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
In this photo provided by Apple Inc., the Apple iPhone 3G is shown.    (AP Photo/Apple Inc.)
camera-icon View 2 more images

(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).