Cheaper iPhones?

Since Apple first announced the iPhone, many have been pointing out that it costs quite a bit. Undoubtedly, the device costs quite a bit to make, and Apple has never had a reputation for being cheap, quite the contrary. However, come June, customers ma find that the device costs less than they expected.

American Technology analyst Shaw Wu cited sources that Apple is seriously considering a mail-in rebate or carrier subsidy for iPhone of $50-150.
"We are hearing rebates of $50-150 that will be offered by AT&T to lower the price points for iPhone (currently $499 for 4 GB and $599 for 8 GB) and to entice customers to sign longer term voice and data contracts," the analyst wrote. "From AT&T's perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in 'guaranteed' bi-annual revenue."

The iPhone has already proven that it is very popular, and with a large enough wave of new customers, such rebates could cut even more off the device’s price tag.

Both Apple and AT&T expect to see a lot of the little devices going to existing customers, as well as new ones. It seems that Apple and AT&T have already worked out a system where the Cupertino Company gets a "bounty" for each AT&T customer it signs up through its retail and online stores. The Apple Stores are already well known and see a lot of business. Undoubtedly, existing Apple customers will prefer getting their iPhone from the ‘usual place’ rather than from AT&T, which works out well for Apple.

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