The new version of the Apple (AAPL) iPhone should hit Europe next month. It will be much less expensive for consumers to buy because Apple will also cellular providers to underwrite the price of the phone.
According to The Times, "Apple is expected by analysts to allow mobile phone operators to subsidise the touch-screen handset, which is likely to use third-generation technology, giving it much faster internet access and download speeds."
The combination of low price and the ability to run on a much faster network could push iPhone sales up sharply which would give Apple a new, very large source of revenue to add to the Mac and iPod. Analysts assumed that it might take a year or two for iPhone sales to ramp up, but many potential buyers have been waiting for a version of the handset that would work on faster broadband networks.
If the AT&T (T) sells the phone below its costs, say for $200, US sales could explode.
Douglas A. McIntyre
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