Re: Apple states NO CASH Sales for iPhones, plastic only
It's only illustrative of my opinion of Apple's iPhone business practices and nothing more. You know nothing of my opinions of Apple.
Both kickback and subsidy are subjective (we don't know what was used in the Apple ATT agreement though I doubt it was "subsidy"), but I maintain that kickback is more apt a characterization than subsidy because a) it was not disclosed at the onset and b) it aligns Apple's interests against the interests of its customers (at least a significant portion of) - both characteristics of a kickback.
Of course it matters. The operative word is disclosure or lack of. If Apple sold the phone for $0 instead of $1,000 but I the consumer was charged $2,000 by padded fees to the carrier, I would want to know.
In that general vein you can read the longest iPhone thread (Calling when overseas) on Apple's discussion forum and you'll see that iPhone users were for several months (until 1.1.1 update) billed in part for unwarranted roaming charges because of the iPhone's EDGE misbehavior. It took months (and a real outcry from users) for Apple to fix it, and in the meantime we the users were paying Apple along with ATT for that misbehavior.
You did say "because hackers can exploit security flaws to let people out of paying the roughly $400 they would to apple over the life of the contract."
Really? In the example you cited the market offered alternatives. In the case of the iPhone the market doesn't, as yet. Your attitude is tough luck. My attitude is Apple is exploiting a technical advantage and effectively price gouging at the expense of the consumer. I say it's up to us the consumers to pressure Apple to change its ways. Your are not onboard with that, fine.
Yes I have the same bias as the vast majority of phone users in the world who are accustomed to phones available both locked and unlocked. Travelling is broadening and I highly recommend it to my fellow Americans.
You know nothing of what I have done including the many benefits to Apple products during my career. To suggest that Apple could not be successful and wildly so by offering an unlocked phone along with a "subsidized" one is ludicrous.
You know or should no that's a non argument. Apple throughout its history has sought to sell its hardware worldwide as quickly as possible and was only kept from doing so by pace of software localization. It's only in the case of the iPhone (and not the iPod Touch), that it's doing the opposite - and the reason is precisely because of the kickback it's receiving (demanding?) from the network providers.
In any event, time and events are on the side of the unlockers not Apple. Reread this thread in 12 months for amusement or otherwise.
You can define it anyway you like, or use whatever disparaging term you prefer.
The bottom line is that Apple struck an exclusive deal with AT&T in the USA whereby Apple receives a portion of the monthly AT&T fees from iPhone users.
Whether you wish to recognize it as such or not, that does effectively subsidize the price just as offering a crap phone for free does. The company recoups costs over time because the customer is paying monthly fees to the carrier.
That you label it a kick back is illustrative of your opinion towards Apple, but has nothing to do with the facts on the ground.
It's only illustrative of my opinion of Apple's iPhone business practices and nothing more. You know nothing of my opinions of Apple.
Both kickback and subsidy are subjective (we don't know what was used in the Apple ATT agreement though I doubt it was "subsidy"), but I maintain that kickback is more apt a characterization than subsidy because a) it was not disclosed at the onset and b) it aligns Apple's interests against the interests of its customers (at least a significant portion of) - both characteristics of a kickback.
That's neither here nor there. Apple's goal is to sell iPhones to make money. If they can do that by charging $1000 a unit or $0, it makes no difference. They have revenue goals they wish to hit and will adjust their prices accordingly just as any company will do with a product in a dynamic market.
Of course it matters. The operative word is disclosure or lack of. If Apple sold the phone for $0 instead of $1,000 but I the consumer was charged $2,000 by padded fees to the carrier, I would want to know.
In that general vein you can read the longest iPhone thread (Calling when overseas) on Apple's discussion forum and you'll see that iPhone users were for several months (until 1.1.1 update) billed in part for unwarranted roaming charges because of the iPhone's EDGE misbehavior. It took months (and a real outcry from users) for Apple to fix it, and in the meantime we the users were paying Apple along with ATT for that misbehavior.
I'm not suggesting what the intent of unlockers is.
I was characterizing the impact of their actions, which is to effectively avoid paying it regardless of their intentions.
You did say "because hackers can exploit security flaws to let people out of paying the roughly $400 they would to apple over the life of the contract."
I'm sure you would, as would others. That's not the service that Apple and AT&T are currently providing.
I was glad to pay extra money to get MLB extra innings on my cable service a few years ago.
They didn't offer it.
So what did I do? I didn't stake out cable TV message boards or try to hack my service, I switched to Directv and have never been happier. This was not just new content either, but rather a whole laundry list of new hardware as well.
There's nothing stopping people from doing the same thing for their phone service.
Really? In the example you cited the market offered alternatives. In the case of the iPhone the market doesn't, as yet. Your attitude is tough luck. My attitude is Apple is exploiting a technical advantage and effectively price gouging at the expense of the consumer. I say it's up to us the consumers to pressure Apple to change its ways. Your are not onboard with that, fine.
You have a certain bias in terms of what you think you are entitled to.
Yes I have the same bias as the vast majority of phone users in the world who are accustomed to phones available both locked and unlocked. Travelling is broadening and I highly recommend it to my fellow Americans.
The concept that you fail to grasp is that you are not required to use Apple's products nor are you required to use AT&T's service. As such it is far more egregious for those who have not put their careers and creativity on the line to create something to demand what a company should or should not do based on their particular lifestyles.
You know nothing of what I have done including the many benefits to Apple products during my career. To suggest that Apple could not be successful and wildly so by offering an unlocked phone along with a "subsidized" one is ludicrous.
We're not talking about a defibrillator not working in Vermont but working in New Mexico. We're talking about a consumer product that is almost a complete luxury.
If you consider it an insult, you are far too thin skinned.
It's not a requirement to make sure everyone in the world has access to your product.
If it were, you'd instantly see a massive drop in the type of investment and entrepreneurialism that has made Apple the success that it is.
You know or should no that's a non argument. Apple throughout its history has sought to sell its hardware worldwide as quickly as possible and was only kept from doing so by pace of software localization. It's only in the case of the iPhone (and not the iPod Touch), that it's doing the opposite - and the reason is precisely because of the kickback it's receiving (demanding?) from the network providers.
Put the egoism aside. If you think it's so easy to make products that the world covets and make a buck and keep your company and share holders happy, have at it.
In any event, time and events are on the side of the unlockers not Apple. Reread this thread in 12 months for amusement or otherwise.