iPhone week continues!
Earlier today Apple and AT&T announced service plans for the iPhone… And while they’ve said all along they wouldn’t be subsidizing hardware, they’re obviously subsidizing subscriptions. The least expensive plan runs $60/month, which includes unlimited data and 450 minutes of talk time. For comparison, I pay AT&T $80/mo (1/2 voice, 1/2 data) to power my Samsung Blackjack. Assuming one actually keeps their phone two years (I never have), the steep initial hardware fee ($500-$600) would be offset by these lower rates.
As Michael Gartenberg notes, the simplified plan offerings and iTunes activation may be unusual for the phone industry… but it’s exactly what we expect from consumer-oriented Apple.