From Deseret News archives:

IPhone a top-secret jewel for AT&T

Published: Friday, June 29, 2007 12:30 a.m. MDT
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An iPhone will cost $499 or $599, depending on the model. An individual user will pay as little as $59.99 for a plan with 450 minutes of talk time, plus 200 text messages and unlimited use of data services to get e-mail or to surf the Web. The most expensive plan for an individual costs $219.99, with 6,000 minutes.

Even with steep prices for the device, plus monthly service rates, the iPhone is still expected to be a strong seller.

"If Apple sold this for a thousand dollars initially, that would be fine," said Michael Gartenberg, vice president and research director at Jupiter Research.

They'll be offered online, but most are likely to be sold in person, whether at Apple stores like the one in Lenox Square or at AT&T stores.

The caveat is that the only AT&T outlets that are getting iPhones are locations the company owns — in other words, no authorized agents or giant national retailers like Best Buy.

At an AT&T — or former Cingular — outlet on North Druid Hills Road in Decatur, the iPhone won't be sold because the site isn't a company-owned store. Manager Mickey Jett said plenty of people have asked about the iPhone. "We just direct them to the corporate locations," he said.

Without a doubt, he'd love to have iPhones. "I mean — yeah," Jett said.

Lurie said AT&T and Apple will decide on adding outlets later.

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While many details about the iPhone have been released, AT&T is still trying to keep phones under wraps until the last possible moment, even with store workers. "It's a tough balance," Lurie said. "Our employees will have an opportunity to demo the device and get it in their hands before launch."

But they won't be able to take home an iPhone. AT&T isn't letting staffers buy one of the devices during the first few weeks on the market, nor will they get discounts.

The reason is simple: AT&T and Apple expect sellouts. "We just know there's going to be huge demand," Lurie said. "Will that supply meet demand? Probably not."

AT&T and Apple face increasingly high expectations for the iPhone, thanks in no small part to their own hype in promoting the device. Roger Entner, senior vice president-communications sector at IAG Research, called the attention unprecedented. "If this device doesn't cure cancer and solve world hunger, then it's a failure," he joked.

Lurie, 41, has worked in the wireless business since 1990, dating to a job selling phones in a mall in Portland, Ore., his hometown. If he's stressed about the biggest task of his career, Lurie hides it well. "It's gonna be a lot of fun," he said.


Dist. by New York Times News Service

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Mark Lennihan, Associated Press

An oversized display of an Apple iPhone hangs in the window of the company's store in New York. The new Apple iPhone goes on sale today.

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