New iPhone video shows home activation, email support

In addition to revealing the prices for iPhone data plans Tuesday, Apple also released another video showing how iPhone customers can activate their new phones from home.

With long lines expected outside Apple and AT&T stores on Friday, some analysts had expressed concern that the process of setting up an iPhone could turn into an all-night affair. But the companies are letting customers activate their iPhones over the Internet using iTunes. The video shows how plugging the iPhone into a Mac or PC steps the user through the signup process, which of course works flawlessly on the demo.

Apple is using iTunes as the central syncing application for the iPhone, just like it does for any iPod. But in addition to music and movies, the iPhone will sync contacts, calendar, and email through iTunes. The iPhone's email application can also pull email over the air from accounts set up to use the IMAP or POP3 protocols.

At some point, Apple may also be able to let iPhone users link right into their company's Microsoft Exchange email servers. Mary Jo Foley over at our sister publication ZDNet.com reported Tuesday that Apple plans to cut a licensing deal with Microsoft for access to the Exchange ActiveSync protocol, giving iPhone users a direct path into Exchange accounts. There's been no word about whether the iPhone will support Research in Motion's BlackBerry or Motorola's Good Mobile Messaging push email software, which would deliver email messages as they come in.