I had a chance to talk to Brad Stone of the NY Times to discuss Apple and the new iPhone OS 3.0. Article below.

March 17, 2009, 2:12 PM

Apple Shows Off Next Version of iPhone Software

By BRAD STONE

Robert Galbraith/ReutersScott Forstall, senior vice president for iPhone software at Apple, discusses the new iPhone OS 3.0.

CUPERTINO, Calif. — In a shot across the bow of other mobile phone makers that are rushing to emulate aspects of its popular iPhone, Apple on Tuesday previewed some features that are due out in the next version of the phone’s software.

IPhone OS 3.0, as Apple calls it, will allow developers to create multiplayer games that work over a local wireless connection, better integrate the maps that Apple and Google have developed for the device, and “push” messages to users through their programs.

That last improvement could unleash a new wave of creativity on the iPhone. Companies like ESPN.com can send score updates to sports fans, and instant messaging can now become far more practical on the device. Programs can solicit the attention of users with either a pinging sound or a text message. Apple said it was late developing such “push notifications” because of the challenge of preserving battery life and processing power.

Apple said the new operating system would be available to current iPhone users at no charge sometime this summer. It will sell for $9.95 to owners of the iPod Touch.

The new software will also give developers new ways to make money on the device, allowing them to sell monthly subscriptions, new levels in a game or items in an online store without asking users to leave the application. So for example a seller of electronic books on the iPhone can sell digital texts right within its application, instead of directing iPhone users to their Web sites.

Representatives of the game developer Ngmoco were at Apple’s event and demonstrated how players of its virtual pet game can buy clothes for their digital animals, and how users of its shoot-em-up games can pay small amounts of money to upgrade their arsenals.

Purchases are tied into the iTunes store, where users have already stored their credit card information.

Scott Forstall, an Apple senior vice president, added that developers who make free applications available on the iPhone will not be able to later charge within their program, saying that “free apps remain free.”

Apple demonstrated a long-awaited “cut, copy and paste” function, so users can select a piece of information in one program — say, a FedEx tracking number in an e-mail message — and then paste it elsewhere — on FedEx’s site in the Web browser, for example. Other mobile phone platforms, like Microsoft’s Windows Mobile, have long had their own versions of that feature.

Apple also said it was adding support for MMS, a way to send and receive multimedia files like photos and audio files over the mobile phone network, and is extending Spotlight, a feature of its desktop operating system that allows users to conduct searches through all information on the device.

At a similar event last March, Apple first introduced the App Store, which has become a significant source of revenue for Apple and the central focus of its advertising for the iPhone. More than 25,000 applications have been created for the device, and they have been downloaded more than 800 million times over the last eight months.

But the iPhone itself could use a boost. Though Apple exceeded its public sales goals for the device, it sold 6.9 million phones during its fall quarter, then only 4.4 million units over the holiday months.

Many Apple watchers believe the company is preparing to unveil new hardware updates to the iPhone over the summer, and they speculate that they might include a less expensive version.

“The numbers indicate there is some leveling off of excitement,” said Chetan Sharma, an independent wireless industry analyst. “Sometime later this year they have to introduce something different or the competition from the Palm Pre, Google’s Android, RIM or other device makers will be significant.”