- Apr 12, 2001
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.