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AT&T Mulls Lower Price for Apple’s New 3G iPhone

The new iPhone, which will come in 8 and 16 gig versions, is set for June 2008 release
AT&T Mulls Lower Price for Apple’s New 3G iPhone
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May 1, 2008 6:00 AM PDT    Text size: 
LOS ANGELES — If AT&T follows through on plans for a rumored reduction in the cost of the new 3G version of the iPhone, scheduled for release this summer, there will be a whole lot more potential customers for producers who make adult content for Apple's popular mobile platform.

According to an article on CNNMoney.com, AT&T is thinking about subsidizing the price of the new iPhone to the tune of $200 for purchasers of two-year contracts, bringing the potential cost of the device, which will come in 8 and 16 gig versions, down to $199.

If the offering actually goes through, it will only apply to AT&T customers and not to people who purchase an iPhone directly from Apple, which reportedly will be charging $399 and $499, respectively, depending on how much embedded memory is desired.

For producers of adult material, many of whom already create content for use specifically with iPhones, a significantly lower price point will no doubt result in thousands more potential customers. As more and more people use their mobile devices to enjoy adult fare, the move by AT&T, if true, is bound to be well received by an industry struggling to stem an unprecedented loss in revenue.

Though reducing the price of phones to entice people into long-term contracts is a normal tactic with the carriers, AT&T has thus far held its ground with the iPhone. But, as the CNNMoney article points out, because the average iPhone user racks up average monthly bills of $100 a month, double the national average of $50, AT&T will be able to make up the price differential in half the time.

The article also reports that Apple plans to stop supplies of the older model iPhone in order to clear out inventory and create demand for the new device, and says that the new model will be 2.5 mm thinner than the 11.7 mm original and comes equipped with a GPS chip for navigation and other location-based services.

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