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Fortune: AT&T to Slash 3G iPhone Price, Hosing Existing iPhone Owners

Posted Apr 30, 2008 01:02pm EDT by Aaron Task in Investing, Electronics

The 3G iPhone isn't even out yet but AT&T is already planning steep discounts to lower the cost to $199, Fortune reports.

Such a move is destined to frustrate a lot of people who've recently bought existing-model iPhones, which Fortune also says Apple is planning to phase out.

Arguably, it makes more sense for AT&T to subsidize older iPhones and take advantage of pent-up demand for the 3G iPhone by charging full price, at least initially when the phone is launched -- presumably mid-summer.

But if the Fortune report is true, AT&T would be taking a big step in making the 3G iPhone accessible to the mass market. AT&T will also give Apple a major leg up in its battle for smartphone supremacy over Research In Motion, although that market looks big enough for the both of them.

50 Comments

jim
jim - Wednesday April 30, 2008 01:11PM EDT

'Hosing Existing iPhone Owners' ... What a stupid, inflamatory headline. But I suppose that was your intention, clowns.

DavidK
DavidK - Wednesday April 30, 2008 01:11PM EDT

When did rumors become facts ?

PeterM
PeterM - Wednesday April 30, 2008 01:20PM EDT

These guys actually get paid for discussing rumor? Stupid me, I work for a living.

lo lo
lo lo - Wednesday April 30, 2008 01:24PM EDT

I think its a graet idea now i can get my hands on a iphone

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 01:25PM EDT

These two come off as a coupla losers that weren't smart enough to buy aapl when it was $120, and now they are just making up any excuse to sooth their damaged egos. Price, e-mail, corporate networks, blah, blah, blah. The same old complaints, the same losers whining.

Allen
Allen - Wednesday April 30, 2008 01:26PM EDT

Other statements like older iphones being obsolete are ridiculous! Had mine since day one and it will be reborn with software version 2.0. It only gets better not out of date.

Vix
Vix - Wednesday April 30, 2008 01:29PM EDT

Get a clue. Technology prices drop.

cmg
cmg - Wednesday April 30, 2008 01:31PM EDT

So how is this any different than any new product where the first people to have it pay the most and those who wait buy it cheaper....it's always that way. Why is AT&T/Apple treated differently?

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 01:31PM EDT

Anyone who wants to read about the TRUE nature of Scott Moritz, Cramer, etc. and the cabal: http://www.roughlydrafted.com/2007/08/05/more-on-scott-moritz-and-the-jim-cramer-street-misinformation-engine/ These guys are all colluding....SEC?

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 01:38PM EDT

Moritz is not to be trusted: http://www.roughlydrafted.com/2007/08/05/more-on-scott-moritz-and-the-jim-cramer-street-misinformation-engine/

Alex
Alex - Wednesday April 30, 2008 01:41PM EDT

One more example of a couple of young bucks who have obviously been raised to never incur any "hardships" in life. You buy what you want when you want to own it. That assumes you can afford it-but that's another story. No one coerced ANYBODY to buy an iPhone at any time. What happens to the price 10 minutes after the purchase is not relevant. Jim H is correct. This is an inflammatory article.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 01:42PM EDT

This is big news for Apple if true! I bought an iphone and don't feel hosed at all, it is the single best technology purchase I ever made, period. I made my decision on buying one based on if it was worth the price at the time and it has exceeded my expectations overall by a huge margin...technology always gets cheaper, that's not a rip-off but just reality. At $200 it opens up a huge new market for Apple..much more than the $400-$500 current cost.

Steve
Steve - Wednesday April 30, 2008 01:46PM EDT

Passing off rumors -- especially ridiculous ones -- as news again. The rumors, too, seem idiotic. Given that Apple isn't having problems selling the older phones at the current price, why would they want to cut the price for a FASTER phone? Similarly, I find it hard to believe that the old phones would be "obsolete." Apple may certainly stop SELLING them, but OBSOLETE implies that they will no longer work. Is there a news report somewhere saying that AT&T will be shutting down the current network? Silly report from silly reporters.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 01:51PM EDT

$199 is a great price point. This will be a major release.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 01:54PM EDT

Blu-Ray players are cheaper than Hi-Fi VCRs were a couple of years ago. A 10 megapixel camera is cheaper than the original Sony Mavica that saved pictures to floppy disks. iPods are cheaper now than the originals and have much higher capacity. The difference between all of these argument is the factor of time. Apple has accelerated the time between new technology and price drops. This is a good thing. If early adopters weren't willing to pay the price for a product, the time and resources wouldn't go into making the product better and cheaper. It is a necessity, not an issue to complain about. If you don't like it, don't buy it. Just keep talking on your brick cell phone!

Old Kayaker
Old Kayaker - Wednesday April 30, 2008 02:14PM EDT

And AT&T stock price jumps... very nice news for shareholders.

Jay4025
Jay4025 - Wednesday April 30, 2008 02:14PM EDT

I guess I'll have to buy mine after the summer.

Old Kayaker
Old Kayaker - Wednesday April 30, 2008 02:14PM EDT

And AT&T stock price jumps. very nice news for shareholders.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 02:15PM EDT

And AT&T stock price jumps. very nice news for shareholders.

Yahoo! Finance User
Yahoo! Finance User - Wednesday April 30, 2008 02:15PM EDT

And AT&T stock price jumps. very nice news for shareholders.

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