SAN FRANCISCO (WiMAX Day). For 30 years, Apple Computer (now Apple, Inc) has been at the leading edge of computer hardware and software design. Following on the wild success of the iPod, Apple CEO Steve Jobs announced the much-rumoured iPhone at the MacWorld convention in San Francisco yesterday.

The iPhone appears to be just about the most incredible hand-held device ever conceived (see the Apple web site for full details). However, many were surprised that Jobs’ announcement of the iPhone did not include WiMAX. Apple is known for its cutting-edge technology: it launched the Intel core duo chip, and it was the first company to fully integrate WiFi into laptop computers. So why did Apple not announce an iPhone that is WiMAX compatible?

By nature, Apple is cautious and never promises what it can’t deliver in the short-term. Despite the massive development behind the WiMAX industry, the Apple iPhone is perhaps one year too early to take advantage of mobile WiMAX. We can only assume that Apple could not source the chips required, and sadly there is no network in America on which to launch immediately.

The ultimate digital device
The iPhone is, however, important for WiMAX because it demonstrates the future potential of hand-held devices to deliver real personal broadband. Steve Jobs called the iPhone the “the ultimate digital device,” with “internet in your pocket”, and continually stated “Apple is re-inventing the phone.” It is that and more.

For all participants of the WiMAX industry, the Apple iPhone provides an exquisite glimpse of what should be the next generation of hand-held devices. Devices that are fully capable to browse the Internet, download MP3 files, and make telephone calls.

The iPhone is not yet available. Jobs said it would be available in America in June of this year, and in Europe at the end of 2007. Apple expects that it can sell up to 10 million iPhones in the next year, equal to roughly one percent of global mobile phone sales.

But not much to connect to
The present version of the iPhone features quad-band GSM, as well as support for EDGE and WiFi. With GSM, iPhone users are assured of voice functionality. However the iPhone falls short on its data capabilities.

Apple has also entered into a multi-year exclusive agreement with Cingular to provide iPhones in America, hence the support for EDGE, which Cingular uses for its mobile data network. EDGE is a GSM enhancement that boasts data speeds of 384 kilobits per second (Kbps). In fact, Cingular also provides HSDPA in its network, and this service provides data throughput of up to 700 Kbps. In reality, most Cingular users report the actual EDGE throughput is closer to 90 Kbps. By comparison, mobile WiMAX offers data rates of 63 megabits per second (Mbps), with throughput of 14.1 Mbps, and this might translate to 2-4 Mbps in the real world.

EDGE technology works for streaming small amounts of data. If used for web browsing or downloading MP3 files from iTunes, as Apple would expect, then new iPhone users will be disappointed. Given the paltry download rates of EDGE technology, users will spend most of the day awaiting the download. If connected to mobile WiMAX, iPhone users would download 5 megabyte MP3 files in roughly 15 seconds.

Still, not all is lost. iPhone users can opt to use WiFi to get the full functionality of their phones, with data speeds of anywhere from 512 Kbps to 2 Mbps. Yet despite the easy Apple OSX interface, WiFi connectivity will be the same frustrating experience as with a laptop computer, restricting users to hotel lobbies, airports and Starbuck’s coffee shops.

Jobs noted in his speech that this is only the beginning for iPhone, and Apple plans to make “all sorts of other amazing things in the future.” We can only hope that Intel will convince Apple to include its WiMAX chips in the iPhone next year, because as it stands, the network capability available for the iPhone does not match the glory of the front end design.