Samsung Instinct to counter iPhone at $199
updated 11:00 pm EDT, Wed June 11, 2008
Instinct counters iPhone
Apple's announcement of a $200 iPhone has AT&T competitors looking to match the feature-packed device in price and expectations, with Sprint on Wednesday circulated internally a memo noting a $199 price point for the Samsung Instinct, after rebates. The phone normally costs $449, but will be subject to a $150 instant rebate for a two-year contract, as well as a $100 mail-in rebate for the Instinct. This provides Sprint with a high-end touch-screen competitor for the iPhone.
While the phone will be sold under the impression that it can still be bought outright (unlike the iPhone), and can thus be bought without resigning a contract, it does require users to subscribe to the pricier Sprint Everything or Simply Everything plans.
The Samsung Instinct is expected to be available from Sprint June 20th.
[via PhoneNews]
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Joined: Dec 2005
The real question
The real question is how much will plans go up? Notice how the unlimited data plan for the iPhone compensates beyond the price difference in the handset itself. I'm certain Sprint wouldn't mind making a move like this. However, AT&T can at least justify the hike because of the recent heavy investment in upgrading their entire 3G network to meet projected demand. Sprint will have a lot of work to do in improving its network to have anywhere close to comparable service.
As consumers at the billed end of the spectrum, we're more concerned with cost of phone & contract than with whatever up front cost there is. Phone companies have been raking in the bucks by practically giving away handsets in exchange for expensive contractual plans.
Just keep in mind there's more involved than just handset price when you compare the iPhone to others. Like the fact that it's the best smartphone out there, for instance...