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June 11, 2008 12:00 AM PDT

Carriers to sell unsubsidized iPhone 3G for just under $800

by Ben Wilson
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We've received word that Vodafone in Italy plans to sell unsubsidized iPhone 3G models for 499 euros and 599 euros for the 8GB and 16GB models respectively. At current rates, that converts to about $775 and $930 respectively. Vodafone says these models are meant to be used with prepaid plans.

Other carriers, including AT&T in the United States, have yet to reveal pricing for unsubsidized iPhone 3Gs, let alone indicate that they will sell the phones unsubsidized at all. Currently AT&T has only announced that it will sell subsidized phones starting at $199 with two-year contracts.

As previously reported, there will be no iTunes-based activation for the iPhone 3G. Activation will take place at the time of purchase, either at AT&T or Apple retail stores. This apparently means that there will be no online ordering of the new model, which is due to ship on July 11th.

The in-store activation method is the one traditionally used for most wireless phones, though Apple bucked the trend with its first-generation iPhone, offering an in-home activation scheme that allowed users to purchase the devices boxed then activate them later through iTunes.

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by nikster2006 June 11, 2008 7:02 PM PDT
EUR 499 would normally correspond to a U.S. sales price of USD 499 - we are used to overpaying in Europe, and also the USD is unusually low right now. I think this pricing makes a lot of sense - let's hope they'll sell it for much less and closer to the real price which should be about USD 500.

I don't understand why Apple is hell-bent on forcing its customers into contracts with the operators. Well... I do understand, I am sure there are some payments made from all these operators to Apple. Once again. Apple may not get a share of monthly revenue but there is money flowing Apple's way one way or another. Otherwise, Apple would just do what Nokia does and sell their phones full price in their own stores as an option.
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by shaneblyth June 12, 2008 8:13 PM PDT
a leaked memo now seems to imply itunes activation may be possible there would be a 30 day grace period and if you dont activate you get hammered with another $200 in the States..
http://arstechnica.com/journals/apple.ars/2008/06/12/memo-hints-at-itunes-activation-with-3g-iphone

I quote:

it looks like iTunes activation may not be completely gone after all. According to the e-mail, "in the event that a customer's device is not tethered in the Apple store," customers will need to activate via iTunes. ........ The return policy for the iPhone 3G is being extended to 30 days in both Apple and AT&T stores, and customers will be limited to buying three units, although presumably they'll now have to activate them pretty soon thereafter.
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iPhone Atlas helps you navigate the ins and outs of Apple iPhone ownership with how-tos, troubleshooting information, news, reviews, and more. Got a tip? Want to contact us? E-mail iphoneatlas@cnet.com.

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