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News
Apple to Allow $200 iPhone Subsidies
Sunday, June 8th, 2008 at 4:00 PM - by Jeff Gamet
Apple’s iPhone may be about to get what amounts to a price cut now that word has surfaced that the Cupertino company has agreed to let cell carriers offer the smartphone/iPod combo at subsidized prices. It looks like Apple is willing to let carriers knock as much as US$200 off the price of the iPhone, which would bring the current 8GB model down to $199 in the United States, according to the Financial Times.
People familiar with the matter said Apple has accepted that it needs to allow subsidized iPhone pricing in both the U.S. and western Europe. It also appears that the carriers are willing to absorb the subsidy costs, which means Apple likely won’t take a hit on the prices it charges to the cell companies.
Apple CEO Steve Jobs is expected to announce an updated model of the iPhone Monday morning during his keynote presentation at the company’s World Wide Developer Conference in San Francisco. The second generation iPhone will likely add support for 3G wireless data networking -- a necessity in several of the recently announced iPhone markets -- in addition to the slower EDGE support found on the current models.
New iPhone models coupled with subsidized pricing could translate into a substantial sales boost for the already popular handheld device, helping to ensure that Apple hits its 10 million unit goal before the end of 2008.
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