But Apple is also limiting how customers access the device. Its iTunes software synchs directly with the phone via a USB cable, just like a normal iPod, despite other connectivity features the iPhone sports like Bluetooth, EDGE and Wi-Fi. Lurie would not give any details about how revenue would be shared between the two companies, but considering Cingular?s lack of access to data functions of the phone, its money is likely to come almost entirely from voice and data subscriptions?not from data services or applications?as well as revenues from the phones themselves. That might explain the high-cost of the devices, which will run between $500 and $600 with a two-year contract. They will be the most expensive phones Cingular has sold, at least $100 pricier than the Treo 750 smartphone, also unveiled on the Cingular network at CES.

expect the high-cost of the iPhone to deter sales. As a cellular phone, a high-end multimedia PDA and an iPod, the cost of those three separate devices totaled would be far less than the iPhone itself

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