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iPhone Subsidies, Production Ramp Up?

USA Today provides some additional confirmation to the rumors that the next generation iPhone will benefit from carrier subsidies. According to the newspaper, the new iPhone will start at $199:

The price also will rock: $199, according to people with knowledge of the matter, down from the current $399 and $499. Sources declined to be cited by name or affiliation because Apple and AT&T haven't authorized anybody to speak publicly about pricing until after Monday's announcement. The $199 price is being subsidized, though USA TODAY could not confirm details.

Rumors of a $200 rebate first emerged in April alongside claims of GPS and a thinner design. Similar claims were again echoed just last week.

Meanwhile Barrons has heard that the Foxxconn, Apple's iPhone manufacturer, has only shipped "several thousand" of the new iPhone and don't expect to ramp production up until the middle of the month. This would suggest an actual launch date closer to the reported AT&T blockout dates (June 15-July 15th).

Apple is widely expected to announce the 3G iPhone at today's WWDC keynote speech which begins at 10am Pacific. We will be providing live coverage at MacRumorsLive.com.

Top Rated Comments

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48 months ago
I just bought a new car but I do have a cell phone/GPS lined up for my next purchase. Lets see what the iPhone can cover without crippling my budget.
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48 months ago
Subsidies will make the iPhone. The iPhone was a big PR hit, the 2nd gen iPhone with 3G and at a [potentially] significantly lower cost could really boost market share hugely.

Let's hope the hardware isn't plagued with any stupid quality control problems.
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48 months ago

Subsidies will make the iPhone. The iPhone was a big PR hit, the 2nd gen iPhone with 3G and at a [potentially] significantly lower costs could really boost market share hugely.

Let's hope the hardware isn't plagued with any stupid quality control problems.

Hopefully the current iPhone users won't mind us (me) plebeians having them as well. :rolleyes:
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48 months ago
The iPhone is going to take over if it is really that cheap! I can't wait! :D:D:D:D
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48 months ago
I really hope they still allow activation-at-home, because otherwise I'm going to end up getting a 2nd hand first generation iPhone.
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48 months ago

I really hope they still allow activation-at-home, because otherwise I'm going to end up getting a 2nd hand first generation iPhone.


I'm sure they will considering they will be sold at the apple store. Apple employees would have to go through phone activation training and would have to know how to give credit checks.
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48 months ago
just give me my phone already...
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48 months ago

Subsidies will make the iPhone. The iPhone was a big PR hit, the 2nd gen iPhone with 3G and at a [potentially] significantly lower cost could really boost market share hugely.


I agree. I know everyone likes to complain about Steve Ballmer's snarky comments about the iPhone prior to its launch but he was right about the cost. It would be great if Apple figured out some arrangement where the iPhone could be made a little more affordable. Not everyone out there is looking to spend that much on a phone, and no matter how great the hardware/software is, it's a hard sell when most phones out there are practically freebies with the right service plan.

Let's hope the hardware isn't plagued with any stupid quality control problems.


Ha! When has Apple ever had a problem with--?

Oh wait, I'll be back. My iBook is on fire again. :rolleyes:
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48 months ago
Go 199 iphone!!!! Woot Woot.


Go Dammit cubs for having the first post. WOOT WOOT!!!!!!!!!
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48 months ago

I agree. I know everyone likes to complain about Steve Ballmer's snarky comments about the iPhone prior to its launch but he was right about the cost. It would be great if Apple figured out some arrangement where the iPhone could be made a little more affordable. Not everyone out there is looking to spend that much on a phone, and no matter how great the hardware/software is, it's a hard sell when most phones out there are practically freebies with the right service plan.

Now that they will have money coming in from every app sold through the app store, they can afford to lose a little in exclusivity deals. It's in their interest for the hardware to be widespread in order for software sales to boom. Just like XBOX360/PS3, it's not even so much about profits on hardware, it's about long term gain through software/services. For that to happen you need the user base though.

Ha! When has Apple ever had a problem with...? Oh wait, I'll be back. My iBook is on fire again. :rolleyes:

haha, exactly!
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