updated 03:20 pm EDT, Thu May 7, 2009
AT&T cutting iPhone rate?
A "strong possibility" exists that AT&T will lower the cost of its base-level iPhone plan, according to Cote Collaborative's Michael Cote. The analyst cites evidence such as disappointing iPhone 3G sales through Walmart, which typically markets to poor or middle-class demographics that may not be able to justify the $69 monthly minimum for an iPhone, on top of a one-time $197 hardware cost. Once completed, the two-year AT&T contract alone costs approximately $1,880.
Cote suggests that AT&T will lower the monthly fee by approximately $10, reducing the lifetime subscription price to $1,640. The cut would not only serve Walmart shoppers but the US as a whole, which remains reluctant to spend on luxuries when jobs and the economy are recovering from a recession.
An official announcement is predicted no earlier than June 8th's WWDC event, when Apple is also likely to reveal new iPhone models. Supporting Cote's claims are comments earlier this year from Apple executives Tim Cook, Peter Oppenheimer and Phil Schiller, who mentioned that the company was considering "different pricing/price points" in 2009.