Apple updates iPhone software to fix glitches

Apple IncAAPLiPhonemobile service providerCredit Suisse


T-Mobile, owned by Deutsche Telekom AG (DTEGn.DE), said the
software was available for users to download to their iPhones
on Tuesday, but that it was not yet clear if the upgrade would
fix all the connection problems.


"We have had complaints about connectivity in the
Netherlands but have not had more complaints than usual for a
3G phone in Germany. Our technicians said today Apple has
issued a software update but it is too early to tell if the
problems are solved," a T-Mobile spokesman said.


AT&T Inc (T.N) the only U.S. network operator carrying the
iPhone, confirmed that Apple had provided a software update but
declined to give details about what it was aimed at fixing.


Apple, which sold about a million iPhones around the launch
weekend in July, was not immediately available for comment.


Credit Suisse said in a note on Tuesday that iPhone sales
could exceed 2 million units in the United States in the third
quarter, which is roughly twice the sales of the iPhone's
version 1.0, the initial release last year. That would be
consistent with AT&T comments, Credit Suisse added.


One of the key attractions of the latest iPhone is its
faster, third-generation (3G) Web connections when compared
with the first iPhone that was launched in mid-2007.


However, users around the world have complained about
dropped calls and inconsistent Internet speeds, with the phone
often reverting to a slower technology known as Edge even in 3G
areas.


Nomura analyst Richard Windsor and media reports have
blamed faulty software on an Infineon Technologies AG
(IFXGn.DE) chip for the problems. Infineon declined to comment
about iPhone but said its chips work on 3G phones from
suppliers such as Samsung Electronics Co (005930.KS) without
problems.


The iPhone 3G has gone on sale in about 22 countries since
its launch on July 11.


(Reporting by Nicola Leske in Frankfurt and Sinead Carew in
New York; Editing by Brian Moss, Gary Hill)

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