Will the new iPhone meet skeptics’ demands?

Apple Inc. (AAPL) has dramatically changed the business model behind its iPhone in a gamble that counts on higher volume sales replacing iPhone revenue now received by Apple on a recurring basis.

The Cupertino, Calif., computer maker said Monday that, starting July 11, carriers will sell a new third-generation iPhone for $200 less than it has charged for older versions. Apple will then collect all of the initial sale price, it’s believed, while operators will then keep 100% of the fees consumers pay to use the device.

Under the business model in place for a year now, carriers paid Apple a percentage of both the higher iPhone price and the fees consumers would then pay carriers over the life of their contracts.

Apple also signaled Monday that it has shed another vestige of its old iPhone sales model. In a securities filing, Apple disclosed that agreements it has reached with scores of other carriers are “generally not exclusive with a specific carrier.”

Under the former business model, Apple reached exclusive deals that allowed only one operator per country to sell the phone. That strategy, while building up demand, was criticized as cloistering the iPhone from a potential huge audience.

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Starbucks offers free Wi-Fi

Thirsty for more business during the worst slump in its history, Starbucks will try to lure more customers by offering two hours of free AT&T Wi-Fi a day.

The Wi-Fi freebie will be available starting Tuesday to customers who purchase a minimum $5 reloadable Starbucks Card, register online for the Starbucks Rewards Card program, and use the card at least once a month. The two hours must be consecutive. New members also receive a voucher for a free drink.

Starbucks’ 7-year-old relationship with T-Mobile for Wi-Fi service is being phased out in 2008.

For the coffee chain, the move is an attempt to entice its shrinking customer base — cutting back on pricey treats during the economic downturn — to return. Traffic and sales have been shrinking for months as founder Howard Schultz searches for a way to revive the brand. He’s hoping the Wi-Fi freebie will attract more traffic to its 7,000 company-owned U.S. stores.

“Customers have let us know they want to be recognized for choosing Starbucks,” says Brad Stevens, vice president of customer relationships. Particularly, he says, at a time when “budgets are tight.”

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