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Sources back cheaper iPhone claims

updated 10:45 am EDT, Fri June 5, 2009

Sources back cheap iPhone

Apple is indeed preparing to announce a cheaper version of the iPhone, possibly at Monday's WWDC keynote, according to sources quoted by the Financial Times. The informants are described only as "familiar with the initiative," but may serve to validate the opinions of analysts, who have predicted the tactic as a means of spreading the iPhone beyond a wealthier demographic. Even those already in a position to buy an iPhone may be holding off, given worries caused by recession.

The depth of the proposed cut is unknown, but analyst forecasts have pointed to a new cost of either $99 or $149. Such a reduction would be consistent with past approaches to devices like the iPod touch, although Apple has refused to comment on rumors. Simultaneous accounts have hinted at cheaper data plans from AT&T, possibly $10 to $15 less per month in exchange for a lower bandwidth cap. An unlimited option would likely remain.

by MacNN Staff





  1. climacs

    Joined: Dec 1969


    drop monthly rate

    to the $50-$60 range (including taxes) and suddenly everyone who already has a cellular phone can afford an iPhone.

    and if that happens, buh bye Palm, sayonara Sony Ericsson, h*** no Moto. RIM and Apple will virtually own the smartphone market where the action really is.

  1. akulavolk

    Joined: Dec 1969



    @climacs is right. I think it's the monthly charges more than the up-front cost that prohibits most people from getting an iPhone (or getting a few for the family). Not too hard to do the math and realize how crazy expensive a data-enabled phone is over the course of a year (it's not just the iPhone).

  1. testudo

    Joined: Dec 1969


    Re: monthly rate

    Yeah, but you can hear the complaining already. Since the iPhone is one of the few phones that makes use of the data plan (even when you don't realize it, such as for VV), people will break through on their cap for the month and be charged the per kb fee, and costs rack up, and everyone is claiming ATT is gouging their customers.

  1. bluejammm

    Joined: Dec 1969



    Jesus Christ! I just want an iTouch that can make a simple friggin' phone call!

  1. fattychance

    Joined: Dec 1969


    People will not break cap

    That's just dumb. My wife and I combined use only about 200-300MB/month.

    Any monthly cap ought to be multi GB/month.

    Honestly, if they don't drop the monthly rate I'm probably going for the early termination exit.

    $60/month for's not worth it.

  1. qqq

    Joined: Dec 1969


    Mothly rate still high

    If they introduced the new phones with a plan similar to Tracfone's Straight Talk plan (, I'd pick them up in a second. $30/month = 1000 mins 1000 text 30 MB data.

  1. testudo

    Joined: Dec 1969


    Re: People will break

    So you're saying you never break 300MB a month, but a cap should be multi-GB. Why? Wouldn't you prefer a smaller cap plan, then, so that you could pay less, esp. since you apparently are paying $60 a month on a data plan alone.

  1. Sondjata

    Joined: Dec 1969


    It's the plan

    I almost bought a refurb iPhone since I am already an ATT customer, but the added cost of the plan was unacceptable to me. I don't care if the phone is free, the data plan is ridiculous. I have the max amount of rollover minutes with several hundred expiring every month. In essence I pay them to have a phone number and they want another 40 bucks a month for a data plan?

    Umm. no.

  1. x user

    Joined: Dec 1969



    It's pricy... but come on. Have you ever used one? Worth every penny.

  1. Jonathan-Tanya

    Joined: Dec 1969


    Palm should be fine

    I don't have any information, but from past experience with Apple, if its $99 or $149, then its $149. They always seem to error on the side of charging more.

    $149 vs $199 for the Palm Pre, with the Palm Pre being the newer phone, with quite a bit of buzz going on, and at least some Palm users wanting to upgrade (don't laugh).

    And lets not forget that the Palm data plan is cheaper....this is a great competitive move by apple, but I don't think Palms gameplan exactly required every other competitor to stand least not this time :O

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