Apple Retail Stores Begin Price Matching iPhone Discounts from Carriers and Major Retailers

[blackhand1001]

Cell phone plan prices have been largely stagnant since the iPhone launched in 2007. The only major increase carriers have done is to up ETF fees. They've dropped unlimited data plans, but those are pretty much the same cost when you substitute 2-4GB plans.

You could argue that Apple lowering their subsidy requirement would allow carriers to reduce prices, but why would they unless forced? They were that high in 2007 when the iphone came around in the first place. And they remain competitive in European markets despite the existence of the iPhone. The carriers are the problem here.

Carriers like sprint and at&t who are bleeding customers would be able to lure more customers in with lower prices. Apple charging the carrier 200-300 more than other manufacturers is not right and if the carriers didn't subsidize them as much apple would either have to lower the price or most people would buy the alternative. A 400-500 dollar iPhone on contract wouldnt do so well. Apple tried that with the first iPhone. Instead they got ridiculous subsidies and the plan prices increased. Look at the original iphones plan vs the current one. The carriers are sick of apples ridiculous prices and they will start firing back at apple. The sprint CEO is getting a lot of flak over what they had to pay/do to get the iPhone.

Look at t mobiles rates since they don't have the iPhone. They are much lower. An unlocked galaxy nexus on their prepaid plan is even more affordable. Apple is the reason why data plans prices have increased and that you now have to pay an upgrade fee on the 3 carriers that have the iPhone.

For comparison a galaxy nexus is actually about 30 dollars cheaper unlocked than an iPhone 3gs with its dated specs, low res screen, and low memory. That just proves to you that apples prices are too high. They've only done this well at the expense of the carriers. Once that's over apple either has to charge less or lose customers.

 

[tdream]

Thanks Nostradamus.

You sound like all those people who predicted the demise of Apple 20 years ago, and 15 years ago, and 10, and 5. You know, before they become one of the largest, most profitable, most valuable companies in the world, with record growth, and over 100 billion in the bank.

But yeah, you're right, I'm sure they won't be around in a few years.

Nice strawman argument, bravo!

I never said anything of the like. The past 5 years since the inception of the iPhone with Steve Jobs at the helm heralded unprecedented success and growth. Now that Steve has past, the company is once again in the hands of a board of middle managers who wouldn't know innovation if it hit them in the face. Just look at the iPhone 5 prototype rumours flying around. Extended iPhone looks quite ridiculous. I know Steve had a roadmap for the future of Apple but seeing all these changes being made is making me think twice about Apple.

Exhibit A = greenlighting ofdumb new ads
Exhibit B = annoying your loyal retailers
Exhibit C = silly looking new iPhone, similar design, no inspiration, looking dated at this stage
Exhibit D = embroiled in patent war
Exhibit E = charity gifts
Exhibit F = managers getting huge bonuses
Exhibit G = dividend return on shares
Exhibit H = no more record quarters, profits down of expectation
Exhibit I = dumbass looking Apple TV interface, the one that Jobs dismissed

& countless more I forget. Each one is not entirely damning in itself but taken together I don't see the inspiration and innovation that Apple were when Jobs was in control.

 

[chrmjenkins]

Carriers like sprint and at&t who are bleeding customers would be able to lure more customers in with lower prices. Apple charging the carrier 200-300 more than other manufacturers is not right and if the carriers didn't subsidize them as much apple would either have to lower the price or most people would buy the alternative. A 400-500 dollar iPhone on contract wouldnt do so well. Apple tried that with the first iPhone. Instead they got ridiculous subsidies and the plan prices increased. Look at the original iphones plan vs the current one. The carriers are sick of apples ridiculous prices and they will start firing back at apple. The sprint CEO is getting a lot of flak over what they had to pay/do to get the iPhone.

Look at t mobiles rates since they don't have the iPhone. They are much lower. An unlocked galaxy nexus on their prepaid plan is even more affordable. Apple is the reason why data plans prices have increased and that you now have to pay an upgrade fee on the 3 carriers that have the iPhone.

For comparison a galaxy nexus is actually about 30 dollars cheaper unlocked than an iPhone 3gs with its dated specs, low res screen, and low memory. That just proves to you that apples prices are too high. They've only done this well at the expense of the carriers. Once that's over apple either has to charge less or lose customers.

It's very simple. Like I said, European carriers pay the same subsidies yet somehow don't gouge the consumer. It's the carriers that are at fault. Yes, Apple could lower their subsidy requirement, but there's 0 indication that would drive plan prices down, seeing as how they were so high before the iphone came out anyway.

 

[alent1234]

It's very simple. Like I said, European carriers pay the same subsidies yet somehow don't gouge the consumer. It's the carriers that are at fault. Yes, Apple could lower their subsidy requirement, but there's 0 indication that would drive plan prices down, seeing as how they were so high before the iphone came out anyway.

european carriers gouge just as much, except they have cheaper plans with very little minutes/text/data that you can get. US carriers don't have this because in the last decade it cost them a fortune with people swearing they don't know who used up their minutes every month

 

[topmounter]

Too bad I want the iPhone 5.

So you're skipping the iPhone 4G-S?

 

[iMacFarlane]

So with this linear price reduction model, will Apple send out $49.01 iTunes gift cards with their free 3GS models?

 

[ChuckG]

Exhibit A = greenlighting ofdumb new ads

Show me a decent retail store ad.

Exhibit B = annoying your loyal retailers

No, it's about clearing out old iPhone stock before the new one gets announced.

Exhibit C = silly looking new iPhone, similar design, no inspiration, looking dated at this stage

Apple's design is about as little design as possible. For a device that's getting LTE and a bigger battery and screen, an 18% thickness reduction is pretty damn impressive.

Exhibit D = embroiled in patent war

Apple shouldn't be the R&D lab for the vertically integrated Asian OEMs that are willing to sell their soul to the carriers for distribution.

Exhibit E = charity gifts

Tim's creative way of shedding unnecessary cash and doing good.

Exhibit F = managers getting huge bonuses

It's about locking down key talent during a key transitional period in the company's leadership.

Exhibit G = dividend return on shares

The dividend may sound unimaginative, but it will not drastically reduce Apple's cash. It's about keeping the investors happy.

Exhibit H = no more record quarters, profits down of expectation

That's one of the stupidest things anyone can say right now.

Exhibit I = dumbass looking Apple TV interface, the one that Jobs dismissed

Apple sees the future of TV channels as Apps.

 

[tdream]

Show me a decent retail store ad.

If it's not up to Apple's usual standard, point the finger elsewhere. Sound judgement there. The thing is someone sitting in Apple's offices, sat down, watched it, and said hey this is pretty good. The people who thought this was a good idea are working at Apple and this didn't get locked down. It's not a good sign. Definitely would not of happened on Steve's watch.

No, it's about clearing out old iPhone stock before the new one gets announced.

Did they ever have a problem clearing out old stock before? Never.

Apple's design is about as little design as possible. For a device that's getting LTE and a bigger battery and screen, an 18% thickness reduction is pretty damn impressive.

Way to straight up avoid the argument.

Apple shouldn't be the R&D lab for the vertically integrated Asian OEMs that are willing to sell their soul to the carriers for distribution.

The jury is out on this one.

Tim's creative way of shedding unnecessary cash and doing good.

Apple's board's way of another avenue of marketing and buying good will.

It's about locking down key talent during a key transitional period in the company's leadership.

It's about strangling the golden goose while no one is watching or caring, because the future is shaky with no visionary leader, who is going to stay when key decisions go awry.

The dividend may sound unimaginative, but it will not drastically reduce Apple's cash. It's about keeping the investors happy.

Yes, it's all about the investors...

That's one of the stupidest things anyone can say right now.

That's one of the stupidest responses I've ever heard. Maybe you didn't get the memo.

Apple sees the future of TV channels as Apps.

You're talking like Apple is some person. It's not, it's made up of a group of people that made the company special. And the people who are currently at the helm are taking a bad idea that Steve Jobs himself rejected because they have no direction, creativity or taste without him.

 

[ixodes]

Steve would have never allowed this.

Steve who?

 

[iLikeTurtles!]

You see those smiles in his/her post? It means he/she was joking. Relax comrade.

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$23 for almost no minutes and no data? Sounds like a rip-off to me.

isnt that basically standard on any phone? call display ... my nokia from 2001 did that already

minutes on the other hand i understand, i have 120 minutes per month and i use NONE lol since i got my iPhone 4S last december i didnt use a total of more than 2hours

Well I can break it down so it makes more sense.

5 dollars for 40 anytime minutes
100 free bonus minutes for being a long time rogers customer
iphone value pack - 20.79 but they gave me a 50% off that for being long time customer - it includes call display, voice mail and a couple other random junk.
and some 6.79 system access fee and taxes.

comes tobout 23 dollars and some odd cents.

@willmtaylor, dude 120 anytime minutes is nothing? i rarely go over the 40 i initally had and the 100 free bonus minutes is a nice offer.

the only other thing missing is data, but im 90% of the time in a place with wifi, and even that i rarely use. i dont need to check facebook or twitter 24/7 like some people LOL. and data plans are hela expensive for the amount of download usage you can get. last i checked, 25 dollars gets you 250 or500mb that can easily be blown over.

iil enjoy my iphone 4s 64gb and a cheap ass plan ive been enjoying for almost a decade.

suck on that

 

[ixodes]

It will be interesting to see if this is a one time event, or a crack in Apple's full price strategy.

 

[cdmoore74]

How many people here would even pull the trigger on a $50 price drop? LTE alone is worth the $50 difference. Just wait guys.

 

[willmtaylor]

How many people here would even pull the trigger on a $50 price drop? LTE alone is worth the $50 difference. Just wait guys.

I would for my wife bc she's getting the 4S & I'll be getting the new iPhone. A price drop would be great.

 

[KdParker]

How many people here would even pull the trigger on a $50 price drop? LTE alone is worth the $50 difference. Just wait guys.

definitely worth the wait.....hope there are some nice surprises with IO6 too

 

[ChuckG]

Definitely would not of happened on Steve's watch.

You must've not seen the original iPod ad.

Way to straight up avoid the argument.

Apple pursues timeless style, not fleeting trendiness.

Apple's board's way of another avenue of marketing and buying good will.

Actually, the charity matching program was Tim Cook's idea.

the future is shaky with no visionary leader

You're talking like Apple is some person.

Yes, it's all about the investors...

In this particular area, it is, actually. Apple's stock buyback program also shows they care about dilution.

That's one of the stupidest responses I've ever heard.

Nice comeback. Let's review Exhibit H:

Exhibit H = no more record quarters, profits down of expectation

No more record quarters, gotcha.

I mean, who's going to buy the thinner new iPhone with the silly taller retina display and super-fast LTE or the cheaper more portable and lighter iPad mini, during the western and Chinese holiday gift-giving season?

[Apple]'s made up of a group of people that made the company special. And the people who are currently at the helm are taking a bad idea that Steve Jobs himself rejected because they have no direction, creativity or taste without him.

If they (Apple employees and SVPs) have no direction, creativity, or taste, then how exactly did they make the company special?

As we all know by now, SJ was a flip-flopper. He rejected many ideas (video iPod, Apple making a phone, ebooks, 3rd party iPhone apps, etc) initially before he embraced them. Yadda yadda.

The current app-like AppleTV UI probably didn't make sense 30-billion app downloads ago in 2006 (then codenamed iTV), but it does now.

 

[steve-p]

$23 for almost no minutes and no data? Sounds like a rip-off to me.

Doesn't sound great, does it. I get 600 minutes and 500MB of data a month for £15 (about 22USD).

 

[tdream]

You must've not seen the original iPod ad.

The ad is good and was well received. It must be your own personal opinion you think it's bad. Considering it was the first. There would also be room for some issues, but at this stage Apple has a long track record of producing great adverts. Now all of a sudden this tripe gets green lighted. I'm sorry but it's been universally panned and even Apple are slowly backing away from these ads. If you don't see that, I don't think anyone is going to convince you otherwise.

Apple pursues timeless style, not fleeting trendiness.

An eloquent way of saying, "we're out of ideas".

Actually, the charity matching program was Tim Cook's idea.

Still doesn't change the fact.

You're talking like Apple is some person.

Apple is run by people, one person in particular that made it great is no longer there to stop all this self congratulatory backslapping and concentrate on making great products.

In this particular area, it is, actually. Apple's stock buyback program also shows they care about dilution.

Investors should be and were completely satisfied with the astronomic rise in share price. Greed is not a pretty thing.

Nice comeback. Let's review Exhibit H:

They missed their earnings, which is unusual for Apple. They generally have a good handle on the numbers like this. Guess their expectations are getting the better of them. http://allthingsd.com/20120724/apple-earnings-a-bummer-not-a-beat/

I mean, who's going to buy the thinner new iPhone with the silly taller retina display and super-fast LTE or the cheaper more portable and lighter iPad mini, during the western and Chinese holiday gift-giving season?

Now they are finally reacting to a market they didn't give two hoots about last year. Sign of trouble? Also Christmas time is holiday time for all companies not just Apple.

If they (Apple employees and SVPs) have no direction, creativity, or taste, then how exactly did they make the company special?

They could of made a decent product, or good product even. But not a great or game changing one without SJ. There's no visionary leader anymore. All that's left are a bunch of suits and the vice like control written into contract to prevent design interference for the like of Ive are temporary. The suits will have their way, it's inevitable, as we're already seeing.

As we all know by now, SJ was a flip-flopper. He rejected many ideas (video iPod, Apple making a phone, ebooks, 3rd party iPhone apps, etc) initially before he embraced them. Yadda yadda.
The current app-like AppleTV UI probably didn't make sense 30-billion app downloads ago in 2006 (then codenamed iTV), but it does now.

Yet more strawman, it still doesn't make sense, just look at all the comments and bad reviews it's receiving. There was an opportunity to do something good here, something creative but what did they do. They looked back to what they had already done and used that like some second hand toy. It's good enough I guess...

 

[TolerancEJ]

There's already a Canadian wireless provider posting advertisements for a free 8GB iPhone 4 (with a 3-year plan).

 

[biggest father1]