Apple cuts iPhone to $99
Apple Inc cut the price of its entry-level iPhone to $99 on Monday, in a nod sure to please recession-weary consumers, but ailing leader Steve Jobs did not put in a much speculated-about appearance after a months-long absence from public view.
Analysts said the discount is sure to galvanize sales of the device.
But shares in Apple slid 0.6 percent to $143.85 -- after a 6.5 percent climb in the week leading up to the highly anticipated event -- as Jobs failed to show and investors debated the merits of the sharp iPhone price cut.
Apple also unveiled its next-generation iPhone 3GS -- the "S" stands for speed -- which will be twice as fast, take videos and go on sale in countries including the United States and Germany from June 19 for $199 to $299.
Apple is selling "the 3G at a breakthrough price of $99," marketing chief Phil Schiller told the crowd. "That starts today."
Morgan Stanley estimates that an entry-level, $99 phone would double existing sales.
Apple kept its legions of fans enthused on Monday with a spate of other product announcements: new and cheaper notebooks with revamped software, and new applications and games for the iPhone.
But the most talked-about news -- that Chief Executive and founder Jobs might make a cameo -- failed to transpire.
Suspense and speculation had mounted in the months before Apple's annual Worldwide Developers' Conference, with hopes ranging from a cameo by Jobs -- out till the end of June on medical leave -- to revelations of a game-changing tablet mini-PC or cheaper iPhone.
Jobs, a pancreatic cancer survivor, has not appeared despite speculation he would, after springing his leave of absence on stunned markets in January by saying his health problems were more complex than previously thought.
Despite a slowing product line, worsening consumer spending and an uncertain succession plan, investors have quickly got comfortable with the idea of a Job-less Apple. Shares of the maker of the iPod and iPhone have surged 85 percent since shortly after the bombshell was dropped on Jan. 14.
A JAZZED-UP PHONE
Apple's stock is historically volatile during the company's June developer conference. It dropped about 7 percent over the course of the conference in 2008 and about 4 percent in 2007.
Much of Monday's event was taken up with new features for Apple's best-selling gadget. Executives announced that new iPhones will support TomTom satellite navigation devices and support multiplayer games such as Asphalt 5.
The consumer electronics giant showed off a new 15-inch notebook with improved battery life, a $300-cheaper Mac Air -- its thinnest laptop -- and, as expected, its highly previewed "Snow Leopard" Mac operating system software.
Apple's new MacBook Air notebook now starts at $1,499. The company also unveiled a new 13-inch MacBook Pro starting at $1,199, and a 15-inch laptop with longer battery life, addressing a perennial consumer concern.
But some of the hundreds of software developers, analysts, reporters and industry insiders that gathered in downtown San Francisco had hoped to catch a glimpse of Jobs, who has stayed out of public view amid persistent speculation over his health.
Executives declined to comment on his whereabouts on Monday. In January, Jobs said he would be out of commission till the end of June. Apple executives have since reassured investors that Jobs, credited with building the company into the tech powerhouse of today, was still involved in strategic decisions.
Jobs, a college dropout, co-founded Apple in 1976 with his friend Steve Wozniak in a Silicon Valley garage. After a falling-out with the board, he left the company in 1985.
Apple floundered, setting the scene for his return in 1997. The company has flourished under Jobs 2.0, rolling out the concept of a computer as a 'digital hub' along with the now-ubiquitous iPod and iPhone.
Popular Stories
Man describes face-eating attack
Second strong earthquake hits Italy...
Cairo protests turn violent
Updated: Huge quake strikes off...
Disco legend Donna Summer dead from...
Sea Shepherd's Captain Watson...
North Korea's rocket crashes into...
Al-Megrahi is dead
Hollande declares victory in French...
In Discussion
Pope slams rebels over celibacy and...
Hollande declares victory in French...
Al-Megrahi is dead
North Korea's rocket crashes into...
Man describes face-eating attack
Breivik trial opens - shooter 'does...
Tensions high as the UK, Argentina...
Hollande wins first round of French...
Libya, Italy concerned about renewed...
12 Comments
Post comment
Please sign in or create your Account to post comments.
Luke Buttigieg
Jun 10th 2009, 22:05
I'm sure Vodafone will offer it at that price if you agree to pay €60 euros per month. In the US you get that price for a €70/month contract for two years. That's a lot of money! Unfortunately in Malta we are used to buying unlocked phones without a contract or commitment, and hence we pay for the phone ourselves. Abroad you sign up for service and get a big discount on the phone
IAN ELLUL
Jun 10th 2009, 17:04
Therefore in Malta will it cost Euro 100 or will it remain Euro 500?
Martin Spiteri
Jun 10th 2009, 16:35
I do not understand why Vodafone has the cheek to sell its iphones in Malta at 400 Euro. yes I do agree with you lot down here. We are being ripped left right and centre. Just buy food , anything else buy from the internet. And what about our dear Melita!!!!! they say they give us special charges when calling melita to melta. I was charged 7 euro for one cal to another meltita customer at 10 pm. Where is the special 10 cent tarif? Mobile phone operators in Malta are a joke. And soon when other foreign companies come , I hope to be the first to join Tim or any other company to see vodafone go mobile and melita shut down. They are robbing us without any shame.
Noel Grima
Jun 10th 2009, 14:54
To note that this article was evidently written for the U.S. since no mention is made of the 2-year contract required with AT&T. @ Dominic Azzopardi & Dave Pulis -- you are unfortunately generalising (1) Apple products have consistently been sold at the EU price in Malta since retail price is controlled by Apple themselves; (2) the contract offers made available by all Maltese carriers are relatively competitive (e.g. Vodafone - Blackberry Storm €99/€0 with 2-year middle-/heavy-weight plan); (3) as the others said, get it from eBay if you want to play globalisation prices.
@ Peter Azzopardi -- of course that's true (e.g. Nokia and HTC have a number of much better phones), but that's beyond the point of Apple's products which have never been "best in class" since the very first Macs.
Alistair Farrugia
Jun 10th 2009, 11:09
I can multitask on my mobile phone and it's not even a smartphone. I own a Sony Ericsson k750i and just bought (from ebay of course) an Xperia X1... this phone sells for a MINIMUM 500 Euros here, but I've seen local prices, wait for it, ranging from 500 to 950 Euro for this phone. I bought mine for 405 Euros, and it's shipping and what not that pushes the price up. Had we been in contintenal europe, the price would be much lower.
i still fail to see why retailers charge as if the internet did not exist. i'm sure they could still manage a good profit margin if they sold their products at prices that are closer to what one can find in 2 mins on ebay and play.com. Baahh.. we never learn here.
Peter Azzopardi
Jun 9th 2009, 18:13
Still cannot quite understand why people are so impressed with the iPhone. True, it was revolutionary being an internet device rather than a mobile phone, but why should I be impressed with a phone that
1. Only had a 2 Megapixel camera
2. Does not allow you to forward your SMSs
3. Does not allow you to Copy and Paste
4. Does not support Multi-tasking. (you need to shut down an application to open another)
5. Does not support Flash (i.e. YouTube and the likes)
6. Does not have a front camera and therefore does not support video calls.
The list goes on. Fine a number of these issues are resolved with the latest iPhone 3G S, but for all those who are already on contract with Vodafone, be prepared for "Apple Tax". No subsidies until you do at least a year.
The Palm Pre has just been launched in the States. Its greatest qualities according to the US media is that it multi-tasks. This is so infuriating. The Europeans have an operating system that Nokia uses, Symbian. This has supported Multi-tasking for years and no mention.
The power of the media.
R Cauchi
Jun 9th 2009, 14:36
Well 99 usd is the price for a 2 year contract with AT&T, I guess it's the same price vodafone malta would offer for a 2 year contract!
Andrew Bonnici
Jun 9th 2009, 13:02
ridiculous...i bought my N96 from ebay for half the price last November....in malta it was 875euro and i goit it for 420 with shipping and all from ebay...i wasnt sure that i was going to do the right thing, but when it finally arrived and everything worked well, i started to buy every little thing from ebay....
Chris Grillo
Jun 9th 2009, 11:14
Is it possible to believe that you still buy these things from Malta? My goodness! I only buy food from Malta, and NOTHING else.....when we have merchants dealing us reasonable prices, we buy from here.
VIVA ebay!
Dave Pulis
Jun 9th 2009, 10:48
Pretty useless info if we still get them for 500Euros in Malta innit?
Dominic Azzopardi
Jun 9th 2009, 09:44
How much would it cost in Malta?
Keith D'Amato
Jun 9th 2009, 09:21
Where can we get 1 ? :)