Apple Considering $50-$150 Rebate on iPhone?

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Appleinsider reports (http://www.appleinsider.com/articles/07/04/17/apple_seriously_considering_iphone_rebate_subsidy_report.html) that American Technology analyst Shaw Wu believes that Apple and AT&T are considering offering a $50-$150 rebate or subsidy on the upcoming Apple iPhone.

"We are hearing rebates of $50-150 that will be offered by AT&T to lower the price points for iPhone (currently $499 for 4 GB and $599 for 8 GB) and to entice customers to sign longer term voice and data contracts," the analyst wrote. "From AT&T's perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in 'guaranteed' bi-annual revenue."

There had been some hints (http://www.macrumors.com/2007/01/25/cingular-rogers-not-subsidizing-iphone-cost/) that Apple was previously not allowing the iPhone to be subsidized by the carrier. The argument goes that the subsidies devalue the hardware in the consumer's eyes.

[Grimace]

thank god. Data plans can be so expensive -- ANYTHING helps!

[macintel4me]

I wasn't planning to get an iPhone. With a $100 or $150 rebate, then I'll bite. Hope this is true.

[UberMac]

Well I don't think anybody will see this as bad news! Now we just gotta hope that when they come out in the UK we don't go getting ripped off :p

(yes, whining already)

Uber

[CJM]

Wow, seeing those kind've tallied up prices still sounds like a lot of cash...

[LagunaSol]

Why not just do as earlier rumors suggested and build the subsidy into the calling plan itself?

[asketchbook]

As much as I hate being tied down to a contract, it is really inevitable. I am glad that this rebate is something being considered. If you look at MOST phones, their prices are pretty ridiculously high, but there is ALWAYS a rebate from the carrier. Just look up the cost of Blackberrys before their rebates.

My only concern would be that signing up for the contract would also lock your phone or limit features.

[aricher]

I'll be buying one either way but a rebate is always nice, especially when it comes in the mail 2-4 months later. :)

[roland.g]

I'll prolly get an iPhone either way. I'll be due for a new phone in the next 6 months to a year. But I'll gladly give up a rebate for some new Macs today. Or at least soon anyway. BTW, Octo-cores don't really count unless you have more money than you know what to do with.

[Di9it8]

This was inevitable:D

[Max Payne]

Good news for Americans.


I second UberMac. iPhone in the price range of £200-£300 is acceptable by me. :)

[BiikeMike]

How nice of them :rolleyes:

Data plans are such a rip, they should pay you to take the phone!

Whenever my business phone bill comes, I cringe. $125+/mo!

[twoodcc]

well i don't think this will help me. I'm not going to spend $75 a month......

[donlphi]

GOOD NEWS FOR EVERYBODY! Whats this Americans vs. UK junk? If we don't get a discount in the U.S., how are the UK fanboys going to complain? ANY discount is great news.

:D

[mtrctyjoe]

It will cost me $250 per phone to kill my Sprint contract. Unless they do something to "buy me out" I am stuck with Sprint until 8/2008!! Looks like I will be getting the second (maybe 3rd gen phone!) :mad:

[manu chao]

thank god. Data plans can be so expensive -- ANYTHING helps!
The rebate is making the upfront cost of an iPhone lower, the data plan stays as expensive as it is.

[Sunrunner]

Wow, seeing those kind've tallied up prices still sounds like a lot of cash...

Almost makes a person want to go back to carrier pigeons, doesnt it... almost.

[iKwick7]

Good news, I suppose.

As other posters have said, though, I would much rather have an affordable plan than a discount on the phone itself. I'd gladly pay $50 or less for the plan (including data) and more for the phone than receive a $100 rebate on the phone and pay $100 per month.

Almost makes a person want to go back to carrier pigeons, doesnt it... almost.


I would LOVE to have my own personal carrier pigeon! I can see it now. Poor little thing- little guy would get abused though- I'd start sending him with text messages like "Where you at" or "I just though you would like to know that I just ate some cheerios."

:)

[Rocketman]

Related to this, I just heard on CNBCW (world), Vodafone is the expected carrier in Europe and this news is taken quite positively by Mac geeks there. They too have reinforced the rumor of the cost offset offered by Apple on the phone.

Rocketman

[Sabon]

I agree. $75 or more per month is WAY to high for me. The main thing I'll be wanting the phone for isn't the phone itself but the iPod portion of it. So I'll be waiting for the non phone version which will probably come out in August/September after the initial iPhone buzz dies down a little.

[manu chao]

Why not just do as earlier rumors suggested and build the subsidy into the calling plan itself?

Judging from even from the comments alone in this thread, consumers simply like to have things now and pay later. We all know how big consumer credit is, particularly in the U.S..

A subsidy is nothing but a credit with the repayment of it being done via high monthly charges for some sort of 'plan'.

[guzhogi]

Well I don't think anybody will see this as bad news! Now we just gotta hope that when they come out in the UK we don't go getting ripped off :p

(yes, whining already)

Uber

The only bad thing about the rebate is you'll probably more than make up for the discount by being forced to enter a longer/more expensive contract w/ AT&T. You might save $150 on the phone itself, but be paying $100/month for 24 months. I want to get the iPhone, but w/o the rebate. I don't make enough to warrant a $100/month phone bill. It might cost more upfront, but in the whole process, I'll probably save more. On the plus side, since I work at an elementary school, I might get a discount for that. Besides how long will a single iPhone be good for? Since the battery isn't user replaceable, you'll either have to pay a lot of $$ to either have an Apple guy replace it or buy a new one (which would have new/improved features by then). Also, I might want to switch carriers.

[I WAS the one]

I don't know about you guys... but rebates never worked for me, last time I trusted a rebate I receive the cash a year later (thanx radioshack!) so... I don't know, I love the iPhone. but I think I will buy one years later, its gonna be the same story of my HD DLP TV, when I saw that TV at Best Buy I love it but it was $4,500.00 price tag! I bought it last month for less than $2,000.00 so, I think I will need to pass on the iPhone and wait. Damn!:mad:

[job]

Holy crap, $75-$100 per month for plan and data rates?

I get annoyed when I have to pay $40 per month.

I'd much rather get just a voice plan without any network connection and leech off free WiFi at coffee shops, etc.

[macFanDave]

2/3 of what the iPhone was billed as.

I want the iPod with the touch screen and the Internet communicator, but the phone is not worth it for me. Seeing that the iPhone + contracts are going to cost more than two MacBooks, so I've decided that that is too expensive (and the huge cost is driven by the 1/3 I don't really want anyway.)

You can have my place in line (or, in the queue, for you in the UK.)

[Darkroom]

if this rebate happens (or even if it doesn't), i'd recommend to anyone buying an iPhone to use the saved money wisely and buy insurance for it... the iPhone is going to be a major target for theft, and it's going to be super easy to loose... a rebate wouldn't be much of a bargain if you loose the iPhone and still have 2+ years on the contract...

[shikimo]

This made me think two things:

1) I agree that rebates, while better than nothing, are never as simple as money in the bank, and

2) When was the last time Shaw Wu was right about ANYTHING??

[bigandy]

Meh. Good PDA type phones cost a lot on contract. Without the discount that I got for knowing the member of staff, my Orange SPV PDA phone would have been £200 + £50 a month on contract. For 18 months that they're pushing now, that would have been £1200 - or about US$2400.

And that's relatively cheap for a decent PDA phone here.

[ortuno2k]

Even though right now I'm hating Apple for delaying Leopard for the iPhone, and I hate the iPhone as it is, I may get one later; maybe 2nd gen, if this comes true.

[Data]

Related to this, I just heard on CNBCW (world), Vodafone is the expected carrier in Europe and this news is taken quite positively by Mac geeks there. They too have reinforced the rumor of the cost offset offered by Apple on the phone.

Rocketman

Im in europe , and already with Vodafon , and i'll have to say that would be great, they are more expensive then most other companies, but i do always have reception on my phone, and like the carrier in the usa, vodafon also has there own chain of stores overhere, so it is likely ;-).

I'm all for it .

[HiRez]

Whoa, $75 to $100 per month? If that's the case, I'll stick with my simple does-nothing-but-make-calls cel phone (which was free) with the $34.95 per month plan. That's ridiculous.

[nagromme]

I'd rather pay full price than pay a significantly higher amount every month. Subsidies don't just devalue the hardware, they devalue my wallet :o I've never been a "pay the price later" kind of guy.

But subsidies or no, I would never pay over $40-$50 combined for voice and data. Which means, unless something drastic changes in the industry, it may not be time for me to get my first mobile phone :) But like broadband, such services will (I hope) eventually drop in price and become mainstream.

But I would at least consider paying for voice alone, and taking advantage of WiFi hotspots for the Internet. That could save a lot, if AT&T permits it.

[QCassidy352]

How nice of them :rolleyes:

Data plans are such a rip, they should pay you to take the phone!

Whenever my business phone bill comes, I cringe. $125+/mo!

I agree. This is entirely underwhelming. I was anticipating a rebate/subsidy/discount somewhere along the way (phone/voice plan/data plan), and I thought it would be more like $200-250. A hundred dollar rebate when the cost per month is going to be that high? Gosh, they really went above and beyond on this one. :rolleyes:

[job]

I honestly think the service plans are going to be the one downfall of the iPhone that prevents it from achieving the market penetration that the iPod did.

People forget easily that in order to have all the whiz-bang features that were demo'ed, you're going to have to pay $75-$100 per month for it. You buy an iPod, you can choose how many songs you buy off of iTunes. Don't want to spend $XX per month on music? You don't have to. The cost of operation for an iPod is miniscule compared to the projected annual costs for the iPhone.

Apple, or AT&T, or both, are going to be making money hand over fist on this thing if they can convince enough people to buy one.

Afterall, what good is an iPhone if you can't utilize all those cool and nifty features?

I think I'll wait for the early adopters to weather the initial costs so spendthrifts like myself can get one a few years down the road. ;)

[Shagrat]

Well I don't think anybody will see this as bad news! Now we just gotta hope that when they come out in the UK we don't go getting ripped off :p

(yes, whining already)

Uber

Wanna bet? Rating (22 Positives; 10 Negatives)!

[JNB]

I think I'll wait for the early adopters to weather the initial costs so spendthrifts like myself can get one a few years down the road. ;)

The problem is, if the early adopters are forking over wads of cash like mad, where's the motivation for AT&T to lower the plan cost?

As far as the data plans go, though, wouldn't that be for EDGE use only? Won't WiFi connections bypass the AT&T network entirely? I'm thinking that minimizing the web surfing and MR Forum trolling unless I'm in a hotspot should "ease the pain."

That's what I like about Sprint (about the only thing anymore): there is no "data plan". As a comparison, I pay $115 total for two phones, 2000 minutes, unlimited SMS & picturemail, up to 50% of my minutes roaming, and all the data & email I can d/l. Somehow I don't think AT&T's gonna match that...

[job]

The problem is, if the early adopters are forking over wads of cash like mad, where's the motivation for AT&T to lower the plan cost?

Touché.

As far as the data plans go, though, wouldn't that be for EDGE use only? Won't WiFi connections bypass the AT&T network entirely? I'm thinking that minimizing the web surfing and MR Forum trolling unless I'm in a hotspot should "ease the pain."

That's what I'm guessing. If you could pick up an iPhone+voice plan only, you could still use the built-in WiFi to get online, getting around the high costs of an EDGE data plan.

[jblodgett]

When I bought my Cingular 8125 phone last year - the phone came with a $50 rebate - but if I wanted the $100 rebate - then I had to sign up for the data plan. I would imagine the same will be true of the iPhone.

Cingular's data plan is $39.99 per month for unlimited data.

[TheAnswer]

Instead of a rebate, they should include coupons for $150 off the purchase of a Mac or a free upgrade to Leopard. That would take away the negative stigma attached to rebates, could encourage more switchers and would quench the blood-lust of some of the Leopard delay harpies.

[rxse7en]

I'm eligible, at the moment, for an "upgrade" from Cingular, which means a discount on their hardware for extending my contract. I wonder if I can get an extra discount upgrading to iPhone since I'm eligible for upgrade discounts now on top of the rumored rebates.

I need to spend money on hardware for tax reasons, but I don't want to do so when a deal can be had! :D

B

[job]

When I bought my Cingular 8125 phone last year - the phone came with a $50 rebate - but if I wanted the $100 rebate - then I had to sign up for the data plan. I would imagine the same will be true of the iPhone.

Cingular's data plan is $39.99 per month for unlimited data.

I really wish those data plans included minutes.

It sucks having to factor in another $40 plan if you want to use the device as an actual phone.

[bignumbers]

The problem with the iPhone is the long-term contract. The iPhone is sure to be upgraded during the two-years following introduction. Faster data, more memory, faster processor, who knows what else. What happens when six months goes by and they have a new model with a feature I want? It might be worth the cost of a new phone (selling the old for peanuts on ebay or trading in) but not if I get stuck with a cancellation penalty.

Imagine if you bought an iPod Shuffle, then six months later decided you wanted more features and went to buy a 4GB Nano. "That'll be $199 for the Nano and a $499 cancellation penalty. Thank you."

That'll be my first question after introduction, how will they handle hardware upgrades.

Luckily the contract on my Treo 650 is up next month.

[vniow]

The argument goes that the subsidies devalue the hardware in the consumer's eyes.


Anyone else thing this is a load of crap? Getting something expensive for cheaper than usual certainly doesn't devalue anything in my eyes, it just means I get something for a better price. In fact I'm more likely to see it as getting more value out of it than paying higher for it.

[nagromme]

Anyone else thing this is a load of crap? Getting something expensive for cheaper than usual certainly doesn't devalue anything in my eyes, it just means I get something for a better price. In fact I'm more likely to see it as getting more value out of it than paying higher for it.

You may be misunderstanding what "devalue" means in this situation. It's a valid business phenomenon. Paying less for something makes people EXPECT to pay less it in future, while paying more for something makes people think it is WORTH more, psychologically. Strange but true.

[dante@sisna.com]

I pay about $90 a month for a cingular 450 minute voice (free cingular mobile to mobile and nights and weekedns) with rollover, unlimited data (and phone can serve as modem for laptop, slow but works), and 450 text messages per month. Voice is $39, data is $29, text message is $9.99 plus lovely taxes.

Expensive, but no roaming ever. I use it on a blackberry pearl. I don't use the text or data much BUT it is work it to me to spend this kind of cash as I work for myself -- the value of total contact when I go camping is worth it right now.

I don't like the pearl. I want an iPhone on this plan.

[anamznazn]

i'm just wondering.

1. is the data plan "required"?! i was hoping to use the iphone AS a phone and an iPod.

2. what will i be missing out on if i didn't use the "data plan"? (i already have a $9.99 text and 1 meg data plan)

3. what's a voice plan? isn't that the same thing as how many minutes i have per month right now?

[BobbyDigital]

I sure hope they have plans for the iphone that are less than $75-$100. :rolleyes:

[danielwsmithee]

Why not just do as earlier rumors suggested and build the subsidy into the calling plan itself?Because that would be intelegent. A consumer does not think of the monthly fees they only care about the up front cost of the phone right. I would spend $500 on this device if my monthly bill with data service was less then $40 per month, but I guess that is a pipe dream.

[Maccus Aurelius]

The sidekick's plan is roughly $75/mo also for unlimited text and data and so on and so forth, but the phone itself was free after the full rebate.

I doubt very much anyone will feel as though the iPhone's being "devalued" because of a subsidy, as you still have to pay over $300 for either model. I'd love to see a voice only plan, though I don't imagine such a thing would happen for a device like this, so I'm gonna have to stick to my favored candy bar form factor makes-calls-n' takes pictures phone. I'm still with T-Mobile though, and I might just get a new SE to replace my dying T-610.

[Squonk]

1. is the data plan "required"?! i was hoping to use the iphone AS a phone and an iPod.

2. what will i be missing out on if i didn't use the "data plan"? (i already have a $9.99 text and 1 meg data plan)

3. what's a voice plan? isn't that the same thing as how many minutes i have per month right now?

I am with you on #1!!!

#2) Well, you won't be able to surf the web and you would not have the "video voicemail" functionality where you see your voice mails like you see the inbox in your email.

I am hoping that if you have an iPhone with a voice-only plan that you'd have "standard" voice mail. I could live with that. I don't get more than 2 voice mails a week.

3) Yep - voice plan is how many minutes of talk time you have (outside of the free nights/weekends) and if this is regional or national coverage in the plan.

[roblin]

I would gladly pay $1000 for an unlocked iPhone in Europe in June.

[jblodgett]

The problem with the iPhone is the long-term contract. The iPhone is sure to be upgraded during the two-years following introduction. Faster data, more memory, faster processor, who knows what else. What happens when six months goes by and they have a new model with a feature I want? It might be worth the cost of a new phone (selling the old for peanuts on ebay or trading in) but not if I get stuck with a cancellation penalty.

Imagine if you bought an iPod Shuffle, then six months later decided you wanted more features and went to buy a 4GB Nano. "That'll be $199 for the Nano and a $499 cancellation penalty. Thank you."

That'll be my first question after introduction, how will they handle hardware upgrades.

Luckily the contract on my Treo 650 is up next month.

That's a good issue to raise. My cingular 8125 was upgraded to the cingular 8525 within 3 months of my purchase. I went in and talked to the cingular people about the change and my desire to have the newer/faster phone. They said "sorry."

I would imagine that, if this cellular phone is treated the way the US cell phone companies have historically done business-- once you buy it -- you've got it for the duration of the contract. That's not to say you can't upgrade- certainly you can - but you'll pay full price for it.

[Thanatoast]

Screw the rebate, I want the cheaper plan. If you can't manage to save up the cash, then you obviously don't want it that badly.

Um, of course, you could say the same thing about the plan I guess but don't go injecting reason and logic into the thread.

[guzhogi]

OK, looks like the general consensus is $75-$100/month is a total ripoff. Can you please stop saying how it's too much?

[Tara Davis]

You know what would be the Perfect Phone for me?

A GSM Tranceiver & SIM card slot in my MacBook.

I've got it with me all the time anyway. Build a speakerphone and/or bluetooth headset phone into the next model (that can work with any GSM carrier), and I would be lining up the night before to cheerfully pay outrageous sums of money for it.

[gkarris]

Wow, a $150 rebate on a $100/mo. bill and a 2 year contract - such a deal...

[drumforfun19]

Prce drop, I'm down for that!! 75 bucks a month... ehh. it'll drop.

[anubis]

That's a good issue to raise. My cingular 8125 was upgraded to the cingular 8525 within 3 months of my purchase. I went in and talked to the cingular people about the change and my desire to have the newer/faster phone. They said "sorry."

I would imagine that, if this cellular phone is treated the way the US cell phone companies have historically done business-- once you buy it -- you've got it for the duration of the contract. That's not to say you can't upgrade- certainly you can - but you'll pay full price for it.

Usually the way it goes is that you can upgrade to a newer phone whenever you want, you just have to pay full price for it (and also possibly sign a new contract). I'm guessing they said "sorry" because you wanted the phone at the "contract" rate. When you go into a phone store and they have phones on display for free, or $50, or $100, that's always the price when you sign a new 2-year contract. The full price of those phones is like $300 or $400. Anyone can go into a cell phone store and ask to buy a phone full price with no contract. But if you're already on a contract with the company, and you want to upgrade the phone, as long as you pay the full price for the phone, there's nothing stopping you from doing that. You're not locked into the phone, you're locked into the service.

Anyway. I can't wait for the iPhone to come out. I'm already crossing the days off my calendar. The only thing is that I HATE rebates... In fact, I was supposed to get a $150 rebate on my current phone and never got one in the mail. The rebate company claims that they never recieved my rebate submission and that I should try to send it again. When faced with the obvious question of "if the rebate requires the ORIGINAL sales receipt and UPC from the box, and i already sent you those, how am i supposed to send the originals again?", I get a "well that's not our problem". So... I've made it a policy to never buy anything on rebate again because it's too easy for the rebate company to convinently "lose" your submission, or claim that they mailed the check and that it must have gotten lost in the mail, or whatever.

I was going to get an iPhone anyway at full price, and if they want to offer a rebate, well I'll go ahead and try. What I'm REALLY not looking forward to is finding out how much the voice + unlimited data is going to cost. That's going to hurt... I'm thinking maybe $100+ a month. BUT I also have to figure that my current voice-only verizon phone is about $50 a month after taxes and fees anyway. So the "$1200 a year" price really only comes out to "$600 extra a year", which isn't so bad. I mean, one way or another I'm going to pay at least $600 a year for voice anyway.

What would make the iPhone really worth it would be if I could use it as a modem on my power mac. I'll be curious to see how fast the data is and if it could serve as a replacement for my DSL. If the iPhone voice + data could replace my current verizon voice and DSL, then I'd break about even on the iPhone service costs.

[Lucy Brown]

Holy crap, $75-$100 per month for plan and data rates?

I get annoyed when I have to pay $40 per month.

I'd much rather get just a voice plan without any network connection and leech off free WiFi at coffee shops, etc.

Yep, I'm not shelling out any more than the 48.00 bucks I pay now. They better have a voice only plan or I'm not buying.

[rxse7en]

You know what would be the Perfect Phone for me?

A GSM Tranceiver & SIM card slot in my MacBook.

I've got it with me all the time anyway. Build a speakerphone and/or bluetooth headset phone into the next model (that can work with any GSM carrier), and I would be lining up the night before to cheerfully pay outrageous sums of money for it.

BT headsets already work! I've used mine from my phone for TeamSpeex playing WOW! :D

B

[Doctor Q]

Getting something expensive for cheaper than usual certainly doesn't devalue anything in my eyes, it just means I get something for a better price. In fact I'm more likely to see it as getting more value out of it than paying higher for it.The value to YOU depends on the price you pay.

But by "devalue" I think we're talking about the perceived value of the item to the public, which isn't quite the same. Examples: The fact that a given make of automobile can sell above list price gives people a favorable impression of that company, while the same consumers would much rather find a nice rebate if THEY were buying one. Designer clothes can be more desirable no matter what quality they are simply because they cost more and everyone knows it.

Presumably, Apple would rather see you pay full price for an iPhone and get a discounted service plan, while AT&T would rather see you get a discounted iPhone and pay full price for the service plan (as it typically works now). To the consumer making a purchase, only the total price makes a real difference and the value they get for their money.

[mi5moav]

I think 3 months free of PDAMAX or iPhoneMAX and a $25 iTunes card would work a lot better.

[macsamillion]

As the old adage goes...

It's not what it cost to buy; but what it cost to keep.

I'd happily pay a kilo-buck for the phone and $18 / month for the service. It always amazes me that Americans don't see that. Oh-well. No iPhone for this geek.:(

[glowingstar]

if apple is serious about increasing market share in the computing world, they should offer a rebate when you purchase a mac and the iphone together. whattya think? :cool:

[fraggle]

Related to this, I just heard on CNBCW (world), Vodafone is the expected carrier in Europe and this news is taken quite positively by Mac geeks there.

Where is that information from? I can't really imagine that this is good news, the way Vodafone does branding is just ridiculous!

[DakotaGuy]

Yep, I'm not shelling out any more than the 48.00 bucks I pay now. They better have a voice only plan or I'm not buying.

If all you want is a voice plan the iPhone is complete overkill in my opinion.

[Troyte83]

i remember back in maybe febuary asking a cingular rep about plans for the iPhone. He assumed that you would have to get a data plan, is cingular making it mandatory to get one?

[stagi]

I doubt this will happen, shawn wu has been wrong in the past and I think wrong on this one. Apple will not want to bring down the cost of the iPhone to keep the percieved value high (and also to seperate the product from the normal iPods which if there were a $150 rebate the iPhone would be the same as the 80GB iPod.)

[Cult Follower]

that type of rebate sounds fair to me, id dont want the iphone to become a commodity.

[drbroom]

Re: "The argument goes that the subsidies devalue the hardware in the consumer's eyes"

It the provider that devalues the hardware!!! AT&T make it not worth getting.

I would pay $500/$600/$800 for an iPhone if it came with a service that worked. Verizon or Sprint even T-Moble but AT&T?!?! No Way!

I had AT&T and they are right when they say they have the least dropped calls... that's because they have the lease connected calls. I can't tell you how many time I would have to make a call to get through just once!

As long as AT&T is the only provider of the iPhone I will not be purchasing one (and I bleed in 6 colors and have been an Apple Developer in 1986)