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Apple Advertising in Post-Contract Era

K

KPOM

macrumors P6
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Oct 23, 2010
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With Sprint and Verizon's recent announcements, only AT&T still will have subsidized iPhone contracts next month when Apple unveils the 6S and 6S Plus. Historically, they have presented the subsidized price. Do you think it will be a bit jarring to see the slide that says "iPhone 6S, starting at $649" after 7 years of seeing it "starting at $199"? Do you think Apple will quote a monthly price (trying to get the carriers to agree to a standard installment length), or that they'll de-emphasize the price in the announcement?

On the plus side, now that carrier subsidies are largely a thing of the past, will we get the single "unlocked" carrier-free version available on Day 1 in the U.S.? I'm guessing that Apple could just release a single version, and not have separate carrier stock the way they have in the past. The only phones that will be locked are the AT&T contract versions.
 
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My thinking is Apple may announce pricing with emphasis on financing. So something like "iPhone 6s starting at $21/month for 16 (or 32?) GB" or something like that. I could even see Phil S putting the spin on it and talking up the financing piece. Something like "now the carriers have it to where you don't even have to pay anything at all up front, just a low monthly fee right into your bill that you already get" is what I can hear him saying.

For some reason, I don't see Apple advertising the full retail price of an iPhone during the unveiling. Not that people don't know what it is already, but I get it - from a marketing standpoint - want to advertise in the most appealing way possible for the flagship product.
 
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Why do people keep saying Verizon isn't offering 2 year contracts anymore??? 2 year contracts are still available for existing customers! it's actually ATT the one that's making it a little bit more difficult to get 2 year contracts at their stores. I work at Best Buy Mobile and we still do 2-year contracts for Verizon and Sprint, we can't do At&t 2 year contracts, Only Next.

Honestly these new plans aren't too bad depending on the existing plan you're on. So it won't be too hard to promote this new way to purchase an iPhone, considering all you have to pay is just taxes upfront, about $45 to $55, instead of paying $200 + activation fees. It's not like you would pay any less on a two year contract.
 
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The end of contracts ought to put the kibosh on never ending Android BOGO's.
 
Nothing changes. Instead of $199 they will market it as "$0 down" with the monthly payments in tiny font next to it or an asterisk to "see the monthly payments below". Ending contracts just helps Apple and the carriers sell more iPhones than ever.
 
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Or they simply keep quoting the "$0/$99/$199" prices with a *.

* At select carriers only. Pricing may differentiate from carrier to carrier.

I mean, it's still available for customers at $199. Just no longer by default.
 
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Andres Cantu said:
At least this will bring some clarity to those who actually think a new iPhone costs only $199.
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EXACTLY ! like I already said I work for BBY mobile and Im so tired of customers saying I"M NOT DOING THAT INSTALLMENT PLAN! I'm not paying full retail price thats a rip off! Hmmm You're not getting a phone for $199, $50, or 99c, you're paying full price over the 2 years you're under contract! if they only paid attention to all the fees they're paying.
 
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gabo864 said:
EXACTLY ! like I already said I work for BBY mobile and Im so tired of customers saying I"M NOT DOING THAT INSTALLMENT PLAN! I'm not paying full retail price thats a rip off! Hmmm You're not getting a phone for $199, $50, or 99c, you're paying full price over the 2 years you're under contract! if they only paid attention to all the fees they're paying.
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I completely understand where you're coming from! It makes me sad to think that many people believe installment plans are more expensive than subsidized plans. It just goes to show that many customers don't do their research and just go for the advertised price.

Can you imagine them selling their two year old iPhone when their contract expires for more than $200 and believe that they profited?
 
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Andres Cantu said:
I completely understand where you're coming from! It makes me sad to think that many people believe installment plans are more expensive than subsidized plans. It just goes to show that many customers don't do their research and just go for the advertised price.

Can you imagine them selling their two year old iPhone when their contract expires for more than $200 and believe that they profited?
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Yeah, it took me longer than it should have to explain and convince my family members that they weren't actually getting their iPhone 4's for "free" 3 years ago.

I don't know how many people are still in the "subsidized" mindset, but it will be interesting to see how Apple handles the pricing. My guess is "Starting at $0 for all models. See carrier for finance details."
 
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JohnApples said:
Yeah, it took me longer than it should have to explain and convince my family members that they weren't actually getting their iPhone 4's for "free" 3 years ago.

I don't know how many people are still in the "subsidized" mindset, but it will be interesting to see how Apple handles the pricing. My guess is "Starting at $0 for all models. See carrier for finance details."
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That's a good guess. I'm sure they wouldn't want to advertise the full cost of the iPhone in the keynote, but I'm also very curious about how they will handle it, especially the transition between the announcement of the price of the iPhone 6s and the rest of the line up. Can't say "free" anymore!
 
JohnApples said:
Yeah, it took me longer than it should have to explain and convince my family members that they weren't actually getting their iPhone 4's for "free" 3 years ago.

I don't know how many people are still in the "subsidized" mindset, but it will be interesting to see how Apple handles the pricing. My guess is "Starting at $0 for all models. See carrier for finance details."
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The thing is that with plans from 3 years ago (or more) if you bought your own phone or financed it (which wasn't really even an option then) you still paid the same price for your line and service. So even though the subsidy was built into it all, it was there no matter what, even if you didn't get anything subsidized actually.
 
C DM said:
The thing is that with plans from 3 years ago (or more) if you bought your own phone or financed it (which wasn't really even an option then) you still paid the same price for your line and service. So even though the subsidy was built into it all, it was there no matter what, even if you didn't get anything subsidized actually.
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Exactly, which was even more frustrating trying to explain. You "had" to upgrade, or else you were pretty much losing money by paying what you no longer owed.

From now on, I'm buying phones outright and keeping my monthly cost as low as possible.
 
JohnApples said:
Exactly, which was even more frustrating trying to explain. You "had" to upgrade, or else you were pretty much losing money by paying what you no longer owed.

From now on, I'm buying phones outright and keeping my monthly cost as low as possible.
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Financing is pretty much the same with the difference of not giving up all the money at once and doing it little by little over time (with the ability to pay off the remainder whenever you want).
 
yg17 said:
Not if you switch to a mobile share plan.
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Not now, but it used to be so. Both VZW & ATT were "double-dipping" on those fees, but people raised stink about it.

Fun fact: if you have paid of your phone on a 2-year VZW contract, they won't outright give you the discount, but if you call and tell them you're out of contract, they give you a $15/mo. off-contract discount (per line, I believe).
 
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yg17 said:
You mean the taxes and government fees? Those are on every plan. But with the mobile share plan, you pay for the base plan, and the device. When you're done paying for the device, your bill goes down.


Why does that even matter, not sure how it's a relevant question.
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When you finish paying for the device, all $600+ after two years,. Why does it matter? Because AT&T employees misrepresent the AT&T Next program.
 
JustMadeThisNameUp said:
In that it's some how cheaper than the 2 year contract, that's how it's misrepresented.

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It can be, it all depends on your plan, your lines, and all of that. Everyone has to figure it out for themselves. The video you linked doesn't really even seem to understand how Next actually works and what it means for different customers, and seems to talk about AT&T not giving discounts when it actually does. Seems like it's either rather old outdated information or misrepresentation of it all, or a combination of both.

That aside, as far as representatives will go, of course they will try to sell you the latest offering highlighting the ways that it can be better, you just have to figure out what of that applies to your case and how it all exactly applies. That's pretty much how any service/product is sold--representatives will highlight what's good about it and you have to make the decision of what actually works (or doesn't work) for you.
 
C DM said:
It can be, it all depends on your plan, your lines, and all of that. Everyone has to figure it out for themselves. The video you linked doesn't really even seem to understand how Next actually works and what it means for different customers, and seems to talk about AT&T not giving discounts when it actually does. Seems like it's either rather old outdated information or misrepresentation of it all, or a combination of both.

That aside, as far as representatives will go, of course they will try to sell you the latest offering highlighting the ways that it can be better, you just have to figure out what of that applies to your case and how it all exactly applies. That's pretty much how any service/product is sold--representatives will highlight what's good about it and you have to make the decision of what actually works (or doesn't work) for you.
Click to expand...


It is the responsibility of the customer to figure it out for ourselves despite how intentionally difficult AT&T and their sales people make it. I have to get online to research it because they are not permitted to volunteer information that will lead anyone away from the AT&T Next program.

I was in a store a few months ago trying to get my dad a new phone and they wouldn't let up on the Next program, despite it not being a good "fit" for us. $200 for an iPhone for a 2 year contract or $600 for one year. Despite whatever is "good for me" that's still not a good deal.
 
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