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Consumer Affairs

AT&T Offers $49 iPhone

Older model price cut by 50 percent


With persistent rumors of a Verizon iPhone sometime this year, AT&T is beefing up its Apple offerings with a new price on the iPhone 3GS. Starting Friday, January 7, 2011, AT&T will begin selling the device for $49.

The offer will be available online, across more than 2,200 AT&T retail locations nationwide and through AT&T business channels, as well as Apple channels.

Exclusivity

The phone can be used, of course, only on AT&T's network -- at least for now. There have been numerous media reports over the last few months that Apple plans to offer an iPhone that will operate on the Verizon, and perhaps other networks. Since its introduction, the iPhone has been exclusive to AT&T.

"We want to deliver the best, most complete package for our customers -- from price, to speed, to worldwide access and more," said David Christopher, chief marketing officer of AT&T Mobility and Consumer Markets. "Combined with our new, lower monthly data plans beginning at just $15 a month, this new price brings even more value to one of the most popular devices in our leading lineup of smartphones. We're very excited for more people to experience iPhone on the nation's fastest mobile broadband network."

The iPhone 3GS was introduced in June 2009. It was updated a year later by the iPhone 4, which remains the most current model. But AT&T says the older model gives users access to the latest iPhone iOS 4 software as well as access to the App Store.

Two-year contract

To get the iPhone 3GS for $49, consumers must sign up for a new two-year AT&T wireless agreement of $39.99 or higher with min $15/mo plan.

The current price of the 8 GB version of the iPhone 3GS is $99, so the new promotional offer represents a 50 percent price reduction.

AT&T has begun positioning itself for a new environment where the iPhone is available on multiple carriers. At the Consumer Electronics Show (CES) this week in Las Vegas, it announced plans to begin offering 20 new smartphone models this year, moving from its reliance on Apple to multiple manufacturers.

 

 

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