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  • $199 iPhone for you. Oh, and it has GPS.


    Insiders have confirmed to Fortune that ATT will in fact be subsidizing the cost on the new 3G iPhone, which will be released this summer. That means the $399 8GB will be only $199, and the $499 16GB model will only be $299 with an ATT contract.

    It makes sense for Apple to not offer these rebates from their retail stores, perhaps with a mail-in rebate available from ATT on phones purchased from the Apple store. Of course T-Mobile users and non-ATT users won't qualify for the rebate - the point of subsidizing is to offer a lower price on a product in order to gain higher long-term revenue from subscription (i.e. - your $150 ATT bill ).

    The insider also confirmed as has been rumored that the 3G version will have proper GPS rather than the cell tower based solution currently in place on the iPhone.


    Fortune
    This article was originally published in forum thread: $199 iPhone for you. Oh, and it has GPS. started by Kyle Matthews View original post
    Comments 98 Comments
    1. ryan christopher's Avatar
      ryan christopher -
      3G Iphone here I come!
    1. Jasper44's Avatar
      Jasper44 -
      Pretty sweet, but I wonder what that means for current iphone users. They wouldn't really be gaining any extra profit by subsidizing it for us since we already have a contract with them.
    1. Kyle Matthews's Avatar
      Kyle Matthews -
      Doesn't mean a thing to existing iPhone users. Why would it? Your TV goes on sale a year after you buy it, you don't go back to Best Buy to get a rebate.
    1. Dash-2's Avatar
      Dash-2 -
      Looks like all speculation to me,
      but at least it's well thought speculation.

      We can only hope!
      =D
    1. Jasper44's Avatar
      Jasper44 -
      Quote Originally Posted by poetic_folly View Post
      Doesn't mean a thing to existing iPhone users. Why would it? Your TV goes on sale a year after you buy it, you don't go back to Best Buy to get a rebate.
      No, I mean if we go out and by the 3g one. They already have us locked in, so would they still subsidize it.
    1. Dash-2's Avatar
      Dash-2 -
      Quote Originally Posted by Jasper44 View Post
      No, I mean if we go out and by the 3g one. They already have us locked in, so would they still subsidize it.
      It'll probably just require an extended 2-year plan.

      yay!
    1. Jasper44's Avatar
      Jasper44 -
      Quote Originally Posted by Dash-2 View Post
      It'll probably just require an extended 2-year plan.

      yay!
      Yea, that's what I was thinking. I guess I'm going to be stuck in a 2 year contract for the rest of my life because if they put out a new version every year, I'll be getting it.
    1. Dust Busta's Avatar
      Dust Busta -
      This means I need to sell my 8gb BEFORE this phone comes out. Hopefully I could get more than $200 for it. I kno I won't be getting much for it after the 3g release.
    1. Raphael754's Avatar
      Raphael754 -
      my iPhone will still be on warranty.....apple spinning logo here I come.
    1. nirav464's Avatar
      nirav464 -
      this is pretty new so i guess if you were to sell it right now you might be able over $200.

      I can get any new version I want lol. PREPAID all the way
    1. kcisjojo's Avatar
      kcisjojo -
      Quote Originally Posted by Dash-2 View Post
      It'll probably just require an extended 2-year plan.

      yay!
      usually you have to wait 18 months before your available to get an upgrade which gives you the discount. If you haven't had your phone for 18 months then I doubt youll get any discount. You'll pay full price for the phone.

      Great idea for them to do this while nobody can qualify for the upgrade discount.
    1. mfleigle's Avatar
      mfleigle -
      Well $299 sounds about right in my price range. But I thought someone said that the 8gb is being phased out and being replaced by 32gb?

      Quote Originally Posted by kcisjojo View Post
      usually you have to wait 18 months before your available to get an upgrade which gives you the discount. If you haven't had your phone for 18 months then I doubt youll get any discount. You'll pay full price for the phone.

      Great idea for them to do this while nobody can qualify for the upgrade discount.
      The first generation did not have to have 18months to upgrade. Yes I do understand that there will be a huge discount, but the first generation you could be only 1 day into a new contract and still upgrade.
    1. nirav464's Avatar
      nirav464 -
      wow AT&T is pretty smart

      with this huge price cut, they probably gonna make so much money with the 2yr contracts

      You guys probably won't be able to unlock anymore since maybe they might require you to activate the iPhone right there when you buy the phone...
    1. bhz1's Avatar
      bhz1 -
      If one does have to wait for an upgrade, I'll go to plan B. I had been planning on giving my current 8Gb iPhone to my son and buying myself a new 3G version when it came out. He's eligible for an upgrade so I'll just get the phone on "his number" (we ahve a family plan) and swap out the sim cards.

      Heck we swap phones so much in the family between phones getting washed in pockets, someone upgrades and hands the old phone to someone else, the string of unlocked ebay phones I bought..... ATT has no clue who has what probably other than the two of us (so far) with iPhones.
    1. therandy's Avatar
      therandy -
      Quote Originally Posted by Dash-2 View Post
      It'll probably just require an extended 2-year plan.

      yay!
      Ill reup for that price....ALL DAY LONG
    1. Drakenza's Avatar
      Drakenza -
      FINALLY.
      Now I have an excuse to get another phone and dedicate this one to hacking
    1. D3VIL™'s Avatar
      D3VIL™ -
      Time to stimulate the economy with our stimulus check
    1. iphonejeff's Avatar
      iphonejeff -
      i pay 120$
    1. Iman07's Avatar
      Iman07 -
      i was starting to get upset because it seems like they ripped us off by letting us buy our phones then not even a year later release something so much better. but then i started thinking. i dont need 3G. plus i am on t-mobile. and the GPS, i dont need it all the time. it will probably drain the battery if u keep it on. ill just buy the little gps adapter for like $60 and keep it in my car or pocket. then when i need it, just pop it in and launch tomtom, whenever that happens. so i guess ill just stick to the one i have now.
    1. erix920's Avatar
      erix920 -
      So what can we do with our old phones? Hopefully Apple will keep it's current customers in mind and give them some sort of discount trade in.