If the iPhone was free, would you get one and be willing to lock into a two-year agreement with AT&T? It’s a question worth thinking about because an article over at The Unofficial Apple Weblog suggests that within a year, we may see a free iPhone available to consumers, with either Apple or AT&T eating the cost. They’ve already dropped the price of the phone significantly, and some say another drop could even come before Christmas. It may actually be feasible to see the price of the iPhone drop all the way down to nothing, eventually.
While I never even considered that Apple could take that route, it’s a possibility. Especially because Apple gets around $360 from AT&T for each iPhone subscriber over the two years that they are locked into a contract. And then when you take into consideration that the manufacturing costs of the iPhone will only continue to drop, Apple could offer the phones for free and still manage to profit off of each phone.
Now this leaves me wondering, should Apple decide to eventually do this, will those who paid for an iPhone demand that Apple reimburse them like they did with the recent price drop? Another big issue would be with the sales of the iPod. If the iPhone were free, I’d have to imagine that the number of iPods that they’re able to sell, more specifically, the new Touch iPod, would significantly decrease because there’s not much difference between the two.
My guess is that it’s highly unlikely that Apple will make the iPhone free, but very likely that they will drop the price further – especially before the second generation iPhone is launched. If by some chance they do end up offering the iPhone for free with a 2-year contract, would you get one?