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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. McGeeTM's Avatar
      McGeeTM -
      woooot! more sales for me!! haha but def will break contract for a new one!
    1. dragnandy's Avatar
      dragnandy -
      dang! i dont see this as a good thing. just wait, the iphone will be the next motorola razr. EVERYONE going to want to get it, love it, and soon hate it.
    1. yungfreshgent20's Avatar
      yungfreshgent20 -
      I love my iphone, i love being the only one i know who could afford one. I love when people look at me jealously because i have one. I dont want the iphone to become a hoe phone like the razor did. Its something nice about owning something most people dont and with this price drop i think i might need to customize it even more than hacking it.
    1. tattoojack's Avatar
      tattoojack -
      Quote Originally Posted by yungfreshgent20 View Post
      I love my iphone, i love being the only one i know who could afford one. I love when people look at me jealously because i have one. I dont want the iphone to become a hoe phone like the razor did. Its something nice about owning something most people dont and with this price drop i think i might need to customize it even more than hacking it.
      if you look at the history of the razor,

      what happened when they dropped the price?

      EVERYONE GOT ONE.

      then three quarters of those people decided it was more phone than they wanted and sold it dirt cheap on craigslist and ebay.

      if that happens with the iphone, we will all be rockin like 3-4 of em, testing beta apps, brickin em left and right.

      NO FEAR!

      imagine what we can do with these phones when they are cheap and easy to get.

      let em have em cheap. then they realize its a laptop and to much work and quit. selling them to us!
    1. jimbeam4581's Avatar
      jimbeam4581 -
      Quote Originally Posted by tattoojack View Post
      if you look at the history of the razor,

      what happened when they dropped the price?

      EVERYONE GOT ONE.

      then three quarters of those people decided it was more phone than they wanted and sold it dirt cheap on craigslist and ebay.

      if that happens with the iphone, we will all be rockin like 3-4 of em, testing beta apps, brickin em left and right.

      NO FEAR!

      imagine what we can do with these phones when they are cheap and easy to get.

      let em have em cheap. then they realize its a laptop and to much work and quit. selling them to us!
      Good call. I cant wait!

      I think they might be releasing it sooner than people think. I just bought a new iphone from AT&T and they said they were running low. Before I went there I was at an apple store who did not have any in stock. I also tried to order one from apple online and It would have been almost a month before i would get it. So they most definitely stopped making the old ones and are no longer pushing them to the stores.

      One more thing. If there selling these subsidized for half the price with a two year agreement we should be able to buy one full price without a contract. You know unlocked!

      If these rumors are true apple & AT&T would have had to revise there contract.
    1. gwarf420's Avatar
      gwarf420 -
      I think this rumor is completely feasible if not credible. When the iPhone was first announced, many people were disappointed and surprised that Apple chose to bind themselves to one Carrier. Recently, Apple has been quoted that they are "not married to any business model" and instead "married to ... shipping the best phones in the world." I think, in an effort to gain even more market share, with the new iPhone, a new business model will come into effect.

      This will be a wise change from the current model of selling the phone at full price and hoping that you go home and sign up for AT&T like they tell you to instead of unlocking it. Rather than limit their sales of the phone to would-be, proposed, AT&T customers and risk unplanned losses due to the failed battle against unlockers , fully unlocked phones will be available through Apple stores at full price while AT&T stores will sell locked versions at a subsidy requiring a signed 2 year contract at point of sale. This would provide an incentive for people that are willing to renew their contract or move to AT&T but still allow Apple to sell to other markets (which will reduce the desire/need for customers to unlock their phones in the first place).
    1. pospower's Avatar
      pospower -
      I didn't believe the hype about still being eligible for an upgrade after buying the iphone. I was under the impression that I had to agree to a two year extention just to activate it. I actually remember checking off something to this effect when I activated my Iphone day one.

      But I just checked my account and this is what I found.

      This line is eligible for equipment discount pricing when you sign up for a 2-year service agreement. You can also take advantage of our no-commitment pricing option.

      So looks like i'm signing up for 2 more years of ATT
    1. BustAGroove's Avatar
      BustAGroove -
      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'm in the same pickle, too....the bonus for me might be that my IPhone is useable on T-Mobile's network.

      Quote Originally Posted by Iman07 View Post
      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.
      T-Mobile is "supposedly" launching 3G service in NYC this week.

      http://tmonews.com/2008/04/more-3g-release-news/
    1. hozay09's Avatar
      hozay09 -
      Quote Originally Posted by BustAGroove View Post
      I'm in the same pickle, too....the bonus for me might be that my IPhone is useable on T-Mobile's network.


      T-Mobile is "supposedly" launching 3G service in NYC this week.

      http://tmonews.com/2008/04/more-3g-release-news/
      Wouldn't do any good considering it is being launched as a 3G voice rather than data..

      http://www.boygeniusreport.com/2008/...-data-support/

      "3G is the next generation of our wireless network, following our current GSM network. In this early phase of our network evolution, 3G is a new technology for carrying wireless voice calls and supporting existing data capabilities on our network. In future phases, this next generation network will power ‘high-speed’ (3G) products and services that connect customers in new and exciting ways. … Inform customers who are interested in high-speed data that the first phase of our 3G roll out supports voice only."
    1. haydeniphone's Avatar
      haydeniphone -
      As much as I hope this is true...I won't get too excited about this "insider" bold pricing claim just yet...this sounds way too good to be true so I'll have to see it to believe it...but whatever the price...I'll be handing my 8Gigger that I stood in line to buy when they hit the streets down to my Wife and wait in line to get the 3G model.
    1. ankitsid's Avatar
      ankitsid -
      so wait is this already out or like by when will it be


      my contract ends in november
      so i was thiking heyy i might aswell upgrade to an iphone maybe sell my ipod or somthing:[



      but yeah man
    1. wra1979's Avatar
      wra1979 -
      if you bought a iphone, you are eliagable for another iphone at ANY point in your contract ( as long as we, meaning AT&T don't change our rules for iphones) I work for AT&T and when the 16gig came out there were plenty of people that upgraded their 4 or 8 gig ones for the 16. It did'nt even reset your contract date. If you were to try to upgrade to a non iphone then you would not be eliagable for any phone other then a iphone. I will try to keep people updated if this information changes, but as of May 2,2008 at 2:00 EST that is how the rules work.
    1. 98xploder's Avatar
      98xploder -
      Quote Originally Posted by exNavy View Post
      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.
      you CAN buy refurb phones on att website. thought youd like to know.
    1. haydeniphone's Avatar
      haydeniphone -
      Remove the iPhone from the equation for a minute...on every phone AT&T offers...you had to be eligible for an upgrade and be willing to sign a 2 year contract TO GET A DISCOUNTED PRICE for the phone...or...for those not eligible...you could buy it for a non-committal full price...now put the iPhone back in to the equation and that is essentially what you currently do when you buy the iPhone...you're paying a non-committal full price for it and you will always be able to do that...but if they do start the discounts with a 2 year agreement...from that point on you will have to wait until you are eligible IF YOU WANT THE DISCOUNT...or you can just fork out the full price...quite simple actually.
    1. kingroach's Avatar
      kingroach -
      is it a good idea to sell my iphone ( which I can sell for about $350 and I have the reciept) and buy a new one when the 3G version comes out.. I really dont care about 3G since I will be using t-mobile but GPS is nice..
    1. Aiyo's Avatar
      Aiyo -
      I'm going to keep my iphone instead of selling it and give it to my mom or dad while i get this one.. You may never know, the new iPhone maybe harder to hack or maybe "impossible" to hack..
    1. runCMD's Avatar
      runCMD -
      Quote Originally Posted by shawn o View Post
      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....
      I checked my account online and found I am eligible regardless of the fact I still have a year left on the existing contract ...

      I selected [upgrade my equipment] and it showed an iPhone and a selection button for choosing it to upgrade from. To the right of the image the text said:
      DONNY XXXX, 706-490-XXXX
      This line is eligible for equipment discount pricing when you sign up for a 2-year service agreement. You can also take advantage of our no-commitment pricing option.
    1. kamy's Avatar
      kamy -
      Great, now maybe I can afford to buy a new ihpone...

      Some jackass stole mine out of my lacrosse bag :S
    1. Wongster360's Avatar
      Wongster360 -
      Quote Originally Posted by shaharyar View Post

      That's a very good point, lowering the price of the iPhone would drop the iPhone's value as a status icon.
      omg this just cracks me up....you can't be serious....
    1. x5452's Avatar
      x5452 -
      Quote Originally Posted by runCMD View Post
      I checked my account online and found I am eligible regardless of the fact I still have a year left on the existing contract ...

      I selected [upgrade my equipment] and it showed an iPhone and a selection button for choosing it to upgrade from. To the right of the image the text said:
      You are lucky, I just checked my account and and clicked upgrade phone and it said this equiptment is eligible for upgrade in 10-09 ??