For the sake of time, I’ll just paste the release. Pricing for the iPhone 3G is based on a 2-year contract. Woohoo. Unlimited data plans for iPhone 3G customers will be $30/month while business users will have to pony up $45/month. Also, revenue sharing has ceased going forward between Apple and AT&T.
Update: Just got this in from AT&T.
Current iPhone customers can upgrade to the 3G iPhone and pay $199 for the 8GB or $299 for the 16GB model. They will need a new two-year contract.
Customers who purchased a 2.5G iPhone on or after May 27 and want to swap it out for a new iPhone will be able to do so without incurring an additional handset charge for the new device. They will of course need to turn in their 2.5G iPhone.
And, there isn’t a no-contract option.
There is a restocking fee of 10%.
SAN ANTONIO, June 9, 2008 — AT&T Inc. (NYSE:T) today announced it will be the exclusive U.S. provider of the new iPhone 3G, details of which were outlined earlier today at Apple’s Worldwide Developers Conference in San Francisco.
Under the terms of a new agreement with Apple, AT&T remains the exclusive U.S. carrier of the new iPhone, which will be available beginning July 11 at a starting price of $199 with a two-year contract. iPhone 3G boasts several significant enhancements, including:
· 3G broadband wireless connectivity, which gives customers a home broadband-like speed experience when surfing the Internet, sharing files and using media-rich Web applications.
· Business-class capabilities, including e-mail, viewed on a large, touch-screen device and designed to meet the needs of companies of all sizes.
· The ability for developers, including AT&T, to create customized consumer and business applications using the Apple software developer’s kit (SDK).
Customers can get more information on iPhone 3G at www.att.com/iphone.
AT&T expects that iPhone 3G’s attractive pricing and rich set of features including business e-mail and other applications, combined with the broadband speeds of AT&T’s 3G network, will spur significant subscriber and revenue growth — particularly in wireless data — and strengthen AT&T’s wireless leadership and long-term growth profile.
“iPhone 3G will take mobile communications and computing to a whole new level by combining a terrific user interface with a great experience accessing the Internet and subscribers’ favorite applications on our 3G wireless network at unsurpassed speeds,” said Ralph de la Vega, president and chief executive officer of AT&T Mobility. “Combine our high-performance 3G broadband wireless network, the new iPhone’s business-class capabilities and a starting price of $199, and I expect that we will continue to increase revenue per user and attract customers who spend the most on wireless. The device is built, and priced, to sell.”
AT&T will sell iPhone 3G in more than 2,200 company-owned retail stores and kiosks, as well as through its direct business sales teams.
New Agreement With Apple Reflects Significant Growth Opportunity
The new agreement between Apple and AT&T eliminates the revenue-sharing model under which AT&T shared a portion of monthly service revenue with Apple. Under the revised agreement, which is consistent with traditional equipment manufacturer-carrier arrangements, there is no revenue sharing and both iPhone 3G models will be offered at attractive prices to broaden the market potential and accelerate subscriber volumes. The phones will be offered with a two-year contract and attractive data plans that are similar to those offered for other smartphones and PDAs. AT&T anticipates that these offers will drive increased sales volumes and revenues among high-quality, data-centric customers. Currently, less than 20 percent of AT&T’s postpaid subscribers have integrated devices capable of voice, Web and data applications. Based on the company’s experience, average monthly revenues per iPhone subscriber are nearly double the average of the company’s overall subscriber base.
n With a two-year contract, the price of an 8GB iPhone 3G will be $199; the 16GB model will be priced at $299.
n Unlimited iPhone 3G data plans for consumers will be available for $30 a month, in addition to voice plans starting at $39.99 a month.
n Unlimited 3G data plans for business users will be available for $45 a month, in addition to a voice plan.
In the near term, AT&T anticipates that the new agreement will likely result in some pressure on margins and earnings, reflecting the costs of subsidized device pricing, which, in turn, is expected to drive increased subscriber volumes. The company anticipates potential dilution to earnings per share (EPS) from this initiative in the $0.10 to $0.12 range this year and next, with a 2008 adjusted consolidated operating income margin of approximately 24 percent and a full-year 2008 wireless OIBDA margin in the 39-40 percent range. As recurring revenue streams build without any further revenue sharing required, AT&T expects the initiative to turn accretive in 2010.
AT&T’s 3G Wireless Network
iPhone 3G harnesses the power of AT&T’s broad and powerful 3G mobile broadband network, which offers 3G mobile phones download speeds of up to 1.4 Mbps. AT&T’s 3G network is currently available in 280 leading U.S. metropolitan areas; by year-end, the company plans to offer 3G service in nearly 350 metro areas. Following the recent turndown of its TDMA network, the company is further enhancing its 3G network, with improved coverage quality made available through reallocated 850 MHz spectrum.
AT&T’s 3G network is the best positioned among American carriers to grow in line with customer demand, evolving to next-generation speeds incrementally during the next few years. Between 2005 and the end of 2008, AT&T will have invested more than $20 billion in wireless network improvements and upgrades.
AT&T has the best global coverage of any provider, with voice-roaming available in more than 200 countries and data-roaming in more than 145 countries, including more 3G roaming than any other carrier.
In addition, the new iPhone 3G will operate in Wi-Fi mode through wireless modems in homes and offices, as well as public hot spots.
Marketing the iPhone to Businesses
iPhone 3G includes new business capabilities, including access to corporate e-mail and intranets, as well as the ability to certify mobile business applications to suit the needs of an array of industries, ranging from health care and real estate to higher education and financial services. Starting July 11, AT&T will begin marketing to its business customers, which includes all of the Fortune 1000. To prepare for the rollout, AT&T will be conducting extensive training among its thousands of enterprise and small business sales force and customer-support employees. AT&T is the world’s leading provider of corporate wireless e-mail solutions.
“We’re anticipating significant demand from companies of all sizes based on the feedback we’ve received from the many corporate customers who have already purchased the first-generation iPhone, as well as from companies waiting for the new iPhone’s business applications,” said Ron Spears, group president, AT&T Global Business Services. “Businesses will benefit from all of the iPhone’s new features, as well as the ability to maximize productivity by using the combination of 3G broadband connectivity and customized applications.”
Through its work over the years with the developer community, AT&T has developed a robust catalog of hundreds of enterprise applications (www.att.com/choice). AT&T will work with Apple, using the SDK process, to enable many of these applications, which today operate on other AT&T-powered wireless devices, to also work on the iPhone. The growth of mobile applications represents a huge opportunity for companies to improve productivity through reduced overhead expenses, access to real-time information and higher levels of speed and efficiency.
Unleashing Innovative Applications With the SDK
AT&T is working closely with Apple to roll out several new and innovative applications that take advantage of the iPhone’s advanced capabilities. For example, AT&T is finalizing YELLOWPAGES.COM mobile for the iPhone, an innovative GPS-enabled application that combines local search with social networking capabilities, giving users the ability to search for information, share reviews and plan activities with friends, neighbors and co-workers. In addition, the company will work to certify many of its existing mobile applications for businesses, created in conjunction with third-party developers, for use on the iPhone.
So do I read this correctly as a price INCREASE from AT&T by moving the iphone off of the iphone plans?
If so that really sucks as that was a really nice selling point vs. RIM (and Verizon).
Also, will this mean a price increase for current iPhone users / what happens to current iPhone users that want to upgrade?
Thanks Peter – does “unlimited data” include voice minutes?
No it doesn’t, thebonafortuna. That’s strictly data.
Thanks Peter.
Yeah, what this reads as is:
$69.99 a month for 450 peak minutes, unlimited data, (text?)
The old plan was at least $10 cheaper per month (maybe even more, not sure what texting is included in AT&T plans). Kind of kills the point of a price cut…
Agreed. When I saw that $45 option, I said hell yeah, sounds great I’ll bite on that. But $70 minimum…well, just because I can afford it doesn’t mean I’m going to pony up that much. For me, it’s just not worth it, when broadband is so expensive already. Why pay for two data streams to take me to the same place? I don’t need traveling internet that badly. Offer a way to plug the iPhone into my laptop as my always on internet connection so I can bypass Comcast altogether, and I am in.
Looks like a great update from Apple. Now if at&t steps up to the plate, we can play ball.
Here’s the difference between Apple and AT&T:
- Apple has all the information on the new phone right on their website as of now.
The AT&T release mentions:
Customers can get more information on iPhone 3G at http://www.att.com/iphone.
OK, so you go there, and what do you see: All the old stuff about the now “old” iPhone.
The new stuff will be up god knows when….. These wireless carriers just suck!
What about tethering??? I so want to dump my blackberry.
Bluetooth only for voice call headset, no usb or bluetooth modem support AFAIK. :(
I tether my EDGE nokia all the time. pretty handy. I guess I stay in nokia land. N96?
Anyone know how much you would need to pay for canceling the contract before completing the 2 years?
@kevin
Granted, but at least iPhone data plan is better than the PDA plan’s AT&T has.
I wonder if you will be able to just get the voice plan for $39.99 without the 3G part. Would I still have EDGE coverage included in that?
For me, the price of the phone itself is insignificant compared to how much one has to play every month. For now, nothing beats my SERO at $30 with 500 minutes with unlimited texting and unlimited EVDO Rev. A (which happens to be faster than AT&T’s 1.4Mbps UMTS).
ja ….I HAVE A METRO PCS TOUCHSCREEN PHONE…. AND AFTER READING ALL THIS ILL STAY WITH IT…..I ONLY PAY 60 DOLLARS A MONTH AND EVERYTHING IS INCLUDED INTERNET, TEXT, PIC MESS, GPS,AND A HOLE BUNCH MORE…. AND MY PLAN DOESNT INCREASE DRAMATICLY….
THE PRICE IS A LIL BIT HIGH BUT WONT REGRET … MINES CAME OUT FOR $350…. AND STILL LOVE IT…. AND IF I LOOSE IT I ONLY PAY $85 and get the same phone……
Any word on how they will implement this? Currently, you “have” to sign up for an AT&T plan when you buy the device, but you can get out of the Apple store without giving any information (and AT&T stores if you sweet-talk the store manager). Are they still going to be charging the same (or similar) prices at the register and then give back a big rebate or account credit?
My T-Mobile (US) iPhone suits me too well to go back to ma bell without some kicking and screaming.
I read (gizmodo.com) that activation is in-store only, and that online ordering will not be available. So, you won’t be getting out of the store without activating the phone.
Interested in tethering as well. Is that available with the iphone 3G?
“Current iPhone customers can upgrade to the 3G iPhone and pay $199 for the 8GB or $299 for the 16GB model. They will need a new two-year contract.”
How is this a deal? That’s the price for everyone else! I paid 400 dollars for mine last fall, and there’s no discount on upgrading?
Hey guys..u seem to know wat u r talkin about…ok, so if I only want the unlimited data plan, can I just do that? And what does it include? Is there texting in that?
So, basically there was a price increase on the iPhone. From $60 to $70/month. $10 times 24 is $240, which is more than the $200 price decrease. Which I wouldn’t mind paying for 3G and GPS.
I wonder what the used market in gen.1 iPhones will look like? If they are more jail-breakable, perhaps there will still be demand for the older iPhones on eBay…
So will AT&T offer a family-friendly plan for multiple phones? Like two phones for $110, additional phones for $30 with data included? If not, the old plans may be looking a lot better than new ones.
iPhone 3G does not have true GPS. Very disingenuous Mr. Jobs.
that really sucks no GPS……
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So to be “qualified” for an upgrade for the 199 price does this mean you have to turn in your old iphone?
Hope not because I already sold mine for 225.
I hope I dont get kicked in the behind on july 11th
@Omg its MikE xD
No, SMS is not included with the iPhone data plan.
This is good ideal of the upgrade features…
Why sms when you can IM? remember you have all the options of the internet and 2 ways to get there (wifi as back up) I think its a fair deal I just dont have the cash to do it also I hate Itunes with a passion.
@quistoman
If you could run apps in the background, I would agree with you. But as far as I know you can’t with the iPhone. So you would need to check your IM if you wanted to message someone.
Not to mention, not everyone has mobile IM access.
how come you cant get it without a contract . i already a contract . i just want the phone
No revenue sharing!
Yet 33% more cost per month? $70/month for 24 months + Activation fees. TCO/year adds up > $1000.
I am rethinking iPhone.
so, you can’t just buy an iphone, for a person with a go phone plan? you HAVE to have a contract? i heard you could this page i read on the opening day that they released the video it said they were offering it to pre paid people…
ya no wat sucks is that if you dont get the contract you end up payin 399 for 8g and 499 for 16g.
this 2 years contract sucks.sucks much.i mean at&t r assholes mothafuckers……..they r trying 2 make us much more angry.if one dont wanna use at&t connection then what da fuck he has 2 do.at&t really sucks……….
applesssss asshole.n att is tooooooooo
new iphone 3g without contract. GET IT HERE!!!
http://www.xpango.com?ref=91463384
I have service with AT&T already and will be needing a new phone because the one I have now is acting up and I wanted to purchase the iphone. Since I’m no where near able to upgrade to it, and I purchase the iphone do I pay for a new 2yr contact or pay full price for the phone since I already have service with AT&T. I know when you receive the iphone you have to get a new 2yr contract.
the iphone3g is he awsomest celphone ive seen in my entire life