What Of the Old 2G iPhone? What of the iPod Touch?

[UPDATE 6/10/08] I originally wrote this post based on preliminary information about the iPhone’s new price. Subsequent data made it clear the $199 price is based on a subsidy from AT&T. You can’t buy the iPhone online, but rather must buy it at an AT&T or Apple store and activate it in-house (there is no more at-home activation) in order to get the $199 price.

Therefore, the “true” price of an iPhone is still $499, and the value of the old generation and iPod touch are not impacted as badly as I had first thought.

OK, now that the 3G iPhone is only $199, the resale value of the original 8GB model is now in the toilet. Sure, I could hope to snag some suckers on eBay to pay me a lot, but it’s not my way.

Looks like my old phone will be a hand-me-down in the family.

Meanwhile, I’m surprised the iPod touch did not drop in price today. Still shows $299 for 8GB at the Apple store. Surely it will at least drop to $199?

Speaking of the touch, very interesting to see that the massive 2.0 software update is only $9.95 for touch users. That’s a great deal. Maybe Apple figured the $19.95 for the last update was too much? That update gave five new apps and was impressive ($20 was not that unreasonable) and yet hear the new platform is only $10.

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5 thoughts on “What Of the Old 2G iPhone? What of the iPod Touch?

  1. Rus,

    I know some rumors were that it would be subsidized, but I’ve seen no indication of that. The Apple site says only that a 2-year AT&T contract is required, which is something they’ve always said.

    If it was subsidized, than I could only get the $199 price buying it (and activating it) at AT&T. In other words, I would not get that price from an Apple store or online, and yet all indications are that I’ll pay $199 no matter where I get it.

  2. The iPhone IS ACTUALLY NOT lower Tom – it is subsidized ONLY at the price. You will still have to pay $499 and $599 if you don’t want an AT&T contract. I actually think this will do very little for the 1.0 iPhone prices.

  3. I am very impressed with the new G3 iPhone over all. I would have loved to see, like the iPod Touch, a 32 GB model; why didn’t they introduce one – beats me?

    I think you are correct to pass your old iPhone down to a family member, its just good karma!

  4. Laura,

    Excellent point.

    Since it’s “free”, it would make sense to buy the touch even at $299. Still, any student paying attention should at least wait until after 7/11 and save $10 on the cost of the 2.0 update.

  5. They can’t lower the price of the iPod touch until September 15. That’s because this year’s “Back to School” promotion is a free iPod Nano or iPod touch with the purchase of a new Mac — in the form of a $199 mail-in rebate on iPod Nano and a $299 mail-in rebate on iPod Touch. If they lower the price of the iPod Touch before the promotion ends, they will end up giving students rebates for an amount greater than the price of the iPod Touch.

    See http://www.apple.com/promo/

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