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

Posted:
in iPhone edited January 2014
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."
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Comments

  • Reply 1 of 53
    SpamSandwichSpamSandwich Posts: 33,407member
    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.
  • Reply 2 of 53
    cameronjcameronj Posts: 2,357member
    What a deal! Who wouldn't want a two year old iPhone for a savings of $100
  • Reply 3 of 53
    nasseraenasserae Posts: 3,167member
    They should discontinue the 3GS and this probably indicates they intend to do so by clearing inventories.
  • Reply 4 of 53
    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.
  • Reply 5 of 53
    anonymouseanonymouse Posts: 6,860member
    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.
  • Reply 6 of 53
    nagrommenagromme Posts: 2,834member
    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 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.
  • Reply 7 of 53
    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 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.
  • Reply 8 of 53
    icarbonicarbon Posts: 196member
    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.
  • Reply 9 of 53
    1) Verizon

    2) who wants 3GS? It doesn't sound as cool as iPhone 4.
  • Reply 10 of 53
    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
  • Reply 11 of 53
    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.
  • Reply 12 of 53
    roos24roos24 Posts: 170member
    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.
  • Reply 13 of 53
    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.
  • Reply 14 of 53
    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.
  • Reply 15 of 53
    boeyc15boeyc15 Posts: 986member
    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.
  • Reply 16 of 53
    shobizshobiz Posts: 207member
    It's called clearing inventory. It's done every year. You can choose to think it is something else if you wish.
  • Reply 17 of 53
    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.
  • Reply 18 of 53
    I don't think this move is so much about Verizon, as it is the horizon: the demise of the 3GS is on it.
  • Reply 19 of 53
    antkm1antkm1 Posts: 1,441member
    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.
  • Reply 20 of 53
    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.
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