Rumors have it – actually the Boy Genius Report - suggests you may soon be able to buy an 4GB iPhone for $99 (and a two-year contract)
Truth be told, $99 is irrelevant. It’s not really the cost of the iPhone that matters but how much it’s going to cost you over the life of the contract with your carrier.
The iPhone is cool, the App Store is awesome and Steve Jobs is a marketing genius. It’s also a dream device for cash-hungry carriers, who see it as high-demand tool that eats us megabytes of data. As we all know, data is a high margin service so the more data people consume, the happier carriers are.
At $99, the iPhone is akin to a loss-leader. You get seduced by the fact you can get one for less than C-Note. If you’ve ever wanted an iPhone, it’s mighty tempting but I’ll leave you with two words: caveat emptor.