Wednesday, April 18, 2007

Apple seriously considering iPhone rebate, subsidy - report

Apple insider reports that American Technology analyst Shaw Wu believes that Apple and AT&T are considering offering a $50-$150 rebate or subsidy on the upcoming Apple iPhone.

"We are hearing rebates of $50-150 that will be offered by AT&T to lower the price points for iPhone (currently $499 for 4 GB and $599 for 8 GB) and to entice customers to sign longer term voice and data contracts," the analyst wrote. "From AT&T's perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in 'guaranteed' bi-annual revenue."

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