AT&T announces it will sell Apple's iPhone 3GS at new $49 price
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. We?re 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."
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. We?re 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."
Comments
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.
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 isn?t a bad design) but in performance it?s closer to an iPhone 4.
I?d certainly take an iPhone 3GS over a BOGO Android phone! This lowers the cost of entry for an iOS phone.
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 isn?t a bad design) but in performance it?s closer to an iPhone 4.
I?d 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.
just more fuel for the veriziphone rumors.
2) who wants 3GS? It doesn't sound as cool as iPhone 4.
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
1) Verizon
What about it?
2) who wants 3GS? It doesn't sound as cool as iPhone 4.
People who want a phone, probably.
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.
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.
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.
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.
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.
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.
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.
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.