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.

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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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