Apple stops shipping iPhone 3G to AT&T stores - rumor

Posted:
in iPhone edited January 2014
With two weeks to go before Apple's annual Worldwide Developers Conference, a new rumor states that the handset maker has stopped shipping the 8GB iPhone 3G to AT&T stores.



Boy Genius Report reported Monday that Apple stopped shipping the iPhone 3G, originally released in 2008, to AT&T stores. In addition, new orders for the device are not being accepted. BGR has a respectable track record in revealing the plans of wireless carriers, including AT&T.



"Could this mean we might see the iPhone 3GS drop to $99 and make way for a new model? Or maybe the 3GS would disappear altogether? We're not sure," the report said, "but we're about to find out."



Earlier Monday, Apple revealed that Chief Executive Steve Jobs will deliver the opening keynote for this year's WWDC in San Francisco, Calif. In years past, Apple has used the keynote to introduce the latest iPhone. Last year, the iPhone 3GS was unveiled, and the 8GB iPhone 3G dropped to $99.



Analyst Katy Huberty with Morgan Stanley said she believes Apple will achieve a $50 decline in average hardware selling prices by reducing the iPhone 3GS to $99. She said that iPhone component costs have declined by 10 percent to 20 percent annually, which would allow Apple to reduce the cost of last year's model without affecting its gross margins.



Despite the attractive $99 entry price for the iPhone, Apple executives have revealed that consumers generally purchase the higher end iPhone 3GS models, available for $199 and $299. The average selling price of the iPhone with carrier subsidy included has consistently been just over $600.
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Comments

  • Reply 1 of 47
    mr. kmr. k Posts: 115member
    8 GB iPhone 3G is EOL, 16 GB iPhone 3GS drops to $99, new 4G iPhone starts at 32 GB, $199.
  • Reply 2 of 47
    You're not going to get a 35GB iPhone for $199. I'm thinking more 16GB/32GB/64GB. With $199 being the bottom model.

    Quote:
    Originally Posted by Mr. K View Post


    16 GB iPhone 3GS drops to $99, new 4G iPhone starts at 32 GB, $199.



  • Reply 3 of 47
    zindakozindako Posts: 468member
    Cant wait to upgrade from my 8GB 3G phone, its incredibly slow, going to steal some of the wife's cash reserves.
  • Reply 4 of 47
    ghostface147ghostface147 Posts: 1,629member
    Quote:
    Originally Posted by BlackSummerNight View Post


    You're not going to get a 35GB iPhone for $199.





    And why not? I'm not saying you're wrong, just wondering what is your reasoning behind it.
  • Reply 5 of 47
    bageljoeybageljoey Posts: 2,004member
    I can't imagine this is a surprise to anyone...



    Quote:
    Originally Posted by AppleInsider View Post




    Analyst Katy Huberty with Morgan Stanley said she believes Apple will achieve a $50 decline in average hardware selling prices by reducing the iPhone 3GS to $99. She said that iPhone component costs have declined by 10 percent to 20 percent annually, which would allow Apple to reduce the cost of last year's model without affecting its gross margins.




    Does this mean that KH would consider this a "price reduction" even if they keep the prices the same and just improve the hardware? I assumed that by price reduction, she meant $50, $150 and $250 for the new low end and the expected two new models...
  • Reply 6 of 47
    ihxoihxo Posts: 567member
    It lasted 2 years.

    3GS should take it's place as the entry level iPhone.
  • Reply 7 of 47
    benicebenice Posts: 382member
    3G iPhone is now completely unavailable on my local Apple website.
  • Reply 8 of 47
    Well I say that, but if they add a 64G, them I think you may be right. I didn't know they didn't offer a 64G iphone already.

    Quote:
    Originally Posted by ghostface147 View Post


    And why not? I'm not saying you're wrong, just wondering what is your reasoning behind it.



  • Reply 9 of 47
    kiweekiwee Posts: 102member
    I think I know why people buy the more expensive models.

    Maybe because the phones price on the keynote behind Jobs is not even close to what you pay.

    Without a contract a iPhone is atleast 6-700 dollars. More even.



    An extra hundred dollars on a 2000 cost of ownership is not gonna sting that much.

    Maybe my numbers are a bit off but you get the idea.

    I think the pricing on the keynote is just stupid. Where I live all iPhones cost 1 dollar. Any model. The difference is how long the contract and extra cost every month etc.



    Doesn't matter what Jobs says. One way or the other, you will pay the 700.





    If the price was 199 dollars WITHOUT a contract. Then it would sell like crazy.
  • Reply 10 of 47
    joe hsjoe hs Posts: 488member
    I think apple should dump the 3GS and only sell the the 4G, it made sense to sell both when they looked the same but selling two radicaly different models of the same thing just isn't apples style IMO.

    I think we'll be seeing $199 32GB and $299 64GB, perhaps an entry level 16GB for $99.
  • Reply 11 of 47
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by ghostface147 View Post


    And why not? I'm not saying you're wrong, just wondering what is your reasoning behind it.



    I don't think it's an unreasonable suggestion. You can't double NAND every year while maintaining the same price point.



    I think a strong argument could be made that Apple has changed the design so radically, is using a much better display tech, quadrupling the number of pixels, adding a front-facing camera, ..., other excessive jumps and gimmicky additions because it knows it can't add 64GB at the current 32GB price point.





    * These "changes" are still rumours until Apple officially announces them and should be treated as such.
  • Reply 12 of 47
    salmonstksalmonstk Posts: 568member
    Quote:
    Originally Posted by Joe hs View Post


    I think apple should dump the 3GS and only sell the the 4G, it made sense to sell both when they looked the same but selling two radicaly different models of the same thing just isn't apples style IMO.

    I think we'll be seeing $199 32GB and $299 64GB, perhaps an entry level 16GB for $99.



    I totally agree. Would be a bit tacky to sell the old industrial design along side new one.



    BUT I really think Apple should shoot for the $99 price point. The competition is heating up with Android phones. I would like to see Apple and AT&T each take a $100 cut. Apple drops the selling price $100 and AT&T drops the data plan cost $10 a month (ok I know that means AT&T takes a $120 hit....)



    I think these price points would make the iPhone sell great.
  • Reply 13 of 47
    mark2005mark2005 Posts: 1,158member
    Quote:
    Originally Posted by BlackSummerNight View Post


    Well I say that, but if they add a 64G, them I think you may be right. I didn't know they didn't offer a 64G iphone already.



    Apple doesn't offer a 64GB iPhone yet, but they offer the 64GB iPod touch for $399.



    So assuming the ~$400 carrier subsidy continues, Apple could offer a 32GB iPhone 4th Gen for $199 (which is really $599 or $300 more than the comparable iPod touch), and a 64GB version for $299 (which is really $699 or $300 more than the comparable iPod touch).



    Someone who wanted a 32GB iPhone would see this revamp as a price cut from $299 to $199. For someone thinking about spending just $99 up-front, it would look like a significant upgrade from 3G to 3GS, and from 8GB to 16GB.
  • Reply 14 of 47
    joe hsjoe hs Posts: 488member
    Quote:
    Originally Posted by benice View Post


    3G iPhone is now completely unavailable on my local Apple website.



    it's still available on orange and o2 on the uk website :/
  • Reply 15 of 47
    Quote:
    Originally Posted by BlackSummerNight View Post


    You're not going to get a 35GB iPhone for $199. I'm thinking more 16GB/32GB/64GB. With $199 being the bottom model.



    Your opinion here is contradicted by the entire history of iPhone releases. It is entirely probable that Mr. K will be completely correct. Or maybe the $99 option will be an iPhone 4 (I'd actually side with Mr. K on that, though). Another possibility is a price drop in light of recent competition and advancement of technology ($49, $149, $249). A price increase? No.
  • Reply 16 of 47
    mobilitymobility Posts: 135member
    Quote:
    Originally Posted by ghostface147 View Post


    And why not? I'm not saying you're wrong, just wondering what is your reasoning behind it.



    Seems straightforward to most people, go check the price of NAND and read about the NAND market in general
  • Reply 17 of 47
    mobilitymobility Posts: 135member
    Quote:
    Originally Posted by salmonstk View Post


    I totally agree. Would be a bit tacky to sell the old industrial design along side new one.



    BUT I really think Apple should shoot for the $99 price point. The competition is heating up with Android phones. I would like to see Apple and AT&T each take a $100 cut. Apple drops the selling price $100 and AT&T drops the data plan cost $10 a month (ok I know that means AT&T takes a $120 hit....)



    I think these price points would make the iPhone sell great.



    Apple does have a $99 phone so it isn't like it doesn't serve that market or isn't paying attention to it. Whether you will get significantly lower prices, I don't know. In general the prices have been stable for a while and profits are increasing, so the question would be, why change that?
  • Reply 18 of 47
    cxc273cxc273 Posts: 46member
    I think the public's gotten used to this notion of a $99 iPhone and it's in Apple's interest to have something at that price point, just like how they have a Macbook priced at $999.



    Since Apple has said that the 3GS will be fully capable of running iPhone OS 4.0, I don't see any reason why Apple should discontinue the 3GS. The fourth-generation iPhone will occupy the current $199 and $299 price points.
  • Reply 19 of 47
    charlitunacharlituna Posts: 7,217member
    Quote:
    Originally Posted by ihxo View Post


    It lasted 2 years.

    3GS should take it's place as the entry level iPhone.



    Actually it shouldn't. they should change them all to the new 4th gen. even if they want to make a low end storage model at only 8gb.



    why? because even the 3gs could have issues with things like multitasking. so those folks won't be able to upgrade their software and might not be able to keep their carrier updates going either.
  • Reply 20 of 47
    mactelmactel Posts: 1,275member
    Yeah, I'm finally getting an iPhone! So long as the leaked images are for real. I never really cared for the iPhone enclosure design. The leaked images make me drool and make it a must have for me.



    Here's to hoping AT&T will discount the data plans and at least not raise the price in any sneeky manner.
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