Apple May Discount iPhone Through Deal With AT&T
- added May 2, 2008
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- chilipeppers675
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Published reports that first appeared on the Web site of Fortune Magazine suggest that AT&T (T), which has an exclusive five-year deal to sell the iPhone in the U.S., is prepared to subsidize the device by as much as $200, slicing the purchase price as low as $199 for customers who sign a two-year service contract. Apple and AT&T declined to comment on the matter.
Such a discount could cause a surge in demand. At last count, Apple had sold some 5.4 million units, the vast majority of them for AT&T's network, even with price tags of $400 to $600—essentially unheard of in the U.S. cellular market. Impressively, AT&T says 40% of its iPhone users are new customers. Yet with rival smartphones like Research In Motion's (RIMM) BlackBerry and a new Palm (PALM) Treo selling for as little at $99 at some carriers, competitive pressures are building.
Such a discount could cause a surge in demand. At last count, Apple had sold some 5.4 million units, the vast majority of them for AT&T's network, even with price tags of $400 to $600—essentially unheard of in the U.S. cellular market. Impressively, AT&T says 40% of its iPhone users are new customers. Yet with rival smartphones like Research In Motion's (RIMM) BlackBerry and a new Palm (PALM) Treo selling for as little at $99 at some carriers, competitive pressures are building.
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- chilipeppers675
- 5 months ago
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