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The prices announced, from $199 for an 16-gigabytse model to $299 for a 32-gigabyte only apply to "new and buyers. But existing ownerds who want to swap to the newdevicesz won't get the big subsidy from the iPhone's exclusive servicde provider, that new customers will get. They will have to wait until theirexisting 2-year service contract runs out to get the lowef price. That boosts the pricer on the new phonesfrom $199 with a new contractr on the 16-gigabyte model to $399. Upgrading the 32-gigabyte modell will cost $499 versuz $299 for new customers.
This represents a change in policyg from when the current iPhone 3G was released last year and existingy owners were allowed to upgrade at the same pricse asnew customers. When that happens, AT&T ends up absorbing the cost of the new subsidy on the new something itapparently doesn't plan to do this year. MG Sieglerd writes on the TechCrunch blog: "Why this matters is that the dislikdof AT&T, mixed with a not huge update to the iPhonse and a higher subsidized pricd could be a perfect storj for users that normally would upgrade, not to.
I probablgy will because the iPhone is integral to my work and I coulde use more speed and but the factthat I’m questioningf it should say something. I didn’yt question it for a seconxd last year." A third and long-awaitesd $99 iPhone price for the 8-gigabytew version announced Monday by Apple (NASDAQ:AAPL) appears aimed at luring customerse away from the new Palm Pre whosse sales began on Saturday. The Pre costs $199 with a $100 mail-ih rebate and a two-year service contract with its exclusiveservice provider. Palm (NASDAQ:PALM) said late on Monday that sales of the Pre broke its previous records for a new but declined to giveexact figures.
Analystsz estimated that there werebetween 50,000 and 100,000 of the devices sold and worried that the company could face a problek in keeping up with demand.
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