Exactly. I think this guy heard his source wrong. I would suspect AT&T to blow out the final Edge models like this with a big subsidy (like we've seen overseas). To me, it's highly unlikely for the 3G model.
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AT&T to subsidize cost of new iphone
- Thread starter liquidh2o
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Exactly. I think this guy heard his source wrong. I would suspect AT&T to blow out the final Edge models like this with a big subsidy (like we've seen overseas). To me, it's highly unlikely for the 3G model.
Yes. I just don't think there could still be an 8GB a year later. Seems to me that a 16GB/32GB bump is a very marketable upgrade to Joe Public.
I don't see why you would. AT&T still has to pay Apple for the remainder of your contract. Subsidies are only available for out-of-contract customers and new customers, otherwise the carrier would lose tons of money (~$200/upgrade) every time someone traded in their phone. The one-time subsidy is expected to last 2 years, hence ETFs.
Awesome! I'm getting an iPhone come June (or whenever the 3G comes out; providing it's within the next 3-4 months) and if prices go down, or even remain the same, I will be ecstatic!
Oh. And true that Kubrick.
Oh. And true that Kubrick.
Its lame waiting in line outside of any store.
But if you really want it why now
But if you really want it why now
That's awesome. But I'd much rather buy it at anstore.... It seems kinda lame waiting in line at an AT&T store. But if I can only get the discount at the AT&T store, I won't care!
Just a question, why in the U.S. does someone want an unlocked phone? To go to T-Mobile? really? i mean I am not suggesting anything superb about AT&T, but really is there something better about t-mobile? I am just curious what I am missing in this conversation. I guess if people are locked into contracts with T-Mobile, that's about all i can think of. But isn't it only a hundred or two to get out of a contract?
And seriously, do you care if you buy and iPhone at the Apple store or the AT&T store?
I can't wait to find out what comes out in June... I think the only thing we know now is that there will be some fairly significant change besides 3G.... cool! Can't wait.
And seriously, do you care if you buy and iPhone at the Apple store or the AT&T store?
I can't wait to find out what comes out in June... I think the only thing we know now is that there will be some fairly significant change besides 3G.... cool! Can't wait.
I doubt it, the only carrier that it can work with is Tmobile and they're 3G is barelly any in the US.
This is one area where Apple is not in the drivers seat. AT&T is the only real option and everyone involved knows that. T-mobile has less than half the customers and coverage gaps and the rest of the major carriers are CDMA.
Since I am an ATT customer I do know that for new customers the subsidies are offered the subsidies. With that being said, often times if you were to trade in your phone and if you were eligible to upgrade your phone you can attain the subsidy on the phone that you want because in doing so you end up extending the contract. The whole point of the rumored subsidy would be to bring new customers to ATT, but at the same time they also want to keep their existing customers. Because of that fact I see it highly likely that they would offer the subsidy to existing customers as they upgrade their 2G iPhones to 3G iPhones. Another piece of evidence which supports that fact is the rumored release date. In order for upgrades to be allowed at ATT and receive the subsidies you need to have had your current phone for a year.
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ATT didn't subsidize the current iPhone so I don't think they would care if they sold existing iPhoners the new 3G version at $199. Its all about the extending the contract.
joeshell383 said:
ATT didn't subsidize the current iPhone so I don't think they would care if they sold existing iPhoners the new 3G version at $199. Its all about the extending the contract.
No problem. iTunes already handles setting up a new AT&T account when you first plug it in!
You'll need to wait for Verizon to switch away from CDMA to LTE, which is due in 2010. And then wait for the iPhone to be released with support for LTE, probably due in 2011.
Infineon is sampling LTE handset chips now, for release in 2010.
In the meantime the iPhone will likely be upgraded to support first HSDPA then HSUPA and then HSPA Evolved...
Instead of passing a subsidy to customers up front, they are giving the money to Apple over the life of each contract.
I skipped to the end so don't know to what extent this has been discussed, but....Moritz is a complete, corrupt, hack who has absolutely no credibility and is believed by most in the investment community to be someone who will scribble whatever he is paid to scribble by hedge funds . If you're an investor, hold onto your wallet.
Legal disclaimer: JMO
Legal disclaimer: JMO
Huh?
Am I mistaken or didn't we hear about subsidies for the iPhone v1 a few months before they came out. I remember because that was the only way the wife would let me get one. Never happened but I still got the phone. Maybe it will work again.
"Hey Honey, ATT will give us $200 to buy a new 3G iPhone......"
Am I mistaken or didn't we hear about subsidies for the iPhone v1 a few months before they came out. I remember because that was the only way the wife would let me get one. Never happened but I still got the phone. Maybe it will work again.
"Hey Honey, ATT will give us $200 to buy a new 3G iPhone......"
Nope, but I have now. Thanks for the heads up!
Sounds like they're having trouble keeping sales going via carriers (thus the price drops), but selling tons of phones to unlockers. What a strange situation to be in.
Must Subsidize to fight unlockers
AS I've opined several times before, Apple must switch to a subsidized model. The flaw in their original model is that Steve did not anticipate the ease with which his iphone could be unlocked by hackers. Once unlocked, the phone can be exported. That's probably already happened 3 million times... Apple and ATT aren't talking. That is a Huge revenue hit to Apple, and a huge disincentive for new carriers to sign over their revenue stream in exchange for exclusive iphone service contracts.
For the future, Apple and its carriers now realize that any programmable device can be unlocked, and the only way to get that 2 yr revenue stream is to charge MORE up front and give a rebate in exchange for a lock-in.
I look for the Edge version to continue to be offered at the same price. 3G will cost $599 or more, but EVERY iphone version will offer a $200 rebate in exchange for a long service agreement with any carrier participating with Apple. (ATT, Rogers, etc). So, if you're willing to sign a service agreement, you'll get edge for as little as $199 and 3g for as little as $399.
AS I've opined several times before, Apple must switch to a subsidized model. The flaw in their original model is that Steve did not anticipate the ease with which his iphone could be unlocked by hackers. Once unlocked, the phone can be exported. That's probably already happened 3 million times... Apple and ATT aren't talking. That is a Huge revenue hit to Apple, and a huge disincentive for new carriers to sign over their revenue stream in exchange for exclusive iphone service contracts.
For the future, Apple and its carriers now realize that any programmable device can be unlocked, and the only way to get that 2 yr revenue stream is to charge MORE up front and give a rebate in exchange for a lock-in.
I look for the Edge version to continue to be offered at the same price. 3G will cost $599 or more, but EVERY iphone version will offer a $200 rebate in exchange for a long service agreement with any carrier participating with Apple. (ATT, Rogers, etc). So, if you're willing to sign a service agreement, you'll get edge for as little as $199 and 3g for as little as $399.
Just saw this. Wow! Maybe Apple can find a loophole that allows them out of the exclusivity contract!!
Someone can correct me if I'm wrong, but I believe that the exclusive contract with AT&T is for the current iPhone which is version 1.0. The new iPhone will be version 2.0 and will include newer functionality (GPS). If it has newer functionality that doesn't come in the form of an updated OS, they may be able to get other carriers to pick it up. Apple will eventually have the iPhone on most (if not all) major US carriers. That is the only way they will dominate the market. Sprint and Verizon both want the iPhone. Their "iPhone Killers" just don't cut it and they know it.
Why not? AT&T is is paying for this out of their pocket. They know they will get the money back eventually over the life of your contract. Subsidies like this may disappear if Congress passes that new bill saying that companies cannot charge customers for opting out of their contract. The fee you have to pay is the company's guarantee that they get the money back on the discount they gave you on your equipment when you first signed up. But Apple won't care. They're still getting their money (from AT&T instead of you).
Here's hoping for Apple to go unlocked. Maybe they've figured out that they've already set up in as many countries as they can and everything more is just going to be leakage and lost revenue.
aw man i'm really bummed now. I switched to AT&T like last week. I never thought they would change up this part of the process and offer new customers a subsidy.
Its really frustrating and I'm disappointed by the news but I guess thats what I get for planning ahead. Then again I had to, my old phone was dying, I figured I could wait it out with cheap flip phone.
Do you guys know if a new line on a family account would be eligible for the 'new customer' subsidy?
Maybe they'll allow everyone to upgrade to the new iphone without having to wait out the rest of their contract like they did with iPhone version1.
And then hook it up with the subsidy too
And then hook it up with the subsidy too
100$ a month!? Seriously? I'm on a family plan with 450 minutes, unlimited iPhone data plan, and unlimited texting, and I pay 55$ a month. It's great. I do so much texting and messaging on facebook that I hardly use my anytime minutes. I mostly call people under my free nights and weekends or free M2M minutes. Before the family plan I was paying 72$ a month, so I highly suggest getting one and saving like 20$ a month if you can.
That is the only way I could see this working, because otherwise all iPhone sales at the Apple stores would come to a complete halt compared to AT&T.
I really really think Apple has some big surprises ready for WWDC this year with the iPhone. Apple Insider is even getting reports that look like Apple also has an iPhone Nano ready to go for WWDC as a huge surprise! That may be why we are getting so many conflicting reports like this. http://www.appleinsider.com/article...hone_smaller_lighter_than_existing_model.html