A free iPhone may sound completely implausible, but there are actually some legitimate reasons that a free iPhone would be a good move for Apple to make. Many analysts are already theorizing that Apple is going to go in a cheaper direction with their expensive but ubiquitous handsets, and free may just be the next step towards total market domination.
1. It's already free–sort of
Older models of iPhone already come free with many service plans, so it would be trivial to release a new model with the same cost. These iPhones wouldn't really be coming free directly from Apple, but the cost would be fully subsidized by the cellphone companies with a new service plan. Since most people end up signing up for service plans anyway, this might not be that big of a deal. This would mean that Apple would still be collecting some money for the phones, just lowering the price. This would make the cellphone companies happy too because they would be selling more phones and more phone lines.
2. It will increase market saturation
While Apple has already saturated the market pretty significantly, there is still a rising Android demographic. A free phone would allow Apple to practically monopolize the cellphone industry, which would pave the way for many future revenue generating possibilities. Once the cellphone industry was appropriately saturated, Apple could return to charging more for its handsets. Since Apple prides itself on product integration, an increase in iPhone purchases would also increase their sales in other accessories.
3. The phone itself doesn't have to be the revenue maker.
While the phones do cost a pretty penny, a lot of money is actually being made in the media and application store. This means that the more people have these phones, the more people will be buying items from these stores. Since the life of one of these phones is a year or two, the cost of the phone can be subsidized by these purchases. Laterally, an increase in app sales will also increase the sales of other related technology such as iPads.
4. The cost of the phone is largely an illusion
The phone itself probably doesn't cost very much to create. Despite the heavy amounts of R&D that are put into these phones, it's very likely that the price is set high artificially to increase its desirability. Since the phone has already achieved this goal, it really doesn't need to keep inflating its price.
5. Apple can afford to do it
With all of the other reasons for a free iPhone in place, the only reason that Apple wouldn't do it is because they can't afford to. However, Apple has been exceedingly successful with a variety of products in recent years, and they can very well afford to produce free phones for at least a limited amount of time.
A free iPhone may not be what the future holds, but there's no denying that it makes logistical sense for Apple. A free handset would allow Apple to completely dominate the market and to retain that hold. It would also open up Apple to explore a myriad of revenue opportunities that other handsets have not yet explored. It wouldn't just secure the domination of the iPhone, but also of the iTunes store, and it would make iTunes practically a household necessity.
This article was written by Wayne Johnson, an expert in consumer electronics and blogger for bestincellphones.com. He likes to try out and review the latest smartphones. You can read more about free cell phones at: http://www.bestincellphones.com/free-phones.asp. There is no rebate needed. However, you are required to sign a 2-year contract with selected wireless carrier.