The falling price of the iPhone

If it ever goes for free, that'll make a lot of fanboys very uncomfortable and insecure.

It would be nice to get a free iPhone by committing to a contract, but I would rather pay for the iPhone. Otherwise, everyone and their moms will have iPhone. This is what happened to the once-cool RAZR.

A free iPhone with contract would be nice, but I would rather pay money for iPhone. Otherwise, everyone and their moms will have an iPhone. Something that happened to a once-cool RAZR.

Let me please make one thing very crystal clear: Apple IS still playing the "computer game" as you call it. They're still a computer company, although they now sell additional consumer electronics. They're not giving up computers for this, though.

Also, I doubt Apple will ever eat the cost themselves. They CAN sell it, and make more money, and people will pay it because it's worth it. Just because production costs will allow them to do it doesn't mean they will.

And I'm not quite sure what you mean by "even AT&T will be able to eat the cost"....AT&T is far, far, FAR more likely than Apple. Perhaps just a mistake, but AT&T is making money off the contracts. Apple gets it through the iPhone. If anyone eats it, it will be AT&T. The question is how cheap will Apple sell the iPhone to AT&T for?

I think you are all overlooking the possibility of a different Apple phone that could be free. I am hoping to see a Shuffle type clip on phone. That would be a sweet free phone from Apple as it wouldn't compete with the iPod (no music, just phone). It could be voice activated with a controller on earbuds similar to the iPhones current earbuds.
Hire me Apple. I would love to work on this. ^_^

You cannot make money selling something at a loss but "making it up in volume".

If you want to make money, you have to find a way to actually take in more than you spent on it.

I'm not saying they can't make money selling it at a loss, due to the money they get on the backend from Cingular/T-Mo/O2, but the volume has nothing to do with it.

@22 Billy- "Apple doesn't sell ANYTHING for a loss"
I'm not sure that's true. I'd bet that some of their software offerings don't pull their own weight, but are important to Apple's overall vision, so they subsidize them. Not to get off topic, but maybe some readers could add some insight on this?
On topic, no way will apple offer their wares for free, for the very reasons many other readers have pointed out. Ex: @3, @6, @8, @25, @30.

Is today National No Updates on TUAW day? :P

@Brian - Check the blogger again. No Erica to be found.

@yacoub - That's some crazy math. The phone part of the iPhone is valued at $100 more than the iPod Touch. I'm not sure where you get the iPhone value is $300.

@Andrew - We've already seen such a rebate. The early adopters had to have activated their phone to get the rebate. Apple sent a text message to the activated phone.

No way - that would be brand pollution, just like the Motorola Razr become. Went from hot ticket item to cheap commodity.