iPhone barrier to entry is the $69.99 AT&T, not simply the $99.

[iphones4evry1]

If AT&T has any brains in their heads, they will realize the main reason tens of millions of people still don't own iPhones is because they aren't willing to pay the huge $69.99 per month. If AT&T was smart, they would say that all new customers to the $99 8GB iPhone3G only pay $59.99 per month for the 3.6Mbps service (which will no longer be the fastest service at the end of the year), and that people who buy the iPhone3G-S will pay the $69.99 because the speed will be up to 7.2Mbps by the end of the year and rollout will continue in 2010. EVERYBODY that I talk to that does not have an iPhone yet tells me the reason is because of the monthly service fee. If anyone from AT&T is out there and listening, you would be EXTREMELY wise to offer a lower monthly fee to those buying your $99 3.6Mbps phone. This is the reason they haven't bought an iPhone yet.

 

[aerospace]

I have pay as you go for $49 but will likely upgrade to a contract 3gs when it rolls out.

I thought the cheapest plan was $59? 29 voice + 30 data?? Minus fan discounts if you get them

 

[Eddyisgreat]

I know cheaper plans would bring in customers but have you considered profits, costs, market prices etc?

I'm also curious as to what business school you graduated from. Wharton? Kellogg? Harvard? Have you spoken to Ralph de la Vega,
President and Chief Executive Officer of AT&T Mobility and Consumer Markets about this money making venture?

 

[MarlboroLite]

Well I think the OP has a point...here in France, (where all carriers now have the iphone, but even when only Orange had it) the prices started out like ATT's--outrageous, yet not only is the iphone cheaper to buy here (€99 for the 8 gb and €199 for the 16 gb) the cheapest possible plan is €39 and they even had an offer of 3 euros back if you signed up online therefore making it €36...and this offer is still running, it has been for months. And if you are under 26 you can get an additional 10% off or unlimited text messages....so your bill can end up being even less.

SFR on the other hand offers unlimited texts to all...so overall owning an iPhone in France is not even close to being costly compared to owning one in the US...and the cheapest plan i.e. the €39 one includes the unlimited data.

ATT would be smart to drop the prices. It sure helped adoption in France.

 

[clborden]

That is angering!! I need unlimited everything and AT&T rapes me every month for $165!! Once the exclusive ATT/Apple contract ends, some competition would really help.

 

[sammich]

Well I pay 39$ Australian a month (over 24 months) for my 16 gig 3G iPhone. That was with an upfront of $220. I'd say that's pretty darn cheap compared with what you guys have overseas. I might add that it's a comparatively low data cap (500MB), but it's more than enough for me.

To the original point: do providers still give Apple royalties per month for search subscriber? If they do, they you can't forget that when you see how much the iPhone costs per month.

 

[Merkie]

I've never really understood the "and it's only $199!"-hype. You pay $1680 to AT&T in two years time, what does $99, $199 or $299 matter? It's nice yes, but it's not the price you're paying, because the real price is $1680+$199 = $1879 and not $199.

 

[Merkie]

Well I pay 39$ Australian a month (over 24 months) for my 16 gig 3G iPhone. That was with an upfront of $220. I'd say that's pretty darn cheap compared with what you guys have overseas. I might add that it's a comparatively low data cap (500MB), but it's more than enough for me.

To the original point: do providers still give Apple royalties per month for search subscriber? If they do, they you can't forget that when you see how much the iPhone costs per month.

That's quite cheap indeed. How many minutes/text messages do you get for that?

 

[aneftp]

Stop Complaining, would be the Same on Verizon

I don't know why people complain about AT&T's pricing with the iPhone min. $69.99 ($39.99 (450 min plus $30 iphone data).

How much do you think Verizon would charge?

To the best of my knowledge Verizon would charge the same exact price.

Nobody complains about Verizon's data charges. I believe they charge $30 for their PDA/Smartphone/Blackberry personal data plans also. And Verizon's cheapest post-paid plans start at $39.99.

Verizon and ATT compete with each other.

Sprint and Tmobile compete with each other.

It's pointless to compare with ATT and Sprint. It's pointless to compare ATT with Tmobile.

Think people. Think people before you jump to conclusions about ATT being a rip off.

Now if Verizon were to lower their prices, than ATT would most definately consider lowering it also.

In the United States, it's all about the free market. And Profits.

 

[aneftp]

I've never really understood the "and it's only $199!"-hype. You pay $1680 to AT&T in two years time, what does $99, $199 or $299 matter? It's nice yes, but it's not the price you're paying, because the real price is $1680+$199 = $1879 and not $199.

So how much would you pay Verizon than? Hint....it'll be about the same price.

 

[maflynn]

While I've heard people complaining about the price ATT is charging is primarily from iPhone owners. I've really not experienced people who decided against buying an iPhone for the contract price.

While I do wish for a cheaper plan, how does ATT compare with Verizon? I wouldn't compare them with sprint because they're trying everything from keeping existing customers from fleeing, never mind getting new customers.

 

[goodcow]

Nobody complains about Verizon's data charges.

Maybe because Verizon's data network doesn't suck huge amounts of ass?

Verizon and ATT compete with each other.

Sprint and Tmobile compete with each other.

Funny, considering Sprint has better coverage (in Manhattan, thanks to CDMA) and a far better data network. AT&T wants to think it should charge like Verizon while not coming anywhere near their level of service.

 

[tekboi]

AT&T wants to think it should charge like Verizon while not coming anywhere near their level of service.

Yea, It's starting to look that way? But why exactly is Verizon's level of service superior to AT&T's?

 

[sammich]

That's quite cheap indeed. How many minutes/text messages do you get for that?

Doesn't work that way in Australia. You get dollars value, then the calls cost x per 30secs. It's about 2x more to call fixed than mobiles. Mobiles are about $0.20/30secs. Come to think of it, it really ain't that many minutes lol

 

[beamer8912]

Yea, It's starting to look that way? But why exactly is Verizon's level of service superior to AT&T's?

Verizon's network is vastly larger than AT&T's, supports more customers and has better service in densely populated areas like NYC.

In what way does AT&T's service come even remotely close to Verizon's?

 

[jamaicanjetfan]

The real crime is getting charged 30 for unlimited data, and then another 20 for texts. Hopefully when the iPhone becomes available to multiple carriers, ATT is forced to eliminate that ridiculous text charge.

 

[fleshman03]

That is angering!! I need unlimited everything and AT&T rapes me every month for $165!! Once the exclusive ATT/Apple contract ends, some competition would really help.

You need to stop talking/texting so much then.

I plan on making my GF go to ATT. ($149 16gb 3G) That will let me save the bulk of my 450 minutes. Then all I've got to worry about is friends and parents.

Hey - are texts free if they are in-network? (Too much to wish for.)

I don't know why people complain about AT&T's pricing with the iPhone min. $69.99 ($39.99 (450 min plus $30 iphone data).

How much do you think Verizon would charge?

To the best of my knowledge Verizon would charge the same exact price.

Nobody complains about Verizon's data charges. I believe they charge $30 for their PDA/Smartphone/Blackberry personal data plans also. And Verizon's cheapest post-paid plans start at $39.99.

Verizon and ATT compete with each other.

Sprint and Tmobile compete with each other.

It's pointless to compare with ATT and Sprint. It's pointless to compare ATT with Tmobile.

Think people. Think people before you jump to conclusions about ATT being a rip off.

Now if Verizon were to lower their prices, than ATT would most definately consider lowering it also.

In the United States, it's all about the free market. And Profits.

Riiiiiiiiiiiight. ATT, Verizon, Sprint, T-mobile all don't provide headsets w/ monthly plans. You cannot get unlimited voice, data and text from t-mobile or sprint or verizon...

Free market (as you are so proud to tote) states that they all compete. All are telecoms.

 

[uberamd]

I've never really understood the "and it's only $199!"-hype. You pay $1680 to AT&T in two years time, what does $99, $199 or $299 matter? It's nice yes, but it's not the price you're paying, because the real price is $1680+$199 = $1879 and not $199.

Your right, and thats all profit isn't it? Use your head before spitting out BS like that. You are paying for the minutes and data use. No matter what phone you have, you can subtract $30 from the plan for iPhone data, BUT if you want internet access AT&T still charges around $20/mo, so you save $240 after 2 years by using a non iPhone ($10/mo * 24 months). WOW... AT&T has a network that those costs go to, customer service departments, etc. You act as if every penny AT&T gets goes right into profit and they have no expenses. So no, the phone doesn't cost you $1879, its the SERVICE.

Horrible reasoning on your part.

 

[slpdLoad]

I've never really understood the "and it's only $199!"-hype. You pay $1680 to AT&T in two years time, what does $99, $199 or $299 matter? It's nice yes, but it's not the price you're paying, because the real price is $1680+$199 = $1879 and not $199.

Well yeah. Ever bought anything on credit? Got a financing deal on something? Bought a house, a car?

 

[earlycuyler]

The real crime is getting charged 30 for unlimited data, and then another 20 for texts. Hopefully when the iPhone becomes available to multiple carriers, ATT is forced to eliminate that ridiculous text charge.

That's the part that bothers me too. Up until just recently the cost of texting was dropping fast. IIRC, last time I made a significant change to my plan unlimited texting was $10/mo for my 3-line plan. I might be wrong on that, but I don't think so.

The point is, the $20/mo price seems disproportionately high. I am sure someone will blast me for saying that and tell me why AT&T is perfectly justified in charging it. I am just a regular guy who knows very little about what texting costs AT&T and cares even less. For me the bottom line is what it is going to cost me each month to get what I want. Based on my previous experience with phone plans, $20/mo is too much for unlimited texts.

 

[uberamd]

That's the part that bothers me too. Up until just recently the cost of texting was dropping fast. IIRC, last time I made a significant change to my plan unlimited texting was $10/mo for my 3-line plan. I might be wrong on that, but I don't think so.

The point is, the $20/mo price seems disproportionately high. I am sure someone will blast me for saying that and tell me why AT&T is perfectly justified in charging it. I am just a regular guy who knows very little about what texting costs AT&T and cares even less. For me the bottom line is what it is going to cost me each month to get what I want. Based on my previous experience with phone plans, $20/mo is too much for unlimited texts.

Texting costs carriers next to nothing, but they charge up the butt for it anyway. All carriers do that. I have a family plan and for 4 lines its $30 for unlimited texting. Thats not a bad deal.

 

[dagomike]

I've never really understood the "and it's only $199!"-hype. You pay $1680 to AT&T in two years time, what does $99, $199 or $299 matter? It's nice yes, but it's not the price you're paying, because the real price is $1680+$199 = $1879 and not $199.

It's a given that you'll be paying for same service whether the phone is subsidized or not. So, yes it really is $199. If you don't have a cell phone and otherwise wouldn't have one, the yes, the iPhone would cost you that, but most people already have mobile service.

I think FOIS TV-Internet pricing is prohibitive. That doesn't mean it should be $9.99 a month.

 

[earlycuyler]

Texting costs carriers next to nothing, but they charge up the butt for it anyway. All carriers do that. I have a family plan and for 4 lines its $30 for unlimited texting. Thats not a bad deal.

Right and I wasn't necessarily banging on AT&T as opposed to other carriers. I was just saying that the extra $20/mo for one line seems high when you are already paying for a data plan.

I will have to go back and check my $10/mo figure. Sounds a lot lower than what you pay. Maybe I was wrong or there was some qualifier on that figure that I forgot.

 

[jclardy]

Texting costs carriers next to nothing, but they charge up the butt for it anyway. All carriers do that. I have a family plan and for 4 lines its $30 for unlimited texting. Thats not a bad deal.

Sprints baseline unlimited individual plan for $70 gives you 450 minutes and unlimited messaging and data, while AT&T's equivalent plan costs you $80, because of the unlimited text which they charge $20 for.

But I am still switching from Sprint to AT&T for the 3G S. Luckily AT&T service in NC is decent compared to what I've heard of other locations.

 

[uberamd]

Sprints baseline unlimited individual plan for $70 gives you 450 minutes and unlimited messaging and data, while AT&T's equivalent plan costs you $80, because of the unlimited text which they charge $20 for.

But I am still switching from Sprint to AT&T for the 3G S. Luckily AT&T service in NC is decent compared to what I've heard of other locations.

Yeah I don't get where these people live who have horrible AT&T service. I live in Minnesota, and in the Twin Cities I get amazing service, and fast 3G. I go to school far away from there in a smaller city and I still get amazing service, but only EDGE speeds. But I never have dropped calls, etc. So I don't get the woes. I had a horrible experience with Sprint. In peoples basements, my Sprint phone had 0-1 bars, and my friends with AT&T had 3-5.