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Apple has also bundled Nike+ hardware and software directly into the iPod Touch 2G, leaving you to only need the Nike in-shoe transmitter hardware to activate the feature.

The latest firmware for the iPod Touch (version 2.1) is available for both the first- and second-generation players, and adds support for on-device Genius playlist creation, Microsoft Exchange push e-mail, multi-language keyboard and dictionary support, MobileMe, multiple calendar management, contacts search, and a scientific calculator.

(Credit:
CNET Networks/Corinne Schulze)

Click here for full coverage of Apple’s “Let’s Rock” event.

Apple rates the new iPod Touch at 36 hours for music (up from the first-gen’s 22 hours) and 6 hours of video (unchanged), although mileage will vary based on screen brightness and Wi-Fi usage.

The rounded metal back of the second-generation iPod Touch feels like a million bucks.

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Just like the iPod Nano 4G and iPod Classic 2G, the second-gen Touch now accepts microphone input through its headphone jack, by way of compatible iPod accessories such as the newly announced Apple In-Ear headphones. That may not seem like a big deal at first glance, but when you add in the iPod Touch’s built-in speaker and App store compatibility, the Touch is starting to look like a ripe platform for VoIP communication over Wi-Fi. Time will tell.

As expected, the biggest news with Apple’s second-generation
iPod Touch is its drastically reduced price. The 8GB version of the iPod Touch is now $229 (down from $299), the 16GB is $299 (down from $399), and the 32GB is $399 (down from $499).

On the hardware end of things, we’re happy to see that the new iPod Touch’s lower price does not mean cut-rate construction. In fact, the new iPod Touch 2G feels sturdier and sexier than its predecessor, with a rounded chromed-steel backing that seamlessly wraps around the back and sides of the device much like the
iPhone 3G. By popular demand, the iPod Touch 2G now includes a volume rocker switch just like its iPhone cousin, for making quick volume adjustments without fussing with the touch screen. A built-in speaker is also included, concealed within the body of the Touch.

So what’s the most likely scenario? Apple will release a 3G iPhone to Europe and Asia by the end of the year, just as Citibank reported. But unfortunately for us, it won’t happen nearly as soon here in the States.

If you ask me, here’s what the real 3G iPhone release calendar will look like:

So why do I sound so sure that the 3G iPhone, although it will come to the US eventually, won’t be the first place it’s released? Simple really — pure business sense.

US: First quarter 2009

Of course, that notion is thrown out the window in Europe. In a continent where people have come to expect 3G, the iPhone looks outdated; something that’s not even close to the public perception in the United States. Realizing this, Apple will need to move fast and do what it can to turn things around before its cell phone is relegated to the junk bin before it even had a chance to gain a strong foothold on the other side of the pond.

Beyond that, only a small subsection of iPhone owners even care that their cell phone isn’t on a 3G network in the United States, so there’s really no impetus for Apple to move with haste.

Among the many complaints I have about the
iPhone, 3G certainly sits atop the list. Instead of allowing me to surf around the Web at blazing speeds, Apple must have thought that a 3G device just wasn’t good enough for me at this point and I would need to break into the iPhone world with a dog slow cell phone.

Of course, Citibank already agrees with my assertion and thinks Apple is shooting itself in the foot by not supporting 3G in Europe.

Not only has AT&T set the plans in motion to expand its 3G network going forward, it doesn’t make sense at this point for Apple to develop devices with differing connection opportunities. Beyond that, how will AT&T regulate it and when will the infrastructure be put into place so it can happen?

As it stands, the iPhone isn’t selling nearly as well as Apple would like in Europe and the main reason is its lack of 3G support. Unlike the US where some of us are spoiled on faster speeds, the Europeans take it for granted. In fact, 3G speeds are so ubiquitous there that some UK folks I spoke with that said they wouldn’t consider buying an iPhone even if it was free because of its lesser capabilities.

According to Citibank, Apple plans on releasing a 3G iPhone to Europe and Asia by the end of the year, but a US launch was left out of that discussion. Of course, some thought it was all a ploy on Apple’s part and the iPhone in the US would run on the 700MHz spectrum, but that’s ludicrous. Can it happen eventually? Sure. But to say that it’ll happen anytime soon is just wrong.

“We believe that lack of 3G has been a significant headwind for iPhone in Europe where 3G is already pervasive,” the firm said.

Asia: Late 2008

Of course, it’s looking more and more like the US won’t be invited to that party.

Thanks for looking out for me, Apple!

But as sales of the iPhone start to slow and the chances of Steve Jobs hitting the 10 million units sold mark dwindle, Apple is looking for ways to turn things around. And according to one report from Citibank, a 3G iPhone could be all the company needs to do just that.

Europe: Summer 2008

As it stands, Apple is perfectly happy offering an EDGE iPhone to Americans and given the issue of battery life that has yet to be circumvented, the company will be unwilling to sacrifice usability for faster speeds.

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InfoWorld has posted all of the presentations from the Open Source Business Conference (OSBC). There were some exceptional presentations filled with good information. I’d encourage you to take a look.

Other analysts note it wouldn’t be surprising if Yahoo’s revenues come in on the lower end of their range.

A consensus of Wall Street analysts is forecasting Yahoo will bring in first quarter net income of 9 cents a share on revenues of nearly $1.33 billion, according to Thomson Financial.

“The company recently reiterated guidance, but given its wide range and management’s track record, it’s difficult to give them the benefit of the doubt for much of an upside surprise,” Schachter noted in his research note. “The stock will continue to trade on deal expectations.”

Said Schachter: “We find it very difficult to see how companies that rely on advertising and consumer commercial activity can escape unharmed in a broader slow down. So while advertisers will likely focus more of their overall dollars on highly measurable and targeted methods, we still think that as overall budgets are impacted, online budgets will likely grow noticeably slower than they would have without the macro weakness.”

Yahoo, in its response letter to Microsoft’s three-week ultimatum to do a deal, noted it was deeply concerned about antitrust regulators’ views on a merger between the two companies and was still awaiting word from Microsoft on some of its questions regarding the topic.

Yahoo’s first quarter earnings report on April 22 may serve as another driver, given the Internet search pioneer is not likely to dish up any surprises of a stronger than expected performance.

As Yahoo gears up to report its first quarter performance next week, one analyst predicts the Internet search pioneer may clock in at the lower end of its revenue range, while other analysts predict a buyout deal with Microsoft may be in the mix this week.

Taking a wider view of the overall Internet and advertising landscape, Schachter noted in his research note that he expects a number of companies that he follows will “set a cautious tone for the remainder of 2008.”

“During the quarter, the Microsoft transaction has been a distraction and expectations are not wildly optimistic for a strong performance in the quarter,” noted Derek Brown, an analyst with Cantor Fitzgerald.

UBS analysts Benjamin Schachter and Heather Bellini noted they wouldn’t be surprised if the two companies entered a deal this week, citing several drivers.

UBS Securities analysts predict the Internet search pioneer will likely saddle up with Microsoft in a buyout deal valued in the range between $32 to $35 a share.

Yahoo’s management gave Wall Street a revenue range of $1.28 billion to $1.38 billion for the first quarter.

In part, the analysts, citing a discussion with litigation attorney Glenn Manishin of Duane Morris LLP, predict Yahoo’s antitrust concerns in hooking up with Microsoft are largely unfounded, giving it a mere 15 to 25 percent chance regulators would block the deal.