Apple’s new 3G iPhone is receiving a lot of attention these days. With faster mobile Internet connectivity, a new convenient contacts search feature, integrated GPS and other bells and whistles, the iPhone version 2.0 is set to be a big seller both at home in the US and abroad. Even better, Apple has reduced the price of the new iPhone, with basic models going from $200, a significant reduction over the original (slower) iPhone.
But even though $200 seems like a pretty good deal for new 3G iPhone, German and Austrian consumers will soon be able to purchase the new model for a measly $1.55. How is that possible? As always, the devil is in the details.
T-Mobile has announced they will be offering a standard 8 GB 3G iPhone for the price of one Euro — approximately $1.55. The extreme discount will be available to Europeans beginning this week, but in order to take advantage of the special deal, users must agree to a relatively pricey monthly subscription plan.
The monthly cost of the plan will be approximately $107, making it more expensive than most standard iPhone service subscriptions, even in Europe. T-Mobile is also offering the 16 GB version of the iPhone 2.0 for approximately 31 dollars, though again, there is a monthly service charge.
The T-Mobile deal does include unlimited calls and 3G high-speed mobile Internet, along with various other features and included services; so all things considered, it’s not as bad a deal that you might first think.
Perhaps in an attempt to outdo the Germans, the UK Tele communications company O2 is planning to offer a free iPhone 2.0 for new subscribers who sign up for a monthly service plan. The plans available cost from $88-$146 monthly, and offer calls and Internet use on an unlimited basis.
In the US, we have yet to see any similar offers, and because AT&T has a monopoly on iPhone service plans, it is less likely will see a one dollar (or even free) 3G iPhone anytime in the near future. Unlike the U. S., many European nations negotiated agreements with Apple to allow more than one service provider to carry the phone. The competition between companies, such as T-Mobile, Vodafone, Orange and O2, has brought down the cost of the new iPhone in Europe, resulting in better deals for the consumer.
If T-Mobile, Sprint or Alltell were allowed to compete with AT&T for iPhone subscription plans in the US, we would likely see the same type of consumer incentives being offered here. For now though, North American Apple fans are just thrilled that the price of the 3G iPhone has been cut to nearly half that of the original model. A better (faster) phone for less money; now that’s progress.



