The iPhone sequel (sweeter than the 1st) Sure the 1st iPhone was/is a huge success, but how could the sequel (3G iPhone) be even sweeter? How does $199 sound? According to Fortune , AT&T will be selling the 3G iPhone for $199 with a 2 year contract.

"AT&T (T) is planning to put some extra shine on the even sleeker new Apple (AAPL) iPhone.

When the 3G iPhone is introduced this summer, AT&T, the exclusive U.S. iPhone sales partner with Apple, will cut the price by as much as $200, according to a person familiar with the strategy.

AT&T is preparing to subsidize $200 of the cost of a new iPhone, bringing the price down to $199 for customers who sign two-year contracts, the source says. Apple is expected to have two versions of the new iPhone, an 8-gigabyte-memory and a 16-gigabyte-memory model with price tags widely expected to be $399 and $499.

The new iPhone is expected to be released on the one-year anniversary of the original iPhone debut June 27 or thereabouts. A few weeks prior to that launch, Apple is planning to stop supplies of the older model iPhone, according to the source. This will help clear out inventory and stir up demand for the new device. It will also attempt to avoid the public relations pratfall Apple made when it cut the price of the iPhone without warning last year. To soothe the ire among people who bought the iPhone just before the sudden markdown, Apple issued store credits.

A few details about the new iPhone have also been confirmed by the source. The new iPhone will be 2.5 mm thinner than the 11.7 mm original. The iPhone will also have a GPS chip for navigation and other location-based services."

Word on the street is the $199 price will only be available at AT&T stores. Apple stores will be selling an 8GB $399, and 16GB $499 (possibly unlocked) iPhone at a premium because we all know how easy and what lengths people will go to unlock the iPhone.

Labels: apple. iphone, att

  ¶ posted by Jimmie Geddes, Editor @ 4/29/2008 06:15:00 PM