3G iPhone to be discounted to $199 by AT&T?

According to Fortune, AT&T will subsidize the cost of the new, 3G iPhone by as much as $200, bringing the price within the $199 range. Apparently, a "person familiar with the strategy" claims that the provider will create this bargain bonanza for customers signing new, two-year contracts. Of course, the author of the story also says that the new phones will be available in "8-gigabit-memory and... 16-gigabit-memory" versions (for $399 and $499, respectively), so take that as you like. In addition to these discounts, the source says the new iPhone will be 2.5mm thinner than the previous iteration, although we understand that right after telling Fortune this information, the "person" burst into a cloud of rainbow-colored sparkles and went flying off into the night sky.

[Thanks, Penny]

[(Unverified) Posted Apr 29th 2008 6:39PM]

Didn't our other "reliable source" claim that it was slightly thicker than the current one? 2.5mm is quite a bit to shave off...

[(Unverified) Posted Apr 29th 2008 7:11PM]

Wow, if this is true, it's all over for other phones, Americans love Apple.

[(Unverified) Posted Apr 29th 2008 7:38PM]

"...the provider will create this bargain bonanza for customers signing new, two-year contracts..."

If it is true then in 1 or 2 years we will see 3G iPhones for 99 cents or free with a two-year contract (ahem, RAZR...)

[(Unverified) Posted Apr 29th 2008 8:06PM]

Apple will never be that cheap because every year they will be coming out with another version and discontinue the old version. Apple is much more innovative than Motorola which never came up for an answer to the razr.

[(Unverified) Posted Apr 30th 2008 7:28PM]

*cough*thereisarazr2dumbass*cough*

[(Unverified) Posted Apr 29th 2008 8:57PM]

this doesn't seem likely.

First, Engadget's "reliable source" claimed that the 3G iPhone would be slightly thicker. Second, i can't see Apple keeping the 8GB iPhone around for too much longer, because European carriers have already heavily discounted the phone, making it far more likely to have a 16GB and 32GB version.

[compboss17 Posted Apr 29th 2008 8:58PM]

Wait 1GB and 2GB iPhones for 399 and 499? That's not a good deal!!

[(Unverified) Posted Apr 29th 2008 10:19PM]

burst into WHAT? you high man?

[zap2 Posted Apr 29th 2008 11:20PM]

AT&T, REALLY wants to make the iPhone worth its wild.

[(Unverified) Posted Apr 30th 2008 2:10AM]

Rumor I heard was 199$ for the current 8GB model. From an unreliable source at work who never heard of the 3G iphone until I mentioned it last week when we where talking about the cisco ipsec/vpn client. Anyway, my E51 is more useful and less likely to get me mugged. pfffft.

[(Unverified) Posted Apr 30th 2008 6:36AM]

Did you feel that?!?!?

There was a great disturbance in the Force!!

If they serve cookies, the Rebels are dead!!!!

[(Unverified) Posted Apr 30th 2008 10:18AM]

What happened to the other "reliable source" telling you the new iPhone is supposed to be thicker? How "reliable" are your "reliable sources"? Better see which one is more reliable in this case, or just wait for a real Apple press release.

[(Unverified) Posted Apr 30th 2008 10:48AM]

The iPhone is about 10mm thick. If it gets 2.5mm thinner that means it's losing 25% of its volume.

That seems pretty unlikely.

[(Unverified) Posted Apr 30th 2008 11:07AM]

I paid $599 for my iphone and I stand by that decision!

[(Unverified) Posted Apr 30th 2008 11:36AM]

Although I read the screen size will be a touch smaller. Not a fan of a smaller screen IMO.... Guess it's all speculation..we'll see in June? ;)

[(Unverified) Posted May 1st 2008 5:31PM]

Anybody believes ANYTHING Fortune "reports" why???