

Apple cuts iPhone 3GS price to $49 - Bud
http://www.cnn.com/2011/TECH/mobile/01/06/iphone.price.mashable/index.html?hpt=T2

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Xuzz
More correct title: AT&T cuts the iPhone 3GS price -- at their own stores --
to $49

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hsmyers
plus a monthly of $39.00 or more and a $15.00 data plan...

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Bud
Sure, of course. Like most every other smart phone.

That's still a lot of phone-ness for $49, albeit w/ contract.

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brudgers
($15/month data + $20/month phone subsidy)(24 months) + $49 = $899

 _$20/month phone subsidy based on difference between T-mobile "Even More
Plus" and "Even More" plans._

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Toucan
First off, I'm afraid I don't understand what a phone subsidy is, perhaps we
don't have them in the UK or I've never seen them on a price plan here.

Assuming it's something you pay for owning a smartphone, would it still be
there for a smartphone that costs nothing? If so, then the extra cost for the
iPhone is still $49.

The comparison ought to be an iPhone v another smartphone and contract with
comparable features, not an iPhone v not buying a phone at all.

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brudgers
In the US most phones are bundled with a service contract (typically two
years). This reduces the line item price of the phone from list price to a
fraction of list price (or zero). However, if the contract is terminated
early, the balance of the list price is due. In addition, if a smartphone is
bundled with the service contract, the purchaser must select a plan which
includes data service.

ATT makes additional revenue by charging the same rate if you have bundled a
phone with your service plan or if you are using your own unlocked GSM phone.

Tmobile, the other significant GSM carrier in the US provides a $20 a month
discount for (and does not require a service contract) when the customer does
not bundle a phone with their plan.

In the US ATT is the exclusive iPhone carrier and unlocked GSM iPhones are not
available. Thus the price of the iPhone is $49, and it's cost over the course
of a 24 month contract is $899 because of the terms required by ATT's standard
agreement.

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Toucan
But any cheaper phone is still useless without a contract anyway? The
difference isn't $899, it's $899 minus the cost of ownership of an equivalent
phone. Even a free phone on a 2 year basic contract is going to be around
$600-700, surely?

There are pay as you go options, but other than the lightest of users, I don't
know many people who find it cheaper than a contract, especially if they use
any data.

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aw3c2
Please do not edit headlines unless necessary. Especially do not change the
meaning to something false like this.

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mattking
AT&T currently offers to upgrade to a 3GS for $49, but it's refurb.

