[Scooter1212]

no, because the iPhone 3g has to be activated at the apple store or at & t store, so you only get the rebate if you sign up for the 2 year contract, otherwise you have to pay full price, if you buy it online or something

[kremner]

With the new pricing in place, it's goodbye Treo ... Hello iPhone. Well done Apple.

[hypermark]

I would strongly encourage watching the keynote, if you haven't (it's online).
After watching it, I have little doubt that carriers will sign up en masse, customers will see $199 as a relatively easy impulse buy, and once a couple 'have to have' iPhone apps start flooding into the market, Apple is going to do some crazy volume.
Relative to killer apps, the demos that they showed in the keynote impressively showcased the capabilities of the platform (all that I can say is - WOW!). A couple of the gaming apps simply rocked.
The different medical apps had me thinking Encyclopedia Brittanica for Web 3.0; and the Band demo spoke to the earnestness and fun spirit of the platform.
And that's the point. It's a platform play that Apple is executing, and the greater the reach (both geographically and based on price point), the bigger the ripple effect will be on the acceleration of their growth, not to mention all of the halo effect goodness on the mac side of the business.
Here is a post that I wrote with a bit more analysis:
Jobs and iPhone: The (second) greatest unintentional head-fake in tech history?
http://thenetworkgar...and-iphone.html
Check it out if interested.
Cheers,
Mark

[ronozer]

They purposely have let the iPhone inventory dwindle in preparation for this launch. The price is low not because Apple is desparate but because the $10 increase in data service is basically another $240 you pay, so the price is really about the same as it was 4 months ago, but for a much better phone. I have and love my iPhone for a year now. Will give it to my friend. Plan to buy a new one in July.

[Filburt]

So with unlimited data and 200 SMS, we'll be paying $35/month, vs $20/month for older iPhone. I don't think that qualifies as "slashing price", although to be fair, that's what AT&T charges to PDA and most other smartphones.

[sdwood]

Just curious, have you ever seen any smartphone manufacturer offer an upgrade path when they bring out a new model? Or have you ever seen any smartphone manufacturer offer a new set with significantly better features for so much less than the previous model? Me, neither.

[sdwood]

Well, Wondertroll, if you have been paying attention (and I'll bet you have) you know that Apple has not shipped new inventory for some time and there isn't very much of the old stock left. Moreover, you actually do know that the new low price is for the new, improved model--which, as I recall, includes all the features you used to complain were missing--and then some.

[TheTSArt]

Just wondering about those people who bought an original iPhone at an Apple store, went home and tried to activate but were told they were ineligible for a contract (I guess because of credit rating) so they were put on a pay ahead plan...

Since you apparently have to sign a contract now before you buy, even at an Apple store, and there is no more pay ahead program (or whatever it's called) does that mean that those same people may wait in line for hours in July only to be turned away at the checkout counter?

[xybernaut]

After months of negotiating with my family to all switch to ATT and IPhones, we made the plunge, I bought 3 iPhones
(2-8gb & 1 16gb), Happiness and dancing ensued. The announcement that Apple has a faster and less expensive model coming and that ATT will allow those who purchased after May 27th should have saved me from looking for a couch to sleep on and a family willing to take in a stupid man. You see we purchased our iPhones on May 15th....
Out 600 dollars and old iPhones.. I am not real popular at home.
Suicidal in Fort Worth

[nvrslpn]

A little birdy told me that this pricing of the iPhone 3G $199 and $299 for the 8GB and 16GB phones only apply to new AT&T customers and current customers will be railed by the higher prices which will be similar to the cost of the iPhone when it was first introduced into the market. Also they may not be selling any phones without contracts, so if you wanted to get your wife one while she is at work, you're S.O.L. If this is true I'm pretty sure I will never buy a Mac product EVER AGAIN. I own a 3 year old Mac which is now not even supported by the mac store as far as memory goes. I hate PCs and have been doing very well to avoid them for about the last 12 years, but if this goes down the way I've heard it will then I will boycott anything Mac made, I'll even sell my airport extreme on E-bay. Mac is starting to look like the Microsoft of the late 90's.

[sdwood]

Well, "nvrslpn" if one pricing decision on one product by Apple might induce you to "never buy a Mac product EVER AGAIN" then that is what you should do--no matter how juvenile it makes you sound, especially when you don't have the facts and actually listen to a little birdy. Oh, that was a figure of speech, of course it was. I suggest you take a deep breath, wait just a few days and have all the real information to evaluate, and maybe even some expert opinion on how AT&T might have had some impact on the pricing decision--as the carriers certainly do when it comes to devices that they sell for their networks.

It's not clear why your wife being at work has to do with your buying decision, unless she works all the hours that the Apple store or AT&T store is open for business--which seems rather unlikely. Do let us know, we all need a little drama from time to time.

[nvrslpn]

Wow, unless Steve Jobs is your Dad, I don't understand why you are so defensive. I think you're projecting a bit too there buddy. You can take a deep breath because I clearly stated that what I was repeating was a rumor. Since there was a line of campers on the last day of opening, my wife works all day and I'm the only one of the two of who can afford a day off of work. If anyone has anything remotely helpful or intelligent to add to this post about pricing and perhaps clear up if Apple plans or heard plans on screwing over the early adapters again, just let me know.

[maczmonte]

First of all, if Apple is screwing anyone, it's AT&T. And AT&T is always screwing you, it's just a matter of how much you mind. Second, since you mentioned "early adapter" I'm guessing you have an iPhone. All current iPhone users are eligible to upgrade to iPhone 3G. The only problem AT&T has is the (usual) issue of someone getting a $100 (or whatever) Blackberry 6 months ago and wanting to upgrade now, when we all know those Blackberrys cost them $500. AT&T has actually done a good job of answering most of these questions in their 'iReady' material on their web site. My only question (that I haven't found the answer for), is what will I be charged for my current iPhone per month when I 'hand it down' to my son. I'm only paying $20 monthly for the data plan now and there's a year left on that contract. Plus, since I paid $500 for that iPhone, I don't think my monthly charge should get bumped to $35; that iPhone is not being subsidized. If anyone has seen a definitive answer to this question, please post it. If AT&T wants to raise my rates on the original iPhone, my only alternative is to have my company buy me an iPhone 3G and put it on their plan with a new number (that sucks). Ironically, the monthly rates for businesses are staying the same (oh, they were already being screwed...).