Catchy news isn’t it? Normally, an iPhone is hard to get at a great price but apparently seems to have a change of heart. Now before you start getting into a frenzy, there are some things you have to consider and this includes the impending release of the next generation iPhone. With that in mind, do consider that these phones offered at crazy discounted prices come from old inventory that AT&T wants to clean out.

Recently, AT&T and Apple started selling iPhones without a service contract for a $400 premium. Given the recent high profile problems at the SXWSi trade show and complaints from the media, apparently the two companies feel there is a market for iPhone users willing to pay a premium to not have their world delivered by AT&T.

Apple is coming out with a new generation of the iPhone, and wants to clean out the existing inventory. Typically, when a handset model is about to be replaced, the price drops significantly. Sometimes, the buyer even gets paid to take the phone (with a contract). It is interesting that rather than discounting the handset, AT&T and Apple think they can clear out inventory at a premium by losing AT&T. In a bad economy, this speaks volumes about AT&T’s perceived value.

Presently, AT&T has the exclusive right to sell iPhones in the United States. But its exclusivity will eventually end. AT&T should be using its exclusivity period to build customer loyalty and ensure that they keep customers once they have the choice of carrier. Best case scenario for AT&T would be happy customers that would want to stay with AT&T even if it did not have the iPhone. However, it would probably be good enough if customers thought that AT&T was an important part of the the iPhone experience that they will stay with AT&T when they upgrade their iPhone. If customers are not loyal to AT&T, it risks a serious price war on the cost of the handset and monthly service on newer versions of the iPhone.

Right now, it seems clear that customer loyalty lies with Apple. AT&T has announced upgrades and investments in its network that will become available later in 2009. Only Apple and AT&T know when the exclusivity period ends. So perhaps, AT&T will clean up its act before the end of that period.

(Source) Blog PR

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