Virgin Mobile USA, one of Sprint’s brands for prepaid, no-contract phone service, said Thursday it will start selling the iPhone on June 29, charging $549 for a basic model.
The high price of the phone comes with an upside: service will start at $30 per month.
That means the phone, plus two years of service, will cost $1,269, excluding taxes. That’s nearly $800 less than a subscriber would pay for the same phone, an iPhone 4 with 8 gigabytes of memory, if buying it under the Sprint Nextel Corp. brand. Sprint charges $100 for the phone and $80 per month for service, excluding taxes.
The iPhone has until recently been restricted to contract-based plans. Now, the floodgates appear open for the phone to enter the prepaid, no-contract market, which is aimed at people with low incomes and poor credit. However, the high initial cost of the phone is likely to be an obstacle. Virgin Mobile sells other smartphones for as little as $80.
Last week, Leap Wireless International Inc., the parent of the Cricket prepaid service, said it would start selling the phone on June 22, starting at $400 and $55 per month. Leap’s CEO said the phone would likely account for about 10 percent of the phones it sells over the next few years.
In addition to the iPhone 4, Virgin Mobile USA will sell the iPhone 4S, the model launched last year, for $649 with 16 gigabytes of memory.
Virgin Mobile’s cheapest plan co.
Virgin Mobile USA, one of Sprint’s brands for prepaid, no-contract phone service, said Thursday it will start selling the iPhone on June 29, charging $549 for a basic model.
The high price of the phone comes with an upside: service will start at $30 per month.
That means the phone, plus two years of service, will cost $1,269, excluding taxes. That’s nearly $800 less than a subscriber would pay for the same phone, an iPhone 4 with 8 gigabytes of memory, if buying it under the Sprint Nextel Corp. brand. Sprint charges $100 for the phone and $80 per month for service, excluding taxes.
The iPhone has until recently been restricted to contract-based plans. Now, the floodgates appear open for the phone to enter the prepaid, no-contract market, which is aimed at people with low incomes and poor credit. However, the high initial cost of the phone is likely to be an obstacle. Virgin Mobile sells other smartphones for as little as $80.
Last week, Leap Wireless International Inc., the parent of the Cricket prepaid service, said it would start selling the phone on June 22, starting at $400 and $55 per month. Leap’s CEO said the phone would likely account for about 10 percent of the phones it sells over the next few years.
In addition to the iPhone 4, Virgin Mobile USA will sell the iPhone 4S, the model launched last year, for $649 with 16 gigabytes of memory.
Virgin Mobile’s cheapest plan co
Technology video | 727 views
Virgin Mobile, one of Sprint's brands for prepaid, no-contract phone service, said Thursday it will start selling the iPhone on June 29, charging $549 for a basic model.
The high price of the phone comes with an upside: service will start at $30 per month.
That means the phone, plus two years of service, will cost $1,269, excluding taxes. That's nearly $800 less than a subscriber would pay for the same phone, an iPhone 4 with 8 gigabytes of memory, if buying it under the Sprint Nextel Corp. brand. Sprint charges $100 for the phone and $80 per month for service, excluding taxes.
The iPhone has until recently been restricted to contract-based plans. Now, the floodgates appear open for the phone to enter the prepaid, no-contract market, which is aimed at people with low incomes and poor credit. However, the high initial cost of the phone is likely to be an obstacle. Virgin Mobile sells other smartphones for as little as $80.
Last week, Leap Wireless International Inc., the parent of the Cricket prepaid service, said it would start selling the phone on June 22, starting at $400 and $55 per month. Leap's CEO said the phone would likely account for about 10 percent of the phones it sells over the next few years.
In addition to the iPhone 4, Virgin Mobile USA will sell the iPhone 4S, the model launched last year, for $649 with 16 gigabytes of memory.
Virgin Mobile's cheapest
Technology video | 592 views
Virgin Mobile USA announced Thursday, confirming the anticipated rumors, that it will start the sale of iPhone 4S and iPhone 4 on a pay-as-you-go basis starting on June 29.
The prepaid carrier, owned by Sprint Nextel Corporation, will become the second U.S. carrier after Cricket to offer Apple’s iPhone without contracts.
Virgin Mobile’s deals for the prepaid iPhone offer service working on Sprint’s 3G CDMA network. However, it should be noted that Apple’s website says its unlocked iPhone 4 or iPhone 4S will not work with CDMA-based carriers such as Verizon Wireless or Sprint.
The announcement also revealed the pricing information. Virgin Mobile will offer the 8GB iPhone 4 for $549 and the 16GB iPhone 4S for $649, which is the same price as Apple’s unlocked version of iPhone.
This price of the device is about $150 higher than what Cricket, a subsidiary of Leap Wireless, plans to offer, which is $399.99 for the 8GB iPhone 4 and $499.99 for a 16GB iPhone 4S. Cricket announced last week that they will sell prepaid version of iPhone 4 and iPhone 4S starting on June 22.
However, Virgin Mobile tries to off set the $150 difference with low monthly rates.
Cricket offers a $55 monthly fee, which includes unlimited talk, text, and data – but the data will be throttled at 2.3 GB.
Virgin, on the contrary, will start their monthly plans from as low as $30 per month, with 300 minutes of
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