Is a $99 iPhone 3GS coming soon?
(Credit:
The Boy Genius Report)
Ever since Apple launched the new iPhone 3GS, the older iPhone 3G has been going for $99 with a new two-year contract. Well, according to Boy Genius Report, there seem to be some indications that Apple may be about to bring out a new 8GB version of the iPhone 3GS that will take the place of the iPhone 3G and also cost $99.
Interestingly, BGR's source isn't AT&T but Rogers, a Canadian carrier, and a tipster sent the site some screenshots that seem to provide proof of the transition between models. None of this is confirmed, of course, but if AT&T (and other carriers like Rogers) offered an 8GB iPhone 3GS for $99, it would be another aggressive move by Apple in its quest to dominate the smartphone space. I'm not sure it spells doom for the $199 8GB Palm Pre, which is selling well, but it can't help its cause.
Comments? Is the 8GB iPhone 3GS at $99 a big deal?
(Via The Boy Genius Report)
Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter.

Video recording problem solved.
As an AAPL shareholder, I'm all for increasing sales, as long as it doesn't erode Apple's margins.
For example Movie Theaters and ball games rarely make money selling tickets, but on the overpriced concessions. Same with restaurants, lucky if they profited on the main entree, its desserts and drinks where they make their killing.
Since the opening of the Apple store, along with iTunes its in Apples best interest the gain market share, b/c the real money is in being a broker for other ppl to get there products to the masses.
Unlike most of its competitors, Apple uses software and content (the iTunes Store, the App Store) to drive sales of its high-margin hardware. They count on making money on the main event, not on peripheral products.
Apple gets a massive subsidy from carriers for its iPhones (like $300-400 per unit).
Face it, when it comes to the wireless phone racket the phone itself--whether high-end smartphone or basic handheld--is actually the cheap part of the agreement. It's there to foster the meat of the profits...paid each and every month for a MINIMUM of two years. The mandatory 2-year commitment is where the REAL profit lies for cell phone service. Apple simply augments that piece of the pie with their cut from App Store and iTMS media content sales.
Don't get me wrong, I love Apple stuff. I own an iMac and a Macbook Pro.
Apple gets an outright subsidy from AT&T (about $300-400 per phone). They no longer get a cut of the subscription fees.
I'd be interested to know if I can switch my 8gig 3G for a 3GS or if I have to wait for my contract to be up.
Hard to say if it will hurt profits though, if it cannibalizeds the $199 phones it could be selling then maybe, but I have a feeling all the extra sales they pick up will more then make up for it.
Oh, wait. You want a carrier subsidized phone AND a carrier independent phone.
You also probably think that rich people should write you checks. Just because they're rich.
The iPhone was designed to be a "data" phone. If you don't need "data" AT&T doesn't believe you need an iPhone.
Now, that may or may not be the case, but as far as the value to AT&T, your less expensive phone plan isn't worth what they are willing to subsidize on the cost of the phone.
For some of us, this is important news because we were already willing to pay for a data plan. So, if I'm already going to pay for data, getting a certain price on a phone is good (or bad).
I have a Palm Pre and I'm on Sprint. Why?
1. I can't get AT&T service in my area.
2. I liked the Pre better than any of the alternatives.
3. I save about $30 monthly through Sprint over getting an identical plan through AT&T
you might be the only iphone user that has the 3G network, "available everywhere I go". Thats the main reason I can't buy this phone. The coverage area is beyond horrible. Sure, you might not have Wifi in most places but AT&T's 3G networks is pretty scrace as well.
I think the point that inter7777 makes is that iPhone although popular is niche, as you pointed out if you dont use a data plan then iPhone eliminates you as a customer. So why doesnt Apple offer a iPhone with no data requirement but allows you to use wi-fi? the answer to that is that if you compare the iPhone on its own merits as a DEVICE (not the apps others have written to make up for its shortcomings) to other newer smartphones, its not that great.. the iPhone may have started as a cool phone but now by design its a mobile platform for their apps store thats really it... people have lost sight that the iPhone stopped being a phone a while ago.. its a palmtop.
I can see your point. Being forced to buy the data plan even if your area has no AT&T 3G coverage is rather insulting. The coverage is pretty good here in the San Francisco Bay Area.
@inter7777
I think the data plan is mandatory because of 2 reasons:
1) It is a cash cow for AT&T. The average iPhone bill is much higher as compared to other phones. Cha-ching! They signed up 800,000 new iPhone subscribers last quarter in spite of the data plan's $30/mo cost. The telcos covet these "higher value" customers.
2) The smartphone experience is greatly enhanced with a data plan. Most people before 2007 didn't bother buying data plans for their smartphones (unless their company paid for it), so the phones' capabilities just weren't that impressive when away from WiFi. On the other hand, ALL first generation iPhones had a mandatory data plan, making it a truly gee-whiz device that impressed everyone with its ability to beautifully render (most) web pages anywhere you had cell reception. Every iPhone behaved consistently; thus, an icon was born. The unlimited data plan also encouraged lots of web surfing, and soon most people, like me, couldn't imagine living without data. I agree with AT&T and Apple: the mandatory data plan is a vital part of the iPhone experience.
its worth an extra $500 at least not to use AT&T
and in the end after you consider monthly fees, the Pre is still way cheaper
1) Volume - For someone who does not have 32 GB of music and movies to put on a phone, buying all of that extra space would be a waste. Now, you can have the speed of an iPhone 3 GS and just enough space for a smaller collection.
2) The success of the 16 GB and the 32 GB this summer gave Apple a lot of elbow room to corner their competitors.
Personally, I think it's always good to consider what you >might< do with a device as opposed just what you want to do with it at purchase.
I'd like the iphone 3g to get Apple video (I'd be willing to pay for it in app store), but Apple wants 3gs sales... Until then, just sucky jailbroken video players...
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by ThatIsWhatSheSaid
August 5, 2009 1:14 PM PDT
- I've always found it interesting that in the UK many phones are free and the monthly fees are still in the realm of $70 (yes, dollars, not pounds) with unlimited texting and data. They don't give you as much on minutes, of course, as Europe embraced smart phones before the US did. This doesn't work in all cases, as the iPhone is never free, but the prices are genuinely much less for the phone and with similar or slightly cheaper monthly plans.
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