AT&T to subsidize cost of new iphone

Discussion in 'iPhone' started by liquidh2o, Apr 29, 2008.

  1. liquidh2o macrumors 6502

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    #1
    Source: http://techland.blogs.fortune.cnn.com/2008/04/29/att-to-cut-the-price-of-apples-new-iphone/

    If true this makes the iphone attractive to a greater segment of the population.
     
  2. Grimace macrumors 68040

    Grimace

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    #2
    Just saw this. Wow! Maybe Apple can find a loophole that allows them out of the exclusivity contract!! :D I want an 8 "gigabit" iPhone!
     
  3. Yankees 4 Life macrumors 6502a

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  4. Mikey B macrumors 65816

    Mikey B

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  5. nineteentwelve macrumors regular

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    #5
    In all fairness, I don't think Apple would give a ****. AT&T will be paying their share, as will the customer. Apple wouldn't lose a cent. They'd still get the same amount of money for the iPhone, and maybe a bigger share of the AT&T plan.

    I hope O2 do this in the UK. I'm not holding my breath though.
     
  6. avaloncourt macrumors 65816

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    #6
    How would this reflect on us who already have a phone? Granted, we paid full boat for our first one but would they let us subsidize for a replacement 3G? They already have us locked into 2 year contracts of which nobody is yet half way through. Just a curiosity.
     
  7. Mikey B macrumors 65816

    Mikey B

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    #7
    I guarantee that Apple demanded that AT&T hold a certain market value for the iPhone (ie. the same as the Apple Store). They are in the retail business as well as being a wholeseller. I find it hard to believe that they would sell to AT&T at a low enough cost to justify such a hefty price cut. Do you really think AT&T is going to eat 50% of the price of a new iPhone? They would have to get it at a proportionately lower cost for that to make any sense. And I just don't see Apple allowing such cannibalization of their retail outfits.

    Just my 2 cents...
     
  8. newyorksole macrumors 68020

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    #8
    OMG this seems too good to be true! So this means everyone will be lining up infront of AT&T stores instead of Apple stores right?

    GPS and 3G !!

    But why just 8GB and 16GB? The Apps store is going to call for more memory, no? Well I guess I'll just get the 16GB and be overly satisfied with my new phone haha.
     
  9. nineteentwelve macrumors regular

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    #9
    Of course you have a point, but is this not the same thing as the £100 price drop in the UK a few weeks ago?
     
  10. Mikey B macrumors 65816

    Mikey B

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    #10
    Kind of. But that was more of a sale to move out inventory that they know longer plan to sell. This AT&T "subsidy" is more about growing customer base. They might do it for a very short period of time, perhaps, but I doubt for any prolonged period of time...
     
  11. SFStateStudent macrumors 604

    SFStateStudent

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    #11
    Swweeeetttt! Where can I sell my current iPhone? :eek::p
     
  12. StuPidQPid macrumors member

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    Tucson, AZ
    #12
    Wow, Fortune Magazine is a pretty reputable source!
    Interesting that the $200 rebate/subsidy would be limited to AT&T customers, but not be available through Apple's stores.
    To me this can only mean one thing, that those 3G iPhones being sold at the Apple Store or through Apple will be unlocked.
    That would leave me with an interesting dilemma...
     
  13. nickspohn macrumors 68040

    nickspohn

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    #13
    Man if we can actually get around that rebate and then sell unlocked iPhones on eBay

    Chaaaa CHING :D

    And i'm glad CNN also agrees with my prediction of June 27th.
     
  14. rjohnstone macrumors 68040

    rjohnstone

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    #14
    What dilemma would that be?
    AT&T has the only 3G GSM network in the US right now.
    T-Mobiles 3G network (when operational) will operate on a different frequency, so unlocking to run on T-Mobile will not be possible.

    The only thing would make this be workable is if it ships with a multi band 3G chip.
     
  15. StuPidQPid macrumors member

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    #15
    Oh, didn't realize that. Thanks!
    Will that mean Apple will have to ship iPhones with different frequency 3G chips in different countries? A multi band 3G chip would seem to make more sense.

    EDIT:
    Actually I just checked and the Broadcom 3G chip (likely to be in the iPhone) incorporates a multiband transceiver - at least according to Arstechnica.

    Arstechnica Article
     
  16. vader26 macrumors regular

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    #16
    It is $200 off retail value - who knows what AT&T actually gets them at wholesale. Say its $300, then they are really only eating $100 which is paid off in at most two months - the rest of the two years is all $$$. If the $199 price point makes a ton more consumers switch over to AT&T to get the iPhone (now that they can afford it), i would imagine it would pay off. The $200 would essentially be a rebate from AT&T so the retail cost would stay the same - provided this is allowed in their contract with Apple.
     
  17. lazyrighteye macrumors 68000

    lazyrighteye

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    #17
    Wow.
    This just seems way too good to be true.

    That said, I wonder how this would effect current iPhone users who are planning to upgrade when 3G is shipping?
     
  18. Michael CM1 macrumors 603

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    Feb 4, 2008
    #18
    Who in the crap runs up a $100/month bill? I do, but only because I have TWO OTHER PHONES on the account. I'm assuming most people get the 450 minutes plan for about $40 then add on the $20 data plan. That's $60, then add $5 in all those fees and taxes.

    All this being said, thank goodness I went refurbished. All I'm missing out on is probably 3G for the extra $50 I spent. I also can't believe that they wouldn't have a 32GB model out, even if it's $600.
     
  19. Small White Car macrumors G4

    Small White Car

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    #19
    Uh, yeah. You mean the same way they do with all the other phones they sell? Do you think the free phones you can get from phone companies are actually free? The carriers pay for them. It'll be the same thing here. Apple would get the full retail price.

    So since all carriers eat the price of many cell phones, I don't see why you have a tough time believing this.

    And as for Apple "losing" sales, yeah, I'm sure they'll be real upset that people are buying $400 - $500 iPhones instead of $300 - $500 iPods. Should work out the same for them.
     
  20. Santa Rosa macrumors 65816

    Santa Rosa

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    #20
    Its going to be pretty sweet to have the 3G and GPS. The only thing that bothers me are all these reports going around about how they are going to change the form factor.

    Thinner means a smaller battery, with the new stuff going in cant really see that as a bonus when the thinness of the iPhone at the moment is perfect.

    Reducing the screen size would be a strange one as I have heard, no mention here hope they don't do that either as the size of the screen really gives it the usability and cool factor.

    Already in an iPhone contract there is no way that I will get any money of the new one I doubt but good news for people getting their first one if true.

    Am getting impatient about this bad boy getting released!! Roll on June!!!

    EDIT: Wow that is a really sporadic and bitty post, sorry..... :(
     
  21. gkarris macrumors 604

    gkarris

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    #21
    Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU like Mac OS X; en) AppleWebKit/420.1 (KHTML, like Gecko) Version/3.0 Mobile/4A102 Safari/419.3)

    Apple will still sell it at their stores. You'll probably see a $200 credit on your AT&T bill when you sign up...
     
  22. alexandr macrumors regular

    alexandr

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    #22
    oh sure.. they didn't do this when i joined ATT. so that pretty much a safe bet that this time they will...
     
  23. eastcoastsurfer macrumors 6502a

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    Feb 15, 2007
    #23
    One month a couple years ago I had to travel a lot for work. Say hello $500 cell phone bill. Even on my personal phone I use 500-600 texts and 1000+ minutes/month now.
     
  24. Telp macrumors 68040

    Telp

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    #24
    This is great. I wish it wasn't only for new users though. Not sure I'll be purchasing gen 2. Oh well, we'll see how it all works out.
     
  25. EagerDragon macrumors 68020

    EagerDragon

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    MA, USA
    #25
    Darn it

    I just signed a 2 year contract with an el cheap phone to wait for the iPhone, do a family plan and get 3 iphones in june.

    I guess I will not get the discount.

    Darn it.

    If they are subsidizing the iPhone to the tune of $200, then maybe (start a new rumor) the phone is unlocked!!!!!!!!
     

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