Update: Apple Drops 4GB iPhone, 8GB Model Now $399
September 5, 2007 5:20 PM
comment(s) - last by
Apple does the unthinkable with the iPhone
Do you hear that sound? It's the sound of thousands of iPhone customers crying their hearts out. In addition to the new iPods, ringtones for the iPhone and
iTunes Wi-Fi Music Store
, Apple has announced a price cut for the iPhone.
Apple has dropped the 4GB model from the iPhone lineup. Its sales have been lagging behind the more spacious 8GB model so Apple decided to remove the dead weight. In addition, Apple has cut the price of the 8GB iPhone by $200 – the device will now retail for $399.
This move by Apple even undercuts the
pricing for refurbished iPhones
that was announced in late August. Refurbished 4GB and 8GB iPhones were listed on the Apple Store for $399 and $499 respectively.
Apple is being quite aggressive with its iPhone and the $200 price cut leaves room for a 16GB model on the high end in the future. Considering that the iPhone-esque iPod touch comes in a 16GB model, the move is inevitable.
Although Apple is discontinuing the 4GB iPhone, that isn't stopping the company from offering it for
$299 at the Apple Store until the supply is exhausted
This article is over a month old, voting and posting comments is disabled
9/5/2007 8:23:54 PM
What about the part in the contract where AT&T agreed to not subsidize the phone at all. They agree to sell it at the price that Apple sets.
So it happens with every OTHER phone, perhaps. So I would say the price cut has everything to do with Apple
Ralph The Magician
Ralph The Magician
9/5/2007 9:31:09 PM
Why would you think AT&T doesn't subsidize iPhones?
9/6/2007 1:31:41 AM
Because you can buy an iPhone from Apple or AT&T for the same price, which suggests that they aren't subsidizing the cost. If Apple wasn't selling them separately, we wouldn't know. Or if Apple sold it for more like the other phone makers like Motorola, then yes it would be subsidized.
But to say
You might buy it for $399 at the store, but Apple is getting $499+
when that store might be an Apple store, not an AT&T one? Probably not happening.
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
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