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Technology Stocks : Apple Inc.
AAPL 271.84-0.4%Dec 31 3:59 PM EST

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To: pyslent who wrote (75755)6/18/2008 12:08:36 AM
From: slacker711  Read Replies (2) of 213177
 
The company is treating the iPhone 3G pretty much just like any other phone in that people who are ineligible for upgrades have to pay the full, unsubsidized price for the phone. People who qualify for upgrade status and people who have an original iPhone are free to upgrade at the $199/$299 price set by Apple.

This paragraph from Gizmodo makes it sound like people upgrading from a 2G iPhone will get the subsidized price.

I dont see much reason for AT&T or Apple to object. As you say, AT&T gets a higher priced plan and Apple gets to sell another phone that is likely to bring more profit than the next 12-16 months of monthly payments. Also, the other iPhone is likely to stay in service with a new person. If the phone remains on an AT&T iPhone plan, I would think that there is a reasonable chance that Apple would continue to get the payments.

Slacker
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