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Fri, Nov 20, 2009 - 11:50 PM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Apple and AT&T discussing subsidized 3G MacBooks?
Thursday, January 29, 2009 - 11:40 AM EST

"Glenn Lurie knows Silicon Valley better than most telecom industry types. As AT&T's point man on the iPhone, he was the guy who camped out in Cupertino and hashed out the blockbuster iPhone launch with Apple," Jon Fortt reports for Fortune.

"To hear Lurie tell it, AT&T's next hit phone might not be a phone at all, but a netbook with built-in Internet access that works anywhere you can get a cell signal," Fortt reports. "Get ready for the clincher: Sign up for a two-year contract, and you might get your new PC for $99 or less... The upshot is that the 'free phone' phenomenon that helped make handsets ubiquitous in the U.S. isn't just for phones anymore."

"What about Apple? Lurie won't offer specifics of course, but during our chat he mentions that he just sat down with Apple Chief Operating Officer Tim Cook a few minutes earlier," Fortt reports. "Will AT&T ever sell a discounted MacBook? 'We're having conversations with lots of folks,' Lurie says. 'I would very much like to do more business with Apple, and hope that we do.'"

Full article here.

[Attribution: Cult of Mac. Thanks to MacDailyNews Reader "Brawndo Drinker" for the heads up.]


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Jan 29, 09 - 11:49 am Comment from: Tiger Leopard

That would be pretty sweet. Until then, I'm content with my iPhone and macbook air.

Jan 29, 09 - 11:57 am Comment from: applecart

a $99 MB sounds like junk to be, and we have all heard SJobs say Apple wont go there. and odd how no mention of the data plan, probably $60-$75, would that really offset the upfront subsidy?

Jan 29, 09 - 12:06 pm Comment from: Jersey_Trader

Sounds like the Mac touch tablet is almost ready now!

Jan 29, 09 - 12:16 pm Comment from: dg

just give me tethering and a macbook air and i'm good.....

Jan 29, 09 - 12:16 pm Comment from: ratty

@ applecart

The $99 MB is SUBSIDIZED you doofus. It doesnt cost $99. That is only the final cost to the customer. Could you BEE more of a doofus?

Jan 29, 09 - 12:18 pm Comment from: alansky

Well, a simple USB gizmo gives any Mac portable full-time internet access via AT&T;'s wireless network. What does that cost now? Probably $40 a month. That's close to $1500 over three years, which is more than the MacBook is worth BUT... buyers wouldn't have to shell out more than a grand in cash and would get wireless internet access in the bargain. Sounds good to me!

Jan 29, 09 - 12:32 pm Comment from: KenC

@alansky, I don't think so.

AT&T;offers a 5GB datacard plan for $60.

Verizon offers a 5GB datacard plan for $60, and a 50MB datacard plan for $40.

Since most users who have datacards are business users, they still get hosed by the wireless carriers.

Jan 29, 09 - 12:34 pm Comment from: MidWest Mac

Ah, yes. Yet another wonderful piece of technology that those of out of reach of an ATnT tower would be robbed of owning.

I don't know if this whole idea is a good one or not, but I know that if Apple does it will generate sales.

And I don't know if I need/want a Mac multi-touch tablet. But I do hope that if Apple creates one it won't be tied to a single carrier. That'd really piss me off.

Jan 29, 09 - 12:39 pm Comment from: AlanAudio

For some time I've been expecting this as Apple's answer to netbooks.

The problem that needs to solved is that Apple won't sell junk, but people are accustomed to buying netbooks for very low prices.

However a netbook is only really useful if it's going to work wherever you happen to be, so it needs a 3G connection built in and that needs to have an airtime contract. Therefore it's looking a lot like the business model for the iPhone, where Apple gets ongoing income from the service provider that the customer signs a contract with. They can do a similar thing with a netbook, sell it either at zero profit or subsidised and then make the real profit over the next 24 months.

Here is one example of when I mentioned it earlier
http://macdailynews.com/index.php/weblog/comments/18964/

People using a 3G service on a netbook will need an airtime contract anyway, so Apple will negotiate getting a share of it, just like with the iPhone. The number of new customers that Apple can bring to the party makes it worth paying them a share of the revenue.

The actual deal offered for the iPhone was comparable to, or better than similar 3G deals. I see no reason why the same shouldn't be true for a 3G netbook.

Jan 29, 09 - 12:40 pm Comment from: John Gee

umm.. let's say it costs $499 with a 2 year contract

still pretty sweet for a 8-12" Mac Touch

Jan 29, 09 - 12:59 pm Comment from: CourtJester

With the right terms these could sell like hot cakes! But I would prefer an unlocked iPhone even at the (last time I looked) almost extortionate £350 asking price.

Jan 29, 09 - 01:03 pm Comment from: Avoman

Wait a minute... WAIT A MINUTE!

I remember various people saying Apple doesn't work well with partners? Perhaps someone should remind AT&T;.

"Lurie says. 'I would very much like to do more business with Apple, and hope that we do.'"

Seems to me Apple has grown fond of revenue streams so perhaps this rumor has a little substance to it. Time will tell.

Jan 29, 09 - 01:22 pm Comment from: Magin

Amazon offers Kindle with a wireless connection for no monthly fee. How are they able to do that? I don't think the Kindle costs very much. I would personally like to get away from monthly recurring fees; it's what has this country in the debt it is in, myself included.

MDN word: year. As in, I would like to be out of debt in two of those.

Jan 29, 09 - 05:17 pm Comment from: Bizlaw

I doubt Apple would agree to undercut the iPhone with a larger, more capable iPhone Big.

It would make more sense if the iPhone dropped to $99 and the Mac Touch was $299 or something like that.

I like the idea, though. I could use a nice, small, portable Mac which costs much less than the Air.

Jan 29, 09 - 06:44 pm Comment from: Predrag

No undercutting of iPhone here. Two entirely different beasts. There is only one reason this may be interesting to Apple now: recession. Selling a $1000 laptop is becoming a lot harder these days. Selling it for $300-$400 would be much, much different. Keep in mind, Apple is selling iPhone at around $700 retail (when all the subsidies are added to the total). If they were willing to squeeze the margins for the MacBook a little bit, they could sell it for the equivalent of about $800-$900 (less the subsidies).

AT&T's data plan will cost as much as today's iPhone plan. Therefore, the subsidy can be just as high, if not even higher. Most likely not many of these users will actually yank their SIM card out of the laptop and put it in an ordinary cellphone to talk on the phone. Therefore, less cell network burden than an iPhone.

The current difference in retail price between an iPhone and a MacBook is as little as $200. Apple could easily make this deal happen and not udercut their profits at all.

Jan 29, 09 - 08:09 pm Comment from: ken1w

The long-rumored "tablet Mac" that's actually a larger iPhone. And there will no doubt be a non-subsidized "iPod" version, that has WiFi but no phone.

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