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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.

    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. LeathaFace's Avatar
      LeathaFace -
      Good news!!! well dont matter the price im still getting it!!!
    1. GothamCity's Avatar
      GothamCity -
      Is it just me, or shouldn't picture mail definately be something Apple should be addressing in the next Iphone? The website you have to log into to get your picture mail is horrible for a phone that at one time cost all of us in the begining $600. No?
    1. 02589's Avatar
      02589 -
      I'm sure there are people that could really use GPS. It sounds like another reason for people to be playing with their phone instead of paying attention to driving the car.

      I'm hoping that 3G will be awesome. Fact is...none of know how it will affect the iPhone.

      Another fact is that none of know what battery life will be like with GPS and 3G.

      I have a hunch 32gb iPhone isn't far away.

      My iPhone is working fine right now.

      For those reasons, I'm gonna sit back and let the noobs test the new phone until the 32gb comes out. Then I'll watch them whine about how they should have waited.
    1. exNavy's Avatar
      exNavy -
      Quote Originally Posted by erix920 View Post
      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.
      I can not for the life of me understand why anyone thinks they should get some kind of deal because they were original iphone purchasers just because a new one comes out. What is AT&T supposed to do with your old trade in? AT&T isn't a car dealership. I've never ever seen a used cell phone section at a cell phone store. They sold a product to you and you agreed to buy it. The end.

      What do you do with your old phone? You sell it on ebay like everyone else.
    1. ghandioncesaid's Avatar
      ghandioncesaid -
      if the standard rebate eligibility rules apply, if you have been with AT&T for 18 months you'll be eligible to resign for 2 years to get the rebate and of course if you're a new customer, otherwise no...
    1. willryan42's Avatar
      willryan42 -
      So what will this mean for non-contract buyers? About how much should an 8gb iPhone be without buying the contract? I'm trying to figure out if I should wait to buy, or get one now.
    1. Nefarious's Avatar
      Nefarious -
      Sweet! I'm planning to purchase a 3G 16GB this summer.
    1. rfracing's Avatar
      rfracing -
      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.
      You might want to check your ATT account everyone. I far as I know me and my wife are both eligble for upgrade through ATT since the iPhones we purchased were not subsidized at all check your account and post please. Ours are open eligble and ready for the 3G...LOL
    1. jjasinski's Avatar
      jjasinski -
      Quote Originally Posted by Dust Busta View Post
      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.
      I doubt you'll get 200 for if you sold it right now, i was at an At&t store the other day and they sell refurbished 8gb for $250.
    1. shawn o's Avatar
      shawn o -
      And existing AT&T users with more than 4 months left on their contract (all current iphone users) won't qualify for the discount either....

      Thats normal practice right now for AT&T customers. If you want a new phone you have to be "eligible...i.e. 4 months left on your contract. Otherwise you pay the full unsubsidized price. Didn't really come into play for existing AT&T customers when they bought the iphone because there was no discount.
    1. jvallesteros's Avatar
      jvallesteros -
      i hope this is true. true gps is a must for me.

      i wonder if the iPhone plan will still be 20 bucks a month. i hope they don't raise it.
    1. ModJoe's Avatar
      ModJoe -
      Does anyone heard about new rates, i guess 3G has a differnet price ?
      Hopefully they are not raising to much
    1. erix920's Avatar
      erix920 -
      Thanks exNavy you answered my question well too bad theres going to be a million for gen iphones on eBay
    1. nickkilla's Avatar
      nickkilla -
      wonder how long one will need to stay a subscriber to get the rebate and if they will do it upfront or after the period.....
    1. Imahottguy's Avatar
      Imahottguy -
      it seems lately that the terms "news" and "speculation" have become synonymous...
    1. mikesgroove's Avatar
      mikesgroove -
      I absolutely do not believe this RUMOR. The Fortune writer that wrote it is a complete chump who has never been correct in his predictions. I just don't think AT&T needs to cut the price to increase sales. People are foaming at the bit for a new iPhone and would probably trade their first-born child for one. Sure they could do it, I suppose and I could see why with a subscription-based model that they could absorb that $200 over the life of the contract. But, multiply $200 times all the new iPhones, and you get a HUGE number. I'm just not sure it makes since to subsidize something when they clearly don't have to!
    1. fletch33's Avatar
      fletch33 -
      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.
      we will most likely be given the chance to renew our 2 year agreement in order to get the pricing.

      thats how verizon gets ya

      funny thing is that i was with verizon for 6 years and always said no more contracts if i ever leave and then the iphone comes along LOL.
    1. rugbrn's Avatar
      rugbrn -
      Quote Originally Posted by rfracing View Post
      You might want to check your ATT account everyone. I far as I know me and my wife are both eligble for upgrade through ATT since the iPhones we purchased were not subsidized at all check your account and post please. Ours are open eligble and ready for the 3G...LOL

      I bought my phone from an AT&T store, and I have been eligible for upgrade since day one... My account never showed a 2 year extension with the purchase, I could upgrade right now if I wanted to...
    1. amnesia's Avatar
      amnesia -
      Guys, since the 1st gen iphones were not subsidized by AT&T.... you can upgrade at anytime and receive your 2yr discount on any phone as long as you restart a 2 yr agreement.
    1. fletch33's Avatar
      fletch33 -
      i dont plan on signing anymore contract commitments in fact i have been considering paying my cancellation fee so i can move to Tmobile or my local Bell.

      right now i am on ATT with my wife and i and we have:

      iphone and moto Q with:

      3,000 shared minutes
      1,500 text messages
      unlimited data for both

      price $243 per month


      basically same plan

      price $199/month

      local bell:

      4,000 minutes and unlimited everything else

      price $180 month and NO contract at all

      if for some reason i stay with ATT i will pay full price for my 3G iphone and be free