AT&T Is Preparing Its iPhone Sales Strategy

By Michael Todd
12:22, May 26th 2008
76 votes
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AT&T Is Preparing Its iPhone Sales Strategy

AT&T wants to offer its customers the new Apple iPhone at a lower price. The announcement was made by Rick Lindner, AT&T’s Chief Financial Officer, who explains that this is an ongoing process still opened for debates and propositions, as the phone has not yet been released and the price has not yet been set.

Lindner says that these types of promotional discounts on cell phones are very common for them and for other companies, being a very good strategy to keep their clients satisfied and also attract new business.

The new 3G iPhone will be released in June and AT&T, which is the exclusive U.S. iPhone carrier, is apparently going to sell the product for about $200, subsidizing close to $200.

“It comes down to economics, how many units you think you can sell at different price points,” Lindner told Reuters. “That’s how pricing is determined on just about any device.”

The strategy is based on the monthly fees paid by iPhone users, which adds up to about $90 for their data and voice plans, meaning that the company will get back its $200 discount in just a few months. Also, bringing the price down to $200 will offer the company a much wider user base, as the consumer market for the original $400 iPhone is a bit more exclusive.

The offer will surely attract a large number of clients, with the popularity of the iPhone already on the rise. The only issue might be related to the AT&T customers who already bought their cell phone, on a two-year contract, at full price.



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