Apple stops shipping iPhone 3G to AT&T stores - rumor
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.
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.
Comments
16 GB iPhone 3GS drops to $99, new 4G iPhone starts at 32 GB, $199.
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.
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...
3GS should take it's place as the entry level iPhone.
And why not? I'm not saying you're wrong, just wondering what is your reasoning behind it.
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.
I think we'll be seeing $199 32GB and $299 64GB, perhaps an entry level 16GB for $99.
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.
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.
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.
3G iPhone is now completely unavailable on my local Apple website.
it's still available on orange and o2 on the uk website
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.
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
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?
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.
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.
Here's to hoping AT&T will discount the data plans and at least not raise the price in any sneeky manner.