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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: Wow...
By ninjit on 4/30/2008 9:39:33 PM , Rating: 2
Might help if you actually read the article...
3G iPhone will have full GPS capabilities,

Also, as far as your bill doubling. AT&T's current pricing plan for the iPhone is only $15 to $20 over a base plan, and it included unlimited data.
However since current iPhones are on the edge network your still limited by speed, so they don't really care.

It'll be interesting to see if they keep the same pricing with people on the 3G network.

What your asking for in terms of using the data connection on other devices, is known as "tethering", and even though pretty much all phones are capable of doing that, any phone you buy from your service provider will have it disabled precisely because they don't want you to hook it up to your laptop.

RE: Wow...
By feraltoad on 5/1/2008 3:40:50 AM , Rating: 2
Yay for GPS! I guess I stopped reading at released June...discontinuing 1st gen...

The data plans aren't as expensive as I thought either. The lowest plan available (450/5000 free mobile 2 mobile-also my current plan) is $39.99, and with unlimited data it is $59.99. $20 bucks, correct again.

So to be able to tether an iphone I would have to pay for Data Connect as well? For $60 month for 5gb? Talk about pay to play.

With DataConnect for your laptop - you can send and receive email, browse the Internet, and access your corporate intranet while on the go by connecting your laptop to the Internet over the AT&T wireless network. Service is not available at all times in all places. View Map and Coverage Limitations.

Thnx for the schooling.

RE: Wow...
By cbf on 5/20/2008 9:19:02 PM , Rating: 2
T-Mobile doesn't disable tethering -- they document it and encourage it. It's no additional cost on their $20 PDA or Smartphone dataplan. The last I checked, they were the only nationwide carrier that let you do this.

Admittedly, they only offer EDGE (their 3G network is just now getting rolled out), but that's still OK for synching email and lightweight browsing from your laptop.

That's why I have a bunch of people in my company on T-Mobile.

"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton
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