Well, the whole "you can get it for the no-comittment pricing" is way off-base as there is no such price for the iPhone....
You got another unknowing customer rep....
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AT&T Subsidizing iPhone 3G for $325?
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Well, the whole "you can get it for the no-comittment pricing" is way off-base as there is no such price for the iPhone....
You got another unknowing customer rep....
Apple will sell the phones for what they can get. If no one buys them for that amount, then trust me, the price will come down (see the original phone and price drop).
I suspect that they have generated enough hype to move iPhones for $200/each. The problem is that the ATT plans are somewhat pricey. Will people look not buy the iPhone because of the plan? That remains to be seen.
I still don't think AT&T will charge more than 199/299 to anyone. If they were going to, they should have said that from the outset, had Jobs mention it during the keynote. Otherwise you got all these people excited about the price only to take it away. A month ago, I was ready to pay $399. Now, I will be so mad if it's more than $199 because they changed my expectations.
I'm thinking you are correct. Another macrumors forums member confirmed with an ATT rep that "qualifed customer" only means "all you needed was a credit card, good credit and sign a new 2 year contract."
I'm screaming conspiracy in all of this. I have my tin foil hat on right now. What better way to make the lines shorter than to tell the largest demographic of potential iphone buyers that they cannot get an iPhone.
Think about it. Certainly not all current iphone owners will upgrade, as some probably just bought there iPhone in the last couple of months. Secondly, people who are not ATT customers are most likely already in a contract with other companies. Apple certainly wouldn't be able to hit its mark to sell so many iphones if it cut out potentially the largest group of buyers. Many customers of ATT without iPhones will upgrade. Even if ATT is taking a hit on a previously subsidized phone from a current customer, it makes more sense to go ahead and lock them in for two more years because that hurts ATT's competition.
The previous press release from ATT even stated (in so many words) that ATT would take a hit in the beginning with the iphone, but earnings would be high in the second year once the "subsidy" was recouped through billing.
Thats my two cents.
Shenanigans!
Somehow I doubt these things cost that much. Are they trying to say the cost for an extra 8GB of memory drives the price up $100!?? Who are they crapping?! They're just spreading propaganda so that the fanboys don't get upset about the higher contract costs.
I'd more believe the note I saw on 9 to 5 mac noting the $100 cost:
http://www.9to5mac.com/one_hundred_dollar_iphone
If they cost that much, how is that some European carriers plan carrying the iPhone (with a plan similar to AT&T) for free?:
http://apple20.blogs.fortune.cnn.com/2008/06/16/iphone-3g-pricing-us-199-germany-1-euro-uk-free/
(even these numbers are a bit off, as they're showing prices in US Dollars, and the exchange rate is at an all time low)
The only thing I believe is true is that AT&T is trying to maximize profit.
Somehow I doubt these things cost that much. Are they trying to say the cost for an extra 8GB of memory drives the price up $100!?? Who are they crapping?! They're just spreading propaganda so that the fanboys don't get upset about the higher contract costs.
I'd more believe the note I saw on 9 to 5 mac noting the $100 cost:
http://www.9to5mac.com/one_hundred_dollar_iphone
If they cost that much, how is that some European carriers plan carrying the iPhone (with a plan similar to AT&T) for free?:
http://apple20.blogs.fortune.cnn.com/2008/06/16/iphone-3g-pricing-us-199-germany-1-euro-uk-free/
(even these numbers are a bit off, as they're showing prices in US Dollars, and the exchange rate is at an all time low)
The only thing I believe is true is that AT&T is trying to maximize profit.
That's very true. Just telling them I don't want to keep my data plan without having a iPhone would cost them $30 a month ($390).
No such price, yet. Do you really expect them to NOT have that as an option?
That's true.
Just look at the iPhone when it first came out...nobody bought it.
Look at the iPod prices after the competition stepped up. Prices went down.
I'm just surprised apple could possibly make THAT MUCH profit off something, without competition coming in and making a product just as good, selling it for half the price. An iPhone-killer sold for $1 at at&t stores would sure sell like hotcakes after all.
It's entirely possible that there's some "left hand not talking to the right" going on over at AT&T. Should they really commit to going the route of not selling subsidized iPhones to current contract holders, I'd be intensely curious to see the outcomes of these online conversations. On the other hand, it has also been my experience that the retail end of AT&T (meaning the stores) will say one thing, and what I refer to as the "mother ship" (meaning the corporate offices and sales folks) will say something different.
I honestly think there's valid arguments for both pricing sets, but we really won't know anything until there is either an official announcement from AT&T and/or someone currently under contract with say, a Nokia, tries to upgrade to an iPhone.
This does seem like an inflated price just for the customers' eyes. The new ones do have a plastic back, i mean really.
But whatever, I will wait till July 11th to find out if I'm able to get the phone without paying more than 400 bucks. Beyond that its not worth it to me and I will just wait till I'm eligible for an upgrade or just go for a touch if the AT&T plans overall come out to too much.
But whatever, I will wait till July 11th to find out if I'm able to get the phone without paying more than 400 bucks. Beyond that its not worth it to me and I will just wait till I'm eligible for an upgrade or just go for a touch if the AT&T plans overall come out to too much.
First of all, if you knew you were gonna want an iPhone in the next two years why did you buy a subsidized Blackjack and sign a two-year contract? If you want any other phone with AT&T you'd get the exact same response, this isn't just with the iPhone. Just like you'd be paying a $200 ETF to get out of contract with any other carrier.
Second, if you don't like the price they are charging, don't buy it. Apple charges what they think the market will bear and they have every right to do so. You can't complain about the retail price of something versus the price of its raw parts, otherwise you'd be complaining about everything. Obviously it's not the ideal situation for you. But, you should have known what you were getting into when you bought that Blackjack.
My thoughts exactly. I also want them to waive the upgrade fee and the new contract/plan fee, too. I've noticed that the key to successful negotiation with AT&T retail is picking up your bag and starting to walk out the door.
Have you forgotten that the iPhone was $599 last year? That's only a $26 difference in cost if it was unsubsidized. Yes, steep, but nothing new.$625...wow that is steep.
Sadly, my magic 8 ball didn't warn me that at&t and apple would rework their contract and change the entire way buying an iPhone worked.
So how on earth would I have "known" what I was getting myself into?
It does not cost them < $100 to produce. It costs them that to build. They have spent millions on R&D, and are still spending millions more. You do want to see a new iPhone next year, don't you? The 30% profit from the App Store is not free, either. Hosting and distributing all those apps will heavily tax their infrastructure; this is why they discourage free apps. Free apps aren't free for Apple.
I'm not saying that Apple isn't making a killing, but you're oversimplifying the cashflow involved.
When Apple wakes up..
I will buy an iPhone when Apple takes their blinders off and lets the iPhone work with Verizon too. The fact that it only works with AT&T really pisses me off in a huge way. It's not like Verizon is a small company operating out of a garage. Extra subsidizing $ from AT&T or not, Apple can kiss my #$%& until they open up to Verizon.
I will buy an iPhone when Apple takes their blinders off and lets the iPhone work with Verizon too. The fact that it only works with AT&T really pisses me off in a huge way. It's not like Verizon is a small company operating out of a garage. Extra subsidizing $ from AT&T or not, Apple can kiss my #$%& until they open up to Verizon.
If Verizon had 3G GSM it would. You could hack it. They don't. The phone itself is not compatible with their system. Not Apple, AT&T or Verizons fault. Just the choices they all made with what technologies to go with.
It is starting at $199 for an 8GB - there's a $299 16GB iPhone as well! Where's the problem?Hum... does anybody catch the change on apples iphone page?
It now saids "Phone, iPod, and Internet in one fast 3G device. Starting at $199.*" Starting...
Wow - so many replies came to mind on this.
But an iPhone on Verizon will never happen. I'd bet that at best we'd see it on T-Mobile in another 3-5 years, but Verizon rejected Apple's terms out of hand in the development of the original iPhone, and I doubt they'd be any warmer to them now. Plus, the current iPhone doesn't work on Verizon's network, and to make a model just for them doesn't make sense for Apple.
Hear ya loud and clear. Dont know everywhere else, but where I live, AT&T/cingular SUCKS!!! And I am pretty sure 3G service is going to suck even more..
I dont mind shelling out more money for iPhone/AT&T if I am happy with what I get and I am convinced that it is worthwhile. But, I hate it when all I get is a $20 worth service for $30 a month. I am sure 99.99% of the time, in my area, the best I am going to get is EDGE, and more often than not, its going to be patchy.
At the risk of being repititive, "AT&T Sucks!!"
I said they would turn a profit around $200 a unit, which I still believe to be true. The studies released this week said it costs about $100 just to produce the hardware. I figure you should put another $40 to R&D, and the $60 towards retail costs, shipping and ads.
I know very well it costs millions for research and development, I'm involved in enough Engineering Products to see how quickly that cost can run up. But keep in mind this is something they want to sell MILLIONS of.
If they sell 10 million iPhones, that would give them $400,000,000 towards R&D. I highly doubt they spent THAT much. Especially since this is just using a Mac OS X framework (once again, long paid for...)
I agree that there is a cost for running the App store...but..it probably runs more around 5-10%. Keep in mind this is just going to use iTunes, so a lot of the hardwork for apple has long been done and paid for here.
I know apple is going to charge as much as possible...it's the American Way, and I would probably do the same too if I were Steve Jobs....but from a consumer standpoint... it kind of sucks.
Personally I was willing to fork out < $500 for an iPhone, but instead I'll just stick with my blackjack. No big deal. But that's $500 less dollars apple will see from me. If enough people in my boat feel the same way (and this ends up effecting apple's bottom line) then obviously they will lower the price.
Can't I just go to the apple store and buy it for 199? They don't activate the phone there, so they won't know I am an AT&T customer. Or are they going to start checking the number before you purchase to make sure you are or are not a current AT&T customer? If they don't check, why don't we all just GO to an apple store and buy it there instead of the AT&T store??
WTF is this!!!!
Also, for iPhone gen1 to the G3 I will still get to upgrade at the $199 price since the regular iPhone was not subsidized right?
Ok, I talked to an Apple Representative, and they told me that AT&T did not subsidize the iPhone 3G. They couldn't have because Apple dropped the price from $399 to $199 in all the countries that the iPhone will be sold in. I don't know where everyone is getting the information that AT&T subsidized the iPhone because they didn't. If they were cutting the price from $199 to lets say free if you sign a 2 year contract, THEN they have subsidized it but not now.
My guess is that the Apple rep you talked to had no idea what they were talking about.