20090619 apple store line 22
A line of people waits outside of the Apple store on Fifth ave. in New York City on the release date of the iPhone 3G S - 


Steve Chiotakis: We got word late yesterday that Research in Motion, makers of the Blackberry line of smartphones, had better-than-expected earnings in the first quarter. Profits increased by 33 percent.

Another smartphone that's getting a lot of play today is the Apple iPhone 3G S. Starting today, it's available in stores. But the economic climate is a bit different from the last iPhone release, which was before the financial crisis. From New York, here's Marketplace's Jeremy Hobson.

Jeremy Hobson: With consumers cutting back, Apple hopes to break into the business world -- a world dominated by Blackberries. Here's Apple's Greg Joswiak:

Greg Joswiak: iPhone 3G S now has hardware encryption, which was a big request for businesses.

And to keep consumers lining up at Apple stores, the phone's price will stay at 199 bucks -- if you're willing to sign a two-year contract with AT&T.

The new phone can shoot video, and Joswiak says its speed will be noticeable.

Joswiak: What people will be amazed by is even browsing the web is faster on the same exact network.

That network, AT&T, has drawn complaints for its spotty service. But Roger Kay at Endpoint Technologies says that doesn't appear to be taking a bite out of Apple's sales.

Roger Kay: It's the value of the available services. And in this particular case, the services are all of these applications that you can get either for free or for very cheap.

And in case you're wondering: one billion of those applications have been downloaded since the App Store's launch just a year ago.

In New York, I'm Jeremy Hobson for Marketplace.

Follow Jeremy Hobson at @jeremyhobson