Why AT&T Can Afford to Sell the Facebook Phone for Less Than a Dollar
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Less than a month after introducing the HTC First — the first-ever “Facebook Phone” — AT&T announced it is cutting the price of the phone from $99 to $0.99 with a two-year mobile service contract.
AT&T and HTC downplayed the significance of the price cut, saying such promotions are typical in the mobile industry. But AT&T is just shifting the cost of the phone to the data plan, which will become more expensive over time.
Initially priced at $99, the Facebook phone isn’t intended to be a high-end smartphone. Apple’s iPhone and Samsung’s Galaxy S4 cost $199 and $149 with a mobile service contract, respectively. Rather, it was a halo device for AT&T, HTC and Facebook and intended for Facebook “super users” who access the social network all throughout a given day.
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