iPhone 2.0 Prices: $250, $350, $450 with Subsidies

Update 2008.06.09 11:57AM PST
Prices are even cheaper than I thought! Check it out.

Original Post
Apple’s iPhone 2.0 is getting a lot of press leading up to a possible unveiling next Monday during the Worldwide Developers Conference (WWDC). The Financial Times is setting some high (or low) expectations for the iPhone.

Apple iPhone

FT has stated that US and European mobile operators will be allowed to subsidize the iPhone leading to much more affordable iPhones:

The new version of the Apple iPhone is set to be sold at significantly lower prices than the existing one, in a tacit acknowledgment by the US technology company that its previous sales strategy was not sustainable. Apple has bowed to pressure from mobile phone operators and agreed they can subsidize the latest iPhone, expected to be unveiled by Steve Jobs, Apple’s chief executive, on Monday.

There is no confirmation of what the price might be, but if you look at current smartphone offerings from AT&T, you’ll see that there are substantial subsidies and with mail-in rebates (MiR), the prices are very affordable for very expensive smartphones:

AT&T Tilt: Retail price $549.99. Subsidized price: $399.99 ($299.99 with MiR)
Palm Treo 750: Retail price: $499.99. Subsidized price: $349.99 ($199.99 with MiR)
BlackBerry 8820: Retail price: $499.99. Subsidized price: $349.99 ($299.99 with MiR)
Pantech Duo: Retail price: $449.99. Subsidized price: $199.99 ($99.99 with MiR)
Motorola Q Global: Retail price: $399.99. Subsidized price: $249.99 ($149.99 with MiR)

Based on what I am seeing on current retail prices and subsidized prices on AT&T, this is my guess at what the Apple‘s iPhone 2.0 prices will be:

Apple iPhone 32GB: Retail price: $599.00 –> $449.99
Apple iPhone 16GB: Retail price: $499.00 –> $349.99
Apple iPhone 8GB: Retail price: $399.00 –> $249.99

I don’t know for sure, but I think there will be three models to cater to different markets. The budget market, the middle-class market and the “I need to have the latest and greatest at any cost” market.

Source: Financial Times via Engadget

[tags]iPhone, iPhone 2.0, AT&T, Financial Times, Apple, Apple iPhone, Apple iPhone 2.0[/tags]

Leave a Reply