Rebates Likely for Apple iPhone

According to American Technology analyst Shaw Wu Apple and AT&T are seriously considering offering rebates and other incentives to new Apple iPhone customers for purchasing the new phone and signing on for longer term cell phone contracts.

These incentives would come in the form of rebates between $50 and $150 to new customers. Therefore, the original price point for the iPhone would be reduced from its originally stated $499 for the 4GB model and $599 for the 8GB iPhone.

Shaw Wu had this to say about the new rebate plan from Apple and AT&T: "From AT&T's perspective, a rebate is a great marketing tool and small sacrifice to make to entice a customer to sign up for 2-year voice and data cell phone plans that cost about $75-100 per month (before taxes and fees), meaning $1800-2400 in 'guaranteed' bi-annual revenue."

In addition to rebates, Wu also cites that Apple will more than likely be paid a bounty for referring new customers to AT&T. This should further allow Apple to keep its price point down on the iPhone and at the same time recruit new customers for both Apple and AT&T.

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