Contract-free iPhone pricing downside: non-warranty replacement costs jump by $400

Apple iPhone 3G

After speaking with an Apple Store manager today, we learned of an interesting side effect of the new no-contract-required iPhone pricing: higher replacement costs for non-warranty-covered damaged phones.

With the iPhone 3G being available without a contract for US$599 and $699 (8GB and 16GB models, respectively), the cost to get a replacement unit for phones that have been dropped or exposed to water, for example, is now $400 higher than it was just two days ago. Previously a non-warranty device replacement would cost users the price of a subsidized iPhone ($199 or $299, depending on the model).

Here at MobileBurn we've debated a bit as to who this new pricing scheme benefits. We understand that there will be a few users (and exporters) that might be willing to purchase a locked, but unsubsidized, iPhone 3G just to avoid being tied to a contract. And while it's true that this scheme provides users who are only a few months into a new 2 year contract a way to buy an iPhone today and use it, it seems that the real winner here might well be Apple, since it now makes an extra $400 off of non-warranty replacements.

Have another theory you'd like to share concerning the new pricing? Leave a comment, below, and let us know.