In the U.S., IPhone exclusive service provider AT&T will charge $199 for an iPhone with an 8-gigbyte hard drive and $299 for a model with a 16-gigabyte hard drive, as long as the buyer also subscribes to its cell phone service (2 years contract). It also will sell an iPhone contract-free, at $599 and $699 respectively, and then give buyers an option to use AT&T services without a contract.
While the consumer will be paying about $200 less for each iPhone, Apple is seen as making more money, thanks to the subsidies that the phone’s carriers, including AT&T Inc. (T), will pay. While the companies involved won’t comment on the plan, industry observers now suspect the subsidies may total more than $300 a phone, giving Apple an extra $100 or more on each phone sold.
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