$0 iPhone 3G coming to Telstra Next G on July 11

Stephen Withers
Monday, 30 June 2008 12:48

Business IT - Technology

Telstra's iPhone prices also make a mockery of Apple CEO Steve Jobs' promise that the iPhone 3G would sell for the equivalent of $US199 worldwide.

At today's exchange rate, the iPhone should cost $206 excluding tax. Add 10 percent GST, and that's about $227. Allow a little extra for the cost of servicing a small market, and $249 sounds like a reasonable price point. $279 reeks of gouging - reversing the conversion gives approximately $US245 - that's more than a 20 percent markup. We don't know whether to blame Telstra or Apple, but if Optus or Vodafone come in with lower handset prices the finger will be pointing in Telstra's direction.

Canadian telco and iPhone partner Rogers recently came in for some stick from current and potential customers when it announced handset prices similar to those applying in the US, but with a minimum $C60 plan providing only 400M of data, which is positively generous compared with Telstra's existing $100 plan.

Telstra has approximately 9.5 million mobile subscribers, with some three and a half million on 3G plans, including two million on Next G. The other 1.5 million are using Telstra's older 2100MHz 3G network.