AT&T Branding, iPhone and Revenue Sharing

[05elstonc]

I think their concept is - this isn't a phone primarily. Others have said it, but it bears repeating. The now-familiar iTunes interface which will get everything you want back and forth to your advanced wide-touch-screen iPod which also has - email, web-browser, wi-fi, basic digital camera - and oh yeah, phone (400 minutes a month that I don't use - I use my tmo SDA and send/receive emails and the web browser at least as much as the phone features if not more).

Many people in this country have paid more for less usability -- in devices that were not even phones.

I personally look at the feature set, and if the build quality is there, and it's as easy to use as it looks - I think this is a bargain price for this device.

Here here! Finally someone with a clear perspective on iPhone.

 

[Rocketman]

I think their concept is - this isn't a phone primarily. Others have said it, but it bears repeating. The now-familiar iTunes interface which will get everything you want back and forth to your advanced wide-touch-screen iPod which also has - email, web-browser, wi-fi, basic digital camera - and oh yeah, phone (400 minutes a month that I don't use - I use my tmo SDA and send/receive emails and the web browser at least as much as the phone features if not more).

Many people in this country have paid more for less usability -- in devices that were not even phones.

I personally look at the feature set, and if the build quality is there, and it's as easy to use as it looks - I think this is a bargain price for this device.

1/4 the cost of a Mac+ ($2795.00) and far more capability.

Rocketman

 

[milkmanamok]

You are in the wrong forum, methinks, for not having ANY interest.

Who cares about the iPhone anyways. I dont want to depent on the thrills of Apple for the content of the phone. As long third party companies can't write applications or content in general for it. I am not having ANY interest in it.

 

[lazyrighteye]

Who cares about the iPhone anyways. I dont want to depent on the thrills of Apple for the content of the phone. As long third party companies can't write applications or content in general for it. I am not having ANY interest in it.

There WILL BE 3rd party development. Apple said so from day one.
It will just be more controlled by Apple, and rightfully so. 3rd party offerings will need to meet Apple's standards before being unleashed. Big whoop.

Personally, I'd prefer that Hack Job, Inc. has to gain Apple approval before turning some junk code loose on the masses.

This level of control is what has made Apple so desirable to so many of us for so long and a concept unfortunate Windows users just can't grasp.

 

[lazyrighteye]

i think a lot of people forget that the iphone isn't a phone. i'm sure most of the public will think of it as a phone purely because of the name. it is a handheld computer. think newton only cooler.

as far as revenue i'm sure apple is getting a percentage of the monthly that's comparable to the percentage at&t is getting on the hardware. at&t wouldn't sign on if they thought they were gonna lose money in the long run.

the one thing i think most people will overlook is that this device will be updated on a regular basis. what cell phone manufacturer actually updates their software for older phones? no one. that means the iphone will actually be cheaper in the long run for the consumer. a device is considered disposable if it's life is only 2yrs (which most portable devices are designed to last).

i've had the same sony ericsson t616 for 3-4 years and it's getting really long in the (blue)tooth. the software never fully worked with my provider (fido/rogers) the buttons are wearing out and sony's software only works on a PC. blech. (thank the maker for Phone agent!!)

i foresee people holding onto their iphones for at least 4-5 years. they may upgrade in 3 years but i doubt it. how long have you owned your ipod (if you have one)?

Great post (you too strangelogic).
This is a revolutionary stepping stone for Apple whose intent is far more reaching than most are capable of pondering, apparently.

It will be neat to see how people's opinions change and morph as this product matures.

Bigger picture, people.

 

[kmhphoto]

Apple will be supporting the applications and hardware and if you've read other rumers there will be ongoing additions to the applications. Money isn't generated out of their butts, so taking a bit of the service fee will help cover costs.

Both Nokia and Sony Ericsson provide regular updates to their phones through the internet. Neither of them charge.

 

[globalhemp]

Monthly revenue may decline...

As per the notion that monthly revenue may decline for current AT&T subscribers who switch to using an iPhone due to profit sharing with Apple for service subscriptions, I believe that in all reality, AT&T will actually produce more profit.

How? Mac users are generally better customers than Windows customers since Mac customers usually pay for their software and upgrade more often than their PC counterparts. Think about it, the PC at the Quick Lube shop is a Windows PC. How much software is installed on it? How often is that computer updated? Same goes for the Windows PC at the hotel check-in desk, etc. Windows has a huge share of all PC's sold, but Apple has some of the best quality over quantity. Think Wal-Mart versus specialty stores.

Mac users in general are one of the best and most profitable portions of the market to have, so I'm sure that AT&T will actually make more money from them than the rest of their customers in the long run. Think about it, just as soon as Apple iPhone's have GPS with "iNavigate / iTravel" Mac users will be rushing to sell their iPhone's on eBay and upgrade to the latest and greatest.

Just my opinion, but the bottom line is that AT&T will not loose revenue due to any of its subscriber base switching to iPhones.

Eric Pollitt

 

[usarioclave]

Phone price/subsidy note

I just read a big article in the Asian WSJ about Moto's travails with the RAZR. Without any pricing control, a phone's price is at the mercy of the carrier. In Moto's case, that meant that the carriers have screwed Moto by discounting the RAZR heavily.

That's not a sustainable way to do business as a handset maker. It's in the carrier's best interest to sell your phone at the lowest possible price. That's pretty much an anathema to any sane handset marketing department. Until recently, that's what you were stuck with.

This partnership'll be an interesting test to see if a new model would work. For Cingular, the answer was probably yes. In AT&T's case, it's unclear. If it drives subscriber growth, then the answer is yes. Imagine if only one carrier in each market had the RAZR - that carrier would have seen quite a lot of subscriber growth. I guess that's what Cingular was trying to do.

Bullying? Bullying is a concept promoted by people that are uncomfortable with conflict. Cingular is staffed by adults. They understand the tradeoffs and costs. If they didn't think they'd benefit, they wouldn't have signed the agreement. Same with Apple.

 

[Maccus Aurelius]

What I like about the iPhone though, is that even if, after a year or two with the contract, you could end it and simply have a kickass flashbased iPod, which might still be able to snag WiFi connections.

 

[twoodcc]

fine with me, as long as existing customers can switch to the iPhone

 

[Wireless Joe]

Average revenue per subscriber will be higher

than it would be for a regular consumer. Most consumers only pay for voice and a minimal data plan ($2.99+ for SMS/text, etc). I'd imagine that most iPhone subscribers will have at least a $20 data plan tacked on to their monthly bill, so the average revenue per subscriber will be significantly higher. AT&T can afford to share some of that with Apple, especially with Apple handling the device support.