In the Macworld keynote, Steve Jobs did say that “current generation iPods” would be able to utilize rented movies, but notice he did not say ALL video capable iPods, so there may be some truth to the idea that this is intentional. Perhaps Apple simply hasn’t updated the firmware on these iPods to support the rental functionality, they could be readying an update right now to allow 5G video iPods to playback rented movies.
However, it would seem unlikely that Apple would let this sort of incompatibility slip through the cracks. It may also be possible that these rented movies are protected to a further degree than other iTunes content, which may have caused compatibility problems if the older video iPods are incapable of supporting the tougher protection. Read more
Rumor: New iPhones to require contract before purchase?
With the price of the new iPhone 3G significantly lower than the original price for the EDGE phone, by half in fact, many are wondering how Apple managed to cut the price so much. It is possible that Apple simply decided to lower their profit margin on the hardware itself, but typically Apple cuts prices in small amounts, like lowering the AppleTV from $299 to $229. The lowering of the iPhone 3G price to $199 for the entry model strongly suggests that Apple is allowing AT&T to subsidize the cost of the phone directly.
Previously AT&T could count on getting substantial service fees over the lifetime of the Phone, with Apple receiving a significant percentage of those fees, further increasing the profit margin on each phone sold. Read more