AT&T To Offer No-Contract iPhones to Existing Customers Starting March 26th?

[mackiwi]

I said I wasn't a guru but don't insult me. I wouldn't be here if I wasn't familiar with Apple's product line. I believe I was quite clear about using a loophole in the agreement to make a cheaper PHONE. I have heard the touch described as a "stripped down" whatever ad nauseam- you have pointed out the obvious. If there is no legal way for Apple to make such a device, you could have simply said so. I am willing to admit that I do not know every detail of the agreement.

your question does have some relevance, even if the cell network contract is locked up with at&t.

Its possible that apple could release an enhanced ipod touch like device that includes wimax data only connectivity on anyones data network. on this device you could potentially use a ip based service like skype etc to make phone calls, all without violating the voice/cell network deal with at&t

for example, there is nothing to stop you from using any data network you like with a usb data modem on your laptop.

 

[nowonder24]

Call me old fashioned, but $700 for a phone is just insanity.

But paying $200 + 24*$75 = $2000 for a phone and 2 years service is sane??? I don't understand your reasoning.

Here is a calculation for my situation: My monthly bill (postpaid, but no monthly fees because I don't have a subsidized phone) amounts to less than $10 including voice, text, and moderate data usage. Now assume I would pay $700 for a phone. Then my total cost for a phone and 2 years service is $700 + 24*$10 = $940.

So you are saying it would be more sane for me to pay $2000 instead of $940, just because I'd have to pay $700 instead of $200 upfront?

 

[raybo]

See if Pystar Can Clone The Phone....

For all those complaining about the price of the iPhone, ask Pystar to try to make one...

The iPhone is one-of-a-kind and worth whatever they charge. It is greater that the sum of its parts.

Ray

 

[iMaggot]

Call me old fashioned, but $700 for a phone is just insanity.

Yeah i agree man, $700 is nuts for a phone

 

[iMaggot]

But paying $200 + 24*$75 = $2000 for a phone and 2 years service is sane??? I don't understand your reasoning.

Here is a calculation for my situation: My monthly bill (postpaid, but no monthly fees because I don't have a subsidized phone) amounts to less than $10 including voice, text, and moderate data usage. Now assume I would pay $700 for a phone. Then my total cost for a phone and 2 years service is $700 + 24*$10 = $940.

So you are saying it would be more sane for me to pay $2000 instead of $940, just because I'd have to pay $700 instead of $200 upfront?

You make a good point man, i wasn't even thinking about this.

 

[ruinfx]

But paying $200 + 24*$75 = $2000 for a phone and 2 years service is sane??? I don't understand your reasoning.

Here is a calculation for my situation: My monthly bill (postpaid, but no monthly fees because I don't have a subsidized phone) amounts to less than $10 including voice, text, and moderate data usage. Now assume I would pay $700 for a phone. Then my total cost for a phone and 2 years service is $700 + 24*$10 = $940.

So you are saying it would be more sane for me to pay $2000 instead of $940, just because I'd have to pay $700 instead of $200 upfront?

no-commitment doesnt mean you dont have to have the $30 iphone data plan.

 

[OS X Dude]

This is like when O2 lopped £100 off the price of the 8GB model last year to make way for the 3G.

These would be prime for eBay - someone who wants it w/o contract but not jailbroken. We can get the iPhone on PAYG here, and it costs £360 for the 8GB and £400 for the 16GB, both include 12 months unltd. data + wifi.

 

[nowonder24]

no-commitment doesnt mean you dont have to have the $30 iphone data plan.

If no-commitment means I have to have a $30 data plan and I'm not free to use the iPhone on another carrier, than it is indeed worthless.

But I was referring to the general statement, that paying $700 for a phone (I'm assuming no locks and no monthly fees) is insanse.

Here in Europe I can get a lock-free iPhone 16GB for $700+VAT and at least in the two countries that are of interest to me, I can get a postpaid plan for less than $10 a month that perfectly fits my needs.

 

[ruinfx]

If no-commitment means I have to have a $30 data plan and I'm not free to use the iPhone on another carrier, than it is indeed worthless.

But I was referring to the general statement, that paying $700 for a phone (I'm assuming no locks and no monthly fees) is insanse.

Here in Europe I can get a lock-free iPhone 16GB for $700+VAT and at least in the two countries that are of interest to me, I can get a postpaid plan for less than $10 a month that perfectly fits my needs.

i didnt realize you were in europe. basically you will be able to walk into a store and buy an iphone 3g without signing a contract or activating it. however when you do activate it on att you still are required to add the $30 data plan.

 

[Jimmy James]

But paying $200 + 24*$75 = $2000 for a phone and 2 years service is sane??? I don't understand your reasoning.

Here is a calculation for my situation: My monthly bill (postpaid, but no monthly fees because I don't have a subsidized phone) amounts to less than $10 including voice, text, and moderate data usage. Now assume I would pay $700 for a phone. Then my total cost for a phone and 2 years service is $700 + 24*$10 = $940.

So you are saying it would be more sane for me to pay $2000 instead of $940, just because I'd have to pay $700 instead of $200 upfront?

Quoted for Truth.

Thank you.

Many people, myself included, already have a plan that offers outstanding value or caters to their calling patterns very well. For me the $700 price tag is a relative bargain if I don't have to give up my plan.

 

[eastercat]

It's possible, but most estimates say 2010 is when the exclusive deal ends with AT&T, no one knows for sure except the 2 companies.

Even if the contract ends in 2010, does this mean that AT&T doesn't have the ability to renew the exclusivity contract? Or maybe Apple will decide to continue the exclusivity with AT&T. The latter seems unlikely. However, I don't think AT&T haters should get their hopes up until Apple announces deals with other wireless companies.
Also, I still can't see Verizon acquiescing to Apple's demands for control over the phone (that's what stopped the iPhone from being on Verizon in the first place). Since I don't know enough about T-Mobile and Sprint, I'll give them the benefit of a doubt and say they'd be willing to acquiesce to the Apple way.
If the new pricing is how they're going to sell iPhone v3, then I'll probably sit it out. Maybe I'll wait until they have a higher quality camera and 64 GB of storage.

edited: for a typo

 

[dwl017]

No one in the US or Europe should fall for this! I have never seen a bigger scam in my entire life! no matter how you stack the numbers this is a huge scam! if you are dumb enough or desperate enough to fall for it then its your fault.

 

[Jimmy James]

No one in the US or Europe should fall for this! I have never seen a bigger scam in my entire life! no matter how you stack the numbers this is a huge scam! if you are dumb enough or desperate enough to fall for it then its your fault.

Fall for what?

 

[iSamurai]

in the end you would still probably pay roughly the same amount... but the difference is that you still have to pay for the calls/data.

 

[acidfast7]

No one in the US or Europe should fall for this! I have never seen a bigger scam in my entire life! no matter how you stack the numbers this is a huge scam! if you are dumb enough or desperate enough to fall for it then its your fault.

 

[Ping Guo]

It is nuts. Watch, now some idiots will say we're paying more for a subsidized phone because of the contract. I don't count paying 30 a month for the data plan part of the price of the phone. $30 is so worth having email and internet everywhere i go.

Yah... well there's your problem, because it is part of the price of the phone. You think AT&T is selling subsidized phones out of the goodness of their hearts?

In countries where they sell unlocked iPhones you can get voice + data for around $30/month.

$299 16gb iPhone + $75*24 = $2099

$700 16gb iPhone + $30*24 = $1420

I went over this many times before deciding to buy my SIM free unlocked 16gb in HK. I have wifi pretty much wherever I go so I only pay about $10 for month for voice/SMS. Since my phone is unlocked if I decide I want it I can switch to a cheap data plan on any provider I choose, anywhere in the world.

Total cost of ownership is all that matters, and some people don't feel like spreading 'em for Ma Bell, month after month.

 

[acidfast7]

Yah... well there's your problem, because it is part of the price of the phone. You think AT&T is selling subsidized phones out of the goodness of their hearts?

In countries where they sell unlocked iPhones you can get voice + data for around $30/month.

$299 16gb iPhone + $75*24 = $2099

$700 16gb iPhone + $30*24 = $1420

I went over this many times before deciding to buy my SIM free unlocked 16gb in HK. I have wifi pretty much wherever I go so I only pay about $10 for month for voice/SMS. Since my phone is unlocked if I decide I want it I can switch to a cheap data plan on any provider I choose, anywhere in the world.

Total cost of ownership is all that matters, and some people don't feel like spreading 'em for Ma Bell, month after month.

I agree with you. For a person like me, who spends more money on browsing than on talk/SMS, I think this is an excellent deal (and it's been that way since the iPhone 3G was released over here) because I can get unlimited data transfer for about $25/month. Most people I communicate with all have the same provider, so I don't even pay for calls/SMS. However, if I did use as many minutes as you're given in the states with the money fee, I would be paying an astronomical amount in Sweden.

To be honest, there seems to be a huge difference in cell usage in the states versus Europe (pay-as-you-go). In the US, you must buy the plan (at least to subsidize the phone), so you tend to talk much more to use all of the minutes you paid for. In Europe, the phones seem to be used much less because most people have a pay-as-you-go plan.

In the end, it's all psychology, because Americans are happy with the cheap phone prices and "unlimited" usage contracts. In general, Europeans like the pay-as-you-go approach and are willing to pay the high upfront cost.

I personally like the high upfront cost and the pay-as-you-go. And, if I move back to the states, I'd still do it that way.

It will be interesting to see what happens with the plan ... maybe it will reduce the volume of inane conversations that I hate when I travel through the states Maybe Americans will adopt it, and create similar subsequent offers.

 

[HWM-ITC-Obs]

This is prepearing iPhone next generations Market.

Certainly none of the distribution and rebate activities of any of Apples iPhone partners, as well in the US as in other countries, happens without Apples agreement or even whish, alone because of legal (e.g. contractual) reasons.

Apple's Marketing has become one of the exemplary in the World since the early 2000es. Today, Apples activities are purely Marketing oriented. I say this as a International Marketing Consultant and University Tutor observing very closely Apples behaviour - and mistakes - with a certain technical understanding - I use Apple since early 80es and Macs since the 128k - and I use Apple's evolution as Closing Case in my courses to show how to do perfect Marketing.

Let me summarize the intel we've got:
- overdue new iPhone HW, compared to the known
Apple and iPhone product life cycles (fact)
- rumors about new iPhone HW
(the pic here must be considered as a face,
the iPhone Name on the back cover is truncated on the bottom)
- rumor about contract-free and unlocked iPhone 3G
- the special offer bundeling by T-Mobile in Germany is limited
to 31.03.09 (and not, like usual, until June or the End of the year)

This looks like Apple is making silently place in the market drowning the existing iPhone G3 in order to prepare a sudden and surprising introduction of a next, 3rd generation iPhone, starting with next quarter, as they did when launching the iPhone G3.

There is also no contradiction in not presenting this device on the OS 3 event: This event was technically necessary to involve developers. Meanwhile Apple has no interest to freeze the market and existing iPhone G3 stocks through announcing or presenting the next generations iPhone.

From a Marketing point of view, all this fits perfectly together.

Criticizing contract-free or unlock-Prizes may be understandable from a simple consumer point of view, but from a holistic and historical entrepreneurial point of view that concerns us all since Steve left and the WW-Crises affected Apple, too, this may be too narrow-minded
.

 

[MACingIS4Me]

Is it possible ATT's exclusive with apple expires in June, and ATT wants to clear out some of the iphones they have in inventory, anticipating a slowing of demand (not for the phone generally, but for the phone from ATT)?

I doubt it, most rumors point towards the exclusivity contract ending in June 2010. I don't think you will see the iphone moving even after then. Just my opinion though.

 

[MACingIS4Me]

Even if the contract ends in 2010, does this mean that AT&T doesn't have the ability to renew the exclusivity contract? Or maybe Apple will decide to continue the exclusivity with AT&T. The latter seems unlikely. However, I don't think AT&T haters should get their hopes up until Apple announces deals with other wireless companies.
Also, I still can't see Verizon acquiescing to Apple's demands for control over the phone (that's what stopped the iPhone from being on Verizon in the first place). Since I don't know enough about T-Mobile and Sprint, I'll give them the benefit of a doubt and say they'd be willing to acquiesce to the Apple way.
If the new pricing is how they're going to sell iPhone v3, then I'll probably sit it out. Maybe I'll wait until they have a higher quality camera and 64 GB of storage.

edited: for a typo

It is highly unlikely that T-Mobile USA will get the iPhone because of their lack of a 3G network. Last time I saw, they had 30ish cities with AT&T and with the new 3.0 firmware update, apple is depending on almost always having 3G service.

 

[Chupa Chupa]

I see a lot of fuzzy math and odd rationalizations in some of these posts.

1. ATT is offering a "no contract" phone, NOT an unlocked phone. The ONLY benefit is that if you can leave ATT at any time w/o a penalty.

2. You have to be an existing ATT customer in order to be able to buy a "no contract" phone.

3. You still have to use one of ATT's iPhone plans, so there is NO $ savings. It will in fact cost you more since you are paying the same monthly rate as someone with a subsidized phone.

4. Even if you unlock your 3G, In the U.S. I don't know of any carrier that offers a cheap voice/data plan or a paygo plan w/ cheap data rates. So where are the savings? If you live in the U.S. the only reason to unlock an iPhone is if you travel a lot.

5.Comparing plans from a carrier in Country A with that of one in Country B is irrelevant. The fact some company in Europe might sell a $30 voice/data plan is a worthless factoid for U.S. residents. A gallon of gas is .19 in Venezuela. If my car is in California that helps me how?

 

[guzhogi]

I give that a 1% chance.

I'd give it a .00000000000000000001% of .0000000000000000000001% chance.

 

[iSamurai]

I see a lot of fuzzy math and odd rationalizations in some of these posts.

1. ATT is offering a "no contract" phone, NOT an unlocked phone. The ONLY benefit is that if you can leave ATT at any time w/o a penalty.

2. You have to be an existing ATT customer in order to be able to buy a "no contract" phone.

3. You still have to use one of ATT's iPhone plans, so there is NO $ savings. It will in fact cost you more since you are paying the same monthly rate as someone with a subsidized phone.

4. Even if you unlock your 3G, In the U.S. I don't know of any carrier that offers a cheap voice/data plan or a paygo plan w/ cheap data rates. So where are the savings? If you live in the U.S. the only reason to unlock an iPhone is if you travel a lot.

5.Comparing plans from a carrier in Country A with that of one in Country B is irrelevant. The fact some company in Europe might sell a $30 voice/data plan is a worthless factoid for U.S. residents. A gallon of gas is .19 in Venezuela. If my car is in California that helps me how?

WOW I think you have just blown a hole through AT&T...

 

[iriejedi]

Do the math

Early upgrade is $200 over a new account.... quitting your account only cost you $175 (or less if you are in the new prorated contract).....

So cancel you account and get a new one for $25 less.

Some one needs to tell that that to move inventory you usually drop prices... I think that was Chapter 5 of my MBA text book....

Clear that stock!

 

[lberk]

Will they still require data service?

I always wanted an iPod Touch and my cell phone all in one. The iPhone seemed like that, except AT&T requires a data package at an additional $30 a month, which my plain old Moto Razr does not, so I still carry two devices. I wonder if this will now be permitted?