Apple drops price of least expensive iPhone to $99

Jun 08, 2009 By JORDAN ROBERTSON and JESSICA MINTZ , AP Technology Writers
Scott Forstall, of iPhone Software, talks about different languages for the Apple iPhone OS 3.0, at the Apple Worldwide Developers Conference in San Francisco, Monday, June 8, 2009. (AP Photo/Paul Sakuma)

(AP) -- Apple Inc. slashed the entry price for an iPhone in half and rolled out new laptops for $300 less than previous models Monday, the company's first dramatic price cuts since the recession began a year and a half ago.

Apple unveiled two new models of the iPhone - the 3G S - that will sport a faster processor and sought-after features like an internal compass, a video camera and an improved photo camera. A 16-gigabyte version of the 3G S will cost $199 and a 32-gigabyte model will be $299. The 8-gigabyte iPhone , which came out last year, will be cut to $99 from $199.

The iPhone news highlighted a two-hour presentation by executives at their annual conference for software developers. Despite anticipation that he might make a cameo, Apple CEO did not take the stage. He is due back from his medical leave at the end of this month.

The newest iPhones go on sale June 19, just as two-year contracts for the buyers of the original models are expiring and Apple's phone faces tougher competition from the likes of Research in Motion Ltd. and Palm Inc.

Shares of Cupertino, Calif.-based Apple were down 90 cents, 0.6 percent, at $143.77 in afternoon trading.

Lowering the price of the least expensive iPhone could be risky for Apple - a bet that the new versions have enough appealing features to keep higher-priced models selling briskly. AT&T Inc., the exclusive carrier of the iPhone in the U.S., said Monday it's confident its wireless profit margins will hold steady overall. AT&T shares were down 3 cents at $24.53.

Apple might also be banking on expanding the profits it reaps from taking 30 percent of the revenue from downloadable applications on the and the iPod Touch.

In the updates to the MacBook line, Apple showed off a MacBook Pro laptop with a 13-inch screen that starts at $1,200. A 15-inch model sells for $1,700 and up - both $300 less than existing similar models. The company also lowered the price on its ultra-thin MacBook Air to $1,500 from $1,800.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Gift Guide: Strong photo, video gear options

add to favorites email to friend print save as pdf

Related Stories

Apple says it is expanding iPhone features

Mar 17, 2009

(AP) -- Apple Inc. is updating its software for iPhones so that users can cut, copy and paste text - a basic computing feature that many people had lamented was missing from the gadget that seems to do everything.

Is Apple gearing up for the iPhone nano?

Jan 02, 2009

Apple Inc. may be gearing up to introduce cheaper iPhone and MacBook models in 2009, possibly including a device dubbed the iPhone nano, an analyst said Wednesday.

Apple might give glimpse at Jobs and new iPhone

Jun 07, 2009

Apple on Monday is expected to unveil a next-generation iPhone and possibly provide a glimpse at long-absent chief executive Steve Jobs as it kicks off a software developers conference here.

Recommended for you

Ear-check via phone can ease path to diagnosis

Dec 18, 2014

Ear infections are common in babies and young children. That it is a frequent reason for young children's visit to doctors comes as no consolation for the parents of babies tugging at their ears and crying ...

Gift Guide: Home products come with connectivity

Dec 18, 2014

Do you really need an app to tell you to brush and floss? It seems every household appliance is getting some smarts these days, meaning some connection to a phone app and the broader Internet. But then what?

BlackBerry launches Classic in last-ditch effort

Dec 17, 2014

(AP)—BlackBerry is returning to its roots with a new phone that features a traditional keyboard at a time when rival Apple and Android phones—and most smartphone customers—have embraced touch screens.

Tag Heuer changes tune, now looking at smartwatches

Dec 16, 2014

Barely a few months after dismissing Apple's smartwatch, the new chief executive of luxury Swiss watchmaker Tag Heuer conceded Tuesday that such a hi-tech gadget might after all have a place in his firm's ...

User comments : 2

Adjust slider to filter visible comments by rank

Display comments: newest first

x646d63
not rated yet Jun 08, 2009
Would be nice if they were available for Verizon. AT&T service around my neck of the woods is terrible.
tkjtkj
not rated yet Jun 16, 2009
x646d63 :

i too had terrible AT&T and was forced by circumstances to get an 'antenna booster'. I can not survive personallly or business-wise with 0-1 'bar' of reception. 50/50 chance of losing the call. So i went all out and got an expensive unit. Its single review was not encouraging, but after talking with the BestBuy rep , i decided to try it. Result: im delighted!
now: 2-3 bars, NEVER a lost call!
The thing was mucho-bucks, like $390 or so, but it works fine: its ?15" antenna mounted inside at edge of a window , thence via coax to the wall-mounted 'booster' itself, AC-powered, has been a godess-send !

tkjtkj@gmail.com

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.