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Analyst says Apple could drop iPhone price to $99 and still make 42.3% profit margin
  • 26 Comments
by Doug Aamoth on October 27, 2008

Would you buy an iPhone if it only cost $99 subsidized? It could make choosing other smartphone-like devices a lot tougher for most consumers. Analyst Charlie Wolf of Needham Research thinks that Apple would be able to lower the subsidized price of the 8GB iPhone 3G to $99 and still make a not-too-shabby 42.3% profit margin, according to Electronista.

Wolf also said that if the price dropped to $99 it could double or even triple projected sales figures and leave most other smartphones in the dust, with the exception of “niche” products like BlackBerry devices.

I’m not as Apple-happy as some of my co-workers but it so happens that the iPod Touch is one of my favorite gadgets and I often find myself secretly pining for an iPhone — if only for the mobile version of Safari, which I find far superior to any other mobile browsers I’ve used.

While dropping the price to $99 would make the urge to bite the bullet and buy an iPhone a bit stronger, it’s nothing compared to the itching and burning I’d feel if the service plan dropped to $50 or $60 per month. For me, there’s some sort of psychological aversion to paying $70 per month for phone and data service, especially when I rarely actually talk on the phone. My ideal plan would be something like $29.99 per month for 200 voice minutes and $20 per month for unlimited data. I had a plan like that way, way back when the Sidekick first came out on T-Mobile.

Still, a $99 iPhone would certainly shake things up on the smartphone front – especially for new potential cell phone customers and existing AT&T customers looking to upgrade. Provided, that is, that they don’t share my same $70-per-month aversion.

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  • Yes, i think I would. But I think many mobile players rite now are following the Apple iPhone design such as touch screen etc. They might come up with something greater than Apple and the price might drop faster.

  • Would you buy an iPhone if it only cost $99 subsidized?

    Short answer: Yes.
    Long answer: Yes, I would.

    I’m not as Apple-happy as some of my co-workers…

    lol, tbke nom (whatever happened to that? and the puzzles?)

  • I would, but I much rather hold on to my Sprint’s SERO plan with a lousy phone.

  • I would buy one for $99… BUT
    I agree the $70 is too freaking much for the plan and too limiting for the device.
    Locking specific phones into specific plans is down right evil and will keep me from buying an Iphone 3G. I wouldn’t buy a computer that could use only one specific internet access or one vendors software. I wouldn’t own a PMP that you had to order from a specific store to get media.

  • Even with the drop in price for the phone, the data plans price is outrageous. I’m sticking with my first generation iPhone for a reason.

  • I would buy an iPhone, if it was offered through more places. I like the no contract type places, and I know that AT&T requires a two year contract. If they went through Cincinnati Bell, I would certainly buy one. But until then, I will stick to my old phone without all of the bells and whistles that the iPhone has to offer.

  • yes i woyuld but the iphone for 100 doallars. i think 200 doallars is way to much and i want the iphone so bad. i used to want the behold but i changed my mijnd so i am going to work very hard to try to gget that phone

  • Yes yes yes. I want the iphone for $99… we all deserve a break don’t we. I can’t afford one otherwise. Lost my job Christmas Eve.

  • yeah sure illl gonna buy if if gonna only fr 99$this is gonna be a grt deal frm apple

  • Yes. Would buy the phone and everyone in my family would too a real cool phone with nice features.

    When are you planning on selling it at this price

  • Their is no doubt whatsoever that if Apple dropped the service fee on Iphones to $25.00 a month and the cost of the phone to $99 dollars…I would purchase (2) phones immediately.

    Is this a lot of talk or will this happen in the near future? Could somone in the ‘know’ talk, or make a comment please?

  • At end of march 20 if apple reduce its i phone price then it is easy to buy

  • woooooooooooooooooooooowwwwwwwwwooooooooooooo

  • How can I buy Iphone 8 GB 2.2

  • i think its a great idea!! u should really do it, it would give a lot of people a great opportunity to buy this!

  • I’m getting a Nokia 5800. Touch smartphone with awesome sound, exclusive to Cincinnati Bell, $99 after rebate with two-year plan, (or $149 with month-to-month plan after rebate), 200 voice mins, unlimited data for $49/mo. I never make phone calls either, so this rocks my world. Star Trek package in the works for ubergeeks, none of the iHype. Added bonus – I get to change my battery myself if I need to. :) I’ve been very pleased with my Nokias as far as reception and such, even been able to go where no Blackberry has gone before (as in, I can get indoor reception in the same places they can’t) and Cincinnati Bell has been good to me as well.

    No, I’m not a schill for either Nokia or CB, I’m just a very happy longtime customer of both who is excited to have a decent phone with all the features I want at a decent price.

  • i think thats a great deal from apple.i would really buy one if it dropped to $99.wow apple good thinking

  • Yes, i would; and my friends i showed this product are crying 4 it 2 but is service fee 4 some month or remains 4 ever?

  • Yes, even my friends whom i showed this product; but questions remains “when will service fee stop or its current?

  • Why would you pay for an iPhone when there is like a billion places you can get one for free? Here’s three ones for you. http://www.tinyurl.com/freeiphone3ways

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