David Becker
Gear

iPhone Not Subsidy-Proof?

Will the iPhone prove to be mortal after all, and thus subject to the economic laws of the telecomm market? American Technology Research analyst Shaw Wu is starting to think so, as detailed in a new report that says Apple executives are seriously considering a mail-in rebate or carrier subsidy in the $50 to $150 […]

Will the iPhone prove to be mortal after all, and thus subject to the economic laws of the telecomm market?20070109t215728z_01_nootr_rtridsp_2

American Technology Research analyst Shaw Wu is starting to think so, as detailed in a new report that says Apple executives are seriously considering a mail-in rebate or carrier subsidy in the $50 to $150 range.

We are hearing rebates of $50-150 that will be offered by AT&T to lower the price points for iPhone (currently $499 for 4 GB and $599 for 8 GB) and to entice customers to sign longer term voice and data contracts.

Wu further posits that Apple and AT&T have worked out a revenue sharing plan by which Apple will receive a cut of the monthly subscription fee for every customer who signs up through an Apple store, virtual or brick-and-mortar.

Subsidies, of course, are a way of life in the phone business, but the iPhone has been considered so brain-warpingly sexy that Apple could actually get people to pay full price. And staple their tongue, if Steve Jobs decided that would amuse him.
Apple seriously considering iPhone rebate, subsidy - report[AppleInsider]