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Cheaper iPhone 3G, bigger returns?
Posted: Jun 12, 2008 3:53 AM

Despite slashing the cost of its iPhone 3G in half, analysts believe that Apple Inc. will still reap...[ View complete article ]


Message: Cheaper iPhone 3G, bigger returns? Post time: Jun 12, 2008 3:53 AM
 

Author: null

Level: Interns

Points: 115

Despite slashing the cost of its iPhone 3G in half, analysts believe that Apple Inc. will still reap significant profits on its latest handset.
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( 1 ) Reply:Cheaper iPhone 3G, bigger returns? Post time: Jun 12, 2008 3:53 AM
 

Author: null

Level: Interns

Points: 115

It has been widely reported by the business news outlets that AT&T and Apple have agreed to change their business relationship. AT&T will subsize the cost of the phone by $300 to $400 in the US implying a real price of $499 to $599. Apple will no longer get a cut of the service fees as they did with the first iPhone. AT&T will raise fees to help amortize the cost of the subsidy in a timely manner. AT&T has already warned that short term profits will be adversely affected, but profits should benefit greatly in the long run under these new terms.
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( 2 ) Reply:Cheaper iPhone 3G, bigger returns? Post time: Jun 12, 2008 2:10 PM
 

Author: kjmathew

Level: Interns

Points: 105

We'll have to wait till July 11th to find out, ha?! If Jobs announced that in almost all countries the 8GB iPhone 3G will be selling for a maximum of $199, I gather that operators may subsidize the iPhone to below $100 all the way to $0!!! The iPhone is an always-online network-hungry device and more importantly, it whets up it's owner's appetite for the network (Think instantly responding maps, BROWSER, IM, YouTube, mail, stocks, weather, location-based services, multiplayer networked 2D/3D games). It doesn't make sense if an unlocked-by-law iPhone sells in France for $199, when a "locked [apparently] subsidized" iPhone sells in the US for $199.
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