Apple 3G iPhone to Sell for $199, thanks to AT&T’s Subsidy

Apple iPhone A new smoke blows out from Fortune magazine, stating that the upcoming 3G iPhone would sell for $199 from AT&T, the exclusive sales partner of Apple in the US. The price cut is because of AT&T’s new strategy plan of preparing to subsidize $200 of the cost of a new iPhone. Here, customers have to compulsorily sign up for a two-year contract.

The $200 rebate will only be acceptable if the customers belong to the AT&T family as it won’t be available through Apple’s stores. The locked version of the iPhone sold by AT&T wants buyers to avoid going in for the cheaper iPhone and utilize another network service. This immensely researched and full-proof strategy would attract buyers and draw them away from the competitors such as Verizon Wireless, Sprint and T-Mobile.

The most popular phone to gain the highest news hits, 3G iPhone is believed to be available in two versions, an 8GB ($399) and a 16GB model ($499). These prices need to be shelled out by customers if they buy the device from any other service provider, including Verizon Wireless, T-Mobile, Sprint and the official Apple store. Needless to say, buyers can buy the same device with a two-year contract from AT&T for only $199.

The new iPhone is slated to be 2.5 mm thinner than the 11.7 mm original and features a GPS chip for navigation as well as other location-based services.

Expected to release in June, the latest iPhone will celebrate its launch with the one-year anniversary of the original iPhone, which rolled out on 27th June. It is said that Apple won’t sell the revolutionary iPhone a few weeks before the launch of the new version.

AT&T and Apple disagreed to comment on the matter.