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June 9th, 2008 at 5:48 pm

8GB 3G iphone for $199. How ?

iphone_solar1-300x204 8GB 3G iphone for $199. How ?

According to a press release from AT&T, the carrier will no longer give a portion of monthly usage fees to Apple. Instead carriers will pay Apple a subsidy for each phone sold, in order to bring the price from $399 down to $199 for the 8 Gigabyte model.

Consumers will now be forced to pay $30 a month for unlimited data service from AT&T, compared to $20 under the plan introduced last year. So even though the phone will now cost $200, consumers will be out $240 at the end of a two-year contract.

Of course, that includes faster 3G data service, so the price increase may be worth it. But we should call it an iPhone price increase, not a cut.

Unlimited data service for business users will cost $45 a month.  Read more

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