• Read more about Why Apple's New FaceTime Video Chat is Game-Changing

Apple, Inc., loves to be a game-changer, and the new Apple iPhone 4, announced yesterday, will be one both for some of the hardware aspects as well as for the video chatting feature, FaceTime. In fact, FaceTime might have even more of a social impact than people realize, given that it's intended to be an an open standard. This is a brilliant move by Apple. Why? Well first let's look at the current situation.

Current Usage Situation

When the 4th-generation iPhone becomes available in the first round of countries on Jun 24th (preorders online in those countries starting Jun 15th), FaceTime will work only over WiFi, between two 4th-gen iPhones, only. There are consumers who will get the iPhone 4 for that reason alone. That's a very limited usage scenario and not necessarily enough to win over sales of iPhone 4.

What's Coming

However, there are some other parameters to the usage equation that are not yet taken into account.

1. Cellular networks: Availability over 3G or higher cellular networks. FaceTime over 3G has already been promised by Apple. I honestly don't care about this given AT&T's change in data plan pricing. So unless Apple gives AT&T a stern talking to about the data plans, or gives other U.S. carriers the iPhone, I don't see this as a big deal.
2. Other phones: Usage over any other handset makers' smartphones that are capable of replicating a similar experience.
3. Other mobile devices: Usage over any other mobile device with a front-facing camera, such as an iPad of the future, say in early 2011.

Apple is great a creating market demand where it didn't even exist. Look at the iPod. Did we need iPods, given there were other mobile audio players? Of course we didn't. But they created what became a classic consumer electronics device, and the technology behind the iPod seems to have helped fuel the development on the iPhone/ iPod Touch and iPad mobile devices.

History of Video Calling

FaceTime is not hardware, of course, but video calling has been something that at least North Americans have been promised for decades, and which seems to have stayed in the realm of science fiction, at least for the masses. Until now. We really do need one calling protocol to make it work, with the least technical difficulties, and by being first, Apple has the advantage.

Okay, Apple's not first with video calling. A number of VoIP desktop applications -- e.g., Skype -- have had it for several years now. Also, video calling has been available for conferencing systems -- but such systems are costly and definitely not for the mass market. Apple's not even first with video on calling on smartphones, since a couple of devices were announced within the past few weeks. However, Apple will be perceived as first because of the open standard offering.

Mass Market Video Calling

I have no doubt that Apple can get most or all of the big players such as Microsoft and Google on board to support the FaceTime standard, and in doing so, they stand to further the company's brand. Even if they don't immediately convert non-Apple device FaceTime users to hardware purchasers. How could they get them to convert? By offering additional FaceTime features available only on the iPhone. By offering enterprise integration for FaceTime on the iPad (a future model, with a front-facing camera). By constantly reminding non-Apple app developers and users that 3rd-party apps get access to FaceTime features only with the Apple iPhone SDK.

However, Apple creates the market demand for FaceTime, I'm very certain they'll do it, and video calling will likely be integrated into iPhone OS apps very quickly. Imagine gaming, social network, healthcare, distance education, tech support, service calls and many other niches having next-generation mobile apps with video calling integrated. Even social interaction will be forever changed. (For example, imagine families spread across the globe who will now be able to see each other during those long periods when they cannot meet in person.)

If Apple can convince the right players to join in, FaceTime is going to have a huge impact on mobile application usage and on the way humans interact.

Want to discuss a mobile app with video calling features for your business or projects? Feel free to contact us to discuss your app or mobile campaign needs.

• Read more about ABCs of Apple iPhone 4 and iOS 4: 25 Details and Features

If you've been off the planet for the past month or so, you can be forgiven for not knowing there's a new iPhone, and much of its feature set was confirmed today by Apple CEO Steve Jobs in his keynote address for WWDC in San Francisco. This 4th-generation iPhone is packed with new features -- some of them catching up to competing phones, some surpassing competitors. Here's a  quick list of what's new, hopefully ending much of the speculation that's been going on.

1. Availability: The release plan seems a little different than for the iPad, with five countries given first crack: US, UK, France, Germany and Japan being allowed online pre-orders on Jun 15th, and availability on Jun 24th online, at Apple and AT&T retail stores, and Best Buy and Wal-Mart. The rest of the release plan calls for 24 more countries in August, after the first five, then the remaining countries for a total of 88. According to the press release, the phone will be available in numerous countries by the end of July, including: Australia, Austria, Belgium, Canada, Denmark, Finland, Hong Kong, Ireland, Italy, Luxembourg, Netherlands, Norway, New Zealand, Singapore, South Korea, Spain, Sweden and Switzerland.
2. Battery: Larger battery, 40% more talk time. Specifically, 7 hours talk time on 3G; 10 hrs Web browsing on WiFi and 6 on 3G; 10 hrs of video playback; 40 hours of audio playback. Standby mode: 300 hours (nearly two weeks).
3. Bing search. While Google is still the default search engine for mobile Safari, the new iOS allows for you to switch over to Bing if you want.
4. Cameras: 5MP camera with 5x digital zoom and LED flash for low light conditions. Front-facing and rear-facing cameras.
5. Color: Black and white models.
6. Developer support: Over 1500 new APIs for developers to access 100 new features.
7. Display. The predictions were right: the iPhone 4 has 4x the pixels, for a whopping 960x640 screen resolution, at 326 ppi (pixels per inch). The new "Retina" display gives it a much higher contrast than 3GS -- apparently 800:1 contrast ratio, giving it an almost paper-like quality for display text. (Print magazines often have a resolution of 300 or 600 dpi -- dots per inch.) The 3.5 inch screen has a resolution that is almost 80% the size of the iPad.
8. Email, enhanced: Unified email inbox. Attachment support.
9. Form factor: It has a more squared-off form factor than before -- but you probably knew that from all the photos of "leaked" prototypes. It's supposedly 24% thinner than before and claims to be the thinnest (9.3 mm) smartphone on the planet. Overall, it's 4.5 inches tall, 2.31 inches, and just under 5 ounces. Unfortunately, the new form factor means the iPhone 4 has to have a new dock. The iPhone 4's alloyed metal rim is not only strong (5x stronger than steel), it acts as the the phone's antennae (plural), to improve reception.
10. Gyroscope. The iPhone 4 has a 3-axis gyroscope that can more accurately detect phone motion in 6 axes -- a plus for video gaming.
11. iAd ad network. Apple says that they have advertising commitments through their new iAd ad network for $60M in 2010 alone. Steve Jobs claimed this morning that iAds will steal 48% of the mobile advertising market.
12. iBooks. iPhone will get its own iBooks, which will allow for bookmarks and user sticky notes to be added to digital books.
13. iOS iPhone OS. Despite some talk about the name "iOS" being owned by Cisco, iOS is what iPhone OS 4.0 is being called. It'll be available for download on older 3G and 3GS phones on Jun 21st, and (probably) preloaded onto iPhone 4. (However, some new OS 4 features will not be available for 3G phones.) The iPad will get an upgrade this fall.
14. Keyboard support, Bluetooth. Just as with the iPad, the iPhone 4 will allow you to add a Bluetooth keyboard.
15. Memory: 2x128 = 256 MB RAM. 16GB and 32GB models. Looks as if they did not manage to use the new 64GB flash drives made recently available -- meaning predictions of storage capacities of 64GB and 128GB were unfortunately incorrect.
16. MicroSIM. Uses the new microSIM.
17. Microphones: Two, for noise-cancelling.
18. Netflix: Netflix is coming to the iPhone App Store free of charge, and it'll allow starting a movie on the iPad and finishing viewing on the iPhone, or vice versa.
19. Networks: 802.11n WiFi, with added quad-band HSUPA.
20. Pricing: The phones are $199 for 16GB and $299 for 32GB. Wonder what they're saving the $399 price slot for. The new 8GB 3GS model will be available on Jun 24 for $99.
21. Processor: A4 processor, just like the iPad.
22. UI features, enhanced. Multitasking, Folders, enhanced Mail, "deeper" enterprise support.
23. Upgrades: If your AT&T contract is up any time in 2010, you are apparently eligible to upgrade to a 4th-gen iPhone immediately (as in Jun 24th or whatever date depending where you live). You have to extend your contract for two more years. If you're merely eligible for a phone upgrade, you probably don't qualify. However, I called AT&T and the very helpful CSR concluded that while my non-iPhone line's contract, and that of my wife's, ends Mar 2011, our LG Vu phones qualify for upgrades in Aug and Nov of 2010. We are eligible for a partial discount immediately. Meaning, we might have to pay $200 extra per phone over the new prices to change the LG Vu phones into iPhone 4, as well as get new iPhone data plans. However, according to what Engadget says that AT&T told them, if you already have an iPhone and want to upgrade it, you are eligibility immediately if your contract allows an upgrade any time in 2010. So please check your online account or talk to an AT&T CSR for verification. You can also dial *639# from your AT&T phone, but the resulting text message is not all that detailed. Ultimately, you might just have to walk into your nearby AT&T store and on Jun 24th and find out for sure.
24. Video chatting: It's called FaceTime, and it allows two 4th-gen iPhones to video chat, but only over WiFi for now, with 3G support coming in the future. Given AT&T's cellular data pricing plan changes, maybe that's a good thing. Either camera can be used for FaceTime chats, in both portrait and landscape modes.
25. Video editing. Not only will the phone have HD video recording (720p@30fps), you'll be able to edit video with a built in app, or with the upcoming iMovie for iPhone ($4.99).

So there you have it. There are all sorts of other features and details that are not listed here, but these are amongst the most important. The FaceTime commercial by director Sam Mendes (American Beauty, Revolutionary Road, Jarhead) is below.