USA Today, Telegraph suggest free, $199 3G iPhones
updated 09:30 am EDT, Mon June 9, 2008
Papers: Free, $199 iPhones
Some prices are already known for the 3G iPhone, two major publications claim. USA Today cites "people with knowledge of the matter," who say that the American phone will be available for as little as $199, a drop from the current prices of $399 and $499. It is not known if this implies the existence of a single capacity, rather than two; the newspaper's sources claim, however, that they can confirm the cost difference is being subsidized.
People in the UK may benefit most from new pricing schemes, as the Telegraph is reporting that the 3G iPhone will actually be free to those signing up for O2's most expensive cellphone plan, which will also lock customers into an 18-month contract. Prices are otherwise said to be unknown, though one option should include a pay-as-you-go fee.
O2 is also rumored to be planning a controversial scheme, in which buyers would be forced to sign on to a contract before leaving the store. This would be done with the intent of discouraging unlocking, which has in the past veered revenue away from Apple and O2. At the same time, however, approximately 30 percent of iPhone customers are said to have unlocked it for use on another carrier, a fact that may discourage some from buying a more rigidly guarded upgrade.
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O2
Signing a contract before you leave the store is actually statndard practice in the UK. It was only the release of the iPhone and the account creation in iTunes that changed this for the first time. The reson that you will be asked to sign the contract in store is due to the fact that O2 will be subsidising the cost of the phone, the only way to get the money back is to therefore have you on an O2 contract, it is common sense.