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April 17, 2007

iPhone Rebate?

According to AppleInsider, AT&T is considering offering $50-$150 rebates on Apple’s iPhone that will be released in early June. Not only would this encourage more users to sign up for the device, but it would also increase AT&T’s monthly revenue from cell phone plans.

“From AT&T’s perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in ‘guaranteed’ bi annual revenue,” said Shaw Wu, an analyst at American Technology.

It has been speculated that Apple will be paid an undisclosed amount of money for each AT&T customer that signs up for the device at retail and online stores, in addition to a portion of monthly plans.

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