The iPhone 5 for Just $99?

Over the past several weeks, much ink has been spilled over the possibility that AT&T (NYSE: T  ) was offering significant trade-in value for older smartphones that could reduce the price of the Apple (NASDAQ: AAPL  ) iPhone 5. Recently, a TV commercial went live that seems to answer any questions as to pricing, availability, and the very accuracy of these stories. With AT&T slightly beating out Verizon (NYSE: VZ  ) for iPhone activations last quarter, the move is not insignificant.

In the following video, Fool.com contributor Doug Ehrman discusses the discount and how it may position these two carriers heading into the summer and next fall's releases from Apple.

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on reasons to buy and reasons to sell Apple and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 12, 2013, at 11:13 PM, tychicum wrote:

    This trade in concept is genius. If it costs Apple a hundred bucks to get that old iPhone3s to retirement in favour of a brand spanking new iPhone even if it can't be recycled it will make Apple products even more "sticky".

    It cost far less to keep an existing customer than it does to win a new one over.

  • Report this Comment On June 14, 2013, at 5:26 PM, Gaeseki wrote:

    What's the use? That flimsy iPhone5 is still 50% slow than GalaxyS4,

    Galaxy S4 is twice as fast as the iPhone5 and a tolet bug HTC One,

    NEWS: GalaxyS4 Beats iPhone5 in Brutal Destruction Test -VIDEO CNET--6/11/2013

    NEWS: Consumer Reports: The Galaxy S4 is the World’s Best Smartphone--5/22-2013.

    NEWS:US Dept of defends has chosen GalaxyS4 for military Use -5/02/201

  • Report this Comment On June 14, 2013, at 5:27 PM, Gaeseki wrote:

    Why iPhone Repair Costs have Soared---MarketWatch-5/22/2013

    A broken screen can now cost more than $200 to Fix.

    Apple earns almost as much from its customers’ butterfingers as it does through corporate tax loopholes

    The company charges as much as $229 to replace an iPhone 5 with a broken screen. That’s more than the $200 price of the device with a two-year contract, and more than a third of the $650 cost of the phone without a contract. Select Apple stores offer the option of a $149 repair. And for those who paid $99 for AppleCare insurance, the replacement is just $49. (An Apple spokeswoman declined to comment on repair prices.)

    The replacement components for the iPhone 5 are much more expensive than similar parts for prior models — so expensive in fact that many independent repair services cannot compete. “Due to the high cost of replacement parts, we are not yet offering iPhone 5 repairs,” according to a statement on ComputerOverhauls.com, an online repair shop. “Currently, the Apple Store is the least expensive option for repairing damaged iPhone 5s.” Other services charge as much as $250 for the repair.

    The iPhone-repair business is lucrative. Nearly one-third of iPhone users damaged their devices during 2012, according to a recent study by gadget insurer SquareTrade-

  • Report this Comment On June 14, 2013, at 5:32 PM, Gaeseki wrote:

    Class-action Lawsuit Filed Apple Over Defective iPhone 4 Buttons--May 14, 2013

    Says Apple was aware of issue but kept quiet,

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    Apple to Pay $53 Million in Class-action Suit on Misleading Products and Warranty--Apr 11, 2013

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    Apple's iPhone ranks High in radiation--"Feeling dizzy or nausea after using iPhone,iPad"-- Aluminum iPhone case are notorious for Dangerous Electromagnetic Radiation due to a metal unlike Galaxy that made of 'Carbon Fiber' that non emitting these Electromagnetic Radiation.

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    Judge Slams Apple in Privacy Suit, Says He Can No Longer Take What Company Says at Face Value-- Mar 8, 2013

    The plaintiffs in the privacy suit are accusing Apple of collecting customers’ location data on their iPhones even when they have their geo-location services switched off and of giving third parties access to customers’ location data without their consent

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