iPhone 3G only $99, it’s Possible
Some hot news for those of us that have with held buying an iPhone (all 2 of you). Word on the street is that Apple has had an excellent 4th Quarter, and with sales of iPhones surpassing previous estimations, there is some wiggle room when it comes to price.
The iPhone which currently resides in an exclusive contract with AT&T, sells for $199 with contract. Millions and millions of people jumped on board with the first iPhone came out, and the second generation was just as popular. With over 15 million iPhone sold worldwide, it has dominated the mobile market. Outstanding sales have given Apple a cushion in case the current economic downtown starts to effect sales, they can afford to drop the price of the iPhone to $99.
What would a $99 iPhone do to the market? For starters, with such a low barrier to entry, the iPhone will clearly bleed further into the consumer market, even those on the fence would be tempted to purchase, and the market dominance would only leave true niche mobile companies like Blackberry able to withstand the onslaught.
Conjecture? Possibly, but only time will tell. Get those Christmas wish lists ready and stay tuned for more info!
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4 Comments
Correct me if I’m wrong, but Apple and AT&T altered their contract when the 3g iPhone debuted; AT&T is now subsidizing the cost of the phone and counting on offsetting revenues from increased data charges. As such, wouldn’t AT&T be the one to make a call on reduced pricing?
Either way, I think both companies (certainly Apple) would want to maintain some degree of exclusivity with respect to the iPhone. Apple has always followed a pricing model that separates it from other manufacturers. Furthermore, since AT&T still has the sole rights to the iPhone, and demand has continued unabated, I see little reason for them to reduce the price.
Still, dropping it to $99 would, certainly, bring in more customers. Folks like me, of course, will be kicking ourselves for lining up on day one and purchasing it at $199 or more—similar to what happened with the first iPhone.
By the way, the posted picture is of the first generation iPhone, not the 3g model.
Thanks for the quick interest in the post. I firmly believe that AT&T will be in bed with one another for awhile still. While demand is unabated, with economic times being what they are world wide, Apple seems to have a plan on the back burner just in case sales dive.
As for paying $199, I wouldn’t worry about that too much. It’s the price we pay for early adopters.
Thanks for the notice on the pic. The one time I rely on Zemanta to provide me a pic it lets me down. I’ve always disliked their pic offerings.
As I’m an Apple fan, I’d like to see Jobs & Co. respond to those kind of market pressures and widen their market base by dropping prices. To be honest, though, I’d rather see them slash and burn prices for their computers—my wallet is still smarting from that MBP purchase!
Thanks to your post, I’m now wondering if Apple ever has yielded on prices because of overall market conditions. Some research may be in order …
Check out the U.S apple store and then compare it to the U.K apple store…. $99 for the iphone 3g 8 gig. however you want one in the U.K – still over £300 for the same specification. How does that work may i ask? especially considering the pound is worth more than the dollar at the moment! by nearly half!