$99 iPhone coming this month

Stephen Withers
Friday, 05 December 2008 04:44

IT Industry - Market

Is a major US retailer about to start selling a version of the iPhone 3G with 4G of storage for just $US99?

It already seems highly likely that the iPhone will be go on sale at Wal-Mart this month, with reports that employee training has already begun.

The latest rumour, originating at The Boy Genius Report, suggests that the low-price retailer may get a version with 4G of storage for just $US99 on a two-year contract.

Boy Genius doesn't regard its source as being rock solid, telling readers "don't hate us if this doesn't happen, we warned you."

The idea does make some sense. The current 8G and 16G iPhone 3Gs sell for $US199 and $US299 on a two-year contract, so the price is about right.

And Gartner principal analyst Roberta Cozza just pointed out that "The current economic climate is negatively impacting sales of higher end [smartphones]."

So a $US99 4G iPhone would suit the economic conditions, fit neatly in Apple's product lineup, and potentially provide a substantial fillip for the already booming market for iPhone applications.

What about monthly service charges? See page 2.