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The iPhone experience may get a little sweeter

As Apple mulls over cuts to its Mac prices, iPhone partner AT&T is also looking to trim the contract prices on the Apple iPhone in the U.S.  The new decrease would reportedly accompany a new version of the handset hardware, that is widely expected to launch in June, along with Apple's new iPhone operating system.

Michael Cote of Cote Collaborative says that his inside connections at both companies reveal that there is a "strong possibility" that the price of the iPhone's introductory plan will be cut from $69 to $59.  He expects the cut to be announced, along with a new iPhone, at the World Wide Developers Conference in San Francisco on June 8.

The iPhone currently retails for $200 which is in line with its smartphone competitors.  However, the total cost of basic ownership -- the price of an 8GB phone and 24 months of the most basic iPhone voice and data plan -- amounts to a whopping total of $1,856.  A cut would sweeten the deal, dropping this slight to around $1,600.

Apple's previous cost cut proved to be very effective.  An early cost cut from $599 to $399 propelled the iPhone to sales of 4 million units in 2007.  A second cut in 2008, with the release of the 3G iPhone, saw even greater success, boosting sales to 17 million units.

Cost cutting is a painful, but growing necessity for companies competing in the smart phone market.  Research in Motion utilized Verizon's "by one, get one" promotion to propel its Blackberry Curve smart phone past the iPhone in total sales for the first quarter of 2009. 

With the much-anticipated Palm Pre set to hit the market, and strong competition from T-Mobile/Google's G1, which recently sold its millionth unit, Apple and AT&T have much at stake.  And analysts believe a price cut could be just what they need to restore growth to the iPhone's momentum.



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And in other news....
By Ozziedogg on 5/10/2009 3:33:39 AM , Rating: 4
Siberian Phone vendors are considering selling Nokia phones for .50 cents cheaper...

/sarcasm

How is this even vaguely interesting?




RE: And in other news....
By Alexstarfire on 5/10/2009 11:08:17 AM , Rating: 2
It's interesting because a lot of people own iPhones, and other, what I consider to be crappy, Apple products. I'm not sure why it's a news story though. I doubt they are going to post when any of the other companies change their price, whether up or down. Not sure why ATT and the iPhone are so special.


RE: And in other news....
By Motley on 5/11/2009 7:25:24 AM , Rating: 2
Well considering this is daily TECH, and the iPhone is the 2nd best selling cellular phone in the US, this would affect a large portion of the readers. Even more if you consider any price change by AT&T for the iPhone may start a similiar change for the blackberry, and then I would assume that would cover a good 70-80% of the readers.

I'm assuming you are of the "other" 20-30% that owns neither the blackberry, iPhone, and don't use AT&T as your cellular provider.


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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