MSNBC

An iPhone for the Masses
June 9, 2008

By Suzanne Choney, MSNBC

“Considering the number of people who are switching from other carriers in order to get the iPhone, that’s a subsidy well worth it for AT&T,” said Michael Mace of Rubicon Consulting.

AT&T iPhone plans start at $59 a month. Rubicon Consulting surveyed 460 iPhone users earlier this year, and found that they are spending an average of $90 a month for their phone service, he said. “That’s $1,000 a year per customer that they’re getting.”

Mace thinks that iPhone pricing might drop even further in the fall, down to around $100.

“A lot of users are very price-sensitive, and getting down to a more affordable price is absolutely critical,” he said. “The iPhone, even at the new prices, is still more expensive than a lot of the smartphones out there. A lot of them are $99.”

The original publication can be found at this link.

Tags: , , , ,
Practice: Deliver