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AT&T Considering $10 Drop in iPhone Monthly Plan Rates?

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TheStreet.com reports on comments from analyst Michael Cote suggesting that AT&T is considering reducing the basic monthly iPhone plan from $69 to $59 alongside an announcement of the next-generation iPhone at next month's Worldwide Developers Conference.
AT&T is considering a $10 price cut for the iPhone's monthly service plan when Apple introduces the newest version of the phone next month.

There is a "strong possibility" that AT&T will drop the entry-level price to $59 from $69, says Cote Collaborative analyst Michael Cote, an industry pricing strategist. The announcement, he said, will probably accompany the launch of the new iPhone on June 8, during Apple's World Wide Developers Conference.
Cote reports that iPhone sales through Wal-Mart have failed to meet expectations, giving Apple concerns about pricing barriers. While Cote does not see Apple introducing a lower-cost "iPhone nano" as has been rumored for some time, his comments indicate that AT&T is also recognizing the pricing difficulties and is willing to work to make iPhone contracts more affordable, thereby stimulating demand.

Recent sales success for Research in Motion's BlackBerry models, as well as increased competition from the upcoming Palm Pre and forthcoming touchscreen handsets from Nokia, are placing pressure on Apple to continue to find ways to generate new customers.

Finally, Cote points to an approaching "fashion milepost" for the iPhone, as popular phones and other gadgets tend to lose their appeal in their third year on the market, although Apple would certainly argue that continued innovations on both the software and hardware fronts should allow the iPhone to remain at the head of the pack.

Article Link: AT&T Considering $10 Drop in iPhone Monthly Plan Rates?
 

war eagle

macrumors 6502a
Jul 24, 2008
649
7
That seems nice but by the time they add their stinkin taxes it'll be the same price.
 
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OasisNYK

macrumors 6502
Nov 29, 2004
382
81
Isn't the 550 minute plan already $59? Its not the minutes, its the data plan that kills it.
 
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notjustjay

macrumors 603
Sep 19, 2003
6,055
162
Canada, eh?
Hey Rogers, are you listening?

I might just jump on the iPhone bandwagon if they'd drop the data plan by $10 here in Canada. Or at least give us more than 500 freakin' MB's per month.
 
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NightCastle

macrumors member
Jul 18, 2007
98
2
Pricing Structure changes

Yeah, but will the phone be the same pricing structure or will they charge more up front?
 
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Stately

macrumors 6502a
May 14, 2008
768
0
NYC
That seems nice but by the time they add their stinkin taxes it'll be the same price.

Haha, exaactly . . along with their other hidden charges that they throw at you when they decide they want a few extra dollars.
 
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zombitronic

macrumors 65816
Feb 9, 2007
1,115
6
This would be great. I've currently got an iPhone classic and I'm not eager to upgrade to 3G due to the extra $10 data fee every month. I'm interested in the new iPhone that's due this summer and for me, confirmation of this news would seal the deal.
 
Comment

TalkAboutApple

macrumors regular
Jun 6, 2008
105
13
Current pricing is brutal. Yeah, I'm paying it, but AT&T is smart if they are getting that a cell customer is worth more than 2 years of being hosed.
 
Comment

NightCastle

macrumors member
Jul 18, 2007
98
2
They will probably have pricing for texting seperately and pricing for MMSing seperately. $5 for texting and $10 for MMSing.
 
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MarlboroLite

macrumors 6502a
Oct 29, 2007
579
5
the 13 colonies
Still too expensive.

Here in France, the cheapest plan from Orange is €39 which includes 120 minutes, the "unlimited" data, and unlimited texts nights and weekends (under 26s get unlimited texts 24/7)...oh and of course as in all of Europe ALL incoming calls are free.

For someone who doesn't MAKE the phone calls all that much, 120 minutes is just fine for me. Some months even excessive.
 
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alm99

macrumors 6502
Oct 30, 2008
313
6
Sure, it will be a $10 drop in price for a limited amount of data use, say 250mb, with ridiculous overage charges.

For $10 more you get unlimited plan.
 
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mkrishnan

Moderator emeritus
Jan 9, 2004
29,776
12
Grand Rapids, MI, USA
That seems nice but by the time they add their stinkin taxes it'll be the same price.

That shouldn't quite be true -- the taxes are there now, and if anything, the ones that scale with the plan price reduce.

And, so, I use T-Mobile, so forgive me if I have this wrong, but... AT&T made the data service plan $10 more expensive when they launched the 3G iPhone, right? So, basically, if this happens, they would roll back to the original pricing scheme, by and large, that they offered in 2007 (that is, for people who continue to get the minimal voice and data plans for the iPhone, who would be paying $10 less for voice and $10 more for data than in the original AT&T plans).
 
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fleshman03

macrumors 68000
May 27, 2008
1,845
0
Sioux City, IA
This would make my only reservation over getting an iPhone almost dissapear.

Please do

 
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ferlauto

macrumors newbie
Dec 4, 2008
2
0
White Plains, NY
The fact that Wal-Mart has not lived up to expectations does not surprise me at all. It should have never been done in the first place.

Most importantly its a dilution of the Apple brand.

Apple is symbolic of high-end, and high margins. Wal-Mart is the polar opposite: Anything and everything just to save a few pennies, regardless of the consequences.

Second, Wal-Mart could not add value. In this case that would mean a lower price, because lower prices is Wal-Mart's value proposition.

Why would anyone go to Wal-Mart (or any retailer for that matter, that does not have expertise in wireless) when they can go to any Apple or AT&T store and deal with someone who really knows the product line and the industry as a whole?

The simple answer is: They wouldn't.
 
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Le Big Mac

macrumors 68030
Jan 7, 2003
2,666
224
Washington, DC
Lower prices are good, but lets see details:

data limits?
less iphone subsidy?
calling plan price drops?

While I'm sure data is a cash cow for AT&T, and they could drop prices as usage goes up, I doubt they're going to give something for nothing.
 
Comment

profets

macrumors 601
Mar 18, 2009
4,704
4,882
Hey Rogers, are you listening?

I might just jump on the iPhone bandwagon if they'd drop the data plan by $10 here in Canada. Or at least give us more than 500 freakin' MB's per month.

hey.. at least we can use any voice and/or data plan we want. you can get yourself a good $20 voice plan and have $30 for 6gig. you can even go with just voice, and still get the phone subsidized at 250/350.. i cant imagine rogers makes too much $$ back from that subsidy/voice plan combination
 
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rollsroyce442

macrumors member
Oct 28, 2007
50
0
Fremont, CA
My AT&T bundle

right now I have two lines on verizon, charter internet and cable and no home phone. For the same price (if they lower it 10$) I get AT&T DSL, AT&T Home Phone, Directv (over 200 channels), AT&T WiFi access (at Starbucks and the like), and iPhone and one more phone for my wife, plus I will have roll over minutes! Plus, they'll give me over $300 dollars cash back. Man, now thats enough to cover my cancelation fee's and pay for the iphone (almost). I'm so switching, good bye verizon.
 
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SpinThis!

macrumors 6502
Jan 30, 2007
468
104
Inside the Machine (Green Bay, WI)
I wonder if this is AT&T's/Apple's way to get first-generation iPhone owners to upgrade and get everyone on the same "platform" so to speak... or officially deprecate the old plan and have everyone move to the new plan. One of my big reservations with the iPhone 3G was 1) no 3g service around here and 2) $10 more a month for the service—the only big benefit was built-in GPS.
 
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