or Connect
AppleInsider › Forums › Mobile › iPhone › AT&T announces it will sell Apple's iPhone 3GS at new $49 price
New Posts  All Forums:Forum Nav:

AT&T announces it will sell Apple's iPhone 3GS at new $49 price

post #1 of 54
Thread Starter 
AT&T has revealed that starting Friday, Jan. 7, it will begin selling the iPhone 3GS at a new standard price of $49 with the usual two-year service contract.

The $49 contract price will be available for both new and upgrade-eligible AT&T customers. The handset with an 8GB capacity will be sold through the company's official online store, as well as in its more than 2,200 retail locations across the U.S.

"We want to deliver the best, most complete package for our customers from price, to speed, to worldwide access and more," said David Christopher, chief marketing officer of AT&T Mobility and Consumer Markets. "Combined with our new, lower monthly data plans beginning at just $15 a month, this new price brings even more value to one of the most popular devices in our leading lineup of smartphones. Were very excited for more people to experience iPhone on the nation's fastest mobile broadband network."

AT&T noted in its accompanying press release that the price of the iPhone 3GS sold in Apple's own channels is determined by Apple, suggesting that the $50 price cut for the handset is solely AT&T's doing. Apple's own official iPhone site still shows the 8GB iPhone 3GS for $99.

Starting with the launch of the iPhone 3GS in 2009, Apple began selling the previous year's model with a two-year AT&T contract in the U.S. for $99. While the initial $99 handset from Apple was the iPhone 3G, last year that was upgraded to the 8GB iPhone 3GS when the iPhone 4 launched.

AT&T's aggressive price strategy with the entry-level iPhone 3GS is viewed as a preemptive strike against competitor Verizon, which is expected to launch its own iPhone from Apple early this year. In covering AT&T's price cut on Thursday, Dow Jones Newswires noted: "The move comes as competitor Verizon Communications Inc. gears up to offer the popular smartphone."
post #2 of 54
Even though the price of the phone is really the smallest cost of doing business with AT&T, this should accelerate sales through the Verizon announcement, should one be forthcoming.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #3 of 54
What a deal! Who wouldn't want a two year old iPhone for a savings of $100
post #4 of 54
They should discontinue the 3GS and this probably indicates they intend to do so by clearing inventories.
post #5 of 54
I have two upgrades coming up, one in February, and one in March. I am just holding out for the new phone so I can get my new one, and I can drag my significant other into the 21st century.
post #6 of 54
Quote:
Originally Posted by NasserAE View Post

They should discontinue the 3GS and this probably indicates they intend to do so by clearing inventories.

Totally speculative on my part, of course, but it could indicate an updated iPhone for AT&T as well as a new one for Verizon, coming soon, thus the desire to clear out the 3GS inventory now.

Combined with the "no vacation" rumors, perhaps Apple is up to something unexpected.
post #7 of 54
Quote:
Originally Posted by cameronj View Post

What a deal! Who wouldn't want a two year old iPhone for a savings of $100

That two year old iPhone lacks retina display and videophone, but is otherwise a very nice machine for $49. It may look like an old iPhone 3G (which isnt a bad design) but in performance its closer to an iPhone 4.

Id certainly take an iPhone 3GS over a BOGO Android phone! This lowers the cost of entry for an iOS phone.
post #8 of 54
Quote:
Originally Posted by nagromme View Post

That two year old iPhone lacks retina display and videophone, but is otherwise a very nice machine for $49. It may look like an old iPhone 3G (which isnt a bad design) but in performance its closer to an iPhone 4.

Id certainly take an iPhone 3GS over a BOGO Android phone! This lowers the cost of entry for an iOS phone.

I agree. The 3GS is still a very nice device. A friend of mine gave me his old one when he got a 4. I gave it to my wife and she absolutely loves it.

You don't always have to have the very latest to have a device you will enjoy using.
post #9 of 54
The fact that this is occurring independently of Apple suggests to me that the relationship between the two companies is going downhill -- otherwise, AT&T wouldn't be so cavalier about their relationship with Apple.

just more fuel for the veriziphone rumors.
post #10 of 54
1) Verizon
2) who wants 3GS? It doesn't sound as cool as iPhone 4.
post #11 of 54
Quote:
Originally Posted by Doorman. View Post

1) Verizon
2) who wants 3GS? It doesn't sound as cool as iPhone 4.

Many here talk like Verizon is so much better..well they are in charging you a million fees for this and that and their network is not that great.

I stick with my At&t iPhone 4

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

Reply

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

Reply
post #12 of 54
Quote:
Originally Posted by Doorman. View Post

1) Verizon

What about it?

Quote:
2) who wants 3GS? It doesn't sound as cool as iPhone 4.

People who want a phone, probably.

Quote:
Originally Posted by daylove22 View Post

Many here talk like Verizon is so much better..well they are in charging you a million fees for this and that and their network is not that great.

Yeah, because AT&T sure doesn't charge you a bunch of useless fees. No sir.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #13 of 54
Cheap move on AT&T's part. It's the monthly cost of using an iPhone that is most scary, not the one-time expenditure for the phone.
Compared to certain countries Europe, where you can get an iPhone4 for free (with a contract of course), AT&T's offer looks pretty cheap.
post #14 of 54
Wow, I just saved an amazing 2.5% of the total cost of ownership of an iPhone 3GS by buying it for $50 cheaper! -_-

If no one understands that $100 is only 5% of the TCO for an iPhone 3GS/iPhone 4, I have a bridge to sell them. No one should be buying a 3GS if they've ever been in a math class.
post #15 of 54
Quote:
Originally Posted by Roos24 View Post

Cheap move on AT&T's part. It's the monthly cost of using an iPhone that is most scary, not the one-time expenditure for the phone.
Compared to certain countries Europe, where you can get an iPhone4 for free (with a contract of course), AT&T's offer looks pretty cheap.

It's all about Total Cost of Ownership. Those other Carriers might offer a free iPhone, but they will get their money back via higher monthly voice/data rates. They have to.
post #16 of 54
Quote:
Originally Posted by NasserAE View Post

They should discontinue the 3GS and this probably indicates they intend to do so by clearing inventories.

Thats my thought too. Now if Apple drops the price of 3GS on their website, you know something new is coming.
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
Reply
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
Reply
post #17 of 54
It's called clearing inventory. It's done every year. You can choose to think it is something else if you wish.
post #18 of 54
Quote:
Originally Posted by boeyc15 View Post

Thats my thought too. Now if Apple drops the price of 3GS on their website, you know something new is coming.

Here's my guess: AT&T now has a lower entry point than Verizon....if Verizon gets the iPhone 4.
post #19 of 54
I don't think this move is so much about Verizon, as it is the horizon: the demise of the 3GS is on it.
post #20 of 54
Well this is interesting...good way to get rid of inventory.
I will definitely look into this since I have the iPhone 3G and some of the newer iOS updates don't work on it. And it's getting to that state where everything runs slower. I just hope they can roll-over my existing plan. I would rather not switch to the tiered internet plans. One of the main reasons why I didn't get the iPhone 4 was for this and I'm just not that crazy about the new design with it's hard edges. I liked the curved edges and back. Much easier to hold.
post #21 of 54
Quote:
Originally Posted by Since1984 View Post

I don't think this move is so much about Verizon, as it is the horizon: the demise of the 3GS is on it.

Well, duh. Just like this time last year, the demise of the iPhone 3G was on the horizon. This is exactly related to Verizon. As someone said, AT&T now has a lower point of entry than Verizon, so that gives them a leg up on the competition.
post #22 of 54
Quote:
Originally Posted by rdjlexky View Post

Well, duh. Just like this time last year, the demise of the iPhone 3G was on the horizon. This is exactly related to Verizon. As someone said, AT&T now has a lower point of entry than Verizon, so that gives them a leg up on the competition.

I'm just looking forward to seeing ATT and Verizon compete more directly, hopefully leading to better prices. And not just on the phone itself by also on data plans, text plans, etc. The the low-priced 3GS is the one thing Verizon won't be able to compete against because it won't be available to them. So even if ATT and Verizon match prices on the 4, ATT will still be able to say they have a cheaper iPhone. (Of course, I'm assuming the iPhone Verizon will get will be a CDMA version of the 4.)

We shall see...
post #23 of 54
Quote:
Originally Posted by antkm1 View Post

Well this is interesting...good way to get rid of inventory.
I will definitely look into this since I have the iPhone 3G and some of the newer iOS updates don't work on it. And it's getting to that state where everything runs slower. I just hope they can roll-over my existing plan. I would rather not switch to the tiered internet plans. One of the main reasons why I didn't get the iPhone 4 was for this and I'm just not that crazy about the new design with it's hard edges. I liked the curved edges and back. Much easier to hold.

Dude, you keep your unlimited data plan. I did it moving to iPhone 4, and many others did. Just ask around.
post #24 of 54
Quote:
Originally Posted by dagamer34 View Post

Wow, I just saved an amazing 2.5% of the total cost of ownership of an iPhone 3GS by buying it for $50 cheaper! -_-

If no one understands that $100 is only 5% of the TCO for an iPhone 3GS/iPhone 4, I have a bridge to sell them. No one should be buying a 3GS if they've ever been in a math class.

Actually, this is something that really confuses me. While technically "true" that the TCO of an iphone is at minimum ~$1,440, why do people add in the base cell phone cost when most likely that person is going to have a cell phone anyways. The real TCO of an iPhone is the opportunity cost between those two prices, which in the case of AT&T is only $360 ($15 * 24, plus applicable taxes). A $50 discount is actually pretty good, especially when it's $150 compared with the iPhone 4.
post #25 of 54
Quote:
Originally Posted by NasserAE View Post

They should discontinue the 3GS and this probably indicates they intend to do so by clearing inventories.

Or it just isn't selling for ATT. And they want to clean out their storage to make room for what does sell

IF Apple drops the price also then claims of cleaning out prior to a new phone make more sense.

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply

A non tech's thoughts on Apple stuff 

(She's family so I'm a little biased)

Reply
post #26 of 54
Just another example of how it should be done, why not lower the cost of the phone to bring on new customers who were not willing to pay $199 or even $99 for a phone and two year contract. Doing this does not devalue the iphone 4 so they can still command a higher price for that phone in the mean time the 3GS at this time is old news and if someone is willing to pay $49 plus the on going $70+ a month for phone and data why not.

Unlike the competitors who still allow their current generation phone to be deeply discounted or given away in a buy one get one free deal. All this does is says the phone it not worth the money since they are giving it away.

Apple open the door to stop this kind of practice and Samsung, HTC, LC, RIM are all falling back in to the trap. Motorola at least is smart enough not to let what happen to them when VZ started to give away RAZR away free.
post #27 of 54
Quote:
Originally Posted by Jarina View Post

Actually, this is something that really confuses me. While technically "true" that the TCO of an iphone is at minimum ~$1,440, why do people add in the base cell phone cost when most likely that person is going to have a cell phone anyways. The real TCO of an iPhone is the opportunity cost between those two prices, which in the case of AT&T is only $360 ($15 * 24, plus applicable taxes). A $50 discount is actually pretty good, especially when it's $150 compared with the iPhone 4.

Very good! That is the way to look at it(assuming the voice plan is what your paying now).
See everyone, accountants are worthly (sorry I made an assumption)

So for my case....
I had a verizon discount plain ol phone costing me about 45 with texting cost etc(stinkn Verizon, nickel and dime).

Iphone - cost of iphone plus data plan and text plan, now I pay $63 a month.
Delta difference is 18 a month(includes my discount on unlimited data etc) (216 a year), which I gladly pay for increased 'value'.

So my total 'value increase' cost was - cost of phone 299(plus tax) ~340 + 216 +216 = 772.

Todays savings, to keep apples to apples. lets assume I got the 199 iphone for total of about 662.

- if the cost of phone is $100 +216 +216 =532 or about 37% discount(off full iphone 4 32 price) or ~ 20%

Taken another 50 off, total 2 year cost 'value added cost'' is 482, which increase discount to ~27% off iphone 4.

Not too shabby.

Past performance shown is not indictitave of future results, user experience may vary.

Wow, why did I write all this... sorry.
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
Reply
Hokey religions and ancient weapons are no match for a good blaster by your side, kid.
Reply
post #28 of 54
Quote:
Originally Posted by antkm1 View Post

Well this is interesting...good way to get rid of inventory.
I will definitely look into this since I have the iPhone 3G and some of the newer iOS updates don't work on it. And it's getting to that state where everything runs slower. I just hope they can roll-over my existing plan. I would rather not switch to the tiered internet plans. One of the main reasons why I didn't get the iPhone 4 was for this and I'm just not that crazy about the new design with it's hard edges. I liked the curved edges and back. Much easier to hold.

Take my advice - just pay the extra $150 and get the iphone 4, and you are grandfathered into the unlimited data plan you already have (or you can switch to tiered pricing, which is probably inadvisable for most).

ATT did this to keep current ATT folks in the fold as they upgrade to iphone 4. If Verizon was smart they would offer unlimited plans for the newly released iphone, which would take the wind out of the ATT sails and would give ATT folks another reason to look at Verizon for upgrading. We'll have to see, since Verizon is committed to having you pay through the nose for data - they can't wait to switch everyone over to tiered pricing (remember roaming charges? They are nothing compared to future earnings from data plans, what with facetime, skype, and data-streaming-everything-to-do-with-media, you will pay dearly for data once all the cloud vendors get their acts together).
post #29 of 54
Quote:
Originally Posted by kriskkalu View Post

Dude, you keep your unlimited data plan. I did it moving to iPhone 4, and many others did. Just ask around.

That's good to hear. This January 18 I will have had my 3GS iPhone for one year.
I am hoping that when the contract runs out in 2012 I can get an iPhone5 with an unlimited data plan.
post #30 of 54
Quote:
Originally Posted by NasserAE View Post

They should discontinue the 3GS and this probably indicates they intend to do so by clearing inventories.

The 3GS is about as fast as the iPhone 4. Far from discontinuing it it needs to become Apple's entry level device priced at zero on a normal contract.
I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #31 of 54
Quote:
Originally Posted by rdjlexky View Post

Well, duh. Just like this time last year, the demise of the iPhone 3G was on the horizon. This is exactly related to Verizon. As someone said, AT&T now has a lower point of entry than Verizon, so that gives them a leg up on the competition.

Well duh, except that you could also get a $49 iPhone 3G last year, prior to the iPhone 4 announcement and the price cut of the 3Gs to $99. I suppose that was exactly related to Verizon too.
post #32 of 54
Quote:
Originally Posted by Jarina View Post

Actually, this is something that really confuses me. While technically "true" that the TCO of an iphone is at minimum ~$1,440, why do people add in the base cell phone cost when most likely that person is going to have a cell phone anyways. The real TCO of an iPhone is the opportunity cost between those two prices, which in the case of AT&T is only $360 ($15 * 24, plus applicable taxes). A $50 discount is actually pretty good, especially when it's $150 compared with the iPhone 4.

BINGO someone who gets it! The choice for almost everyone buying one is not iPhone on no phone. It is either iPhone and a plain jane cell ($360 difference in monthly fees) or iPhone and another smart phone (no difference, or potentially cheaper if you want corporate email on a BB and need to pay the extra fee).
post #33 of 54
Please. The phone is not $49. It is at least $1369 ($55x24 months + $49) plus activation fee, sales tax, and monthly state and federal communication taxes. That gets you the absolute minimum level of service.

I wish there was a way to buy the phone for cost, and then pay for just the service thereafter. It is not like your monthly bill goes down after you have fulfilled your term of commitment.
post #34 of 54
Quote:
Originally Posted by msuberly View Post

Please. The phone is not $49. It is at least $1369 ($55x24 months + $49) plus activation fee, sales tax, and monthly state and federal communication taxes. That gets you the absolute minimum level of service.

I wish there was a way to buy the phone for cost, and then pay for just the service thereafter. It is not like your monthly bill goes down after you have fulfilled your term of commitment.

If you read the thread you would see that that simple TCO idea has been rightly rubbished.
I wanted dsadsa bit it was taken.
Reply
I wanted dsadsa bit it was taken.
Reply
post #35 of 54
Quote:
Originally Posted by msuberly View Post

Please. The phone is not $49. It is at least $1369 ($55x24 months + $49) plus activation fee, sales tax, and monthly state and federal communication taxes. That gets you the absolute minimum level of service.

I wish there was a way to buy the phone for cost, and then pay for just the service thereafter. It is not like your monthly bill goes down after you have fulfilled your term of commitment.

Huh? You can buy the phones unsubsidized, but the contract will still cost you $55 per month, as will any post paid phone plan with a minimal data plan. It makes no sense to buy the unsubsidized phone unless you are willing to use it without a contract and a data plan. Some people do this and use their iPhones with prepaid sims on AT&T or T-mobile (jailbroken and unlocked) but for the vast vast majority of cell phone users in the U.S. this is not an attractive option.

Again, if you were going to pay for a phone plan and data plan anyway, the incremental cost of the 3Gs is $49 and the incremental cost of the iPhone 4 is $199.
post #36 of 54
Quote:
Originally Posted by AIaddict View Post

Huh? You can buy the phones unsubsidized, but the contract will still cost you $55 per month, as will any post paid phone plan with a minimal data plan. It makes no sense to buy the unsubsidized phone unless you are willing to use it without a contract and a data plan. Some people do this and use their iPhones with prepaid sims on AT&T or T-mobile (jailbroken and unlocked) but for the vast vast majority of cell phone users in the U.S. this is not an attractive option.

Again, if you were going to pay for a phone plan and data plan anyway, the incremental cost of the 3Gs is $49 and the incremental cost of the iPhone 4 is $199.

How much of that $55 a month (minimum) pays for the subsidy? Your guess is as good as mine. I agree that it makes little sense to do so, since the monthly cost is the same. My point is that there should be a reduction if the customer uses an unsubsidized phone or continues to use a subsidized phone after fulfilling the commitment.
post #37 of 54
Quote:
Originally Posted by msuberly View Post

How much of that $55 a month (minimum) pays for the subsidy? Your guess is as good as mine. I agree that it makes little sense to do so, since the monthly cost is the same. My point is that there should be a reduction if the customer uses an unsubsidized phone or continues to use a subsidized phone after fulfilling the commitment.

That is a different issue but I agree 100%. AT&T and Verizon should offer a discounted monthly rate to those without subsidized phones, but they don't. FWIW, I believe the ammount of the subsidy is around $20 a month, but it varries phone to phone and contract to contract. Under some contracts, the subsidy is paid off in 12 months, or 18 months, and other times it is the full 2 years. There is obviously a big difference in the subsidized cost of an iPhone 4 spread over 12 months verses 24 months.
post #38 of 54
Just ATT making a grab for any hungry IPHONE buyers. The promotion went very very well when they tested it at Radio Shack. Besides with the possibility of a Verizon IPHONE coming out they'll have to make up for lost revenue.
post #39 of 54
The big stumbling block with the iPhone for me is not the initial price, but the $30 monthly data fee. You say that is not much? My landline is less that the price of the data alone, and we have four members of our family. That's $120 a month extra in addition to the regular $120 monthly family plan. $240 a month. That's why we don't have iPhones of any kind.
post #40 of 54
Quote:
Originally Posted by asdasd View Post

The 3GS is about as fast as the iPhone 4. Far from discontinuing it it needs to become Apple's entry level device priced at zero on a normal contract.

The 3GS is not as fast as the iPhone 4. The iPhone 4 uses 1GHz A4 with 512MB RAM vs the 3GS 600GHz CPU and 256MB RAM. The speed difference is noticeable with larger apps. The issue is not only speed. The hardware (Retina display, FaceTime, better camera.. etc) is significantly different not to mention the design. The difference between the 3G and 3GS was not that significant and made since to keep both back then.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: iPhone
AppleInsider › Forums › Mobile › iPhone › AT&T announces it will sell Apple's iPhone 3GS at new $49 price