The $79 (refurbished) iPhone
The sticker price on Apple's (AAPL) iPhone — once an formidable barrier to widespread adoption — is falling faster than Sarah Palin's approval ratings.
- When it first hit the market two years ago, the 8GB iPhone cost $599.
- Two months later, to the dismay of early adopters, it dropped to $399.
- Last July, an iPhone 3G with 8GB sold for $199.
- In June, with the launch if the 3GS, Apple dropped that price to $99.
- Now AT&T (T) will sell you a refurbished 3G for $79 — which is, as Edible Apple points out, 87% off the price of the original 8GB iPhone.
Of course, most cellphones eventually sell for $0.00, fated to become loss leaders for carriers that make their real money locking users into long-term contracts.
Indeed, the price cuts on the iPhone have helped shift the focus from the (heavily subsidized) sticker price to the real cost of ownership: the two-year AT&T contract that starts at $74 a month for unlimited data and 200 text messages.
At that rate, a $79 iPhone will cost you a minimum of $1,885, before taxes and surcharges.
Refurbished iPhones, according to AT&T, "are previously owned devices that have been unused or lightly used and returned during the 30-day trial period." They come with a 90 day warranty.
If you're still interested, check out AT&T's offer here.
UPDATE: Reader CdnPhoto from Toronto points out that Canada's Fido is offering a "refreshed" 8GB iPhone 3G for $49 Canadian (about $42 US). The catch: it comes with a 3-year contract. Here's the link: http://fido.ca/web/page/portal/Fido/iphone.
well, i don't see why people are surprised about that palin comment….this is CNN, people. Just as those flaming conservatives on the FOX News Network hop on Obama at any chance, these liberal stations love to bash those Republicans. We should be used to this by now, come on. The media is just another tool for this country's corrupt "leaders."
ex ped: Actually, it's not CNN.
palin, i think she would do better on a magazine cover {men's that is} with the other "smart" ladies of today's society. thank you.
HAAAHahahaaaa…so many panties in a twist over the Palin comment. To the matter at hand, the iPhone is a smartphone for dummies anyway. There are so many devices out there that are infinitely more capable than the iPhone…WinMo anybody? ATT is making those other phones even more attractive with their little Apple tax. Put it to you like this: I wouldn't take an iPhone if they were GIVING them away…which will probably happen soon.
The Palin comment was pathetic. I'm a republican, but not a supporter of hers, but dragging anyone political into this article is just plain dumb. With jobs dropping left and right, I'd be a bit more careful if I were you.
Don't let the door hit her in the posterior on the way out!
For all the Palin lovers, be careful what you ask for you might get it………
She is a public figure she chose that role she is suitable for any caption/comment for those of you who can't understand it GET OVER IT
Were you waiting all day to throw that gratuitous dig at Gov. Palin? You just lost your company some clientele, so congratulations, idiot.
ex ped: There's a lot of anger out there in real America.
Hey Elmer… you're showing your lib colors… Do you REALLY think that APPLE wants you to get a political cheap shot at Palin? First of all, you're a lying sack… Her approval's high among her base… Second, what about -8bama? Loser
ex ped: It's Mr. Elmer-DeWitt to you, George. And did you really think I worked for Apple?
The gratuituous did at Palin was unneeded. A much better comparison would have been to compare it to Obama's ratings! Down from the mid 70's to hovering right at 50% all in 6 months! That's a drop there
Oh, and what does this have to do with the iphone? Nothing. Just like the comment about Sarah Palin.
Not falling nearly as fast as the media's approval rating. This kind of snide comment is why people are disgusted with the humpleg media. You are so obsessed with your single brain cell you can't even write about a cell phone without your politics getting in the way.
Absolutely disgusting. The revolution can't come soon enough.
Give me an iPhone that is (a) carrier agnostic (b) has good battery life (c) that does not have to celebrate cut-n-paste as a revolutionary thing. Maybe I'll be compelled to buy it. Until then, I vote no with my wallet.
All iPhone contracts are for 3 years here. Though, they are allowing many to upgrade after one year, just restarting the 3 year contract again. The data plan offered here is $30 for 6GB.
" “…is falling faster than Sarah Palin’s approval ratings…”
One could say this about President Obama’s approval ratings as well.
Posted By Doug from Allentown, PA : July 13, 2009 8:40 am"
You could, but you'll never see it reported. Mr. Obama has been enjoying a free pass on negative stuff for years. There is negative stuff on Obama, there is for everyone. But it never got held up for press scruitiny. Probably never will.
Sad thing is, they weren't big enough issues to change the results of the 2008 election. I'm quite certain Mr. Obama would have easily won anyway. But it set a very dangerous precedent for the press.
Freedom of the press! Not just from government interference, but newsroom filters and prejudices.
ex ped: I don't know about that. The CNN Poll that showed Obama's approval rating at 61% last week, down from 76% in February, got pretty widely reported.
Meanwhile, by May, before she announced she was leaving her job, Gov. Palin's approval rating in Alaska had fallen to 54% from a high of 93% in June 2007.
In Canada, Fido is offering a "refreshed" iPhone 3G from $49 for the 8GB model.
http://fido.ca/web/page/portal/Fido/iphone
ex ped: Interesting. Thanks. Note that Fido is offering that with a 3-year contract.
The price might be dropping like Sarah Palin's approval ratings, but the true cost is more like Barack Obama's true cost of his health care plan.
To Al, Baltimore MD…
The author mentioned her in the article. I simply responded. It is these "subliminal" digs that are really unwarrented.
ex ped: If subliminal digs weren't the governor's stock in trade — and if she didn't take such delight in them — I might agree with you. But as a public figure whom 67% of Republicans think would be strong pick as a presidential candidate, I think Sarah Palin is totally fair game.
But perhaps you saw the Palin reference as a subliminal dig at Apple. In which case, as Emily Litella used to say, "never mind."
I don't care if it's FREE. When they charge $99-119 per month Vs.$69/mo for the same plan with ANY other phone on a T &T,and any other carrier it's NO DEAL.
If people wants to spend money on the iPhones, so be it. Stimulate the economy. Let AT&T make profit so they can pay their employees instead of laying them off and having the government use your tax money to subsidized them. Nobody's forcing these people to buy iPhones.
@James,
AT&T charges iPhone users the same as any other smartphone user. The only difference is that the data plan is mandatory. And even that's a moot point as an iPhone sans data is pretty worthless.
Im surprised nobody writes about ATT unfair pricing and practices. For those who had an Iphone: plans are still too expensive, taxing on every month bill are ridiculous – with 80 percent of taxes no one ever heard of. All ATT needs is a "special someone" to milk every month with: fees and charges. Iphone is nice but it is not worth the money you have to turn in to ATT every month. Period.
I'm still amazed that people are willing to complain about $199 when their bills go up $30+ a month per phone. To me even if the phone was free the monthly plan will give many pause.
ATT should stop rapping the iphone customers and charge them the same rate as any other phone with the data package.
So much emphasis has been put on the iPhone, which does not account for much of Apple's total sales revenue. If they don't keep up sales of their computers and iPods, the overall revenue is going to suffer and the iPhone will not be able to keep them going.
Beware of the "unlimited" data plan. When I asked the AT&T salesperson I found out that the "unlimited" is not really unlimited but is capped at 5gig with overage charges beyond that. 5gig is a lot but it is not unlimited.
"…is falling faster than Sarah Palin’s approval ratings…"
One could say this about President Obama's approval ratings as well.
THIS IS 3G REFURBISHED, NOT 3GS!!
ex ped: What I said was AT&T is selling refurbished 3Gs (lower case), not 3GSs (upper and lower case). It's a fine distinction, and an easy one to miss if you keep your caps lock on all the time. I've recast the sentence to reduce confusion.
The service contract is still too high for me to become an I-phone user. When the service contract becomes cheaper, I may consider the I-phone.
Actually, this is a blog, published on CNNMoney.com. I don't see how you could say this is not CNN.
ex ped: Well, first of all, Chris, I was responding to your original comment, which was trying to paint me, and my blog, as not just a tool of the cable news network CNN, but as part of a broad liberal media conspiracy to denigrate all Republicans — and Sarah Palin in particular.
Here's what you wrote:
Second, I happen to be a independent contractor writing a blog for Fortune Magazine. Some of my posts are picked up by Fortune.com. Some are picked up by Yahoo Finance. Some are picked up by CNNMoney. If I'm lucky, they get picked up by CNN.com. But I have never met Lou Dobbs or Larry King. And if I'm supposed to be part of some Republican-bashing cabal, I never got the memo.