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Without AT&T Contract, iPhone 3G Runs $600

Price doesn't quite add up, analyst says

By Jonas Oransky,  Newser Staff

Posted Jul 2, 2008 3:26 PM CDT

(Newser) – AT&T will sell contract-free iPhone 3Gs for $600 (the 8-gig model) and $700 (16 gigs), a $401 mark-up, the New York Times notes. There are no details available on why a consumer would want the phone without the, er, phone, but AT&T says there is a demand—and notes that other wireless models already cost far more without contracts.

A somewhat confused analyst weighed in with a possible explanation: “If nothing else, psychologically, it makes people think they are getting a good deal if they sign up for a contract.” One research firm broke down the price of the forthcoming device’s parts and labor—and valued Apple's object at only $173 (that’s $53 less than its groundbreaking older brother).

In this photo provided by Apple Inc., the Apple iPhone 3G is shown.
In this photo provided by Apple Inc., the Apple iPhone 3G is shown.   (AP Photo/Apple Inc.)
Apple CEO Steve Jobs announces the new Apple 3G iPhone at the Apple Worldwide Developers Conference in San Francisco, Monday, June 9, 2008.
Apple CEO Steve Jobs announces the new Apple 3G iPhone at the Apple Worldwide Developers Conference in San Francisco, Monday, June 9, 2008.   (AP Photo/Paul Sakuma)
AT&T Chairman, CEO and President Randall Stephenson holds up the new iPhone 3G .
AT&T Chairman, CEO and President Randall Stephenson holds up the new iPhone 3G .   (AP Photo/Laura Rauch)
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