AT&T to offer 3G iPhones for as little as $199

The hotly anticipated second-gen iPhone may be considerably cheaper than its predecessor, according to a post on Fortune Magazine’s Techland blog. In the post, Fortune says AT&T will swallow $200 of the cost of the updated iPhone, bringing it down from an expected $399-499 to as little as $199. A couple of hundred bucks is still a lot to pay for a phone, but it’s nothing compared to the $599 Apple asked for the 8GB iPhone last summer.

Fortune’s blog post goes on to say the AT&T subsidy will be tied to a two-year contract and won’t be available to people who purchase the iPhone directly from Apple. Of course, buying an iPhone today already means a two-year lock-in with a $59.99-a-month (or more) AT&T contract, so little may change there.

Echoing a recent report by Engadget, Fortune adds that the next-generation iPhone will have 3G connectivity, a built-in GPS, and a slightly altered form factor compared to the original. Apple has yet to even confirm the device’s existence, let alone reveal a release date, but Fortune says a debut close to the iPhone’s June 27 launch anniversary is likely. Indeed, Walt Mossberg stated in early April that the 3G iPhone would come out in “60 days,” and Apple’s 2008 Worldwide Developers Conference is scheduled to take place from June 9 to June 13.

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    • StashTheVampede
    • 11 years ago

    As one person in the market for a new phone that has an EXCELLENT web browser, I am definitely clamoring for cheaper iPhones.

    • DrDillyBar
    • 11 years ago

    Apparently Rogers is bringing the iPhone to Canada soon…

      • adisor19
      • 11 years ago

      Ya, i’m guessing they’ll rape us with pathetic data limits and plans costing 90$+

      Again thanks to our lovely government that allowed them to buy Fido in 2004 and thus create a GSM monopoly.


    • elty
    • 11 years ago

    I doubt AT&T will double subsidize (monthly fee to Apple, and hardware cost to user) on the latest phone. Maybe to clear out the existing inventory.

    • Hattig
    • 11 years ago

    A possible reaction to the credit crunch – less consumers are willing to put down $400 up front for a mobile phone in such times. Apple eats a bit of its profits, and AT&T hopes that iPhone users spend more to make up for its costs.

      • Knuckler
      • 11 years ago

      Once people start getting their rebate check, they might be willing to

    • nagashi
    • 11 years ago

    That’s a heck of a price, especially with forthcoming exchange compat (I could care less about it, but sure as hell it’s a major feature for some folks). I’ve been holding onto my samsung a717 because it’s a flipphone, but at that price, I might have to bite. Wireless browsing is painfully slow right now.

    Has anyone managed to get an iphone working with linux nicely?

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