rest of us," a consumer-friendly way for people to link their
iPhones to their home and work computers so updates entered into one device automatically
appear in the others.

MobileMe will cost $99 per year and come with 20 gigabytes of online storage.

AT&T Inc., the exclusive U.S. carrier for the iPhone, said service for it will start at $39.99 per
month, plus $30 for unlimited data. That works out to a $10 increase from the cheapest plan
for the first-generation iPhone; over the course of a two-year contract, that increase wipes out
the savings from the price cut Apple announced Monday.

AT&T's pricing covers only U.S. residents. While iPhone prices will drop outside the U.S. too,
it wasn't clear whether other carriers would raise monthly fees to compensate.

AT&T also warned that it will take an earnings hit due to the pricing because new subsidies it
agreed to pay will produce the iPhone price cut — not a reduction from Apple.

Apple said in a regulatory filing that under most of its new carrier agreements, it will not
receive a share of subscribers' monthly service fees as it has under contracts for the first-
generation iPhone.

Jobs said Apple waited to improve the iPhone for use on the faster network because the
chips available when the iPhone first came out sapped too much battery life and were too
bulky to fit the iPhone's slim design.

The addition of global-positioning technology improves the iPhone's accuracy in locating
users. Current versions use a combination of cell-phone towers and Wi-Fi locations to help
users figure out where they are.

The 1.73 million iPhones Apple sold in the first three month this year gave it a 5.3 percent
share of the worldwide smart-phone market, according to research firm Gartner. Apple has
been adding overseas markets gradually with carrier deals.