AT&T to determine pricing on 3G iPhone?
Posted by Will on Friday, May 23rd, 2008 at 1:09 pm under Rumors, Cingular/AT&T, Mac OS, iPhone, Apple
While Apple had the upper hand in telling what AT&T could and could not do or charge for the current-generation iPhone, the 3G iPhone could usher in a new age of carrier-based iPhone pricing. Speculation over the next-generation iPhone’s pricing scheme is rooted in an AT&T executive’s loose-lipped statement. AT&T CFO Rick Lindner spoke at the Reuters Global Technology, Media and Telecoms Summit yesterday and was caught talking about the upcoming launch that Apple still hasn’t admitted is happening next month.
According to the Guardian:
Lindner said AT&T has yet to determine pricing for a hotly anticipated new version of Apple Inc’s media-playing iPhone. “There’s not been a product announcement. There hasn’t been any pricing decision made. That’s yet to come,” he said.
Now the fact that Lindner is talking about a product that hasn’t had “a product announcement” coupled with the implication that AT&T would be determining the pricing structure for the upcoming iPhone makes for some juicy iPhone rumors on the eve of this long-weekend. If AT&T does indeed determine the next-generation iPhone’s pricing schedule, we could see a deeply discounted iPhone offered in return for a long-term commitment from subscribers - which is in line with subsidization rumors from other carriers.
Of course, iPhone subsidies would increase the iPhone’s appeal to potential customers, but I have a feeling that early iPhone adopters aren’t going to be too pleased at having paid full price to sign a 2-year contract with AT&T.
Stay tuned for June 9.
[Via: Guardian]
May 23rd, 2008 at 1:23 pm
No way! Apple has controlled every bit of the deal and there is no way their rules change with a second version… Here are my four reasons why:
http://www.gadgetell.com/tech/comment/iphone-subsidy-rumors-false-4-reasons-why/
May 23rd, 2008 at 3:10 pm
Yeah right…Apple has the pricing control 110%, and AT&T is still going to require the 2yr contract, guarenteed (this strict control that Apple has of the iPhone, is the exact reason Verizon declined a deal…which is too bad, cuz even with the stipulations Apple has, AT&T is far more successful having struck up a deal for the iPhone…suck on that Big Red!). Lets not encourage false hope. I strongly ‘beleive’ Apple will slot the 3g at the same or slightly less price than that of the current “2g” iPhone, but thats it! If theres any MAJOR price cutting, it’ll be on the old uns’.
May 23rd, 2008 at 3:30 pm
Whatever all this speculation is, it’s just that. Anyone’s guess makes it more interesting and we can only hope that the iPhone won’t be as ridiculously priced as the current one is. I’ve heard many rumors claiming that there will be up to a $200 discount, which could be the price if we sign up for a 2-yr contract $199+… but we will all find out what’s up in a couple of weeks on June 9th.
May 23rd, 2008 at 3:58 pm
Exactly, Ryan. It’s all speculation from some AT&T exec’s possibly misconstrued statement.
In the end, it’s more likely that Apple will continue to sell the current generation iPhone at a discount and offer the 3G iPhone at full price. But, keep in mind that there are also rumblings of multiple variants of the next-generation iPhone - which would mean multiple pricing tiers.
It’s going to be a long couple of weeks….
May 24th, 2008 at 10:35 am
Apple will allow for iPhone subsidy only in one condition - that AT&T will no have US exclusivity. If AT&T is allowed to subsidize iPhones, most likely not part of its original contractual agreements with Apple, then a modify contract would likely consummate as well. Apple is too smart to allow AT&T to change terms and not require a break from its exclusive deal with AT&T.
So - AT&T will lose its exclusivity, and iPhone will be available from multiple carriers.
May 24th, 2008 at 2:27 pm
Yeah, I’m pretty sure ATT’s endless rows of lawyers built in a subsidy clause into the original contract. It’s simple economics: The Iphone’s price -has- to come down. In the looming recession especially there is going to be no demand for a $500 phone, especially when the rank and file people can’t pay their cell phone bill.
May 25th, 2008 at 6:57 am
It will be $399 with no contract; $199 with a 3-year contract. Look for a $499/$299 version, as well.
and watch for “the flip”…..