Cell Phone News

Apple may just cut iPhone 3G price - $99 iPhone 3G!

By Will Park on Tuesday, October 28th, 2008 at 12:34 PM PST In Apple, Devices, Financial, Rumors, iPhone, iPhone OS

price cut Apple may just cut iPhone 3G price   $99 iPhone 3G!Apple’s success with the iPhone and iPhone 3G were recently highlighted when the company released it’s financial statements just last week. But, Apple (NSDQ: AAPL)’s method of accounting for the iPhone 3G’s financial contribution on the Cupertino-based company’s bottom line has reduced its perceived impact.

When taking into account Apple’s actual iPhone sales, Apple is making a killing on its iPhone line of mobile phones. That means Apple is making more money on the iPhone than they’ve announced, and they’re dealing with higher profit margins than most (if not all) smartphone manufacturers on Earth. As such, Apple is in a position to significantly drop the price of its entry-level 8GB iPhone 3G handset while still maintaining a profit margin near 50%.

The prevailing winds of speculation on the various interwebs suggest that Apple will be dropping the price of its lowest-end iPhone 3G to just $99 in 2009. The price-cut would enable Apple to go after a much larger market share - specifically, the demographic that wants an iPhone but just can’t afford the $200 price-tag. And, it wouldn’t be too much of a surprise to think that Apple will introduce a more high-end addition to the iPhone 3G lineup.

We’ve speculated that Apple might be working on a high-resolution version of its iPhone 3G for release next year. The iPhone HD, as many have come to call it, may feature a WVGA or VGA touchscreen (capacitance-based) to help fend off advances from the likes of the HTC Touch HD. A higher megapixel camera isn’t out of the question either.

It’s almost an accepted reality that Apple will introduce an iPhone 3G with more storage capacity to keep consumers interested in the iPhone 3G - the current range-topping 16GB iPhone 3G would be replaced by a 32GB iPhone 3G. Although, it remains to be seen if the 32GB iPhone 3G and the speculated iPhone HD will be one and same handset.

In the end, we’re expecting an 8GB iPhone 3G for $99, 16GB iPhone 3G for $199, and a 32GB iPhone 3G (possibly iPhone HD?) for $299 or more in 2009. Of course, a healthy spoonful of salt is in order here.

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7 Comments on “Apple may just cut iPhone 3G price - $99 iPhone 3G!”

  1. Tom says:

    Great, I will be buying one!

  2. justin says:

    sucks for rogers/fido customers who are tied into 3 year contracts and wont be able to get new iphones for a longgg time.

  3. mike says:

    well it’s not apple that sells iphone, it’s the carriers. and they are subsidizing the phone as well. different carriers are subsidizing the phone by different amounts. some carriers are already throwing iphones away at $0 (telstra, reliasonera, t-mobile, tim…). so if att decides to sell iphone at $99 sometime 2009 they might well do that. they might sell it at $0 as well.

    not really apples decision.

  4. JonnyBruha says:

    Sauce? No.

    They better do something to compete with the 5800.

  5. Larry ramsey says:

    Well I think if they do have a cheaper price on the I phone people will get mad because they keep paying a set price apple needs to find a price and stick with it

  6. AMIT ANAND JAIN says:

    I have used Nokia through out and windows mobile but
    The concept of iPhone in the recent years have rocked many mobile players especially NOKIA and the windows mobile in the multi touch areas.

    However i feel that iPhone can beat any giant if it reworks the following concept
    in its handsets -

    1. Camera quality atleast increased to 5MP or 8MP with Flash + Autofocus
    2. Message forwards access to be granted (like any other handset)
    3. video recording access to be granted (good quality)
    4. Bluetooth 2.0 A2DP or maybe even higher without any restrictions of use (like
    any other high end handsets)
    5. Good Support of latest updates which can be EASILY updated by the CONSUMERS.
    6. Contract and without contract versions to cost almost the same in all countries.

    These are my views, and im sure if iPhone does not change its concept with the
    moving trend then other players would definitely get ahead spoiling the reputation
    of iPhone.

    Best Regards,
    Amit Anand Jain

  7. Martin DH says:

    I was going to buy one when I set aside the money but with this price I’d definately buy it asap.

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