With a two-year contract with AT&T, Verizon Wireless or Sprint, the iPhone 4S starts at $199 for the 16GB model and $299 for the 32GB model in the U.S. -- and even adds the new 64GB model for $399 for heavy media users.
But Apple didn't remove its old inventory from the market. In fact, apple heavily discounted it. Now, the iPhone 4 is selling for just $99 and iPhone 3GS will be available for free with a two-year contract. The keyword here is free -- and analysts expect that to help Apple compete with other handset makers, including Android devices.
"Apple dramatically expanded the price points that the iPhone is available at and the distribution," said Avi Greengart, an analyst at Current Analysis. "The key competitive takeaway that I got is this: If your free phone isn't better than the iPhone 3GS, you are in trouble. If you are at pretty much any carrier, if your $99 mid-tier phone isn't better than the iPhone 4, you are in trouble."
T-Mobile appears to have the most to lose from the deal in the U.S., since it doesn't carry the iPhone. But wireless carriers that carry the iPhone in other countries are fewer and farther between. So the expanded price points are not only good for Apple, but for the carriers that offer the devices around the world who can now tap into the pent-up demand for a more affordable iPhone.
"While it is undeniable that the purchase price of the device has little bearing in terms of the overall cost of what you include, consumer...
Source: http://www.mobile-tech-today.com/story.xhtml?story_id=80472
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