New $199 iPhone is Just $599

[admin]

Fans of the newly announced $199 iPhone will soon be able to get it... for $599. Huh? According to a report on Reuters today, U.S. consumers who want the new iPhone but cannot or do not want to sign up for a new two-year contract with AT&T Inc will eventually be able to buy it for an extra $400... sort of. Maybe. Kind of.


Discuss "New $199 iPhone is Just $599" here. Read the article.

[FatStrat85]

It's a fair deal... If you want the freedom of not having a long-term contract, you can have it, but you have to pay extra for it. If you don't mind being with AT&T for 2 years, then you can get a nice discount on your phone.

[aberkowitz]

This is standard industry practice for wireless companies. Give the phone away cheaply and lock somebody into a guaranteed 2 year revenue stream, or make a customer pay the "true" retail price of the phone and make money off them anyway! I don't blame AT&T for doing it this way, and I don't think Apple can do a thing about it.

[Matt34]

Darn it, I read the title and thought I was going to have to ban Admin for spam.

[MapleSyrup]

I so need to start my own phone service.

Yup. Nothing out of the ordinary. I have heard though that the IPhone's reliability really isn't all that. Any insights?

[FatStrat85]

Reliability in what sense? It's very rugged. It always works. Service is dependent on the AT&T coverage in your area, but I get great service where I live (and all the places I've traveled, even fairly remote places). It's a pleasure to use. It's really a great device.

[birdonthebeach]

I have had my iPhone for a year, taken it around the world, and had no problems. Lives in my pocket most of the time, and I have had no issues.

And as mentioned above, this pricing structure is no different than that of any other competing device/provider....

[corysmith01]

Agreed, I don't know why this is news. The reason people get it for $199 in the first place is because AT&T is subsidizing it. That news was announced months ago, that AT&T would now subsidize it to bring the price down thus roping in more people knowing that the $200 subsidy they're offering is made up for within the first 3 months of service ($70x3 = $210...the new 3G data plans go up $10 from $20 to $30, giving a new base price of $69/month). If you don't want to sign up for a plan, then why should you get it for $199? No other carrier/phone maker does that. Why is this news?

I've had my iPhone for 6 months with 0 problems. I've dropped it a few times (I do have a case on it), I've travelled with it and I've used it for e-mail/maps/web/text/stock reports, all without fail. I was skeptical at first, but am now completely sold. It's a pretty genius product and I think the competitors agree seeing that now they're all following suit with "iPhone-like" smart devices.

[mike c]

Darn it, I read the title and thought I was going to have to ban Admin for spam.

me too! good thing there's no instant ban button next to the admin's name

[Clint DeBoer]

Edit: Incorrect info - article updated to reflect the exclusion that AT&T has given existing iPhone owners/subscribers.

I just thought it was notable that it's $199 for new subscribers only (or those out of contract). For anyone who bought one already an upgrade will cost full $599 or $699.

I actually know people who were selling their iPhones on eBay after the announcement because they figured they could buy a new one at $199. Apple didn't exactly make a big deal out of the subsidized part (and consequently the limitations) during its debut.

Additionally, if you read the fine print you can't just pick up a phone for $599, you must subscribe to some service with AT&T wireless as well... just not a contract.

Overall it's no big deal, but some may have thought that the new price was $199 and that if they opened an account 6 months ago they can just trade up - that's not the case.