Apple to Allow iPhone Subsidies?

[MacRumors]

FinancialTimes reports that the next Apple iPhone will be sold at "significantly lower prices" than the current one. According to the author, Apple has agreed to allow mobile carriers to subsidize the iPhone:

Apple has bowed to pressure from mobile phone operators and agreed they can subsidise the latest iPhone, expected to be unveiled by Steve Jobs, Apple’s chief executive, on Monday.

The article does not cite specific sources and reports this information as if it were fact. Historically, the Financial Times has been a reliable source of information of Apple rumors. They were the first to report on Apple's movie rental service that debuted at Macworld 2008.

This report may confirm earlier reports that the 3G iPhone would start around $200 after subsidies. It is believed that the iPhone would still cost $399 at Apple Retail stores, but when activated with a 2 year contract at AT&T, the customer would receive a $200 credit or rebate.

Article Link

[Yankees 4 Life]

it better be a cash rebate and not a store credit

[avigalante]

What about existing iPhone/AT&T customers?

EDIT: But then again, when you upgrade any other phone outside your selected upgrade time period - you usually end up paying full retail anyway. So after revisiting, I don't believe there will be any type of subsidy for existing iPhone/AT&T customers. Ah! - the price of bleeding edge technology...

[macduke]

Now this is the kind of rumor I like to hear! I made my genius bar appointment at the exact time that the keynote starts so I can get my replacement iPhone and pick up a 3g if its available. Wouldn't the store be closed then if that were the case? Then I will jailbreak and unlock my old iPhone to sell to somebody for at least $250 (since unlocking is supposed to bump up the price on ebay by $100. Then get the new one for $200, netting $50 in the process to get a new case. Wow, wouldn't that be ideal? Doubt it will end up that perfect though.

[rlmccormick]

Originally Posted by avigalante

What about existing iPhone/AT&T customers?

EDIT: But then again, when you upgrade any other phone outside your selected upgrade time period - you usually end up paying full retail anyway. So after revisiting, I don't believe there will be any type of subsidy for existing iPhone/AT&T customers. Ah! - the price of bleeding edge technology...

This shouldn't be the case with iPhone owners since we paid full price for the phone and did not receive a subsidy. Of course time will tell, 2-days to be exact.

[Kwill]

Originally Posted by avigalante

What about existing iPhone/AT&T customers?

EDIT: But then again, when you upgrade any other phone outside your selected upgrade time period - you usually end up paying full retail anyway. So after revisiting, I don't believe there will be any type of subsidy for existing iPhone/AT&T customers. Ah! - the price of bleeding edge technology...

True, but that is because the first phone was subsidized. However, this is not the case with the first iPhones. We paid full retail so we are still entitled to one subsidized phone within the 2-year period.

Hmm. Apparently there's an echo in here.

[jawporta]

T-Mobile lets you extend your contract when upgrading your phone. So we should all have a year left, if they give us a deal for signing on another two years that would be cool.

Originally Posted by avigalante

What about existing iPhone/AT&T customers?

EDIT: But then again, when you upgrade any other phone outside your selected upgrade time period - you usually end up paying full retail anyway. So after revisiting, I don't believe there will be any type of subsidy for existing iPhone/AT&T customers. Ah! - the price of bleeding edge technology...

[lamar777]

Originally Posted by avigalante

What about existing iPhone/AT&T customers?

EDIT: But then again, when you upgrade any other phone outside your selected upgrade time period - you usually end up paying full retail anyway. So after revisiting, I don't believe there will be any type of subsidy for existing iPhone/AT&T customers. Ah! - the price of bleeding edge technology...

That would be true but in that circumstance the original phone was probably subsidized. Sure Apple may have received a cut of my bill over the last year but that would be unknown to me and If I decide to buy a new phone next week I absolutely expect to get the same deal as anyone else.

[Mad Mac Maniac]

Originally Posted by Yankees 4 Life

it better be a cash rebate and not a store credit

i'm sure it would be cash... who would want $200 of at&t store credit.... ??

and BAD ASS!

[iDAG]

The $200 rebate would be good if you wanted the new iPhone and an iPod nano... I would like a "free" iPod nano!

[biketire]

Originally Posted by iDAG

The $200 rebate would be good if you wanted the new iPhone and an iPod nano... I would like a "free" iPod nano!

why would you need an ipod nano when you have an iphone? lol

[Kwill]

Originally Posted by biketire

why would you need an ipod nano when you have an iphone? lol

An old Nano remains in my car, which is controlled via DICE from the dash/steering wheel.
My iPhone remains on my person with BT enabled for handsfree calling. Not having to plug/unplug iPhone keeps me from forgetting it and allows playlists to continue from where they left off after returning to my vehicle.

[Sweetbike40]

Originally Posted by biketire

why would you need an ipod nano when you have an iphone? lol

iPod Nano is better in the gym AND in the car. The touch screen is terrible in those situations. Dangerous actually. With the Nano, i don't even have to look at it and it's tiny.

[zvandiver]

Originally Posted by Mad Mac Maniac

i'm sure it would be cash... who would want $200 of at&t store credit.... ??

and BAD ASS!

In the past ATT has used preloaded Visa cards as rebates. They can be used almost anywhere.
Zane

[spydr]

Originally Posted by Mad Mac Maniac

i'm sure it would be cash... who would want $200 of at&t store credit.... ??

If you can pay your $75 per month bill with it – I guess it is as good as cash, no? But I am somewhat certain, it would be a mail in rebate...

Any subsidy better than no subsidy.

[zombitronic]

Originally Posted by Yankees 4 Life

it better be a cash rebate and not a store credit

I wouldn't mind Apple Store credit. I'd use it, eventually. Maybe sooner than later, if they come out with something else awesome on Monday.

[nicksoper]

I am looking forward to Vodaphone bringing the iPhone to South Africa, and if the rumors are true - 3G, GPS etc.. I'll sign up, even if it is for a 24 month contract.

[/dev/toaster]

If they don't allow existing customers to upgrade via a subsidied contract I will be rather pissed.

[bushido]

its probably how all the subsided phones in germany are. U r gonna pay less and sign up for a 2 years contract and as more expensive the plan is the less expensive is the phone itself.

i hope its possible to get it for around 199 $ so i can not just get the phone but a nintendo wii too

[Ryan Trevisol]

Originally Posted by zombitronic

I wouldn't mind Apple Store credit. I'd use it, eventually. Maybe sooner than later, if they come out with something else awesome on Monday.

Heck ya! I'm planning on getting an iMac on Monday or Tuesday anyway.

[Vaphoron]

For the time being I still only want the iPhone for mobile web and email. I really wish they would come out with a plan for like $40-45 with about 100-200 minutes in addition to some sort of subsidy and I'd be all over it.

[graymccarty]

At least you guys don't have to deal with 3 year contracts and limited data plans that still cost an arm & a leg.

[Kwill]

Originally Posted by Vaphoron

For the time being I still only want the iPhone for mobile web and email. I really wish they would come out with a plan for like $40-45 with about 100-200 minutes in addition to some sort of subsidy and I'd be all over it.

Such a plan does exist for the iPhone but it is not advertised.

1. Sign up for the regular iPhone plan.
2. Take your first bill to the AT&T Mobility location.
3. Ask to switch to the "retention plan" (fewer minutes for about $10 less)

[Mac Attack 360]

Waait. I'm kinda confused. When I read the article it said "carriers". Does this mean the iPhone will be on multiple carriers(in the US) or it meant the current carriers around the world? Because I'm also confused if the current iPhone has to stay with AT&T or if all the iPhones in the next four years have to stay with AT&T?

[GradientMac]

I would hope so- I'd be able to afford one much sooner.