“Everything we’ve been told with regard to the iPhone’s pricing structure has suggested that the 4GB would hit at $499 and the 8GB at $599, and that this would be an on-contract price — expensive, yes, but likely still in the right range to keep sales brisk. New advertising allegedly leaked out of a consumer survey suggests that the 2-year contract price could come in a full two hundie lower, though: $299 for 4GB, $399 for 8GB,” Chris Ziegler reports for Engadget.
Ziegler reports, ” Of course, this is all coming out of a survey — perhaps gauging reaction to pricing — so we need to wait for some more clarification from the powers that be before declaring our wallets a little less burdened come June.”
Full article, with the “allegedly leaked” advertisement here.
[Thanks to MacDailyNews Reader “Adam W.” for the heads up.]
Please note that this a a rumor. AT&T’s online Apple iPhone features list currently states, “Choose from 4GB ($499) or 8GB ($599) memory mode.”
Related articles:
Analyst: AT&T to aggressively woo new subscribers with Apple iPhone service fee discounts – January 30, 2007
AT&T: iPhone will NOT come with 18-months of free service – January 26, 2007
Jim Cramer: AT&T to promote Apple iPhone with 18 months of free service – January 25, 2007
I’ll take an 8gig please.
too
please don’t be a rumor…
Steve Jobs already told us what the price is. The demand for this phone is going to be so great that AT&T does not need to offer subsidies to reduce the price to get a two-year contract.
I still want one, and will move over to Cingular once my Verizon contract expires next January. Just in time for version 2.
Surely hitting this pricepoint will be dependant upon sales
volume. My guess is that the initial release will be higher
as previously stated, and it will drop if they start seeing
big numbers. Higher volume component purchases and
larger production contracts will obviously lend to a lower
overhead.
The cost of the iPhone isn’t the problem. The question is what will Cingular charge for you to use all the features of the iPhone? I get the feeling they will try and gouge us. If so, the iPhone will ultimately fail because of Cingular’s greed.
Does everyone know what $299 is?
say it with me… “THE SWEET SPOT!”
@ Jeff,
Good point. Those features have got to chew some some bandwidth.
There’s no way it’s going to be that cheap. NO WAY.
I need more gigs! I’d pay even more for something with a 16+ flash, c’mon apple, surprise me on the June release, I’ve got a lot of music/movies/pics to put on this thing, and 8 just does not cut it.
I really want an Iphone but this is what concerns me. I had net access for my cell phone (a Motorola v something or other) with Cingular and the service was so slow it was unusable. I hope hope things are better with the Iphone.
look at the “leaked” ad… its the fakest looking shit ever. please, at least do a good job people…
Pants on fire.
total fake
MW call. oh the irony
Never happen, Apple has become too greedy and wants the extra profits so they can backdate some more options.
MW: the … as in WTF?
“Never happen, Apple has become too greedy and wants the extra profits so they can backdate some more options.”
Excellent analysis, Mr. Google News.
This is the worst ad layout I have seen in my 15+ years as a print designer/creative director… did some clown with a copy of MS publisher get bored? zunetang?
PEOPLE PLEASE! this is total BS!
THIS WIOULD KILL EVERY OTHER PHONE MANUFACTURER DEAD…
its fake
Subsidies entice people to take the $175 hit required to terminate current contracts
with other service providers. I’d pay $499 for an iPhone, but $499 + $175 is a little
harder to swallow.
This is easily Photoshopped.
It looks to me more like a way to try to put out FUD so that when the price hits, as it was announced, people will be upset for some reason.
I will fork over $499 and so will the average person.
They better do something amazing with prices. If true, I’ll take the 8 GB please.
299$ is VERY cheap !
Rather than surprise us with a lower price, Apple should surprise us by doubling the storage to 8GB (at $499) and 16GB (at $599). That would make the device more capable as a video-playing iPod. Then later, after the initial sales surge is over, Apple can release a 4GB model (much as it release a 1GB model of the iPod nano after intial iPod release) and lower prices to $299 (4GB), $399 (8GB), and $499 (16GB).
Carl Howe of Blackfriars Marketing explained the iPhone pricing best:
“Saturday, January 27, 2007
How Apple’s iPhone’s marketing may disrupt the mobile phone business
MacRumors.com notes that Canadian mobile phone carrier Rogers claims Apple is prohibiting it from subsidizing the $499/$599 price of the iPhone. What does that mean? It means that $499 is the real price of the phone, not some Cingular subsidized price. It also confirms that it is likely the same price a consumer would pay for an Apple unlocked phone, something Blackfriars had rumored late last year.
Why would Apple do this? Because they don’t want to have to sell a video iPod without phone features for more than an iPhone. This strategy means that consumers would buy shiny iPhone touch-screen goodness in a music-and-video-only player for price points of $399, $349, $299, and $249 without feeling like they’re paying more for less.
Our take: Apple is bringing new transparency to the business of selling mobile phones and service, while ensuring a level playing field for retailers selling Apple products. Without phone subsidies in play, Apple now will be able to sell iPhones through other outlets like Best Buy, provided that they also sell Cingular service. At the same time, the company retains pricing rationality and power over iPods, which contribute greatly to its bottom line.
And consumers? They know that if they buy a new Apple product, they aren’t going to experience buyers’ remorse by seeing it somewhere else for less. The only people left out are the price-is-the-only object bargain hunters, and they aren’t Apple’s target market. But more importantly, they’re going to be able to make more intelligent choices about allocating their cell phone dollars to cooler handsets or more service. And despite all my concerns about the tyranny of too much choice, that’s a choice I’m happy to make.”
Very simple- Apple can’t be selling plain ol’ iPods FOR MORE MONEY than the iPhone. That would kill their business model. They’re not about to slash ALL their prices to compensate for some dumbass Cingular subsidy.
Put another way- how many folks who paid $400-500 for a RAZR two years ago, feel like utter fools now when they see them selling for $29!! Imagine buying a Beemer for 40 large, then finding the same model selling for the cost of a Hyundai Elantra a short while later. Talk about sticking a fork in your own brand… much as, it seems, Motorola has done to itself.
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