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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. hozay09's Avatar
      hozay09 -
      Quote Originally Posted by fletch33 View Post
      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

      tmobile:

      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
      Funny how you mention $243 obviously after taxes yet fail to mention taxes on either of the other two plans. T-mobile may be cheaper but far less service (at least where I live ny/nj area)
    1. burtthaman's Avatar
      burtthaman -
      refurb iphone 8gb = 250 yes... but any iphone that has been unlocked/pwned sells for more. The fact that it's used will take away from the price but the fact that it's unlocked makes the world of difference. People will still be wanting an awesome phone... and the new iphone 3g's unlocked will sell for outrageous prices. I don't think it will be hard to sell you're old phone for a decent return
    1. Otherkid's Avatar
      Otherkid -
      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.
      Actually its not 18 months its half your contract term. When I bought my iPhone in august I was 2 months away fromupgrade and they told me it doesn't matter you can't get half off like on other phones when you buy an iPhone. And im sure they would be MORE than happy to give you another 2 year contract! =]
    1. rfracing's Avatar
      rfracing -
      Quote Originally Posted by Otherkid View Post
      Actually its not 18 months its half your contract term. When I bought my iPhone in august I was 2 months away fromupgrade and they told me it doesn't matter you can't get half off like on other phones when you buy an iPhone. And im sure they would be MORE than happy to give you another 2 year contract! =]

      Hello - READ - anyone that purchased and activated a iphone with ATT has been available for upgrade since day one! If you purchase the new iphone coming out and it actually has a ATT service discount of $200 you will get that and renew your contract for 2 years. All the ATT iphone contracts ARE available to upgrade! Go online and check your account.
    1. Happy Noodle Boy's Avatar
      Happy Noodle Boy -
      Quote Originally Posted by Imahottguy View Post
      it seems lately that the terms "news" and "speculation" have become synonymous...
      Yeah, what's up with this? An insider also told me that the new iPhone will do your homework and laundry. Until they actual come with a press release of what it is, I really think that giving so much weight to speculation does nothing but show a lack of commitment to facts.

      The fact is that we know nothing of what's coming, so why throw gas to a flame?
    1. p3eps's Avatar
      p3eps -
      Whilst I'm please that theres a new 3G iPhone coming soon (after spending 2 days away from WiFi - Edge is horrible), but I'm also a bit dissapointed with Apple at the same time.

      The iPhone hasn't even been out a year yet and hasn't even been in Europe for 6 months! Most people have signed up to 18 month contracts - meaning that they're going to have months to go until they can upgrade without a huge expense.

      Personally it doesnt affect me as I bought a launch 8gb iPhone from USA and unlocked it for UK use when the first software hacks came out. I upgraded to the 16GB a couple of months ago - again with no contract... but the iPhone cost me 350 (I got 250 back for my 8gb one).

      So in another few months once the new 3G version is unlocked, I'll 'HAVE' to buy another new model... and lose out on more cash when I sell my 'old' model.

      I realise phones are a constantly evolving product - but I think introducing a new version after less than a year is out of order.
      Having said that though - I'll definately buy one as I think the current iPhone is a genious piece of equipment - and 3G and GPS (if thats true?) would make it complete. Surely with 3G picture/video messaging would be added?!?!
    1. tattoojack's Avatar
      tattoojack -
      Quote Originally Posted by Dash-2 View Post
      It'll probably just require an extended 2-year plan.

      yay!
      you are on the right track, from my 2 years working for at&t wireless and 3 with tmobile, i would be willing to bet that you will have to have had a contract long enough to qualify for an upgrade.

      then, you will only be given a discount on the 3g iphone according to your payment history and time on contract along with your rate plan. all these factors determine what, if any, your upgrade price will be.

      then, you will be sent the new phone, pay by credit card or on your bill any upgrade fees, and then they send you the new phone and you send your old one back in the box they sent your new one in.

      this of course will also restart your 2 year contract from then on.

      thank god i am on tmobile.

      1.1.4/4.6 bootneutered
      tmobile w/unlimited everything.
      1000 anytime
      74 a month with tax.

      wooooohooooo
    1. tntmorgan's Avatar
      tntmorgan -
      Quote Originally Posted by Jasper44 View Post
      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.
      Why so glum ? It's not that bad being an Att customer.
    1. french bum's Avatar
      french bum -
      Looks like I will have to buy and hack a new phone. Woot!
    1. Gibbles's Avatar
      Gibbles -
      I wonder what the deal is with the 199$ iPhones in Europe. Hopefully they will have something similar.
    1. laz305's Avatar
      laz305 -
      this sux monkey balls man, they should allow us to trade in our $500 iPhone for the new one. I mean how in the hell do they expect us to upgrade?
    1. mattolson's Avatar
      mattolson -
      I hope this phone is fairly expensive. I really do not want teenagers and young kids walking around with the same phone I have.
    1. Mepaphoros's Avatar
      Mepaphoros -
      Quote Originally Posted by mattolson View Post
      I hope this phone is fairly expensive. I really do not want teenagers and young kids walking around with the same phone I have.
      You better believe that Apple does...
    1. shaharyar's Avatar
      shaharyar -
      For 200 dollars and 3G, its not bad for even current iPhone owners (just think of it as an upgrade + removing all your scratches)

      Quote Originally Posted by mattolson View Post
      I hope this phone is fairly expensive. I really do not want teenagers and young kids walking around with the same phone I have.
      That's a very good point, lowering the price of the iPhone would drop the iPhone's value as a status icon.
    1. gameviper's Avatar
      gameviper -
      freakin sweet! lol
    1. charlyc's Avatar
      charlyc -
      This was confirmed on the morning news channel 7 New york 3G $200.00 break this summer. 2 year contract
    1. EVILKAMOTE's Avatar
      EVILKAMOTE -
      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 already sold my 8g iphone and I was suprised to get $350 for it, and buyers here were beating each other to buy my phone.

      I posted it on craigslist Monday night and sold it Tuesday morning.

      sell your iphone now and try to get as much money as you can...
    1. Sparblaze's Avatar
      Sparblaze -
      Is there an app that makes my iPhone's software screw up? I have Apple cares and I guess they would have to replace it with a new one.
    1. Happy Noodle Boy's Avatar
      Happy Noodle Boy -
      Quote Originally Posted by shaharyar View Post
      For 200 dollars and 3G, its not bad for even current iPhone owners (just think of it as an upgrade + removing all your scratches)



      That's a very good point, lowering the price of the iPhone would drop the iPhone's value as a status icon.
      Status icon? Seriously? People buy stuff for that? When I bought the iPhone, I got it for what it could do, which is what I wanted in a phone, and then some more. I didn't buy it so I could look could.

      I mean, seriously, you guys are arguing that making the iPhone more EXPENSIVE is a GOOD thing because it'll prevent someone else who has no outcome in who you are and no opinion in what you do from getting it? Seriously?
    1. rickatsd's Avatar
      rickatsd -
      Quote Originally Posted by Jasper44 View Post
      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.
      Current iphone users of course don't qualify for this kind of profit since our iphones "technically" came with AT&T contracts and they only work with AT&T. Apparently the 3G iphone will be "unlocked" when released...