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Apple follows AT&T, drops official US iPhone 3GS price to $49

post #1 of 21
Thread Starter 
Apple has quietly dropped the price of its entry-level 8GB iPhone 3GS to $49 with a new two-year contract with AT&T, matching the new low price that last week was offered exclusively by the carrier.

The 8GB iPhone 3GS now costs $49, down from its original price of $99. The price change came quietly, without an announcement from Apple, just a few days after AT&T revealed it had reduced the price of the iPhone 3GS as well.

Last week, AT&T made it clear that the price of the iPhone 3GS sold in Apple's own channels, such as its retail and online stores, were determined by Apple itself, suggesting the $50 price cut was solely AT&T's doing. At the time, Apple's official iPhone site still offered the 8GB iPhone 3GS for $99.

The current-generation iPhone 4 models still carry the same price with a two-year AT&T contract. The 16GB model sells for $199, while the high-end 32GB model has a price of $299.

AT&T's chief rival, Verizon, is widely expected to announce on Tuesday that it will carry a CDMA version of the iPhone in just a matter of weeks. While reports have said Verizon will offer the iPhone 4, no mention has been made of the iPhone 3GS, first released in 2009. If Verizon's deal is only for the iPhone 4, the $49 iPhone 3GS could remain an AT&T exclusive.



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.
post #2 of 21
Sure, Verizon will start rolling out its 3G GSM network next week to desperately match at&ts 3GS deal...
post #3 of 21
Last time I checked "the high-end 32GB model" was $299, not $399.
post #4 of 21
And so the effect of fair competition begins

BTW I totally understand why SJ had to do what he did initially to even get the iPhone into the market. But now I welcome the opening up of the US market for many reasons. Not least of which is AAPL.
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Use duckduckgo.com with Safari, not Google Search
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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post #5 of 21
Please, please, PLEASE...

If the VeriPhone is released on Tuesday, this will be two birds with one stone.

Finally shutting up the VeriPhone people while simultaneously shutting up the iPhone nano crowd (remember them? *shudder* I certainly do. Nonsense.).

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post #6 of 21
Yeah, and the customer is still getting screwed. The marginal cost to ATT to add and sustain another wireless customer is virtually nothing. We consumers are a bunch of saps.
post #7 of 21
To bad, competition still isn't fair as Sprint and T-Mobile are being locked out.


Quote:
Originally Posted by digitalclips View Post

And so the effect of fair competition begins

BTW I totally understand why SJ had to do what he did initially to even get the iPhone into the market. But now I welcome the opening up of the US market for many reasons. Not least of which is AAPL.
post #8 of 21
They couldn't let every AT&T store in the US sell the 3GS for $50 less. I can't imagine anybody continuing to buy it from the Apple store or online for $99 when it's $49 everywhere else.
post #9 of 21
Quote:
Originally Posted by bjbjohnson View Post

They couldn't let every AT&T store in the US sell the 3GS for $50 less. I can't imagine anybody continuing to buy it from the Apple store or online for $99 when it's $49 everywhere else.

I can. Same reason people buy RAM and hard drives from Apple when they're hundreds to thousands less elsewhere.

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post #10 of 21
Quote:
Originally Posted by DonSqueak View Post

Sure, Verizon will start rolling out its 3G GSM network next week to desperately match at&ts 3GS deal...

I hope that was sarcasm!
post #11 of 21
Quote:
Originally Posted by bjbjohnson View Post

They couldn't let every AT&T store in the US sell the 3GS for $50 less. I can't imagine anybody continuing to buy it from the Apple store or online for $99 when it's $49 everywhere else.

Exactly. ATT cut the price to get rid of non selling stock and make room to order more iPhone 4s etc.

Apple is merely price matching because unlike the stunt with TJMaxx were they could a 'they are not an authorized reseller' as a reason not to price match, they have no good argument. And they would rather keep sales in house where folks are playing with the demos while they wait their turn.
post #12 of 21
I dont think we have any idea if the 3GS is not selling. I think it is selling, and this is keep it selling more.
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post #13 of 21
Ant to think that this phone cost $600 3 years ago.
That's Apple tax at its finest!
post #14 of 21
Quote:
Originally Posted by charlituna View Post

Apple is merely price matching because unlike the stunt with TJMaxx were they could a 'they are not an authorized reseller' as a reason not to price match, they have no good argument.

Didn't TJMaxx only have like two, refurbished at that, iPads per store they were selling as door busters? I don't think anyone expected Apple to match that. That comparison makes very little sense.
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Originally Posted by addabox

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post #15 of 21
Quote:
Originally Posted by bjbjohnson View Post

They couldn't let every AT&T store in the US sell the 3GS for $50 less. I can't imagine anybody continuing to buy it from the Apple store or online for $99 when it's $49 everywhere else.

They get the money either way, so no, they didn't have to. But if AT&T wants to spur sales before the Verizon launch, Apple would be happy to help move some additional AT&T unit.

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"My 8th grade math teacher once said: "You can't help it if you're dumb, you are born that way. But stupid is self inflicted."" -Hiro. 

...sometimes it's both
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post #16 of 21
Quote:
Originally Posted by Tulkas View Post

They get the money either way, so no, they didn't have to. But if AT&T wants to spur sales before the Verizon launch, Apple would be happy to help move some additional AT&T unit.

The get the iPhone sale but lose the opportunity to sell accessories or get a non-Mac user to try out a Mac.
post #17 of 21
My prognostication is that the iphone4 is going to go dual GSM/CDMA. Past few years, if I recall half way correctly, Apple dropped prices of units when they are clearing inventory, to make room for new models. So that asks, clear inventory for what? New model what?
Just a guess on my part.
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post #18 of 21
Seems to confirm Verizon launch is imminent. The reason being - hook as many people on 2 year ATT contract before Verizon version comes out.
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post #19 of 21
Quote:
Originally Posted by iLiver View Post

Ant to think that this phone cost $600 3 years ago.
That's Apple tax at its finest!

What a troll or just a plain lack of general awareness, maybe both. It has been a historical fact for decades that electronics either get more features or price reductions on regular basis.
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Artificial intelligence is no match for natural stupidity.

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post #20 of 21
Quote:
Originally Posted by Realistic View Post

What a troll or just a plain lack of general awareness, maybe both. It has been a historical fact for decades that electronics either get more features or price reductions on regular basis.

92% DROP!! I DON'T THINK SO.
post #21 of 21
Quote:
Originally Posted by iLiver View Post

92% DROP!! I DON'T THINK SO.

You do know that the $600 iPhone was before the current subsidies with the 2year contract deal was formed, right?
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