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Jim Cramer sees FREE iPhone service plans … BOOYAH!

January 25, 2007

[UPDATE: Cingular has told Gizmodo that this is NOT true. We’ll see in July…]

Big news off tonight’s Mad Money episode on CNBC! Host Jim Cramer was busy praising Apple stock, and then mentioned that Cingular/AT&T’s conference call was very good and that he forsaw AT&T giving away iPhone cell phone service for a time with the purchase of the phone in July (remember, $600 for 8 GB model).

CramerIn Cramer’s words: BOOYAH!

His comment was backed up by a report on his site, TheStreet.com:

Cramer said AT&T (TnewsCramer’s TakeRating) is one of the most interesting stories coming out of the tech period. In its call, the company made it very clear that it’s going to use Apple’s (AAPLnewsCramer’s TakeRating) iPhone to get customers from Verizon Wireless (VZnewsCramer’s TakeRating) by giving away its service for a year and a half to those customers who buy the phone.

MacRumors also notes comments from Cramer:

Now, AT&T’s all about market share, and if you read between the lines, I think you see a strategy coming where the device’s $500 price point is preserved but the service contract is greatly reduced. I think that AT&T — and not Apple — is the key to this next leg, and CEO Stan Sigman can make it happen.

That would be HUUUUUGE! Since unlimited data plans cost $30-40 on top of your calling plan for smart phones today, that incentive would almost draw me like a magnet to the AT&T store for the upgrade. Granted, it’s probably only going to be for the famous small-print NEW SUBSCRIBERS.

Whether its for 12 months, 18 months or 24 months, it’ll be big. And it’ll bring smart phones to a whole new audience of teens and older folks who don’t really need them.

However, a Barron’s analyst, Eric Savitz, doubts Cramer’s claim (from The Consumerist blog):

The thing is, the story is a load of, uh, hooey.

I searched the transcripts of both the investor conference call yesterday with Cingular, and another today with AT&T, and neither says anything like that at all. In fact, the Street.com story is dated yesterday, and AT&T didn’t even hold its call until this morning. I also talked to Cingular spokesman Mark Siegel, who said that the company has not announced any details on service plans for iPhone users yet, and won’t do so until shortly before launch.

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2 Comments
  1. March 10, 2007 8:58 am

    I found what I was looking for,easy to read, gave me some great ideas

  2. June 30, 2007 4:35 am

    I doubt there would be free iPhone plans.

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