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View Full Version : Attention Cell Phone Makers, The End Is Near


MacBytes
Jun 10, 2008, 11:09 AM
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Category: Opinion/Interviews
Link: Attention Cell Phone Makers, The End Is Near (http://www.macbytes.com/link.php?sid=20080610120942)
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Posted on MacBytes.com (http://www.macbytes.com)
Approved by Mudbug

Peace
Jun 10, 2008, 11:13 AM
"There you have it. One announcement and Apple has completely rocked dozens of companies. You can't expect much more from a keynote, can you?"

Sheds a new light on what was a boring keynote.

edesignuk
Jun 10, 2008, 11:16 AM
The article is written by idiots.
It now cost more to get an iPod touch ($299) than it does to get an iPhone. Do you understand what this means? For the first time since Jobs came back they are deliberately sacrificing their high margins AND undercutting a current established iPod all to sell this new product.Apple have dropped their ridiculous demands for revenue sharing, and now the carriers are passing on those saved costs to subsidise the handset to make for more sales and contractual/services income - just like they do with every other manufacturer.

Genius really, Apple get to look like they're doing you a favour, when really all they've done is follow the normal market place practice.

Sure the effect is the same, but apple haven't actually halved the cost. We'll see what they've really done when the PAYG costs turn up.

justflie
Jun 10, 2008, 11:16 AM
Hahaha. Ohhh Peace. It was the most boring 1.5 hours of my life, followed by a pretty sweet 25 minutes. I'm guessing there wouldn't have been so many demos if the processors for the new Macbook/Pro's were ready, but oh well.

friekunater
Jun 10, 2008, 11:17 AM
I like that article but I like to compare it to the 8gb iPod nano - you could either get a nano or an iPhone, same price same memory. what would you choose?

blilly
Jun 10, 2008, 11:22 AM
Hahaha. Ohhh Peace. It was the most boring 1.5 hours of my life, followed by a pretty sweet 25 minutes. I'm guessing there wouldn't have been so many demos if the processors for the new Macbook/Pro's were ready, but oh well.

Do we HAVE to go through this EVERY WWDC? For s#hits sake, it's a DEVELOPERS conference ... not MacWorld. Only when necessary (new model to support dev tools) does Apple use this to launch a product. The demos are exactly what developers need/want to see ... it is NOT intended for consumers.

TheBonk
Jun 10, 2008, 11:31 AM
I don't get how Apple would make money with cheap iPhones and no revenue sharing. Wouldn't the iPhones cost more than or pretty close to $199 or $299 to manufacture? :confused:

lancejorton
Jun 10, 2008, 11:48 AM
I don't get how Apple would make money with cheap iPhones and no revenue sharing. Wouldn't the iPhones cost more than or pretty close to $199 or $299 to manufacture? :confused:

AT&T is paying the remaining $200. They announced that their revenues would take a hit for the next 2 years while they subsidize the iPhone. It is rumored that if you buy a new iPhone from Apple, you will have to pay full price and then you will get a $200 credit when you activate it with AT&T.

TheBonk
Jun 10, 2008, 11:56 AM
AT&T is paying the remaining $200. They announced that their revenues would take a hit for the next 2 years while they subsidize the iPhone. It is rumored that if you buy a new iPhone from Apple, you will have to pay full price and then you will get a $200 credit when you activate it with AT&T.

Ah. I just looked up what subsidizing means. I thought of it as something else. :p

zombitronic
Jun 10, 2008, 12:05 PM
It is rumored that if you buy a new iPhone from Apple, you will have to pay full price and then you will get a $200 credit when you activate it with AT&T.

Which, I believe, is why they will activate it in-store before they will give you your phone. That way, you only pay $200 and AT&T has the guarantee of a subscription.

erandall38
Jun 10, 2008, 12:05 PM
AT&T is paying the remaining $200. They announced that their revenues would take a hit for the next 2 years while they subsidize the iPhone. It is rumored that if you buy a new iPhone from Apple, you will have to pay full price and then you will get a $200 credit when you activate it with AT&T.

Hey is this confirmed with a link somewhere besides a rumor site. I was reallyl worried about this. I thought the document that ATT released said that there would be no revenue sharing and Apple would be selling it for the lower price.

Also I felt that if Apple was selling it for full price and ATT was taking the hit they would of said something in the keynote to make sure investors and such knew such as "we will be selling it for $399, but once you activiate it ATT will give you a $200 rebate"

Tallest Skil
Jun 10, 2008, 12:07 PM
...it is NOT intended for consumers.

Neither is the MacBook Pro.

jayducharme
Jun 10, 2008, 12:11 PM
I like that article but I like to compare it to the 8gb iPod nano - you could either get a nano or an iPhone, same price same memory. what would you choose?

The article assumes there's no longer a reason not to get an iPhone, but it left out a very important point: there are a lot of people who simply won't want to switch to AT&T. There are others who can't. If the iPhone itself could simply be purchased from Apple and then run on any network the buyer preferred, I'd bet that Apple wouldn't be able to make enough of them. But the fact that's the phone is bound to AT&T for the next four years (in the U.S.) will probably temper sales.

I encourage Apple to prove me wrong. :)

blilly
Jun 10, 2008, 12:20 PM
Neither is the MacBook Pro.

Um ... "professionals" are consumers. Think > post.

danny_w
Jun 10, 2008, 12:23 PM
Anybody that believes Steve and looks at only the initial cost of the 3G iPhone at $199 and believes that it is actually cheaper is not seeing the full picture. The monthly cost is AT LEAST $15 more per month than the current plans (data $30 vs. $20, text messages $5 vs. $0), so the true cost of the new iPhone is $559, vs. $399 for the current iPhone. But the initial cost certainly LOOKS cheaper, so the uninformed will simply go with that and get shafted. So the ridiculous argument about the iPhone being cheaper now than an iPod Touch is just that, ridiculous. The Touch didn't go up in price, but the iPhone sure did (regardless of what Steve says)!

bigjnyc
Jun 10, 2008, 12:25 PM
AT&T is paying the remaining $200. They announced that their revenues would take a hit for the next 2 years while they subsidize the iPhone. It is rumored that if you buy a new iPhone from Apple, you will have to pay full price and then you will get a $200 credit when you activate it with AT&T.

Thats what i just heard from my friend at AT&T that there is going to be a mail in credit. i hate those things, especially from AT&T because they just give you a debit card, they dont even give you a check.

Hayashi
Jun 10, 2008, 12:34 PM
I would believe this if the iphone was carried by all carriers. The fact it is only carried by AT&T which is one of the worst cell phone companies out there doesn't do much. If apple released the iphone with every cell phone carrier I could see almost every other cell phone manufacturer going under.

BongoBanger
Jun 10, 2008, 12:37 PM
The article is written by idiots.

Agree, I haven't read anything that mind-numbingly stupid since I last chanced across roughlydrafted.com.

m4c1nt05h
Jun 10, 2008, 12:46 PM
The article is written by idiots.

yes and they can't spell either.

if only i had a dollar every time someone spells "definitely" as d-e-f-i-n-a-t-e-l-y.

pretty sad. spell check is a pretty good tool in most word processing programs. heck, my spelling is being checked right now as i type this.

anytime i see big typos like this on a supposedly "professional" site makes the person/company lose credibility.

TheBonk
Jun 10, 2008, 12:56 PM
Anybody that believes Steve and looks at only the initial cost of the 3G iPhone at $199 and believes that it is actually cheaper is not seeing the full picture. The monthly cost is AT LEAST $15 more per month than the current plans (data $30 vs. $20, text messages $5 vs. $0), so the true cost of the new iPhone is $559, vs. $399 for the current iPhone. But the initial cost certainly LOOKS cheaper, so the uninformed will simply go with that and get shafted. So the ridiculous argument about the iPhone being cheaper now than an iPod Touch is just that, ridiculous. The Touch didn't go up in price, but the iPhone sure did (regardless of what Steve says)!

That's what I had a problem with when I first found out that AT&T would be charging the $30 data plan. The 3G iPhone costs $40 more than the old iPhone to own for 2 years now. That's based on the $30 alone. It's pure marketing genius by Steve is all it is.

Earendil
Jun 11, 2008, 10:38 AM
That's what I had a problem with when I first found out that AT&T would be charging the $30 data plan. The 3G iPhone costs $40 more than the old iPhone to own for 2 years now. That's based on the $30 alone. It's pure marketing genius by Steve is all it is.

Really, because I see it more like this. Apple developes 3G iPhone, but realizes that when they do so that AT&T isn't going to give iPhones a special deal on data rates, but will mark it at the same price as their other Data Phones. If Apple was paying attention to this, they may think "well *****, our phone just got more expensive by default, even if costumers get more". So they sit down and try and figure out a way to make it cheaper.

Perhaps neither AT&T or Apple is losing money, but I think that the shift in the location of the cost is a good thing. For example as I student I live on an all Wireless campus. My house has wireless, my work has wireless, any coffee shop I do hw in has wireless. Do I need the data plan? No. So the iPhone *IS* effectively cheaper for me than it was 2 weeks ago.

All the bells as whistles for an iPhone went up by $40 over 2 years, but the cheapest slimmed down iPhone cost less. That is what us poor people get you know, not the bells and whistles, but slimmed down cheap options :rolleyes:

danny_w
Jun 11, 2008, 10:41 AM
Really, because I see it more like this. Apple developes 3G iPhone, but realizes that when they do so that AT&T isn't going to give iPhones a special deal on data rates, but will mark it at the same price as their other Data Phones. If Apple was paying attention to this, they may think "well *****, our phone just got more expensive by default, even if costumers get more". So they sit down and try and figure out a way to make it cheaper.

Perhaps neither AT&T or Apple is losing money, but I think that the shift in the location of the cost is a good thing. For example as I student I live on an all Wireless campus. My house has wireless, my work has wireless, any coffee shop I do hw in has wireless. Do I need the data plan? No. So the iPhone *IS* effectively cheaper for me than it was 2 weeks ago.

All the bells as whistles for an iPhone went up by $40 over 2 years, but the cheapest slimmed down iPhone cost less. That is what us poor people get you know, not the bells and whistles, but slimmed down cheap options :rolleyes:
That is assuming that you can get the new iPhone without a data plan. Good luck with that!

Earendil
Jun 11, 2008, 10:46 AM
That is assuming that you can get the new iPhone without a data plan. Good luck with that!

We will have to wait and see.
However since the iPhone just joined the rest of the phones as far as a regular plan goes, than I don't suspect that they will treat it different than other phones. i.e. I haven't seen a phone that forced you into a data plan.
Granted, I am not a phone market guru, but I've been around the block.

Feel free to enlighten me.

danny_w
Jun 11, 2008, 11:01 AM
We will have to wait and see.
However since the iPhone just joined the rest of the phones as far as a regular plan goes, than I don't suspect that they will treat it different than other phones. i.e. I haven't seen a phone that forced you into a data plan.
Granted, I am not a phone market guru, but I've been around the block.

Feel free to enlighten me.
I'm certainly no expert, but it is my understanding that AT&T always requires a data plan on all smartphones. I would think the extra $10/month over the current data plan is their method of recouping their subsidy for the phone.

Earendil
Jun 11, 2008, 12:00 PM
I'm certainly no expert, but it is my understanding that AT&T always requires a data plan on all smartphones. I would think the extra $10/month over the current data plan is their method of recouping their subsidy for the phone.

No, I think that they recoup it by not giving apple any portion of the monthly fee (where as they did before). The $10 raise matches the rest of their 3G phones, so the iPhone doesn't appear to be playing by any sot of special or unique rules.

I believe that the $20 month data plan for the 1st gen iPhone was a special deal because it was EDGE only. Now that the iPhone joins the rest of the big boy smart phones on 3G, it gets to pay the 3G prices like the rest of them.

But I suppose if it is considered a true smart phone, and AT&T requires data plans on smart phones, than we are seeing something a little different...