Apple iPhone Heat May Melt Price on Sprint Phone

But iPhone not as cheap as it looks after factoring in an increase in data subscription fee.

Sprint's Instinct phone goes on sale this summer.
Sprint's Instinct phone goes on sale this summer.

Sprint Nextel is most likely feeling iPhone-generated heat to keep the price to $200 for its upcoming Instinct handset, seen as the answer to Apple's popular smart phone, writes Jason Gertzen in his Sprint Connection blog.

Of course, Sprint can do what AT&T did with the new iPhone. Lower the price of the handset, and raise the monthly fee for Internet access, which is required as part of the two-year contract. A lot of folks, including Thomas Hawk on his Digital Connection blog, calculate that the added fee makes the iPhone at least $40 more expensive than its $400 predecessor. That's more than the upgrade may be worth, says Hawk, despite being a fan of Apple and the iPhone.

Apple Inc.

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