AT&T Raises Subsidized iPhone 3GS Price to $0.99 ~ Gadget Reviews, Product News, Electronic Gadgets

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Fat Jump Pro (By SID On)

Developer: SID On Price: $0.99 Version Reviewed: 1.2 Download: here Requirements: Compatible with iPhone, iPod touch, and iPad.Requires iOS 4.0 or later. Located in the Warsow,Poland-SID on an independent mobile application developer has announced a recent update of Fat Jump Pro for the iPhone,iPad and iPod touch.Fat Jump Pro is a fast paced vertical arcade action for the iOS devices.Using the tilt controls the player must guide the jumping,little green hero (a healthy and crispy cucumber) up a never ending series of platforms...

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Ticket to Ride Pocket

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Blood and Glory

Friday, 18 November 2011

AT&T Raises Subsidized iPhone 3GS Price to $0.99

In a curious move, AT&T has raised the subsidized price of its cheapest iPhone to $0.99, up from free.

When the iPhone 4S was announced in October, Apple specifically mentioned in its press release that the iPhone 4 and iPhone 3GS would be available in 8GB capacities for subsidized pricing of US$99 and for free, respectively.

During AT&T's Q3 2011 earnings call with analysts on October 20th, AT&T Mobility CEO Ralph de la Vega twice mentioned the iPhone 3GS's $0 price point, saying during the introductory remarks:

Our lower price plan continues to be a good entry point for many subscribers and now that we offer a free iPhone with a 2-year contract for the first time ever, the iPhone 3GS, we expect to broaden the smartphone base even more.

De la Vega again mentions the 3GS during question-and-answer portion:

I also mentioned in my notes that we have another device that I think is going to dramatically change those people that are on smartphones and quick messaging devices, the 3GS, which is free with a 2-year contract. We've seen a tremendous, tremendous demand for that device even though it's a generation old. And actually, we're getting more new subscribers coming on the 3GS on the average than other devices.

It is unclear why AT&T has elected to raise the price of the iPhone 3GS by a negligible but still notable amount a month and a half after it became free on contract, particularly given the fact that both Apple PR and AT&T Mobility's CEO had specifically touted the free nature of the device. In response to a request for comment on the price increase, AT&T declined to offer a specific reason:

iPhone 3GS is still available at an incredibly low price and we're confident consumers will agree that this remains one of the best deals for a leading smartphone.

For its part, Apple continues to offer the iPhone 3GS, subsidized on AT&T's network, for $0.00 on the Apple Online Store.

Update: MacRumors forum user Metcury46l had one possible explanation for the price change: I work at AT&T, this is being done to help prevent fraud as the 99 cents cannot be billed to your bill. It must be charged to a credit or bank issued debt card. Fraudsters are using stolen identities to steal these handsets ... been an issue since they went free.

via : Macrumors

(Image courtesy Flickr/MrVJTod)