Wednesday, June 11, 2008

What is the real Iphone 3G price? No, it is NOT $199.

ok, Apple did announced that Iphone 3G(8GB) will be selling for just $199(RM650). But was it all real? Hell no! First you are forced to sign a 2 years contract with your local Telco. Steve Job did not mention about the raised price of the data plan from $20 to $30 a month for all AT&T Iphone 3G users.

So how did Apple get the iPhone down to $199, while adding 3G and GPS?

Easy, they changed their business model with carriers. Carriers will now give Apple a $200 subsidy instead of a monthly cut of the plan. This means that providers like AT&T will pay more upfront to Apple, but get all of the monthly fees from their customers. So if carrier is paying Apple subsidy of $200 for a phone, this brings Iphone 3G real price of $200+$199 = $399 for Iphone 3G without contract.

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