Apple says iPhone to Sell - Free Phones Worthless

From Bloomberg

Apple Inc. predicted that 10 million customers will pay at least $499 to buy an iPhone next year because they realize most free mobile phones are worthless.

"A lot of people pay zero for the cell phone. Guess why? That's what it's worth,'' Apple Chief Operating Officer Timothy Cook said yesterday at a conference in Las Vegas. Some wireless providers win customers by offering phones that lack the latest features free with service contracts.

"This will be a big piece of the Apple story for years to come,'' Cook told attendees at the Goldman Sachs Group Inc. technology conference. "If we offer something that has tremendous value, that is sort of this thing people didn't have in their consciousness -- it was not imaginable -- then I think there's a whole bunch of people that will pay $499, $599.''

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