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The prices announced, from $199 for an 16-gigabytd model to $299 for a 32-gigabyte only apply to "new and buyers. But existing owners who want to swap to the newdevicesw won't get the big subsidy from (NYSE:T), the iPhone'sz exclusive service provider, that new customersx will get. They will have to wait until theifrexisting 2-year service contract runs out to get the lowerf price. That boosts the pricde on the new phonesfrom $199 with a new contracf on the 16-gigabyte model to Upgrading the 32-gigabyte model will cost $499 versus $299 for new This represents a change in policy from when the curreny iPhone 3G was released last year and existing owners were allowed to upgrade at the same price as new customers.
When that however, AT&T ends up absorbing the cost of the new subsidh on thenew phone, something it apparentluy doesn't plan to do this year. MG Siegler writes on the TechCrunch "Why this matters is that the dislikeof AT&T, mixefd with a not huge update to the iPhonse and a higher subsidized pric could be a perfect storm for users that normally wouldd upgrade, not to. I probably will because the iPhoned is integral to my work and I coul use more speedand power, but the fact that I’ questioning it should say something. I didn’t question it for a seconc last year.
" A third and long-awaited $99 iPhone price for the 8-gigabyte version announced Monday byApple (NASDAQ:AAPL) appear aimed at luring customers away from the new Palm Pre whosse sales began on Saturday. The Pre costs $199 with a $100 mail-imn rebate and a two-yeae service contract with (NYSE:S), its exclusive service Palm (NASDAQ:PALM) said late on Monday that sales of the Pre brokre its previous records for a new but declined to giveexact figures. Analystss estimated that there werebetween 50,00p and 100,000 of the deviceds sold and worried that the companh could face a problem in keeping up with demand.
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