Apple Considering $50-$150 Rebate on iPhone?

[MacRumors]

Appleinsider reports 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 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

(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

[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

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.

[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!)

[manu chao]

Originally Posted by Grimace

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]

Originally Posted by CJM

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.

Originally Posted by Sunrunner

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]

Originally Posted by LagunaSol

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]

Originally Posted by 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

(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!

[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.)