Massive iPhone price cut rumored this summer

Wed Apr 30, 2008 11:48AM EDT

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Though nothing's official, stories far and wide are reporting that AT&T is preparing to radically cut the price on the Apple iPhone, all the way down to as low as $199, when the new (and still unannounced) version of the phone arrives in stories this summer.

That's a surprise for a number of reasons. First, Apple and AT&T have both stood their ground against subsidizing the phone since its introduction, focusing instead on trying to make as much money on the hardware as possible and attracting a crowd that's not afraid to pay for the luxury. Given that Apple has long claimed that iPhone is selling in the U.S. up to expectations (overseas is a different matter), such a large price cut is unusual.

Of course, Apple famously cut the price on the iPhone once before, after clearly realizing the cost was simply too much for the competitive space it was in. (Don't expect another $100 coupon this time, folks.)

So what's really going on with this? If the price cut rumors are true (and I have no reason to suspect otherwise), maybe this isn't just a ploy to increase sales. In fact, the New York Times' Saul Hansell offers two plausible scenarios: One, that AT&T is planning to increase the price of the unlimited data plan it bundles with the iPhone (Hansell notes that data is $45 a month for a Blackberry vs. just $20 for an iPhone). Two, that Apple may be planning to roll out unlocked iPhones in the U.S. at a premium price.

I strongly suspect the company will not offer an unlocked phone this year, but I think Hansell's argument for a more expensive data plan makes sense. AT&T will probably throw in some more beans to make it seem like you're getting more. One guess: Unlimited text messages, and possibly unlimited voice calling too, all bundled together into one iPhone-centric service plan, much like all the cellular companies have recently begun to offer.

We'll find out the truth of the matter soon... summer is almost upon us, and Jobs must be itching to hit the stage. 

Comments on Massive iPhone price cut rumored this summer

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  • 1 Posted by jonjon19752001 on Wed Apr 30, 2008 2:46PM EDT Report Abuse

    that would be great about the price cut considering how the economy today is slow.

  • 2 Posted by rogueist on Wed Apr 30, 2008 3:31PM EDT Report Abuse

    It will be thinner and lighter, available in 8Gb and 16Gb versions, $399 and $499 un-subsidized, $199 and $299 subsidized.

  • 3 Posted by rogueist on Wed Apr 30, 2008 3:32PM EDT Report Abuse

    Oh, and it will come with a built-in GPS chip as well (finally).

  • 4 Posted by domrep7@sbcglobal.net on Wed Apr 30, 2008 3:43PM EDT Report Abuse

    Folks, I have been waiting with CASH on hand for the new 3G Iphone. But if ATT raises the data package to $40+/mo I will be getting something else. I can not afford that every month and I doubt too many peope can ! Lets leave the price at $400 and the data package at $20. I can afford that !!!!

  • 5 Posted by paul_soares on Wed Apr 30, 2008 9:23PM EDT Report Abuse

    The only thing stopping me from buying an iphone is the inflated price. $199 seems much more reasonable, given the hefty competition.

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