According to a report in TIME Magazine, Steve Jobs is risking a little too much on the 3G iPhone. The huge price drop, along with subsidies from AT&T, may make the iPhone good for the customer, but not necessarily good for Apple. With the current plans, Apple could lose up to $160 on each phone that is serviced by AT&T. Hopefully, the App Store will provide enough revenue for Apple to prevent possible price increases in the future. Steve is really putting too many of his eggs in the “iPhone Dominates the Entire World” basket.
What are your views on the subject? Do you think that Apple can maintain the $199 price and keep the iPhone profitable enough? Sound off in the comments below.