While it was rumored that AT&T would charge an additional $55 to enable U.S. customers to use internet tethering on the iPhone, the company has scrambled to deny that claim by posting an update on its Facebook page:

"There are a lot of reports out there, but wanted you guys to know that rumors of $55 tethering plan on top of an unlimited data plan are false. We'll have more news to share when the iPhone tethering option is closer to launch."

I'm guessing one of two things has happened.

1. The $55 tethering option price that leaked was real, and AT&T is now in damage control mode. Perhaps realizing that they're overdosing on bad press already, they might be considering following in the footsteps of other telcos and let people tether the iPhone for free, or at least at a far more reasonable price.

or,

2. AT&T is doing the typical corporate PR thing, and by telling us that tethering won't cost $55, they'll expect their customers to be grateful when it actually costs "only" $35 instead.

I'm not a betting man -- when I visit Vegas, I go to visit family and for the cheap drinks -- but if I was, I wouldn't lay down any money on option 1.

[Via Macworld]

Citing an exclusive source from within AT&T, appmodo reports that "tethering support is coming later this summer" is AT&T-speak for "tethering support is coming at the end of July."

It won't be coming cheaply, however; appmodo's source says a tethering option will cost AT&T customers a whopping $55 a month.

While this is cheaper than the $70 rumor that's been making the rounds, it still strikes me as ridiculous that AT&T is charging additional money for this option in the first place. Considering their "unlimited" data plan is reportedly only unlimited until you reach 5 GB or so in any given month, it seems preposterous for AT&T to charge their customers an extra fee to use the iPhone to access the internet via tethering. But, since AT&T's wrangling caused Skype to be restricted to WiFi only and SlingPlayer Mobile to be almost totally crippled compared to the same software on different models of smartphones running on AT&T's network, perhaps this shouldn't come as a surprise.

With all the negative press AT&T has been getting over the past week, I have to wonder: what do they have against the iPhone?

Editor's Note: As many of our commenters have pointed out, several other sites have posted instructions and a hacked carrier file to allow tethering on AT&T-activated iPhones immediately; some have linked to an application that allows one-click tethering. We encourage anyone who is trying one of these procedures to be cautious in your network usage, as you may rapidly run afoul of your contract terms with your carrier.

This video is making the rounds lately -- on first glance, it looks someone running the iPhone OS on a Mac Pro with a 24" multitouch monitor. As you can see, everything more or less works as you'd expect, and therein lies the rub: anyone who's looked at it with a critical eye, including our friend and former TUAW-er CK Sample III, has pronounced it fake. I'd have to agree -- besides the fact that it comes from a visual effects house, the picture flipping at about :56 is a little bit off. How'd they do it? It's most likely just a movie running on a screen, with a guy pretending to control it. But even so, it's a compelling idea -- if you could find a multitouch monitor that worked like that and ran the iPhone OS with it, wouldn't it work exactly that way anyway?

I've actually brought up this idea before -- there is a ton of software running on the iPhone currently, and some of it is even better than the equivalent versions on the Mac. It would be extremely useful to port the iPhone's OS (and all of its software in the App Store) to another form, whether that be on your TV (I originally suggested a Wii-like interface) or on a multitouch input like this desktop. Apple has sunk a lot of work and design thought into this OS -- they may never do it, but it seems like it would be a terrific decision to bring some of that successful R&D back on to the TV or the desktop.

As Jason Snell points out at Macworld, Apple doesn't want people thinking of the iPhone as a computer. At least, not the way geeks like you and I do. As iPhone product marketing manager Bob Borchers told Jason, "...it's just faster, better, quicker, snappier, and a great experience."

Apple doesn't want us worrying about the "how," but many of us do, which is why we're interested in a blurb at T Mobile's Netherlands site which lists the iPhone 3G S as having 256MB RAM and a 600 MHz processor. Of course, we can't verify these specs yet but some have suspected, including myself, that the new model would hold 256MB RAM.

I understand the logic behind Apple's move. John Q. Customer is uninterested in the iPhone's innards and cares only that it works. For many, terms like processor, RAM and MHz only make the thing sound complicated and foreign.

Geeks like us, however, can't resist.

[Via MacDailyNews]

We're down to the wire -- less than 90 minutes before the WWDC Keynote ramps up, and the rumor mill has wound down to a murmur after a week of wild speculation. Want to read about how the new iPhone will singlehandedly boost your love life, bring you millions of dollars and boast a video camera, Swiss Army knife, automatic can opener and turn into a mini TARDIS? Sadly, those rumors have yet to appear. Except maybe the video camera.

Daring Fireball's John Gruber has been the focus of most of the very last-minute guessing with his thoughts of today:

• The iPhone 3G ... oh, sorry, iPhone 3GS: It'll be faster, twice the current amount of RAM, video camera, more storage ... those aren't new rumors. But, Gruber says that he's heard that the phone will also receive a name upgrade to the iPhone 3GS. The other nice piece of speculation is that the iPhone 3GS will also have a 15-20% longer battery life over the current model.
• Cheaper phones for the masses: A $99 version of the iPhone that will not have as many features as its more expensive siblings, though it could just be the existing 3G iPhone at a lower price after the new models are introduced. This isn't exactly that new of a rumor considering that The Financial Times had this one over the weekend.
• Snow Leopard pricing: Gruber believes we could see Snow Leopard priced as low as $19 considering it doesn't have any major features ... unless Apple manages to pull out something today.
• Playing with Marble: Of course, that new $129-cost "feature" could be that Snow Leopard will feature a reimaging of the OS's visual appearance. However, it's more likely that a move to "Marble" is slated for OS 10.7.
• The Holy Grail ... er Mac tablet: It's real, but not today.

To prepare your rumor checklist, check out our other posts rounding up rumors, speculation and just plain ole guessing from over the weekend.

Well! Our tips line has certainly been a beehive of activity with WWDC just around the corner. We've gotten several purported iPhone images, which range in quality from meh to ludicrous. Particularly interesting: the iPhone Blog's 16x9 widescreen model.

As for availability of the rumored phone, GearLive is laying it on the line for an on-sale date of Monday, immediately after the announcement. Technologizer responds with four reasons we wouldn't see the new device in stores right after the keynote.

Interested to see what everyone else has cooked up for Apple to release on Monday? Check out the gallery for pictures galore.

Thanks to everyone who sent these in!

If the promise of a new, faster and video-editing enabled iPhone isn't enough to make you block out time for Monday's WWDC keynote on your calendar, check out the Financial Times report that revitalizes rumors of a new lower-priced iPhone model (iPhone mini? iPhone nano?) said to be ready for announcement on Monday. The new device would also come subsidized with a carrier contract, but would cost buyers just $149US or $99US up front.

While rumors of a cheaper iPhone have been circulating since the original iPhone introduction, the option to split the product line may make more sense now that consumer spending is in recession-tightened mode. Still, PCworld points out that FT's choice of analysts to quote is a little bit problematic; Morgan Stanley's Kathryn Huberty got cited by Seeking Alpha as the worst predictor of Apple's numbers in September 2008.

If you had a choice between a full-featured iPhone capable of video calls and clip capture/editing, or saving $100+ on a 4GB model with capabilities similar to today's iPhone 3G, which would you choose?

[via Engadget]

With WWDC 09 coming up next week, Wall Street analysts are polishing their crystal balls and commenting on what they think we'll hear about. In a post on Barron's Tech Trader Daily blog, Eric Savitz polled the top tech analysts for their ideas.

Yair Reiner of Oppenheimer believes that the new iPhones will be delayed until WWDC so that the conference focus will be on Snow Leopard and iPhone OS 3.0. Shaw Wu of Kaufman Brothers is in agreement, and Wu also believes that AT&T will offer more flexible service plans, and that the iPhone line will split into a high-end version with improved battery life and a junior version with less functionality.

Savitz's post goes on to tap Phil Cusick of Macquarie Research for his ideas, which also include the split of the line into high-end and entry-level iPhones. He's noted as saying that the high-end phone will include both a front camera for video chat and a rear mounted autofocus camera, but that an OLED screen won't be a feature of this device.

Kathryn Huberty of Morgan Stanley is cited as believing that the new iPhones will be unveiled at WWDC, with a $100 price cut, lower AT&T service plan fees, and entrance into the China market, thereby increasing demand. Huberty is noted as thinking that Apple won't add another US carrier before 2011. Vincent Rech of Societe Generale also believes that China is ripe for an iPhone distribution deal.

Everybody's favorite research analyst, Gene Munster of Piper Jaffray, has high hopes for AppleTV in the near future, according to a post on the Wall Street Journal's All Things Digital site today.

Blogger John Paczkowsi cites Munster as believing that Apple is working on both a new AppleTV for a September release and an App Store to go with it. WWDC 09 might be used as a launch site for an AppleTV SDK, along with an announcement of an App Store for AppleTV for a 2010 launch.

Munster, who has a pretty good track record at Apple predictions, feels that future AppleTV apps could include digital video services for expanding content offerings (he cites Hulu as an example) and that an SDK would enable use of the iPhone or iPod touch as a game controller.

The consensus? Pretty much everyone believes that new iPhones are imminent, although the timing of the release is up in the air. Several of the analysts believe that the new devices will be announced at a separate Apple event towards the end of June where Steve Jobs can make his long-awaited return to the company.

Whatever the outcome of WWDC, be sure to stay tuned to TUAW for our continuing coverage of this important event.

Further fueling the iPhone fire (try saying that one five times fast), TUAW has received an anonymous tip stating that AT&T's support website will be updated with "iPhone Video" as one of the model choices when choosing Apple as the phone manufacturer.

While I only see the original iPhone and 3G choices on the support site now, it stands to reason that this photo may have been taken from a screen showing unpublished support content. Click the image for the full-res photo.

This adds to some already interesting news, reported earlier by AppleInsider, that new model placeholders have begun appearing in inventory for Carphone Warehouse, a retailer that resells the iPhone. These models were labeled with a "V3", which could simply mean Version 3, or the V may also stand for "Video" or "Video 3G". Other retailers have also recently reported additional entries or placeholders showing up in their inventories, and many carriers have also received end of life notices for the current 3G models.

So even if a new model isn't announced at WWDC, it's a pretty safe bet that Apple has something in the pipeline.

With the increasing evidence that a new iPhone may be just around the corner, we've seen our share of screenshots, speculations, and mock-ups. Now, the Italian iPhone blog iSpazio has posted pictures of what could possibly be the next iPhone (English Translations: here and here).

These images were provided by an anonymous source, who states that the featured photo is a picture of a screen showing an as-of-yet unpublished update to the iPhone page on Apple's website. Reportedly, the website also features the text "Ebony, curious, advanced. The new iPhone is for everyone. Available today." along with references to the phone's "sleek all black build, including the slip-resistant backing and bezel."

As can be seen from the images, the new model appears to feature some interesting changes near the earpiece. In addition to the slot already present on the existing models, both of these images clearly show a wider slot at the top of the face, just below the bezel. Also of note is the small, green LED present near the earpiece on the screenshot. Our tipster suggests this could be part of a front-facing camera. It also looks like the mute/sleep switch has been moved to the top-left of the phone. However, the supposed website image still shows the switch on the top right.

While I personally am skeptical about the LED in the screenshot, these pictures do look promising. What's your verdict? Could this in fact be a first look at the next iPhone? Let us know in the comments.

Update: As eagle-eyed reader John points out below, the headphone jack appears to have been moved to the bottom right of the device (if you're looking at the front of the phone). Good catch!

Update 2: After looking closer at these images, I noticed that there is a small button near the bottom of the right side of the phone. It looks to be in the right position for a shutter control when you are using the camera horizontally.

Source #1, Source #2

If you own and iPod touch or an iPhone, you might have bought an app, deleted it for whatever reason and then downloaded it again from the App Store. Since Apple keeps a record of your purchases, you were presented with a dialog box saying that you could re-download that app for free.

According to iPodNN, some developers with preview copies of iPhone OS 3.0 have seen a dialog box (pictured at right) prompting them to either re-download a missing app for free via their computer, or simply buy it again via their iPhones. Who knows why this could be, or if it will even make the final version of iPhone OS 3.0 -- one might think it's to save AT&T bandwidth, but why not restrict the option to WiFi?

In any case, we'll find out soon enough.

Even though the new iPhone is still hypothetical, imaginary phones need spare parts too. German site iphone-ticker.de reports that one of their readers contacted Hong Kong firm China Ontrade seeking replacement items for his iPhone 3G, and much to his surprise they told him

"This is great honor for China Ontrade (HK) chinaontrade.com to be the 1st started to supply iphone 3gen 2009 parts directly from factory."

Indeed, the photos sent along with the offer of parts for a yet-unannounced phone seem to show a black front bezel instead of chrome, a tapered bottom of the case (vs. the rounded end of the current model) and a revised headphone jack.

We'll keep an eye out for more photos of bits of the iPhone-in-waiting and pass them along when they appear.

Thanks to Ben and Nicholas for sending this in, and Heidi for translation assistance.

The sharp-eyed writers at iPhone Buzz pointed out that the T-Mobile Austria site was showing a placeholder for a 32GB iPhone earlier today -- at least until someone at T-Mobile pulled the item.

In case you've been off-planet for awhile and haven't kept up with the news, speculation is rampant about when the next iPhone will appear or be announced, and what new features we can expect. Industry pundit John Gruber, for example, speculated in an article yesterday that the next-gen device would have more storage (like the 32 GB described here), more internal memory -- 256 MB, a 600 MHz processor to replace the existing 400 MHz model, a built-in electronic compass, an autofocus lens, and video capabilities.

The Austrian faux pas appears to be proof that at least one of the features, more storage, is going to appear on whatever new iPhone may be coming our way soon. Speaking of that new iPhone, take our poll (below) and let us know when you think it will be shipping.

In a research note to clients, Piper Jaffray analyst Gene Munster suggested that Apple is developing a 7-to-10-inch tablet priced at $500 to $700, perhaps ready for the public in 2010.

According to AppleInsider, Munster's contacts in the supply chain haven't seen a prototype of the device, but are in discussions with Apple to supply components for something at that size and price point.

Munster believes that Apple could adjust the iPhone SDK to allow for multiple display resolutions. Apps like Safari and Mail, he says, would benefit from the additional screen real estate. He also mentions that with the larger screen, more than one traditional iPhone app could be run at once.

As for timing, Munster suggests that the device could be ready next year, and possibly be subsidized by a wireless carrier.

As with most analysis of this kind, this is two parts hearsay, one part "interpretation of conference call statements," and seven parts wishful thinking. In providing technical details about a product that may not exist, Munster is writing checks that Apple might not be able to cash.

Is this something you'd buy? Is it even going to happen? Sound off in comments.

The previously unheralded Apple iPhone Apps blog has a rumor post up regarding the next generation iPhone hardware, suggesting that July 17th is the expected date for the new phone to be on shelves (reasonably well aligned with an announcement at WWDC). As 9to5Mac and Gadget Lab note, most of the covered ground is familiar -- better camera, storage bump, magnetometer & turn-by-turn, video recording -- but there are a few interesting tidbits, including the suggestion of an OLED screen, an illuminated backside logo (perhaps capable of doubling as a photo flash?), the integration of Google Street View with the compass for 'visual intelligence' as in the Android demo, and a built-in FM transmitter.

I'm not sure that an FM transmitter as an onboard capability is such a great idea, considering the percentage of car stereos nowadays that include either an iPod dock connector or an aux-in jack, but maybe it's plausible. Everything else seems to pass the sniff test, although OLED and a lit back panel are an odd combination. If we do see the new device in mid-July, how many of you are checking your contract expirations right now to see if you can pick one up? Mmm-hmm, thought so.

[via Techmeme]