RBC Capital Markets analyst Mike Abramsky wrote in a recent report that he believes Apple will debut a $99 iPhone and an iPhone 3G with updated performance for $199 and $299 sometime in June or July.
I'm sure some are getting excited at the very thought of a $99 iPhone, but I think we should all wake up and realize that for that $100 savings (assuming the new iPhone 3G will be offered at $199 and $299, like Abramsky says), we're getting a sub-par phone.
And although there will be a difference in data plan pricing, once again, it's not that great. Abramsky believes the low-end iPhone model will have a $15-per-month data plan, compared with the iPhone 3G's expected data plan price of $30 per month.
Assuming that's true, we would save just $19 to $23 per month by owning the low-end model if we amortize the initial cost savings and the data plan costs over two years and one year, respectively. Would that really make someone want the cheaper iPhone? Not me.… Read more