Apple to Offer iPhone 3GS Free on Contract?

[Roul16]

Even though its an older model (three generations old by tomorrow) its still extremely competitive and in addition to that, free?!? Always incentive for a company to increase the distribution of their products no matter how iconic the name.

 

[Smallville]

It's not the cost of the device that holds me back. It's the price and quality of service. I'm sure all the 3G and 4G wireless data is nice for those in the cities. But I like in Podunk, so I can't justify paying more than $100 a month for a phone/data plan when the coverage is lousy, no matter which carrier is used.

I know, I know, move out of the sticks, but hey, easier said than done in this economy.

 

[AppleScruff1]

Apple has everything to gain.

An iPhone for all (or at least for those willing to pony up for a data package).

With a lot of customers coming in asking for "free phones," and since smartphone are the only true free phones now (the others are free after mail in rebate) it makes a ton of sense.

The Samsung Focus sells so well because it's free. The iPhone 3GS would still work because of its brand cache.

It's an iPhone. For free. Think about it.

Explain to me how Apple giving the carriers the iPhone free is good for Apple? The carrier give the phone away for free because they make their money on the service, not the phone. Apple sells phones, not service. Apple giving the phones away free means Apple loses money.

wisdom...Lol i think alot of us still dont understand that carriers pay for the phone because they make atleast 1500 off of it...

I think some have forgotten that the carrier pays the manufacturer for the phone. The carrier then subsidizes it's price or gives it away free to sell their service which is where they make their profit. Samsung, etc still gets paid for all of those free phones.

 

[alphaod]

This isn't surprising at all.

As a developer this is good and (kinda) bad news..

meaning.. with all the advances of the new iPhones (Ram, CPU) .. I still have to consider the lowest denominator which in this case would be the new surge of 3GS users... that may or may not be a totally BAD thing.. but we shall see.

Or you could do it the Apple way and just drop support for older devices.

 

[shikha2]

Only logical if they have a warehouse full of those old phones
Photo to painting

 

[rowley]

Its doubtful they will make any more, but I suspect that a lot of shops will still have stock to sell off.
I give the 3GS another 12-18 months.

 

[Ammo]

Explain to me how Apple giving the carriers the iPhone free is good for Apple? The carrier give the phone away for free because they make their money on the service, not the phone. Apple sells phones, not service. Apple giving the phones away free means Apple loses money.



I think some have forgotten that the carrier pays the manufacturer for the phone. The carrier then subsidizes it's price or gives it away free to sell their service which is where they make their profit. Samsung, etc still gets paid for all of those free phones.

Who said Apple would give them away for free?

Free is the subsidized price, obviously.

That said, I would hope/pray to see the 3GS available for prepaid at $199 or something affordable like that. It probably costs Apple maybe $50 if that to produce a 3GS today.

 

[andybacon]

They already are

I work for a mobile network in the UK, and we've recently launched a deal where you get the iPhone 3GS 8GB for free on a £15 per month contract.

 

[IlluminatedSage]

The fact that "upfront device cost continues to be a major factor in customers' purchasing decisions" has always surprised me when the monthly cost of owning an iPhone can run around $100. One can spend $1,200 a year for service, but $200 for the upfront cost is WAY TOO MUCH. Hmmm.

I agree 100%, it would be great to get no contract pricing on these devices. which could in turn force Apple to lower prices later on.

I would much rather be able to buy my phone and get cheaper service from Sprint or T-Mobile, with full data, sms and phone unlimited! than spend crazy money with ATT or Verizon. In 1 year, i would easily save more than it costs with a discounted "Contract" subsidized phone.

 

[Navdakilla]

not to bad.
Even tho this phone is 2 years old it still runs really well (I have friends that have them)

I can see a lot of lower class people picking these up for madd cheap,

 

[AppleScruff1]

Who said Apple would give them away for free?

Free is the subsidized price, obviously.

That said, I would hope/pray to see the 3GS available for prepaid at $199 or something affordable like that. It probably costs Apple maybe $50 if that to produce a 3GS today.

Read the thread. I KNOW that the free phone is subsidized. Many here think Apple is giving them away and don't realize it is the carrier.