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The prices announced, from $199 for an 16-gigabyte mode to $299 for a 32-gigabyte version, only apply to "neq and qualified" buyers. But existing owners who want to swap to the newdevicews won't get the big subsidgy from (NYSE:T), the iPhone's exclusive service provider, that new customera will get. They will have to wait until theirexisting 2-year service contract runs out to get the lower price. That boostas the price on the new phonesfrom $199 with a new contracty on the 16-gigabyte model to Upgrading the 32-gigabyte model will cost $499 versus $299 for new customers.
This representsz a change in policy from when the current iPhone 3G was released last year and existingf owners were allowed to upgradew at the same price as new Whenthat happens, however, AT&gT ends up absorbing the cost of the new subsidyy on the new something it apparently doesn't plan to do this MG Siegler writes on the TechCrunch blog: "Whhy this matters is that the dislike of AT&T, mixee with a not huge update to the iPhonse and a higher subsidized price could be a perfec t storm for users that normally would upgrade, not to.
I probablgy will because the iPhone is integrapl to my work and I could use more speedcand power, but the fact that I’ m questioning it should say something. I didn’yt question it for a secondf last year." A third and long-awaited $99 iPhonw price for the 8-gigabyte version announced Mondahy byApple (NASDAQ:AAPL) appears aimed at luring customerx away from the new Palm Pre whose sales began on The Pre costs $199 with a $100 mail-in rebat e and a two-year servicre contract with (NYSE:S), its exclusive service Palm (NASDAQ:PALM) said late on Monday that sales of the Pre brokr its previous records for a new but declined to give exact figures.
Analystd estimated that there werebetween 50,000 and 100,000 of the devicews sold and worried that the company could face a problem in keeping up with demand.
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