iPhone Subsidies, Production Ramp Up?

[MacRumors]

USA Today provides some additional confirmation to the rumors that the next generation iPhone will benefit from carrier subsidies. According to the newspaper, the new iPhone will start at $199:

The price also will rock: $199, according to people with knowledge of the matter, down from the current $399 and $499. Sources declined to be cited by name or affiliation because Apple and AT&T haven't authorized anybody to speak publicly about pricing until after Monday's announcement. The $199 price is being subsidized, though USA TODAY could not confirm details.

Rumors of a $200 rebate first emerged in April alongside claims of GPS and a thinner design. Similar claims were again echoed just last week.

Meanwhile Barrons has heard that the Foxxconn, Apple's iPhone manufacturer, has only shipped "several thousand" of the new iPhone and don't expect to ramp production up until the middle of the month. This would suggest an actual launch date closer to the reported AT&T blockout dates (June 15-July 15th).

Apple is widely expected to announce the 3G iPhone at today's WWDC keynote speech which begins at 10am Pacific. We will be providing live coverage at MacRumorsLive.com.

Article Link

[Eidorian]

I just bought a new car but I do have a cell phone/GPS lined up for my next purchase. Lets see what the iPhone can cover without crippling my budget.

[edesignuk]

Subsidies will make the iPhone. The iPhone was a big PR hit, the 2nd gen iPhone with 3G and at a [potentially] significantly lower cost could really boost market share hugely.

Let's hope the hardware isn't plagued with any stupid quality control problems.

[Eidorian]

Originally Posted by edesignuk

Subsidies will make the iPhone. The iPhone was a big PR hit, the 2nd gen iPhone with 3G and at a [potentially] significantly lower costs could really boost market share hugely.

Let's hope the hardware isn't plagued with any stupid quality control problems.

Hopefully the current iPhone users won't mind us (me) plebeians having them as well.

[junkmailbonzai]

The iPhone is going to take over if it is really that cheap! I can't wait!

[psychofreak]

I really hope they still allow activation-at-home, because otherwise I'm going to end up getting a 2nd hand first generation iPhone.

[callmemike20]

Originally Posted by psychofreak

I really hope they still allow activation-at-home, because otherwise I'm going to end up getting a 2nd hand first generation iPhone.

I'm sure they will considering they will be sold at the apple store. Apple employees would have to go through phone activation training and would have to know how to give credit checks.

[w00143881]

just give me my phone already...

[inkswamp]

Originally Posted by edesignuk

Subsidies will make the iPhone. The iPhone was a big PR hit, the 2nd gen iPhone with 3G and at a [potentially] significantly lower cost could really boost market share hugely.

I agree. I know everyone likes to complain about Steve Ballmer's snarky comments about the iPhone prior to its launch but he was right about the cost. It would be great if Apple figured out some arrangement where the iPhone could be made a little more affordable. Not everyone out there is looking to spend that much on a phone, and no matter how great the hardware/software is, it's a hard sell when most phones out there are practically freebies with the right service plan.

Originally Posted by edesignuk

Let's hope the hardware isn't plagued with any stupid quality control problems.

Ha! When has Apple ever had a problem with--?

Oh wait, I'll be back. My iBook is on fire again.

[Dammit Cubs]

Go 199 iphone!!!! Woot Woot.


Go Dammit cubs for having the first post. WOOT WOOT!!!!!!!!!

[edesignuk]

Originally Posted by inkswamp

I agree. I know everyone likes to complain about Steve Ballmer's snarky comments about the iPhone prior to its launch but he was right about the cost. It would be great if Apple figured out some arrangement where the iPhone could be made a little more affordable. Not everyone out there is looking to spend that much on a phone, and no matter how great the hardware/software is, it's a hard sell when most phones out there are practically freebies with the right service plan.

Now that they will have money coming in from every app sold through the app store, they can afford to lose a little in exclusivity deals. It's in their interest for the hardware to be widespread in order for software sales to boom. Just like XBOX360/PS3, it's not even so much about profits on hardware, it's about long term gain through software/services. For that to happen you need the user base though.

Ha! When has Apple ever had a problem with...? Oh wait, I'll be back. My iBook is on fire again.

haha, exactly!

[j763]

I really hope they've organised sufficient supply... something makes me think that they haven't, and the report from Barron's is not encouraging either.

This seems timely: the lady who tried to buy tens of thousands of dollars worth of iPhones last year - very funny, for those of you who haven't seen it.

[Cleve]

http://blogs.computerworld.com/wwdc_2008_predictions

more predictions

[Pointer]

Originally Posted by Cleve

http://blogs.computerworld.com/wwdc_2008_predictions

more predictions

Hardly predictions, I could have written that myself!

[Eric Cartmac]

They will have enough. They know this is going to break all records at $199. And I predict it will not be available right away. Let Monday get free PR all over the world, and let a frenzy build up until everyone is waiting in line drooling. AT&T memo said no vacation on certain days, THOSE are the days it will be available IMO. 15th right?

4am, can't sleep... must try.... too excited...

[bsimmons7]

Originally Posted by psychofreak

I really hope they still allow activation-at-home, because otherwise I'm going to end up getting a 2nd hand first generation iPhone.

it won't be possible if they're selling a 400 dollar phone for 199 and hoping they activate. Activating the phones at the store would also boost sales many Sales employees don't want to sell the iPhone because they don't trust that they will get the commission for the sales
Normal people who buy the iPhone have trouble activating the phone on itunes

I work for AT&T and I personally know I would have sold many more iPhones if the device was comparably priced to blackberry and windows mobile phones

[ziggyonice]

I wonder how this would affect selling at the Apple Store (retail). Could I purchase at the store for $199? Or would I have to pay for the phone in full, and get a credit?

I hope it would just be $199, and then if you did not sign up for the two-year agreement during activation at home, they'd charge you at your computer for the additional cost of the phone.

[edesignuk]

Originally Posted by bsimmons7

it won't be possible if they're selling a 400 dollar phone for 199 and hoping they activate. Activating the phones at the store would also boost sales many Sales employees don't want to sell the iPhone because they don't trust that they will get the commission for the sales
Normal people who buy the iPhone have trouble activating the phone on itunes

I work for AT&T and I personally know I would have sold many more iPhones if the device was comparably priced to blackberry and windows mobile phones

They could rebate a certain amount to the card the phone was purchased on upon activation.

[nintyuser]

Ah please let there be a tablet mac.

It's possible. I want the iphone but still 7 inch screen of pure mac os x would be awsome plus I would give up my mbp if the 7 inch tablet holds it's own.

But 199 iphone and i'm sold. I think it's possible since traditionally ipods always come down in price so will the iphone.

[antielectrons]

problem is, cheaper phone = exorbitant monthly fees

[iZac]

So... you think £169 in the UK like the O2 promotion last month?

[pamon]

just sold my original 16GB one for 540 on sunday. guess i can place the order tomorrow for the new one.. sweet

[gianly1985]

Originally Posted by psychofreak

I really hope they still allow activation-at-home, because otherwise I'm going to end up getting a 2nd hand first generation iPhone.

I hope that too.......
But I would call it NON-actvivation-at-home

[entropys]

I don't know why Barron's interpret later in the month as 'delayed'.

It is pretty clear that in Australia the launch date will be 19 June (18th in the USA). The first Apple store in the southern hemisphere will open at 5.00 pm on the 19th June, and it will be a flagship store, of similar size to Boston and apparently with a unique interior design feature ( a suspended glass dropbear perhaps???). Steve Jobs is also rumoured to be there.

I can't imagine that an event of that magnitude will not include the OZ launch of the iphone at the same time.

[Dammit Cubs]

give it up on the stupid "Itablet" or mactablet...

its not going to happen for another 2 years.