As popular as the iPhone has been, one important feature that has been missing is the ability to share its mobile internet connection with a computer. Reports from the Web 2.0 Summit seem to indicate that’s about to change. Several sources are reporting that AT&T Mobility CEO Ralph De La Vega told tech columnist Michael Arrington an official method for tethering the iPhone to a computer to act as a modem is on the way.
In July an application called NetShare was added to the iTunes App Store for tethering an iPhone to a computer via a wireless network connection. Within hours it mysteriously disappeared. Although there was no official explanation from Apple, it was most likely removed to keep AT&T customers from using it. Although there are other phones that can already be tethered to use as modems, doing so without a separate data plan for your computer violates AT&T’s Terms of Service.
Specifically, the TOS state “plans(unless specifically designated for tethering usage) cannot be used for any applications that tether the device (through use of, including without limitation, connection kits, other phone/PDA-to computer accessories, Bluetooth or any other wireless technology) to Personal Computers (including without limitation, laptops), or other equipment for any purpose.”
There doesn’t seem to be any indication that this policy will be changing. More likely this is intended as a way to make sure people tethering their iPhones are paying for the extra data plan. It can already be done on a jailbroken iPhone, a method that doesn’t give AT&T any ability to control whether the user
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Result for: wireless technology
According to a new iSuppli report, each unit of the upcoming iPhone 3G only costs $173 USD to assemble and manufacture, meaning Apple could be making upwards of $500 USD profit on each phone sold.
The research group said they “virtually” tore down the phone, based on internal experts in the cellphone and wireless technology fields and were able to estimate the costs of each part and finally the unit as a whole.
If the estimates are true, then the new device will cost 23 percent less to produce then its predecessor, which cost $226 USD to make. The cut costs can be attributed to falling prices on flash memory and other individual parts.
It is believed that AT&T in the US is subsidizing the iPhone for up to $425 USD and are selling the phone for $199. Using some quick math shows that AT&T is paying $624 for a phone that only costs $173 to produce, leaving Apple with huge profit margins in the process.
The report also added that the manufacturing costs should keep declining regularly and that if left untouched, the phone will cost $126 to produce in 2012.
