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AT&T Seeing "Tremendous Demand" for Free iPhone 3GS

what if they lower their price for unlocked iPhones

unlocked iPhones

$299 iPhone 3GS 8GB
$399 iPhone 4 8 GB
$499 iPhone 16Gb 4S

this price will be even more attractive, but apple will not cut their profit...

$199 iPod touch 8GB is very attractive.

we have to see how many apple sell this quarter with all the second hand iPhone 4 phones ...
 
rjlawrencejr said:
People keep saying these are 2.5 year-old phones. Well, technically aren't these phones new and not refurbs? Please correct me if I am wrong.
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You're correct. They're not refurbs.

If you plan on using the phone for two years anyway (and most people do) why not buy it on contract? You'll have to pay for the plan anyway. Unless you buy a new phone every other week, this is (obviously) not an issue.

Just because someone has less money than you does not mean they're stupid or idiotic. Comments like this are flat out caustic and rude.
 
tasset said:
Look, I completely understand. I know all too well about living on a tight budget. And I'm glad there is this option for people. But my problem is that this option DESTROYS the other option for people, like me, who would pay $500 upfront if it means getting cheaper service and truly competitive carriers. You know, like there are in Europe? There are contracts in Europe too. But there are also very cheap quality service plans because of regulation and competition.
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You assume no contract means cheaper service. The promise of staying with a carrier for two years alone is worth money to subsidize.
 
tasset said:
Your analogy is off because of the price differential between a car and its gas. Let's say Car A costs $20,000 and Car B costs $16,000. But you have to spend $5,000 per month on gas. Now tell me, how much difference then does the price between A and B really make? Oh, and also assume that because you purchased Car B you must only buy gas from Exxon and no other gas station.
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You are missing the point.

Whether you buy the 2010 or the 2012, your gas is the same. We are assuming you're buying the same model and make just a different year. So, if you buy a brand new 2010, total ownership will cost less than the 2012 simply because the upfront cost was lower.

I guarantee you there are thousands of people who do not know the difference between a 3GS and a 4. All they know is iPhone and if the phone itself is free, they are more than satisfied.
 
rocknblogger said:
The system we have sucks but it works and there are millions of people that are grateful for it because it allows them to have something they normally couldn't afford.
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You know, I have a better plan for those millions: Switch a cheaper plan for a couple of months, put the $50 savings into the bank, and soon you have enough money to pay for your smartphone.

Not buying on credit (what the subsidy is), simply means waiting a bit longer. And pretty soon, not paying that interest on these credits will add up to some nice savings.
 
If I could have made ONE change to my iPhone 3GS, it would have been to add a camera flash.

Extra RAM would have been nice as well. But like others have said, it's still one of THE best phones out there, easily beating the piles of Android "shovelware" devices flooding the market on every carrier.

I happy used my iPhone 3GS for 27 months.
 
most iphones are on family plans where there is a monthly payment that's pretty low. the extra cost is only the data.

if you don't need anything more than a 3GS there is no reason to spend $199 for a 4S. 3GS will do 95% of common tasks just fine
 
rjlawrencejr said:
You are missing the point.

Whether you buy the 2010 or the 2012, your gas is the same. We are assuming you're buying the same model and make just a different year. So, if you buy a brand new 2010, total ownership will cost less than the 2012 simply because the upfront cost was lower.

I guarantee you there are thousands of people who do not know the difference between a 3GS and a 4. All they know is iPhone and if the phone itself is free, they are more than satisfied.
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I'm not dumping on the 3GS it is still a great phone that works fine with iOS5. There's nothing wrong with being satisfied with it. Alot of people don't understand their free phone is actually costing them a few hundred dollars over the term though. In fact my director at work came over from AT&T wireless herself and KNOWS the numbers. AT&T recoups their subsidy in the first year. In effect you are paying a high interest rate loan to get the phone cheap upfront. What do you think of credit card companies that charge 25% interest? That is in effect what AT&T is doing, and that is the truth.
 
tasset said:
I agree the system here in the US might not have gotten off the ground if it weren't for the subsidy/contract program to get people to try cell service. We are way beyond that point now though. It is a necessity, no longer a luxury. I am all for subsidies and contracts to continue as an option. But you will be hardpressed to find a majority of people who talk favorably about their carrier. There are other countries around the world with telco systems that work just fine with much lower monthly rates/tariffs. I just bemoan we do not have that option as the most "competitive" "capitalist" TM country in the world.
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I whole heartedly agree. I think the only way to get it under control is if our government was to step in and impose some form of regulations. I certainly don't have the answers but we the consumers are behind the the eight ball.

Hopefully things will change in the future but for now the system works even if it favors the providers.
 
tasset said:
You know, like there are in Europe? There are contracts in Europe too. But there are also very cheap quality service plans because of regulation and competition.
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United Kingdom: 244,820 sq km
United States: 9,826,630 sq km

It's a lot easier to have cheap cell phone plans when your national carriers only have to cover a footprint about the size of Michigan.

Towers and infrastructure costs money -- both in initial costs and ongoing costs.

And please, by all means, continue to beat the "regulation" drum. The government has done such a bang-up job regulating every other industry -- I can't wait to see what the cell phone industry will look like when Uncle Sam steps in.
 
manu chao said:
You know, I have a better plan for those millions: Switch a cheaper plan for a couple of months, put the $50 savings into the bank, and soon you have enough money to pay for your smartphone.

Not buying on credit (what the subsidy is), simply means waiting a bit longer. And pretty soon, not paying that interest on these credits will add up to some nice savings.
Click to expand...

I'm sorry, that's easy to say but you would be surprised how tight things can be for families. The savings simply wouldn't work because the money would go towards other expenses or needs. What you say sounds logical but in the real world when it's two days before payday and all you have is left overs or Raman noodles it would be impossible to not dip into the savings, there goes the phone you've been saving for.

And before you say that, in that case they shouldn't have a phone, remember its a necessary today. Not a luxury.
 
tasset said:
Because it is an indictment on a macro level people's lack of comprehension of finances and that "free" is NOT free. Those people remain locked in contracts and have no opportunity to shop around for better service. And with people locked in, carriers like AT&T do not the incentive to invest in infrastructure. The vicious cycle continues and everyone collectively must suffer because of people not comprehending the implications of "free."
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I think it's more you not understanding finances by not making apples to apples comparisons.

Which costs more?

$199 + $2000 over 2 years
$0 + $2000 over 2 years

That is the decision point for the majority of people.

arn
 
Number 41 said:
And please, by all means, continue to beat the "regulation" drum. The government has done such a bang-up job regulating every other industry -- I can't wait to see what the cell phone industry will look like when Uncle Sam steps in.
Click to expand...

Government can be maddeningly inept sometimes sure. Sometimes the people we put in charge turn out to be motivated by self interest. So your solution is to throw in the towel and put all our hopes in the hands of giant companies? Because they are CLEARLY not motivated foremost by profits and are virtuous, right? :Rolls eyes:
 
Number 41 said:
United Kingdom: 244,820 sq km
United States: 9,826,630 sq km

It's a lot easier to have cheap cell phone plans when your national carriers only have to cover a footprint about the size of Michigan.

Towers and infrastructure costs money -- both in initial costs and ongoing costs.

And please, by all means, continue to beat the "regulation" drum. The government has done such a bang-up job regulating every other industry -- I can't wait to see what the cell phone industry will look like when Uncle Sam steps in.
Click to expand...

Why do people keep posting about the size of the US? Most people in the world know America is large but size does not matter (for the topic at hand anyway :) . What matters is population distribution and density.
 
arn said:
I think it's more you not understanding finances by not making apples to apples comparisons.

Which costs more?

$199 + $2000 over 2 years
$0 + $2000 over 2 years

That is the decision point for the majority of people.

arn
Click to expand...

I get the numbers, and it is clearly about people being fine with their monthly charges in lieu of a free phone upfront. My overall point is, because of contracts and people bristling at the termination fee, people will stay locked in to a provider. And with people locked in, AT&T has exhibited slow interest in adequate infrastructure.
At the very least, I wish it were in black and white when you sign a contract EXACTLY the amount you were being subsidized over the contract. How would people react if they were told "your service is $ + your subidized equipment is $$ = $$$ per month." Probably wouldn't do any good in getting people to think twice though... oh well.
 
tasset said:
I get the numbers, and it is clearly about people being fine with their monthly charges in lieu of a free phone upfront. My overall point is, because of contracts and people bristling at the termination fee, people will stay locked in to a provider.
Click to expand...

But that's irrelevant to this being a free phone. I got "locked in" with my $399 iPhone as well.

arn
 
arn said:
I got "locked in" with my $399 iPhone as well.

arn
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And my retort to that is, "Only in America." Well, maybe Canada too. :D

If a Euro carrier tried to sell a $400 locked iPhone they would probably be strung up like Mussolini!
 
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A Free iPhone 3GS is Androids WORST Fear.

I've always predicted this will be a game changer. There is a huge market for free on contract iPhone. This will outsell the iPhone 4 for $99. And to everyone saying it doesn't make sense, it makes total sense to me.

When you add a line to a family plan it is $10+$15 for minimum data.
$25*24=$600. And AT&T usually lets you upgrade after 18 months.

Plus this phone is $375 off contract instead of $450 (they usually -$100 for each model but they do -$175 for this), which opens iPhone to the prepaid market.

Lastly, iPhone 3GS maybe 2 years old, but hey, wouldn't you MUCH rather get this than HTC Status, or Optimus V, or other budget Androids? It's not like they are handing out Galaxy SII for free, and this phone isn't meant to compete with high ends.
 
unlinked said:
Why do people keep posting about the size of the US? Most people in the world know America is large but size does not matter (for the topic at hand anyway :) . What matters is population distribution and density.
Click to expand...

because in the US we have cell coverage where there are more cows than people and where there are no people for dozens of miles. verizon and AT&T build towers just so people can talk on the cell when they drive through empty country

----------
tasset said:
Government can be maddeningly inept sometimes sure. Sometimes the people we put in charge turn out to be motivated by self interest. So your solution is to throw in the towel and put all our hopes in the hands of giant companies? Because they are CLEARLY not motivated foremost by profits and are virtuous, right? :Rolls eyes:
Click to expand...

verizon and AT&T are deploying LTE now. in the UK they won't start for another few years. how about the rest of europe with all their regulation?
 
Illumination said:
Just because someone has less money than you does not mean they're stupid or idiotic. Comments like this are flat out caustic and rude.
Click to expand...

Thank you!

arn said:
I think it's more you not understanding finances by not making apples to apples comparisons.

Which costs more?

$199 + $2000 over 2 years
$0 + $2000 over 2 years

That is the decision point for the majority of people.

arn
Click to expand...

I was just about to post this. It's amazing that posters here think that people don't understand the 2 year contract. Saving $99 or $199 is saving $99 or $199 period. Sometimes, you need to save money.
 
I'm glad there is a "free" iPhone, because it just means more people can experience such an amazing device, even if the design is 2 years old. To be honest, who cares if it is? The 3GS is a fantastic device. I just kind of wish Apple had implemented the following pricing, however, because I paid $399 for a 64GB iPhone 4S, and I honestly think that was too much...

iPhone 4 8GB - $0
iPhone 4 16GB - $99 (that's right... keep the 16GB on the 4)
iPhone 4S 32GB - $199
iPhone 4S 64GB - $299

Yes, it would have cut into profits a little, but think of how much more attractive those prices had been over Android and Win Phone 7...
 
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