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Apple to Offer Unlocked U.S. iPhone 4s Starting at $649?
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That's where you're wrong. AT&T buys iPhones at or near full retail price and then recoup their expenses by having customers cover $200-$300 up front in addition to signing a 2-year contract worth thousands of dollars.
For instance, on a 5-person family plan, I pay $123/mo for two of the 5 lines, both with unlimited text and data, and limited minutes (700/month shared across the 5 phone lines). With my 2-year commitment to AT&T, my portion of the plan amounts to $2952 total contract value. That's $2152 after you consider my initial investment of $400 out of the $1200 retail value of two iPhones.
That's the entire point of subsidized phones. Look at any top-shelf smart phone and what the cost of the phone is when you purchase them sans-service. You'll consistently find yourself in the $500+ price point. Buying them subsidized via a long-term commitment to a phone company puts the price within reach of far more consumers than only offering them at the unlocked price alongside no-commitment service plans.
Apple stores see A LOT of traffic. With the summer travel season starting up this makes perfect sense.
There are several types of customers who will want these in the US stores:
1. International visitors to the US, who don't live near Apple stores at home.
2. US residents who travel overseas often.
3. AT&T customers who are not eligible to upgrade--why not get an unlocked version? Just in case.
--I think it has most to do with international visitors though. Particularly students who are here to study. They need to replace phones just like everybody else, but a locked, US only phone makes no sense for them.
There are several types of customers who will want these in the US stores:
1. International visitors to the US, who don't live near Apple stores at home.
2. US residents who travel overseas often.
3. AT&T customers who are not eligible to upgrade--why not get an unlocked version? Just in case.
--I think it has most to do with international visitors though. Particularly students who are here to study. They need to replace phones just like everybody else, but a locked, US only phone makes no sense for them.
I live in Germany and you must be joking. First of all, when you say "bucks", you mean Euros, not US Dollars. Telekom is selling LOCKED iPhone 4's here for €1 with contracts that cost 90 Euros a month, 24 months a contract. That's €2160 for 24 months. That's US$ 3110 for 2 years.
http://www.t-mobile.de/iphone/tarife/0,18383,22271-_,00.html
Please think before you write.
iPhones cost less than $200 to manufacture. I understand recouping the costs of R&D, marketing, inventory, and all that good stuff, but a 200+% gross profit is ridiculous.
It's not built to support t-mobile's 3g.
No, but you can sign up with t-mobile, who doesn't require data.
If you don't mind paying $2/minute and $0.02/KB, then roaming is fine. If you're not okay with being ripped off, then you want to use a local sim.
Seriously. Why can't consumers do what they want with a phone they've more than purchased once the contract is finished? Correct me if I'm wrong, but I think only Japan and the US have these ridiculous rules.
Price is high, but comparable to other unlocked smartphones. That said, with unlocked devices sold in the US, the whole point of unlocking and jailbreaking boils down to just customization, emulators, allowing everything through 3G, and free tethering.
Not much incentive left now... the main one is almost gone.
Not much incentive left now... the main one is almost gone.
All iPhones need to come unlocked subsidized or not. If you buy a subsidized iPhone for $200 who cares if it's unlocked? You still are now on a contract that you still have to pay. If AT&T subsidizes your phone and you choose to use another service, AT&T still get's their money because you have a contract with them. Locked phones are stupid and should be illegal in the US like they are elsewhere.
No. It's int the price range of 65US$ and you will get the phone for 119US$. Furthermore your data flat rate has a cap at 300MB and then is GPRS flat. Great! Your voice flat has a cap at 120 min. and your sms flat does not exist at all.
I wonder which carriers will most benefit from this. Seems that AT&T has loss its reign forever.
pft is just that there is no more a real competitor for GSM in the U.S. AT&T bought T-Mo so when the merger finalizes there will be only AT&T left as the only big boy of GSM in the U.S.
ATT's data+voice is just too expensive for me. That's why I have a factory unlocked 4 with T-Mobile's prepaid.I dont make many calls and pretty much anywhere I need to go there's wifi so that works well for me.
I hope they will have unlocked 5s available too.
I hope they will have unlocked 5s available too.
The costs of living and everything else are higher in Europe than in the US, but we also have more income per month. So it stays more or less the same when directly compared.
wow, i'm really surprised by some of these comments, but perhaps I shouldn't be? I wonder how many of the Americans on here posting there is no use to an unlocked phone even have a passport?!
And the number of travellers through the US is HUGE, and the phones are WAY cheaper in the US than other places so for travellers this really is a boon!
For instance in Australia and unlocked iPhone 4G from Apple costs $999AUD including GST (~$1064USD), roughly 25% more expensive than the price point released in the States!
And the number of travellers through the US is HUGE, and the phones are WAY cheaper in the US than other places so for travellers this really is a boon!
For instance in Australia and unlocked iPhone 4G from Apple costs $999AUD including GST (~$1064USD), roughly 25% more expensive than the price point released in the States!
Those are almost on par with the prices AT&T pays for the phones. You can buy a phone from AT&T now without a contract, and it's about $600 bucks. When $200 is a subsidized price on a device, that means they're paying quite a bit for that device.
A better argument would be looking at the price of an iPod Touch vs. those prices. R&D is tagged in there, but we're not talking about a huge amount of other components that it should be more than twice the price of an iPod touch. Also don't forget the iPhone 1 did not sell with a subsidy and sold at a VERY high retail.
(emphasis mine)
You guys don't understand expanding user-base? Or profit?
Seriously??
Apple wants to bite into the chunks of change people make from unlocking iPhones.
But seriously... isn't there a bill in the works that states that US phone manufacturers must not lock handsets to a particular network?
(That users should be allowed to move their handset from one network to another competitor's compatible network if they please.)
I thought I read something like that a year or two ago... :-/
For traveling internationally, using local SIM cards, and not having to either:
1) Pay AT&T's huge international roaming fees and international long distance rates, all while foreign locals are less inclined to call you due to having to pay long distance rates to dial an American number.
2) Hack your iPhone in order to unlock it and then be left out of future iOS software updates that may brick your phone, as well as having your warranty and Apple Care voided.
Everyone knows why customers would want an unlocked phone. That wasn't the question. Why would Apple release it now? They've keep the iPhone locked down in the US for years now. Why unlock it now? What is their purpose for doing so? It's not just because customers want it. We've wanted it for years.
Hiya,
Not sure how it works in the US but here in the UK if you have your own handset, a network will sell you a service plan at a discounted rate (SIM Only) which requires only a 30 day commitment.
For an iPhone these can be from as little as £15 ($24) including around 500 minutes (remember incoming calls are free in the UK), unlimited text, 3G data and WIFI. You can get even better discount on a 12 month SIM only by either increasing the amount of minutes and/or data or reducing the cost by £5.
These usually include a lot more minutes/data/text than a standard 24 month plan with the equivelent costing around £35 to £45 depending on the network.
Ricardo
Not sure how it works in the US but here in the UK if you have your own handset, a network will sell you a service plan at a discounted rate (SIM Only) which requires only a 30 day commitment.
For an iPhone these can be from as little as £15 ($24) including around 500 minutes (remember incoming calls are free in the UK), unlimited text, 3G data and WIFI. You can get even better discount on a 12 month SIM only by either increasing the amount of minutes and/or data or reducing the cost by £5.
These usually include a lot more minutes/data/text than a standard 24 month plan with the equivelent costing around £35 to £45 depending on the network.
Ricardo
Check the date of the thread before posting. Unlocked iPhone 4S will be released in November.