Yup – this rumor is everywhere. I know, I know…you want it to be true. I want it to be true – we ALL want it to be true.
BUT…do you really think the 3G iPhone is going to come out at a price point that is $200 dollars cheaper than the current model?
Sure, Forbes is a nice source – in theory anyway – but the source of Forbes source is “a person familiar with the strategy”. The writer also states the iPhone “will likely be locked or programmed so buyers can’t take the cheaper iPhone to another phone service.”
Now, if that last quote from his article doesnt’ convince you that this guy doesn’t know what he’s talking about, I’m not sure anything will…but I’ll try anyway…
Let’s ask some questions about this rumor, and see if it holds water…
Q. Would Apple allow AT&T to undercut them on their own product?
A. No. Sure, Apple has let a discount like this happen in the UK (which is probably how this whole rumor started in the first place), but that’s in a completely different market, and what they’re doing is clearing out inventory in an area where the iPhone has not sold as well as it has here in the US.
I do not believe Apple is going to allow At&t to sell their product for less than you can buy it in an Apple store.
It doesn’t even make sense.
If you go into an Apple store and pay $399 or $499 for this device, you are still forced into a 2 year contract with At&t. You think either company is going to get away with that?
You’ll have furious customers who purchase the phone at the Apple store who demand their $200 back – either from Apple or from At&t…and they’ll get it…or they’ll file a class action lawsuit (that’s how things work in this country).
Q. Does Apple or At&t need to do this?
A. No. In less than a year, Apple has managed to sell more iPhones than every single competitor in the US cellphone market, except RIMM. That was with an EDGE based phone, and no 3rd Party applications.
Now we’re talking about the next generation of the iPhone – with 3G and more 3rd Party applications than you’ll be able to count, from a variety of major sources…and Apple is going to allow the product to be devalued to $199?
I don’t think so.
At&t has no motivation to do this either – they are already having to pay Apple a chunk of the monthly revenue, and the device is selling like mad – why would they put themselves further in the hole? Especially since their is no guarantee that the iPhone will stay exclusive to them forever?
We’ll know for sure about this in a little over a month, but as far as rumors go – this one just doesn’t hold much weight. The sad thing is, this will spread like wildfire all over the place – then people will be disappointed when it doesn’t happen, and they’ll have already priced it at $199 in their minds – making it seem over-priced when it is actually released.
I hate rumors.