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3G iPhone to start at $199 for AT&T customers according to Fortune

Rumors surrounding Apple's upcoming second generation iPhone have been running rampant lately. Considering that almost any new product release from Apple is followed more closely than your favorite NCAA basketball team during March Madness, it should come as no surprise that all eyes are on the new iPhone.

Within the past week, there have been rumors that the second generation, 3G iPhone will have full GPS capabilities, a headphone jack that is no longer recessed, chrome volume buttons, and a shiny black rear housing all in a footprint slightly thicker than the existing iPhone.

Fortune piled on the news swirling the 3G iPhone by revealing what it claims to be AT&T's new subsidizing program for customers. According to a source familiar with AT&T and Apple's plans, AT&T will subsidize the cost of the new phones to the tune of $200 each. This means that the 8GB model will set users back just $199 with a two-year contract while 16GB customers will have to fork over $299.

According to Fortune's source, the $200 subsidy will only be available to AT&T customers who sign up for a two-year contract. Fortune goes on to add that AT&T can quickly recoup its initially outlay due to the fact that typical iPhone users rack up monthly phone bills of $100 versus $50 for most other phone customers.

Fortune’s source added that the 3G iPhone will launch in late June and that Apple will discontinue the first generation iPhones leading up the release date to drive sales for its latest and greatest product. The source also confirmed the inclusion of a GPS chip with the 3G iPhone, but offered contradictory information with regards to its footprint which they claim is 2.7 mm thinner.

When Apple launches its 3G iPhone in a few months, it will come with firmware which will make it more attractive to business customers. Apple will also make available a new iTunes App Store from which customers can download third-party apps directly to their iPhones. 

An SDK is already available which allows developers to create programs for distribution through iTunes.

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RE: Unlocked, WLAN, Outlook support?
By Fnoob on 4/29/2008 9:35:51 PM , Rating: 2
I also have a RIM crackberry, but mine runs Outlook Exchange. Which is good, works, etc.

I'm would love to trade this brick for a svelte little flatscreen... but the lack of an actual keyboard is a deal breaker. You can't reply to the boss while doing 90 quite so easy with the iPhone.

RE: Unlocked, WLAN, Outlook support?
By Polynikes on 4/29/2008 11:26:51 PM , Rating: 5
You can't reply to the boss while doing 90 quite so easy with the iPhone.

That sentence is just wrong.

RE: Unlocked, WLAN, Outlook support?
By mondo1234 on 4/30/2008 12:34:15 AM , Rating: 2
Whats Verizon going to do with the Voyager? Drop it to $99?

RE: Unlocked, WLAN, Outlook support?
By Omega215D on 4/30/2008 3:16:33 AM , Rating: 2
I would hope so since I could use a new phone =D

By robinthakur on 4/30/2008 4:29:12 AM , Rating: 1
More like drop it to nothing and pay you to take the stock off its hands when the 3g iphone comes out...

RE: Unlocked, WLAN, Outlook support?
By Ardan on 5/25/2008 1:14:24 AM , Rating: 2
No kidding, very wrong indeed.

RE: Unlocked, WLAN, Outlook support?
By UNCjigga on 4/30/2008 12:30:15 PM , Rating: 2
Svelte touchscreen with a keyboard? Sounds like you wanna wait for the next-generation HTC Touch (search the blogs for 'Raphael' and 'Diamond'.)

By masher2 on 4/30/2008 12:50:44 PM , Rating: 3
Or the Sony Xperia.

“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs
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