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Analysts: iPhone service costs beat expectations

updated 11:20 am EDT, Wed June 27, 2007

Analysts on iPhone service

Fears that high priced service plans for Apple's iPhone would turn many potential customers away have subsided somewhat, according to two industry analysts. Senior analysts Gene Munster of Piper Jaffray and Shaw Wu of American Technology Research both agree that service plan pricing for the highly anticipated device is less expensive than many had feared, and that the cost of using the iPhone is competitive with other similar devices. "We find these price points better than feared and believe the $59.99 and $79.99 plans will be particularly attractive for mainstream users," Wu wrote in a research note obtained by MacNN. Munster notes that Apple's unlimited data (email and Web) functionality included in all its plans is typically an add-on service, adding that the plans are 25 percent cheaper than were expected which "removes one of hte barriers to entering the market."

by MacNN Staff




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