Fortune Reports Next iPhone Will Start at $199

Take this with a grain of salt, but Fortune’s Scott Moritz has filed a report claiming that AT&T will subsidize the price of the hotly awaited 3G iPhone down to start at $199 with a two-year agreement, which would be a clear sign that the company is serious about starting to move some massive numbers of the device when it drops in June.

There are definitely parts of the story that I don’t buy — I don’t think Apple is going to go 8 and 16 gig on the new iPhone, let alone “8-gigabit-memory and 16-gigabit-memory,” and the pricing strategy only makes sense if the iPhone is non-exclusive to AT&T. If Apple’s selling the 3G iPhone unlocked at Apple Stores for $200 more, this makes sense. If not, this is just bizarre.

Thoughts? I really hope we see a 32-gigabyte model of the 3G iPhone – that makes it not just a nano replacement for me, but an actual iPod replacement.

FORTUNE: Techland AT&T to cut the price of Apple’s new iPhone

Thanks, Matt!

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  • Camperton

    “I really hope we see a 32-gigabyte model of the 3G iPhone – that makes it not just a nano replacement for me, but an actual iPod replacement”.

    Same here.

  • buy_3g_iphone

    This is very good news , but , I feel like the only way this would happen is if the phone is severely gimped in other ways (limited to 8 GB model)……selling off my old iphone as fast as I can …before its price bottoms …gonna buy new iphone from http://www.buy-3g-iphone/

  • lukeMV

    Will I be able to upgrade my existing iPhone…they should have trade-ins, I already have 5 ipods just collecting dust in my closet.

About the author

Pete Mortensen

Pete Mortensen is a design strategist for consulting firm Jump Associates and the co-author of Wired to Care: How Companies Prosper When They Create Widespread Empathy, a book and blog that are significantly more interesting than you might initially think. Pete's particular Apple avocations are both around design--interface and industrial. Follow him on Twitter!

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