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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. david agustin's Avatar
      david agustin -
      so if we have an iphone and would like to switch it for a 3g we cant i think apple should at least give us some store credit for it and lets us buys the new one
    1. gwarf420's Avatar
      gwarf420 -
      Quote Originally Posted by haydeniphone View Post
      ...this sounds way too good to be true so I'll have to see it to believe it...
      I don't see what is so hard to believe about this predicted pricing structure. Subsidizing phones has been done for years. You do know that cell phone companies do not subsidize or give away "free" phones out of the goodness of their hearts right? The money is in the back end (enslaving you into a service contract). AT&T makes very little if anything for the sale of the phone so to discount the iPhone to make sure you sign the dotted line rather than unlocking it, its in their best financial interest.
    1. CobraSVT's Avatar
      CobraSVT -
      Bad news people, i just talked to the manager of the local AT&T store that i know personally and he said. There WILL NOT be any discount for new 2yr contract prices, the 8GB will most likely be $600 and the 16GB will be $700. Also he did tell me the release date, and it will be June 15th. So any hopes of getting the new phones cheap is all of forgotten...sorry to bare the bad news but i had to inform you all.
    1. diggie2002's Avatar
      diggie2002 -
      Not to sound like a big puss but I feel cheated but excited at the same time. I'll just give my current one to my wife and get the new 3G version. Ebay is also an option although I don't k ow how much they'll be going for. Any input? Words of consolation?
    1. mikesgroove's Avatar
      mikesgroove -
      Quote Originally Posted by CobraSVT View Post
      Bad news people, i just talked to the manager of the local AT&T store that i know personally and he said. There WILL NOT be any discount for new 2yr contract prices, the 8GB will most likely be $600 and the 16GB will be $700. Also he did tell me the release date, and it will be June 15th. So any hopes of getting the new phones cheap is all of forgotten...sorry to bare the bad news but i had to inform you all.
      Sorry, but I don't believe this. Manager or not, there's no way he knows the price point or release date of the new iPhone.
    1. CobraSVT's Avatar
      CobraSVT -
      He would have no reason to lie to me. He has a iPhone himself and loves it, yet he can't even get discounts on them. He knows for a fact that there will not be a 2yr contract price. As for the release date, he might be wrong but knowing the fact of that it wont have 2yr contract prices is what was more important to me in the first place.
    1. wra1979's Avatar
      wra1979 -
      trust me he does not know any more about the new iphone then you do. and he DID get a discount on his iphone. i also work for AT&T and I got a 10% discount on both my 8 gig and my 16gig. so it seems like you got lied to during the whole conversation. did he have any used cars to sell you also?
    1. lotush2002's Avatar
      lotush2002 -
      Quote Originally Posted by wra1979 View Post
      trust me he does not know any more about the new iphone then you do. and he DID get a discount on his iphone. i also work for AT&T and I got a 10% discount on both my 8 gig and my 16gig. so it seems like you got lied to during the whole conversation. did he have any used cars to sell you also?
      lol, pwned!!

      Everyone knows about the subsidized price, hell i heard it on the radio the very next day. It just seems a little strange that out of everyone else in this country, this ONE ATT STORE manager seems to have different info. Somebody is lying, and it certainly aint me.
    1. CobraSVT's Avatar
      CobraSVT -
      Ill ask around more and see what i can get.
    1. Napoleon_PhoneApart's Avatar
      Napoleon_PhoneApart -
      Quote Originally Posted by CobraSVT View Post
      Bad news people, i just talked to the manager of the local AT&T store that i know personally and he said. There WILL NOT be any discount for new 2yr contract prices, the 8GB will most likely be $600 and the 16GB will be $700. Also he did tell me the release date, and it will be June 15th. So any hopes of getting the new phones cheap is all of forgotten...sorry to bare the bad news but i had to inform you all.
      Well, judging by the info that issued from the mouths of AT&T managers and employees prior to the iPhone's launch, we can file this guy's comments under "BS."
    1. njosnavelin's Avatar
      njosnavelin -
      Quote Originally Posted by kamy View Post
      Great, now maybe I can afford to buy a new ihpone...

      Some jackass stole mine out of my lacrosse bag :S
      Well that's what you get for playin lacrosse.



      On a serious note, I just sold my 8gb today for 280euro (430 dollars!). I actually feel a little guilty. I have a question though. The 8GB is currently sold out in UK so does this mean the 3G phone will be released simultaneously all over the world? (Unlike it's debut release)
    1. Mann22's Avatar
      Mann22 -
      this is gr8 for me. My son cracked his screen and all the repair places have the screens on back order. Now I can go 3G for $200 and give him my iPhone to replace the broken screen. Yippy!
    1. silverg4's Avatar
      silverg4 -
      Here's a thought, but first let me apologize if this has been mentioned already in a previous post. Apple makes money selling iPhones as well as a contract kick back from AT&T right? The iPhone pretty much sells itself, even at this price point right? What is the incentive at this point for AT&T to subsidize? They don't make a dime on the phone itself just the contract, why eat $100+ just to get the same contract? Yeah, yeah, "everybody else does it" but were talking Apple here. My guess is the next gen iPhone will be unlocked. Unlocked at regular price and available at the Apple Store or $100+ dollars cheaper with a contract from AT&T. This way Apple is free to do more. AT&T phones can be activated in-store. Just a hunch, folks but it makes sense to me.
    1. Hackme's Avatar
      Hackme -
      I sold my iphone as soon as i heard this news. i got $370 out of it cause i unlocked it for a guy. sold within 10 minutes on craigslist. caint wait to get the 3g iphone this summer.
    1. Dakotafan's Avatar
      Dakotafan -
      and then do the same thing in another 7-9 months I assume? I don't get people.
    1. sogo's Avatar
      sogo -
    1. l2oXXol2's Avatar
      l2oXXol2 -
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      I also had a phone die on me [i.e. it took a bath and didn't wake up] and had to replace my iphone, so looks good and ready to rock out.
    1. ghandioncesaid's Avatar
      ghandioncesaid -
      I don't know if this has already been suggested but, since we're all eligible for upgrade anyway, and most of us plan on sticking with the non-subsidized iPhone for quite a while, why not upgrade to some free phone, sell it on ebay and then put that money towards your NEW iPhone. Thats what I did for gen one.