Confirmed: 3G iPhone Coming Q1 2008

Hey Apple, it's about time! The very same day that Steve Jobs stomped up and down in London and pronounced once again that 3G wasn't ready for prime time (in America, the problem is "the networks aren't ready," in Europe, it's because the battery life would be hurt too much), TheStreet.com reports that Apple's 3G-capable iPhone will ship by the end of March 2008.

Adding 3G will solve the biggest common complaint with the iPhone, and Apple is reportedly adding a solution to another major issue: The lack of GPS on the device. Suddenly, iPhone 2.0 is finally shaping up to be the killer smart phone it was supposed to be when it launched.

So, big question: How much will it cost? My bet is squarely on $599, right back where we started.

The other big issue: Right now, Apple has announced nothing, nor will it confirm the speculation over the release date or even the existence of iPhone 2. Nor is Apple likely to ever do so: Apple never announces anything unless Jobs can get on stage with a major musical act waiting behind the curtain to play a couple of songs. [UPDATE: After reading further reports, it seems that Jobs has indeed confirmed a 3G iPhone is on tap for "next year."]

And that's fine for now... it's only September. But come MacWorld 2008 (held in January, right after CES), don't be surprised if the iPhone 2.0 bomb drops just as expected. These upgrades are exactly what the iPhone needs. Meanwhile, I'm finding it hard to look at that $399 iPhone fire sale as anything other than closeout pricing.

LINK: Apple to Introduce Faster iPhone Next Year