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Apple launches iPhone 3GS, cuts 3G price to $99

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Reuters

Posted: Jun 09, 2009 at 0937 hrs IST

San Francisco Apple Inc halved the price of its entry-level iPhone to $99 on Monday to widen the trendy device's mass-market appeal, as global competition heats up after Palm Inc launched the Pre.

Apple also cut prices on several of its Mac notebooks amid a tooth-and-nail battle among computer makers for buyers during the recession.

And to shore up its hold on the smartphone market, it unveiled a new, faster, high-end iPhone that takes videos and has voice features, matching offerings by rivals Palm and Research in Motion's BlackBerry.

Analysts said sales could double for the cheapest iPhone.

Chief Executive Steve Jobs, on medical leave since January, did not put in a much speculated-about appearance.

The next-generation iPhone 3GS -- the "S" stands for speed, double that of the original model -- goes on sale in the United States, Germany and elsewhere on June 19 for $199 to $299.

"They plugged the hole in the offering of the 3G iPhone," Gartner analyst Van Baker said, referring to the new features.

A rambunctious crowd livened up Apple's annual Worldwide Developers' Conference in downtown San Francisco on Monday, whooping and applauding as executives unveiled everything from a cheaper Mac Air notebook to a new operating system.

Shares in Apple closed 0.6 per cent down at $143.85 -- after a 6.5 per cent 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.

Morgan Stanley estimates that an entry-level iPhone, at what Apple marketing chief Phil Schiller calls a "breakthrough price of $99", could double existing sales. That is for the 8-gigabyte model, previously priced at $199.

Apple said it has sold more than 40 million of its iPhones and music-playing iPod Touches to date, up from the 37 million reported during a quarterly earnings call in April.

The new iPhone models and price cuts announced on Monday came days after Palm launched its Pre smartphone, which some analysts say is the iPhone's closest rival.

Sprint Nextel Corp, which has exclusive US rights to carry the Pre, said it had record sales of the smartphone in its first weekend, and was restocking the phones "as quickly as Palm could make them.

A JAZZED-UP PHONE

The $99 iPhone will cost half as much as the $199 Pre. By slashing the price of the 8-gigabyte iPhone and rolling models out this month, Apple's strategy appeared designed to take advantage of the Pre's limited availability, said CL King & Associates' Lawrence Harris.

In a note to investors on Monday, he estimated that Palm produced just 50,000 Pre phones in May.

AT&T, the exclusive US service provider for the iPhone, will sell the 16-gigabyte 3G for $149, down from $299, while supplies last.

Competition is intensifying among cellphone makers from Nokia to HTC Corp for a slice of one of the few remaining fast-growth tech markets.

Globally, research house Ovum expects 171.9 million smartphones to ship this year, up 23 per cent on 2008 and about 15 per cent of the worldwide mobile phone market in 2009.

But the battle in that lucrative arena is eroding margins.

Apple executives did not comment on impact to profitability from the cheaper iPhone or Mac Air -- which at $1,499 is still costlier than computers from the likes of Dell Inc or Hewlett-Packard Co.

Shaw Wu, an analyst at Kaufman Brothers, said the price cuts could dampen gross margin but noted that Apple had forecast its margin would slip in the current quarter.

Lower costs for components and the extra sales Apple hopes to net should help alleviate the squeeze, he added.

WHAT, ME WORRY?

AT&T said the halving in price would not affect its profit targets, and that it was sticking to its objective for wireless margins in the low 40-per cent range.

Apple's stock is historically volatile during the company's June developer conference. It dropped about 7 per cent over the course of the conference in 2008 and about 4 per cent 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.

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.

Some of the hundreds of developers, analysts, reporters and industry insiders that gathered in downtown San Francisco had hoped to catch a glimpse of founder and Chief Executive Jobs.

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 per cent since shortly after the bombshell was dropped on January 14.

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I want to buy apple iphone at 99$ from usa by Ishaan Bapat on 02 Jan 2011

I want to buy apple iphone at 99$ from usa, so what are the procedure to buy it in India( Maharashtra)

i phone by anil kumar on 21 Oct 2010

hi friends who are interested in taking i phone 3gs 32 gb can contact me on 9966997847 this phone has not been used it is brand new i challenge u cant get deal like this no negotiations plz%u2026. price of i phone 3gs 32gb is 22000/-

NIIT by ajit pal on 09 Sep 2010

Apple launches iPhone 3GS, cuts 3G price to $99.

iPhone Crazy - don't get cheated by Thangavel on 20 Jun 2010

Hey guys, the price in the news is initial instalment and on plan. Unlike in India the phone is locked with a certain phone company and pay at their terms for 2 years. The up right price will be over $600. Check Apple online store. If anybody is offering for less, don't get cheated.

New Iphone by Joseph on 19 Jun 2010

Can I purchse the new apple i phone4 from the states and use it in india with a indian SIM card

purchase iphone by ganesh on 09 Jun 2010

I want take agnecy in india or in bangalore what the procedure & how to take angency

iphone by vallish rc on 28 Mar 2010

hi........... see cost of phone

iphone in india??? by Key on 11 Jan 2010

Iphone is still costly. The price quoted in this article are with contract/plan from phone companies in USA and it's locked one. Indian market is insignificant to Apple at this moment as the demand still there in other developed countries for them. We are last choice for them. But, it's still available in India with plan from Airtel(???) but we can buy a nice laptop for that price. Other than this, whoever says unlocked phones are available in bulk are fake phones from The Great Wall China with the same exact look including the pack. Let us wait for a year and will get nice product in Indian marker from other companies.

help in buying of iphone? by twinkle on 05 Jan 2010

where i can buy iphone for $99 in india at chandigargh or anywhere in india..?

iphone by praveen on 20 Dec 2009

where i can purchase iphone for $99 in india. please give details

iphone @ $99 for india by sudhir bisht on 22 Nov 2009

where i can buy iphone for $99 in india at punjab

F/S: New Apple Iphone 3GS 32GB========$200USD by jbstore on 05 Nov 2009

John Butlin LTD. a professional and influential supplier. Specifically, we can supply Mobile phones (GSM and CDMA),Video Games ,Apple Ipods , Iphones (Introducing the latest APPLE IPHONE 3GS 32GB) ,HTC,Digital camera,laptops musical instrument/DJ Equipments such DJ Mixers, DJ Turn Tables, Sampler,Speakers,Keyboards E.t.c.You can also visit our website for more products we have for sale and our company full informations.======================================================================================Introducing New Apple Iphone 3GS 32GB Now RELEASED.Feature: 3 Megapixel Camera, Bluetooth, Calendar, Camera, Candy Bar Form, Edge, Email Client, GPS / Location, High-Speed Data GPRS, Megapixel Camera, MP3, Smartphone, Speaker Phone, Touch Screen, Video Capture, Video Clip, Voice Dialing, Wi-Fi.The phones are brand new,100% UNLOCKED and can be used with any SIM card. No activation required.Insert Your SIM CARD and start using the phone. Made By Apple California.=======================================================================================We ship and deliver to you within 2days of purchase throughFedex courier services.Interested buyers can contact Us direct via:E-mail: info.order001@gmail.com johnbutlinltd02@gmail.comMsn: johnbutlinltd@hotmail.comWebsite: www.jbstore.s5.comTel: 44 70457 49298Melvin LindaJohn Butlin LTDThank you and god bless you as you patronize us.

3gs 32 GB by rajesh on 22 Dec 2009

I need the price list I need 3 phone . can you tell me the best price I need at hyderabad, India. my number is 0939 100 1710 thanking you rajesh

Apple IPhone 3gs unlocked by Amul on 20 Nov 2009

Please tell me the amount of the Iphone 3gs unlocked and how can i get the phone what are the conditions and how can i transfer the money to you. All the details please mail me on the email

price of apple iphone for indian currencies by uday on 28 Sep 2009

wheather apple iphone is available in india?if yes then we want to know about the price and features of apple iphone

i phone 3gs by Kabeer on 17 Apr 2010

can I make use of any of mobile service providers Kerala STATE ;India .pl e-mail me today itself, if posssible . kabeer

3g i phones apple company by sivarama on 27 Sep 2009

MOST RESPECTED SIR, I AM LIVING IN CHENNAI. I NEED 3G I PHONES FROM APPLES COMPANY WITH 8 MEGAPIEXEL CAMERA AND 8 GB IN BUILT WITH LARGER SCREEN AND 6 HOURS VIDEO RECORDING AND VIDEO CONFERENCE INTERNTET PROVISIONS ALL ARE INCLUDED VOICE RECORDING LATEST SOFTWARE IN CASE MOBILE THEFT I CAN BE ABLE TO EASILY LOCATE WITH ANOTHER SIM CARD ARE OTHER MOBILE NO BY USING THE PICTURE QUALITY MUST BE VERY HIGH WITH HD DEFINITION JUST LIKE PANASONIC LCD TVS WITH REVOULTION TO GET VERY CLEAR PICTURE QUALITY WITH PHOTO CALLER ID BLUETOOTH MP4 EXPRESS MUSIC JUST LIKE SONY-ERICSSON MOBILE PHONES SOUND EFFECT WITH ALL ABOVE FEATURES CAN I GET THIS TYPE MOBILE PHONES IN CHENNAI.WHEN WILL I GET IT HOW MUCH COST CAN I SPEND FOR GETTING A ORIGNAL MOBILE PHONE PLEASE FURNISH WITH ALL ABOVE DETAILS WITH OUT FAIL I AM AWAITING FOR YOUR EARLY REPLY PLEASE SEND ME DETAILS AS QUICK AS POSSIBLE BLUE TOOTH INFRWITH REGARDSN.V. SIVARAMAPRASADNO.23 SRINIVASAN STREET.CHENNAI. 600-118

price of i phone n its features by aishwarya on 20 Sep 2009

i would like to know the features of i phone n the price for which it is being sold in hyderabad

enquiry by amit on 16 Sep 2009

i want where these models are available in mumbai, india? pls emailme.

purchasing iphone by urvesh on 31 Aug 2009

i want to purchase iphone please give me more details ok

price by Kowsi on 14 Aug 2009

hai i need to know where to get the iphone in lower price

Iphone 3GS | Buy by Kishore Babu on 19 Jul 2009

Hello .this is kishore .i would like the know the information about iphone 3GS.Cost(U.S) unloked ,with out any agreement. and your address

F/S:3GS iphone/Blackberry Storm/Nokia N97/Xperia/HTC HD/PS 3 by Hassan on 21 Jun 2009

We have Apple iphone 3gs 32gb for $350usd...1)Flash player support2)Quick back option without going to home screen while switching between apps.3)File browsing and storing4)Option to attach images, file etc from email app itself.5)Multiple signature options6)Manual rotate gesture option7)Notes app should be more powerful word process (fonts, text size etc)8)All Grouping of contacts for test message e.g. friend and family groups.9)App for grouping key social networking sites(for posting universal photos, text to all social networking sites together.10) Auto spell check in safari browser (like mozilla) when adding text in twitter, facebook leaving comments at blog etc.11)Build in Flash in camera for night photo shot12) Front facing camera for video Chat13) Use cover flow for using multitasking third party apps (limit to 5 apps, not to drain the battery life)14)Thin quick time player app to run video downloaded from web.15)Group notification alert or not attended tasks(mis

Price by Raman on 17 Jun 2009

Dear sir,I would like to know the amount of the new apple 3G S model... let me know the price please............

prices by david on 03 Aug 2009

it prise shoud be 10,000 to 12,000

02 Nos 3Gs I-Phone Purchase by Ritesh Pandit on 02 Feb 2011

I want to buy 02 Nos. 3GS I-Phone (one Black and another White) In New Jersey. Could anyone please update me for the same at my e-mail ID "flngoff(at)gmail . com".

where to get by Darwin on 09 Jun 2009

hai i need to know where to get the i phone in lower price

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