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The iPhone's Impact on Rivals

As Apple looks to make further inroads with its soon-to-be-released 3G device, both handset makers and wireless carriers may suffer
Apple CEO Steve Jobs announces the new iPhone 3G as he delivers the keynote address at the Apple Worldwide Web Developers Conference in San Francisco.
Apple CEO Steve Jobs announces the new iPhone 3G as he delivers the keynote address at the Apple Worldwide Web Developers Conference in San Francisco. Justin Sullivan/Getty Images

It didn't take Apple (AAPL) long to make its mark on the mobile-phone industry. In the first year after the introduction of the iPhone, Apple grabbed handset share from rivals including Research In Motion (RIMM), while AT&T (T), the only authorized U.S. provider of iPhone service, used the device to lure customers from Alltel and T-Mobile USA. Imagine the ripple effect of a cheaper, faster, more feature-packed version of the iPhone.

Not only has Apple whacked as much as $200 from the iPhone price and made it capable of working on a faster wireless network, but the company is also adding a wide range of software features that may make it more appealing to consumers and business users alike. The new iPhone is due in July.