Tech Rumor of the Day: Apple
"Apple would first need to address the entry-level price point before introduction of a $99 iPhone," says Cote.
Apple fans will recall last year AT&T lowered the price of the iPhone to $199 from $400 by subsidizing a big portion of the sales price. The price cut juiced iPhone sales to 17 million last year, that's well above the 4 million iPhones sold in the last six months of 2007.
The price strategy also highlights efforts to forestall the end of a strong two-year run for the iPhone. Entering its third year, the iPhone hits a phone fashion milepost where cool designs start to look a little uncool.
Apple also faces a new smartphone assault from Research In Motion (RIMM), which seems to be hitting its stride after initial stumbles in the consumer market. And old foe Palm (PALM) has a new touchscreen Pre phone to rival Apple's iPhone coming this summer. And later this year Nokia (NOK) promises to jump into the touchscreen race with three smartphones.AT&T may be firing the first shot in the coming price plan war.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV