Thursday, May 7, 2009

AT&T will cut iPhone costs by $10


Seriously? Ten little old dollars. That's ridiculous. Ten dollars is like nothing! haha AT&T itself does not have great plans. They're not as flexible and cheap than verizon or tmobile. The price cut would likely help make the iPhone, which now retails for $200 with a two-year service plan with AT&T, more appealing to more mainstream customers. I've been saying for quite some time that the biggest hurdle to widescale adoption of the iPhone or any other smartphone in the mainstream market is the high price tag of the service contracts.
Consumers have shown that they are willing to pay anywhere between $100 and $200 for a sophisticated smartphone device. But the monthly service charge, which starts at $69 for the iPhone, is much harder to swallow.
It puts the real cost of the iPhone 3G over the life of the two-year contract at a whopping $1,856, which includes the price of the 8GB phone and 24 months of the most basic iPhone voice and data plan. It doesn't include the activation fee or taxes and other fees associated with the account. For subscribers who need more voice minutes or unlimited texting, the price tag is even higher.

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