A few years back, Starbucks founder and CEO Howard Schultz sat in on one of Steve Jobs’ keynote speeches, presaging a vital computer/caffeine partnership. It wasn’t long before those little iTunes download cards starting showing up on the Starbucks counter, and iTunes was featuring a specially designated iTunes + Starbucks feature. iTunes cards often feature music of the month and the download cards are for a full album. It’s saved a vast amount of space and made the search for music an entirely different experience. The larger the selection of iTunes cards, the more Starbucks will seem less like a coffee shop and more like a record store of the past. But that’s not the end of the story; it becomes even further intertwined when a third party comes into the mix.

Around the time of the launch of the first generation iPhone, Apple decided upon AT&T to provide wireless service. It was highly publicized that Apple was looking for a company that would allow them to get royalties off monthly cell phone payments on the iPhone. As we all know, Apple priced the iPhone at $599, with no savings by signing on for two years. Without a doubt, Verizon Wireless missed the boat here when they declined the opportunity to work with Apple, citing that they could make a phone of their own, without having to pay third party royalties. And so it evolved that Apple and AT&T teamed up to provide service for the iPhone.

Perspective consumers were dismayed when discovering that the device would be running on AT&T’s slower “EDGE” network, known for having notoriously abysmal data service. Add into the equation that 3G technology was already working and delivering close to Wi-Fi speeds. In preparation for the major launch of the original iPhone, AT&T prepared their EDGE network lines and markedly boosted speeds. Without a doubt, these preparations were all tailored for the iPhone.

Eventually, AT&T’s CEO (and rumors around the blogosphere) acknowledged the development of Apple’s next iPhone: the iPhone 3G. AT&T delivered again, by upgrading the EDGE network to 3G. Apple was now ready to release the iPhone 3G on the network.

Right before the announcement of the new iPhone 3G on June 9th, Starbucks was in hot water with T-Mobile, which initiated a lawsuit as a result of Starbucks’ sudden jilting of T-Mobile, in preference for AT&T. Starbucks was preparing to have iPhone/iPod Touch + Starbucks content and music ready for their Wi-Fi consumers. And who does Schultz choose for cafe wireless? None other than AT&T. The new AT&T wireless internet at Starbucks allows 2 hours of free internet when connected to a Starbucks Rewards registered card account. Registration is free, and has made a trip to Starbucks even more appealing.

There have already been a number of rumors about iPhone users receiving unlimited free Wi-Fi service inside every Starbucks. Now more than ever, the probability of the two products working in tandem seems a given. Apple, AT&T, and Starbucks are collaborating so closely these days that one can envision these three companies developing an even closer partnership to serve their niche consumers.

A variety of blog posts today have suggested this idea that consumers of Apple’s new iPhone 3G will have to possibly buy and set up the AT&T plan in Apple Stores on July 11th. This process severely slow down lines. But also, a new feature on the iPhone 3G suggests that having iPhones to buy and sell will be much easier this time around.

Let’s say you’ve purchased a new iPhone 3G. You sign-up with AT&T, with what probably will need to be a 2-year contract. Then, Apple updates the iPhone 3G hardware, and you’re once again left with an outdated product (which always seems to be the case with technology). Apple has now created the ability to easily remove your SIM card.

The SIM cards inside cell phones contain all the data and information that cellular telephone companies need to figure who’s calling who and what phone they’re calling from. In other words, the SIM card is your phone’s identity. Without it, you’ll have a deactivated phone that can only dial 911.

Due to this fundamental problem, Apple decided to create the ability to eject your SIM card and then take that with you to another, future iPhone. This ability would suggest that Apple has no problem with you reselling your iPhone and upgrading to the latest and greatest version.

It’s here. You can now watch the 2008 Keynote Speech by Steve Jobs at WWDC. Now, consumers can actually see what everything looks like and what they have to look forward to coming out on July 11th.

The website for the video reads:

Watch Apple CEO Steve Jobs unveil iPhone 3G, the App Store, MobileMe, and more in his Worldwide Developers Conference keynote address from San Francisco’s Moscone West. See the video-on-demand (VOD) event right here, exclusively in QuickTime and MPEG-4.

Check out the video here.

The wait is over and WWDC 2008 is now gearing up. We’re constantly going to be giving our readers updates through this page.

Refresh this page for the latest/updated content. Also, scroll down for most recent activity!

WWDC 2008 - Keynote Speech by Steve Jobs

Keynote Speech Starts at: 10:00 AM Pacific

7:52 AM - 8:00 AM - Lines are forming and here are some of the pictures (courtesy of “rom”). Many of the major bloggers and news folk are arriving now.

8:30 AM - Inside shot of Moscone West shows covered banner. New product/idea coming?

9:21 AM - Line is moving into the Moscone West. 39 minutes until start.

9:35 AM - Line inside Moscone, all of them going up the escalator. 24 minutes to start.

9:50 AM - People are going into the keynote presentation hall.

10:01 AM - Al Gore is in the crowd! Greener products coming?

10:04 AM - Apple employees trying to get crowd settled.

10:06 AM - Keynote is starting! Lights are going down.

10:07 AM - Steve has taken the stage.

10:08 AM - Mentions, “52,000 attendees at WWDC 08.”

10:10 AM - Bertrand Serlet will be giving us a peak of the new OS X — Snow Leopard.

10:11 AM - Talking about enterprise as related to the iPhone

10:15 AM - A number of companies discussing their interest in iPhone 2.0 software. P.S. Apple Stores are down across the world.

10:20 AM - Demo is showing how to construct a UI in Interface Builder.

10:29 AM - Sega is showing Super Monkey Ball again, but now with over 100 levels. Playing through the last world, which demonstrates how well the tilt-control works. Available at the launch of the App Store for $9.99.

10:34 AM - eBay showing its auction application.

10:40 AM - Associated Press taking the stage. A “Mobile News Network.”

10:52 AM - MLB.com application shows today’s games with live, detailed scoring. It also includes real-time video highlights, which are delivered right after the play.

11:04 AM - Talking about push notification service for all developers.

11:07 AM - Steve has retaken the stage.

11:09 AM - iPhone 2.0 will be available in early for July. Free for iPhone owners, $9.99 for iPod Touch owners.

11:11 AM - If the developed application is less than 10MB, it can be downloaded through the cell network. Otherwise, it requires WiFi or iTunes.

11:14 AM - Now, something entirely new. MobileMe. Phil is on stage to demo.

11:18 AM - Something mentioned about Me.com. Phil’s talking Syncing automatically and wirelessly with all devices.

11:20 AM - Unbelievable looking Mail, Contacts, Calendar, and Gallery applications. Photos are synched over the air too. iDisk integration is included as well.

11:28-11:29 AM - A 60-day free trial will be available along with the iPhone 2.0 software in early July. MobileMe replaces .mac. .mac subscribers will automatically be upgraded. Steve has retaken the stage.

11:31 AM - In the first year, 6 million iPhones were sold until Apple ran out several weeks ago.

11:32 AM - 1) 3G network support 2) Enterprise support 3) Third party application support 4) More countries (joking about unlocked iPhones in countries not officially supported) 5) More affordable

11:33 AM - Introducing the iPhone 3G.

11:34 AM - Even thinner, black plastic back, solid metal buttons, same gorgeous display, camera, flush headphone jack, and dramatically improved audio.

11:35 AM - 3G = faster data downloads, perfect for Safari and Mail. Comparing download speeds between 3G and EDGE. 3G finished in 21 seconds. EDGE finished in 59 seconds. 2.8X faster. Approaching WiFi speeds (WiFi scored 17 seconds). When compared to other 3G phones (Nokia N95 and Treo 750), the iPhone is 36% faster — and better looking.

11:38 AM - 3G has great battery life on iPhone. 300 hours of standby, 2G talk-time now has 10 hours (as opposed to 5), 5 hours of 3G talk-time (most phones only have 3 hour 3G talk time), 5 to 6 hours of high-speed browsing, 7 hours of video, 24 hours of audio.

11:39 AM - GPS support will now be a part of the new iPhone.

11:41 AM - With GPS, the iPhone can do tracking. A pulsating dot is moving across the Google map as a car drives down Lombard street.

11:44 AM - iPhone will expand to China, Japan, Australia, etc. 70 countries total.

11:45 AM - Now on to the final challenge — affordability. Started at $599 for an 8GB iPhone, now $399. The iPhone 3G 8GB will sell for… $199. $299 for the 16GB — a white version of this size will be available too.

11:47 AM - iPhone will be available in 22 countries on July 11th.

11:51 AM - Steve thanks the crowd and leaves the stage.

11:53 AM - It looks like that’s all folks. Have a wonderful day and thanks for tuning in! More to come on the website: MarketMatador.com

Refresh this page for the latest/updated content.

Alongside the annual Worldwide Developer’s Conference (WWDC), rumors are surrounding the June 9th Keynote speech by Apple’s Steve Jobs. In traditional fashion, WWDC is being touted as the next spot for an upcoming product update/release.

The long demanded 3G iPhone, which has been the constant talk of rumor sites, may finally have a release date. A report out of GeekSugar is putting a heavy reliance on an insider’s tip. The insider suggests that when Jobs takes the stage on June 9th, he’ll be packing a new 3G iPhone in his pocket.

We’ve already seen iPhone supplies drop and disappear in recent weeks. Both US and UK online stores have declared the iPhone as, “currently unavailable.” What does this most likely suggest? Without a doubt, consumers will see an update within a short few weeks.

As we’ve previously mentioned,

All-in-all, the next revision in the iPhone rumors have included: greener (more environmentally friendly) design, OLED screen (organic), better battery life, simultaneous release of App Store, and 3G capabilities.

Added to this would be the consideration that storage capacities will most likely drop the 8GB model and opt for the 16 and 32GB versions.

Apple consumers are dying to get their hands on the next iPhone. While being well understood that it will be released in 2008, it’s still unclear what will be included.

The next version is certain to include a 3G version. This revision will allow an entirely new audience to join the iPhone/Mac platform. A number of business customers and consumers demanding high-speed wireless internet capabilities have criticized AT&T’s network from the beginning.

The EDGE network continually is considered an underdog and slow alternative to the data speeds at Verizon. 3G could be the direct link between general consumer product and mass market business application. The release of a new iPhone will most likely be subdued to the latter part of the year, as the AT&T network will need to be revamped to allow 3G use, and the iPhone battery needs to be improved to take advantage of the power draining 3G chips.

All-in-all, the next revision in the iPhone rumors have included: greener (more environmentally friendly) design, OLED screen (organic), better battery life, simultaneous release of App Store, and 3G capabilities.

There have been a variety of rumors surrounding the upgrade of the iPhone product line to have wireless 3G technology. One of the most popular gripes about the iPhone is the poor data speeds associated with AT&T’s EDGE network, while the 3G technology is already being used by companies like Verizon Wireless.

Yesterday, AT&T’s CEO stated that 3G in the iPhone will come out “sometime next year.” 9to5mac.com estimates that the new 3G phone will come out sometime in May.

Apple (AAPL) has literally sold tens of millions of iPods since they first debuted. Some people have purchased more than two and some have purchased different versions (nano, shuffle, etc.). With all the excitement surrounding the iPhone, there seems to be a euphoria that’s blocking the future outlook. Will previous customers eventually buy new iPhones, like they did iPods?

iPods have been a craze, year after year, it’s been on the top of lists and consistently selling far more than other MP3 Players (i.e. Zune). Currently, the iPod product lineup varies in price from $79 to the all-new iPod Touch’s top-of-the-line price of $399. There isn’t any plan attached to these Apple products, and no necessary additional costs.

Most iPhone purchases cost $599 (for 8GB model), alongside about a $60 a month voice and data plan from AT&T (T). Put the costs together and it is a phone/iPod that will cost over $2000 in total charges in the first two years. This price isn’t necessarily an unusual number for phones that need intensive data packages.

The question comes into play when you factor this exceptional amount of money alongside the possibility of Apple updating the product with 3G and more flash memory in the future. What will users do when the possibility of getting a new iPhone becomes a reality? Will they simply buy the new model and sell the old one, or will they hold out, and keep the phone for two to three years?

If this happens, the market could see a saturation of iPhones and the supply will outweigh the demand. Then, new model iPhone sales could quickly dry up. We’re hoping for the iPhone to continue to sell like the iPod did, but there could be trouble in the next couple of years.

Disclosure: Long Apple Inc. (AAPL)