Jun 9, 2009 7:30 am US/Eastern
Apple Drops Entry iPhone To $99, Unveils New Model
BOSTON (WBZ) ―
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iPhone 3G (file image)
Mario Tama/Getty Images
Apple just made getting an iPhone or its new laptops a little easier.
It's cutting the entry price for an iPhone in half and unveiling new laptops for $300 less than previous models.
The moves mark
Apple's first dramatic price cuts since the recession began.
THE NEW PHONE
Apple unveiled a new model of the iPhone Monday. It is called the 3G S.
It boasts a faster processor, longer battery life and sought-after features like an internal compass, a video camera and a photo camera with better resolution and auto-focus.
A 16-gigabyte version of the 3G S will cost $199 and a 32-gigabyte version will be $299.
THE $99 PHONE
The 8-gigabyte iPhone 3G, which came out last year, now costs $99, instead of $199.
When the iPhone debuted two years ago, eager Apple fans had to shell out $499 for a 4-gigabyte version and $599 for 8 gigs.
The latest iPhones go on sale June 19, just as two-year contracts for the buyers of the original models are expiring.
Apple faces tougher competition from Research in Motion's Blackberry and
Palm's new Pre.
Industry analyst Michael Gartenberg said the new iPhone pricing breaks through an important barrier for consumers.
"Every $100 you move down in consumer electronics brings in a lot more customers," he said.
"Ninety-nine dollars is a psychological price point, so that's a real barrier to move through. It becomes something people can afford -- it becomes an affordable luxury."
CHEAPER LAPTOPS
For its MacBook line, Apple showed off new laptops that boast longer battery life and faster processors.
The company rolled out a new 13-inch MacBook Pro that starts at $1,200, or $100 lower than an existing similar notebook, and a 15-inch Macbook Pro that starts at $1,700, $300 less than the current model.
It also lowered the price on the ultra-thin MacBook Air to $1,500 from $1,800.
The 17-inch MacBook Pro, unveiled in January, costs $2,500 and up, though it now has a faster processor at the same price.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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