Apple chief executive Steve Jobs likes to wow the crowd during his keynote addresses with his “boom!” moments and then saves the best for the end with: “One more thing…” This summer, potentially at the WWDC conference, he may have two perfect candidates. The “boom” would be the 3G iPhone. The “one more thing” could be its price: $199.
Yes, you read that right.
When the 3G iPhone is released this summer (and we are saying “when” and not “if” at this point), AT&T is ready to shave as much as $200 off the cost of the phone, according to Fortune, which has a source familiar with the matter. This discount would be applied when customers sign a new 2-year agreement.
If true, this is big news. Plenty of people out there were planning on buying the 3G iPhone at $399, $499 or even $599 if need be. If the device comes in at $199 and $299 after the discount, the saying “flying off the shelves” may have to be redefined.
Rumors have been around for a while that Apple and AT&T would discount the current crop of iPhones when the 3G model hit, but this is the first time anyone has said that the companies would be willing to lower the price of the new 3G version.
It wasn’t even a year ago that the iPhone was launched to the public at the steep price of $599 (the 4GB version, which no longer exists, was only $499). There was some public outcry because AT&T was not subsidizing the cost of the phone even though purchasers had to sign a 2-year contract with the company. A few months later Apple decided to slash the prices by $200, and now we’ll have our subsidizing — making for a very affordable $199 iPhone.
The newer 3G (the cellular broadband network, faster than the current network, EDGE) iPhone models are expected to come in the current capacities of 8GB and 16GB. However, the larger, 32 GB capacity which Apple uses for the iPod Touch, should not be ruled out either. The older models would be discontinued.
If this price-cut is in fact intended for the 3G iPhone and not the older models, BlackBerry and other smart phone makers are in big trouble. Not that they weren’t already.
The Fortune piece goes on to say that the new iPhone will be 2.5 mm thinner than the current version (which goes against the reports from a few days ago), will have a GPS chip (which has long been rumored) and interestingly, “other location-based services.”
update: I was just chatting with a friend who shied away from buying an iPhone last year and wasn’t sure about getting one this time around. When I told him about the new potential $199 price, without hesitation his reply: “I’ll be getting one then.”
[photo: flickr/William Hook]
Related news, commentary, and predictions:
- Prediction: 3G iPhone arrives within 60 days
- Prediction: No next generation iPhones in the US before August 2008
- Prediction: More than 200 applications available at iPhone App Store launch
- Ian Lamont: The real problem with Google's Blogger service: Neglect
- Ian Lamont: Sony's PS3 Home timeline goes from bad to worse
- Ian Lamont: Why podcasting is failing
- Opinion: 10 'Net services that will succeed (and 10 that will probably fail)
Reprinted with permission from VentureBeat. Story copyright 2008 VentureBeat Inc. All rights reserved.
Comments
The Iphone should come with that tag only if it slashes oter features like Storage space ...etc ... I mean a 3G phone in 200$ ? get real !! Even mobiles in India dont cost this much !!
http://www.buy-3g-iphone.com/
does the new iphone come with everything that the regular one does, like the camera, internet,phone,ipod,gps? because those things should be included if not already.
An iphone with a contract will surely not sell here in the philippines. Its a hidden cost that's hated by 90% of the populace. I hate to say this but its real. Im so sorry to sound like this but the cheap chinese iphone clones would prevail given this situation, the poor wants to have videos for their loved ones, make use of all the existing networks for economy, use texting because it's affordable and access the internet for their young school children to have more food for the brain, even in a half full stomach! Thats the real thing. Majority can't afford 3G 8GB black Apple Iphone only the hundred dollar iphone clone made in china!
A 3G 8GB black Apple Iphone 2 smartphone is a valuable and gorgeous phone but it could not help deserving people whose qualities are thwarted by poverty. And Im sure a low cost $100 chinese clone will bring pure happiness and not a lot of trouble - a sure refuge, a true friend, a comfort and aid in their weakness, making poverty a lot bearable - inciting them to noble deeds.
There are only roughly 700 billioners in the whole world of more than 6 billion people. 65% of that earns less than $2,000 per annum - that's 4billion people. Where will the 3G 8GB $200 apple iphone 2 go? For sure, to the hands of those 700 billioners only. And what will the 4 billion poor do to amuse themselves and help educate their children? Look at the ceiling? No! But, im sure they will find a way to have a $100 clone from china.
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