Apple drops 8GB iPhone 3G to $99

Well, here's hoping you waited on that $99 refurbished iPhone 3G, because as of Monday you can get a new one for the same price. Apple just announced at WWDC 2009 that the 8GB iPhone 3G will stay on the market for $99.

Forget refurbs--now you can get a new iPhone 3G for just $99.

(Credit: James Martin/CNET)

So what do you think? Now that you can finally get a shiny new iPhone with a full warranty (one year) for less than a hundred bucks, will you pull the trigger?

Based on the comments in last week's aforementioned refurb post, I'm guessing no. For most of you, it's not the price of the hardware that's objectionable, but rather the service.

AT&T still charges a minimum of $70 per month for minutes and data. In these craptacular economic times, that's just too much. Me, I'd love to give the missus my current iPhone and snag myself a 3G S, but then I'd be looking at nearly $150 per month. She'd kill me, and I'd probably let her.

Thoughts? Is the iPhone 3G (and/or 3G S) just that good that you'll pay whatever extortion Apple and AT&T want? I'll admit I'd be lost without mine; I use it all day every day, for countless purposes. Damnit.

Update: AT&T dropped the price of refurbished 8GB iPhones to $79.99. My advice: steer clear. It's well worth the extra $20 to get a full one-year warranty. But the 16GB model is down to $129.99 (though currently out of stock). That's pretty tempting.

[danalog]

You'd also be looking at $699 for the new 3GS, since you are an existing customer.
Damn you AT&T. I can understand a bit more for existing customers, but $400 more?

[rickbroida]

Yeah, that's insane beyond belief. I don't care if it comes with a side of Jessica Alba, I wouldn't pay that much for any phone.

[kgofswg1973]

699 for a loyal customer is proof that Apple/AT&T is losing it...they should be ashamed of themselves and I can't wait for their market share to drop when they realize that smart people aren't going to spend $700 for a phone they already have just to get a few extras like video. I can buy a damn HD video camera for that price. As much as I love the iPhone, this is such a HUGE slap in the face. Makes me want to cancel my account and get a Pre.

[SNOOP_ROCA]

Rickbroida, if it came with a side of Jessica Alba, I'd pay $600 more LOL

[thegibson]

Every time I hear people whine "I'm such a loyal customer!" I just wanna punch a kitten. Take that phone out of your pocket. See that phone? That's what they they've already done for you, you got a deal last time because you signed up for a contract. Existing customers, new customers, EVERYONE has to pay $699 unless they're starting a new contract. That's the deal. It's always been the deal.

[agriffith96]

I don't know why they don't let you trade in your old phone and get a big discount that would be close to the price of a new customer. For being a loyal customer, AT&T really puts the screws to you.

[solidary121]

As much as the iPhone interests me somewhat, AT&T still charges too much for the service. I prefer the Pre and the cheaper long-term costs. :)

[bsorli]

Yes that is exactly what I thought...ATT $$$ or Sprint $$

What good is a $99 phone that ATT can't provide service for. I'm not going to pay extra for ATT limited 3G service and not be able to receive calls 40% of the time...which many people I know with iPhone 3G deal with constantly.

It absolutely blows my brain on how much Apple Kool-Aid people drink...I love Mac computers, but their phones really don't cut it on ATT.

[corinisagenius]

What's the new price of an iPhone 3G without a contract? Cut in half like the with-contract price?

I'm using an aging BlackBerry 8700c at the moment, and have been lusting after an iPhone for some time... This seems like a good opportunity to get the hardware at a good price. The service is outrageous, but you have to admit, the iPhone is peerless. Possibly excepting the Pre. If only I was a Sprint subscriber...

[moneycat]

If by peerless you mean it is the only "overrated, piece of crap that people will buy just because it has an Apple on the back" then yeah, it is peerless.

[Gadget70]

Moneycat, I have an iPhone in Canada on Rogers Wireless 3G and it has been flawless. Maybe AT&T is crap in the States but the iPhone is the best mobile communication device out there. I wouldn't care if the iPhone had an Enron logo on the back, the experience on the iPhone speaks for itself as does the millions they are selling. After having two years for the competition to catch up, the Pre is the only possible contender but I wouldn't hold my breath.

[cbaisa]

corinisagenius is right that the iPhone is peerless, but only when referring to a few specific functions. it's apps capability and execution is the best in the world, but other than that i don't see how the iPhone is more impressive overall than the Pre, Android, Symbian, or WinMo devices? After taking away it's slick exterior, it's obvious that it lacks many useful functions that other devices have had for years. The Pre and Android phones have small but growing app stores and will soon become more competitive in the way that the iPhone has been. For the time being the reliability of service and lower cost of service coupled with the high quality of competing devices is more attractive than the iPhone.

Apple has revolutionized what people want and expect from their mobiles, and the competition has responded. Finally, two years later, an eternity for technology, Apple has strong competition. I don't believe they did enough with the iPhone this year to keep it ahead. Perhaps the $99 iPhone will sway some, but the price of service is still the same. People will shift their mania away from the iPhone and onto the "iPhone Killers" entering the market convieniently before the holiday season. For goodness sake the iPhone just got video record. I had a phone with video record five years ago. That phone also had multimedia messaging and voice control. These are things that, when brought to the iPhone, should be brought with an apology because they weren't in place initially.

I want to see if Apple can keep the game changing going. Someone will innovate and the competition for my money will never end. I'm just curious to see who it will be.

[godulio]

any news on iphone coming to verizon?

[wigmo]

Get the new iPhone. Give the old one to the misses. Unlock the old one, so she can use her existing plan on it without the extra data charges.

I do not have an iPhone, and I'm holding out until they develop reasonable monthly charges. I have actually been in an ATT store about to sign a contract, then walked away because it just costs too much per month. I'd pay $300 for the hardware if the data plan was a more reasonable cost. $30 data + $5 text messages = unaffordable.

[jms81]

Hmmm... maybe when they come to Verizon and my contract renews. Unless AT&T finally gives us a data-only option.

[Haroldnca]

I bought the 3G on launch. I can upgrade for $399/$499 plus the $18 fee now. Or I can wait until December and upgrade for $199/$299 with a new 2 year contract. I'm not paying $500 for a faster phone with a compass. And why would I sign another 2 year contract to upgrade in December...knowing that Apple will probably release a new phone six months later...and possibly on another carrier??

[houdini2]

I agree with Haroldnca. I am surprised Apple is not concerned with lost revenue from existing 3G owners wishing to upgrade. I guess AT&T is now holding the reigns - two years ago it seemed AT&T was begging Apple for the iPhone - how quickly things have changed.

[polarbebe]

I also agree with Haroldnca.

[Beruda]

Almost $1700 for a two year contract? What a disgrace. Even if they gave the phone away it still would be to much money.

[felderga]

Keep your phone and upgrade the OS on June 17. Also wait and buy your wife a new IPod Touch in the fall and have her keep her existing cell...it will be cheaper in the long run....

[rufustel]

It is reassuring in this economic atmosphere to see people looking at this rationally, and considering the long-term costs.

[1kingsfan]

I'm more pissed about the fact that MMS isn't available RIGHT AWAY. *** AT&T? I've been complaining FOREVER about MMS and cut and paste as two of the main reasons why I haven't upgraded my Blackberry Curve, then, lo and behold they finally add them both. . .only to now tell me that it won't be available til later this summer. What are you going to do now? Make a $1700 contract just a BIT more lucrative by adding some asinine charge so that I can send a damn photo? Jeez..................it has to stop sometime. I already pay almost $110 a freaking month and if I switch to an i-phone I'll probably end up paying $70 more - mark my words - if I wait for this OH SO SPECIAL feature (you know, the one that EVERY OTHER PHONE HAS) and you charge me an extra $15 a month to use it you can be sure I'll get the Bold since it went down in price

[k1m0d0]

I have an iphone 3G and live in Northern Virginia. I don't stream podcasts because the connection drops just as I get to the good part. I download them. The only way to avoid dropped calls is to wrap a message around my phone and throw it to the person I want to communicate with. This is only risky if you don't have Apple Care. If I "upgrade" to the 3GS and another two year contract with AT&T then I'm no different than the battered wife who believes her husband is going to change. No more contracts. How about the concept of selecting a carrier based on performance rather than it's ability to lower the front end cost of hardware

[Gadget70]

LOL!!! Try tying a string between the iPhones {:-P

[Dominick_7]

Lol. Good stuff K1m0d0:) That cracked me up. Thanks.

[cbaisa]

"battered wife" haha freaking funny. it's funny cause it's true. The home button on my roommate's iPhone broke. He can't use his phone until someone else calls or texts him. It's freaking hilarious because i told him the things weren't reliable devices. not to mention that for more than a month when we came back to college from summer last fall, i live in a college town, he couldn't get a text message to arrive to it's recipient faster than three hours because the network is so undeniably atrocious. this affected not only him but also the others on att's network who didn't own iPhones. "Sorry guys. iPhones are really data intensive devices, but we don't have the capability to handle all of them and YOUR puny little flip phone. I guess you're gonna have to just bend over and take it. Be sure to thank the next person you see with an iPhone for the misery they have helped to bring to you."

[ranneyj2]

The text messaging plan is the sole reason I have not switched over to AT&T. It's ridiculous! Either $15 for 1500 or $5 for 250. It should be included in their plan first off, but since its not it should be more like $5 for 500 and $10 for 1500. That $5 adds up and 1500 or 250 texts are not a very consumer friendly options. I'm saving $15 a month PLUS I have unlimited texts at Sprint same minutes. If AT&T responded to the publics outcry for a better rate structure I believe that they would bring in many more customers.

[cbaisa]

i am happy with how much i pay for service over on verizon. i thought about the iPhone at the beginning of the year, but then i realized what i could buy with the hundreds of dollars i would save. i went with the Dare. i spend $40 a month less than if i would have gone with the iPhone. Perhaps that is why i chuckle to myself when i order top shelf at the bars and the guy next to me loses his signal.

[Tfatty]

Yeah! In a few months the IPhone will do everything that the Pre can do right now! You just have to pay another 30 dollars a month more! I got my Pre on Sat and couldn't be happier. I have 5 phones, 3000 minutes, unlimited data, text, GPS, etc. I pay a total of about 220/month with my employee discount. The only thing I'm lacking are some admittedly very cool apps that are available for the Iphone, I'm just hoping Palm gets a good SDK to some people with the right skills to keep up! I've been waiting months for the Pre and I couldn't be more satisfied.

[planblove]

I agree, to me the only that separates the iPhone from other smartphones are the available apps it has access to. The only thing that made go "ooooh" at the Apple press conference was the "find my iphone" app. Hopefully the G1 (my current phone) will get something similar soon.

[steel36]

I don't know about the rest of you, but much of what Apple is touting about this phone now is its app capabilities, many of which don't require a constant data hookup. Still looks like the Verizon iPhone is a phone of your choosing + the Ipod Touch. I was really hoping the 3G would get ported to Verizon. Shoot, I guess I'm willing to pay the price if I know I'm getting great service, but for all of the shaky reviews I read about AT&T, I'm not paying a premium. And from the live address, it sounded like Apple works for them now. I mean, an American company, at its big American conference, and its sole American carrier will provide one new service "by late summer" and the other new feature not at all? Apple, you used to be better than this.

[ywkhgqo]

i totally agree. I would buy the iPhone TODAY if it was on verizon for a decent plan every month. Including a real text messaging plan. I pay $10 a month on verizon for unlimited IN messaging which is perfectly acceptable.

Oh well. I looked at the env touch yesterday and that's actually really nice. Its what the voyager should of been basically. Thinner, nicer touch screen, better interface.

[skaorsk8]

Honestly, I think I'm not willing to pay more than $15/month for data. $10 would be preferred. Having said that, I LOVE my iPod Touch, and wish I had wifi in more places. I almost never use the wifi on my VX6800 anymore, because wifi on the Touch is so much better. I'm still locked into Verizon for another few months. And I refuse to pay them for a data plan.

I should probably get a Sprint WinMo phone with data, and sling that to my iPod Touch. Best of both worlds, cheaply.

[DetJMunch]

Rick, we need a post today! I know there were three yesterday but two of them were iPhone Atlas posts, where is the love?