Rumor: 3G iPhone to sell for US$199

Rumor: 3G iPhone to sell for US$199

Summary: In Fortune's TechLand blog Scott Moritz cites a "person familiar with the strategy" as saying that Apple will drop the price of the new 3G iPhone as much as US$200 when it's launched this June. The only catch: buyers will be required to sign a new two-year contract.

SHARE:

Rumor: 3G iPhone to sell for US$199In Fortune's TechLand blog Scott Moritz cites a "person familiar with the strategy" as saying that Apple will drop the price of the new 3G iPhone as much as US$200 when it's launched this June. The only catch: buyers will be required to sign a new two-year contract.

AT&T is preparing to subsidize $200 of the cost of a new iPhone, bringing the price down to $199 for customers who sign two-year contracts, the source says. Apple is expected to have two versions of the new iPhone, an 8-gigabyte-memory and a 16-gigabyte-memory model with price tags widely expected to be $399 and $499.

Moritz confirmed some other 3G iPhone rumors with his source:

The new iPhone will be 2.5 mm thinner than the 11.7 mm original. The iPhone will also have a GPS chip for navigation and other location-based services.

If the price drop rumor is true it'll make Apple's goal of selling 10 million iPhones in calendar 2008 that much more attainable.

(image courtesy: Cleveland Leader)

[poll id=119]

Topics: Mobility, Hardware, iPhone, Networking, Wi-Fi

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

28 comments
Log in or register to join the discussion
  • But..But Wait...No_Ax Predicted This Wouldn't Happen!!

    Oh Lordy...THREE predictions to fall?

    Vonage
    Yahoo takeover...

    Now the IPhone selling 10 million???

    Man, this is gonna really hurt Don's reputation here.
    itanalyst2@...
    • You forgot he also predicted OOXML approval (N/T)

      (N/T)
      markbn
  • RE: Rumor: 3G iPhone to sell for US$199

    Will it still be available only on AT & T ???
    RobShiflet
    • Of course it will

      Apple and AT&T signed a 5 year deal - remember?
      Wolfie2K3
  • RE: Rumor: 3G iPhone to sell for US$199

    Wow! if this happens RIM will be BlackBuried!!
    Acatanese@...
    • Unlikely...

      Too many people take issue with the iPhone virtual keyboard - myself included - for it to seriously take a place in the enterprise solution. Big fingers like to have specific spots to feel for with their fingers.
      alfred321
    • Hardly...

      Carrier exclusivity, all touchscreen, lack of hardware/software encryption....these are all things Apple will have to address before making a dent in RIM's hold on the Enterprise. Apple unfortunately is still catering to the consumer, not the business user.
      jmiller1978
    • Buried?

      Doubtful....
      I would get it as a playtoy... second to my Q
      rhonin
  • RE: Rumor: 3G iPhone to sell for US$199

    I replied YES i would buy it at that price... but I'm in Canada... Who will match AT&T in Canada?
    sawatzky
    • iPhone to be sold by Rogers

      I read the other day that Rogers (the only GSM network in Canada - Fido uses their equip.) has finally come to an arrangement with Apple, so it will be coming soon.

      But I don't like the locked-phone concept so I'm going to pick one up in Indonesia in the summer, so I can then use it here and there without paying through the nose for long distance roaming.
      jagiordano@...
    • can't resist

      Eh? T and T

      sorry :-)
      Paul Fletcher
  • When's it coming to the UK

    Does anyone know when it's coming to the UK> I want an iPhone but it must be 3G
    rboud@...
  • RE: Rumor: 3G iPhone to sell for US$199

    Being a developer at bobchatter.com the company will need
    to purchase an iPhones for development purposes. Question
    is 3G worth the wait....
    LonestarBeer
  • I'd be surprised if Apple subsidized

    That's really not Apple's business model, I'd be shocked to see them do it.
    coffeeshark
    • AT&T would be doing the subsidizing. (nt)

      .
      ye
      • read too fast

        my fault for skimming, thanks.
        coffeeshark
  • RE: Rumor: 3G iPhone to sell for US$199

    apple better watch they do not offend their allready large iphone base, who are allready stuck in to large contracts.
    four legs good
  • You may want to update the article to clarify who...

    ...will be offering the subsidy. The article states:

    [i]"[b]Apple[/b] will [b]drop the price[/b] of the price of the new 3G iPhone as much as US$200"[/i]

    But the quote says:

    [i]"[b]AT&T[/b] is preparing to [b]subsidize[/b] $200 of the cost of a new iPhone,"[/i]

    Everything I've read states AT&T will be offering a subsidy and not that Apple will be dropping the price.

    On another note looks like the iPhone isn't selling nearly as well as Apple expected with a 66% price drop in a year.
    ye
  • No different then other manufacturers

    The service providers subsidize the phones they sell, as they can make it back in the service contracts, while the manufacturers sell it to them at a price needeed to make a profit.

    This sounds no different then any other phone sold on the market by Verizon, AT&T, ect.
    GuidingLight
  • RE: Rumor: 3G iPhone to sell for US$199

    Pity that Apple doesn't release iPhone for other carriers. I know that being a "Strategic Alliance" with ATT will give you certain advantages but you lose users like me which was carrier diversity so a failure on one carrier should affect me on another carrier.
    phatkat