AT&T is NOT taking a hit on this phone. It seems that they are subsidizing $200. But they raised the data rate $10/mo and over a 2 year contract that is $240. My math says that AT&T is now making more money on the iPhone, not taking a hit. Also, from what I read they may have dropped the 200 text messages from the iPhone plan. So if you want that back it is another $5/mo. So that means even more money for AT&T.
“Microsoft's not promising the world with Windows Mobile 6.5, nor are they delivering it -- it's very much a stopgap, complete with duct tape, bubble gum, and Bondo.”
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AT&T is NOT taking a hit on this phone. It seems that they are subsidizing $200. But they raised the data rate $10/mo and over a 2 year contract that is $240. My math says that AT&T is now making more money on the iPhone, not taking a hit. Also, from what I read they may have dropped the 200 text messages from the iPhone plan. So if you want that back it is another $5/mo. So that means even more money for AT&T.
Actually the data $10 increase to $30 for data is the price for all PDA/Smartphones with 3G so that is not how the phone's are getting subsidized.
http://www.macrumors.com/2008/06/10/iphone-3g-hands-on-notes-and-questions/