Report: AT&T to shave $200 off new iPhones

Wed Apr 30, 2008 11:11AM EDT

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That's the word from Fortune, which is reporting that AT&T plans on subsidizing upcoming iPhone models by as much as $200. However, other news outlets are throwing cold water on that prediction.

According to Fortune, AT&T is looking to slice up to $200 off the price of new iPhones, which could bring the total price tag down as low as $199 for the purported $399 8GB, 3G iPhone model. (Fortune adds that it expects the new phones to go on sale around June 27, which marks the one-year anniversary of the original iPhone.) 

The only condition: You'd need to get the new iPhone at an AT&T store—and not at an Apple store—to get the $200 subsidy.

Why the price drop? As Fortune points out, the average iPhone user spends twice as much on their monthly bill (about $100 or so) as does a typical cell chatter (about $50), so it behooves AT&T to get the iPhone in as many hands as possible.

But the New York Times' tech blog makes the case that Steve Jobs would probably never allow an Apple product to sell at a steep discount in a non-Apple store—and besides, if AT&T is simply looking to get more iPhones out there to make more money on data plans, what's the difference between buying one at an AT&T outlet or an Apple store?

Also worth noting: Fortune repeats the rumor that the new 3G iPhone will have built-in GPS, but also predicts that the new model will be about 2.5 mm thinner than the original iPhone—a prediction that contradicts the latest buzz (although it's in line with earlier rumors—confusing, I know).

So, for now at least, the 3G iPhone rumor mill is looking more unsettled than ever (and I haven't even mentioned the chatter about a supposed 3G iPhone mini). Expect the guessing game to continue until Steve Jobs' WWDC keynote in San Francisco this June.

Related:

AT&T to cut the price of Apple’s new iPhone [Fortune]

Comments on Report: AT&T to shave $200 off new iPhones

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  • 1 Posted by garza.sam@att.net on Thu Sep 3, 2009 4:06PM EDT Report Abuse

    Does this include the 3G Iphone. If so I might consider getting one, alhough I think the LG Vu will be better.

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