Rumor: AT&T to subsidize the next-gen iPhone by $200

Posted April 30, 2008 at 10:46 AM by Mark Pascua

Section: Apple, Communications, Cellphones, Smartphones, Mobile

With the hotly anticipated summer launch of Apple’s 3G equipped iPhone, Fortune is reporting that AT&T has plans to subsidize the next generation iPhone by $200 for new customers that purchase the phone through AT&T stores, not Apple stores. Which in my opinion, doesn’t make sense. Why would Apple sell their product for more money when their partner, AT&T, is offering the same product with a $200 rebate? However, if the rumor holds true, the discount plummets the cost of the iPhone to $199, a deal that is undeniably attractive. Fortune notes that the subsidy will only be applied to new two-year contract signups. Furthermore, they continue to claim that the new iPhone will have GPS and be 2.7mm thinner.

Apple is expected to have two versions available: a 8GB and 16GB model for a base price of $399 and $499 respectively. Apple’s official 3G iPhone announcement is expected to be delivered at the 2008 Worldwide Developers Conference, which begins on June 9th.

Read [Fortune]