AT&T to subsidize cost of new iphone

[stagi]

Although I would love to upgrade to v2 for $200 less I doubt this will happen. I don't think apple would want to have $199 iPhones in the At&T store and then $399 at the apple store. They have always wanted consistent pricing and I don't think would let that happen. Also with the rate of sales in the US I don't think they need to have a lower price, when 3G comes out people will buy at the current price. Lately I have been seeing tons of people with iPhones around here including kids, so people don't really mind the current price.

 

[rockstarjoe]

I don't see this happening. Wouldn't it lead to more expensive data/phone plans?

 

[lazyrighteye]

1. Scott Moritz was, is and will always be a liar. Never believe anything he writes. For those not familiar with him, he wrote that the iPhone's production was being halved, then when that clearly didn't turn out to be true, said that dropping 4GB model was the same as cutting production in half. He's too stupid to even be a good liar. Legal disclaimer: JMO

2. NO ONE outside of the highest levels of management knows ANY of the terms of the aapl/T iPhone contract. No one. It was never said that it was five years exclusive. That rumor originated with a poorly written USA Today piece. It has possibly been acknowledged that T will support the iPhone and have certain distribution rights for 5 years.

3. If anyone thinks T has/had the upper hand in any dealings with AAPL, please contact me--I have a bridge to sell you. T handed over the keys to the store to get the iPhone, giving unprecedented control to AAPL. They needed each other, but AAPL clearly was in the driver's seat. There certainly would have been benchmarks, incentives, escape clauses and even kitchen sinks in the contract, but everything appears to be going well for both parties so I seriously doubt any major changes have kicked in.

4. It is highly unlikely that 8GB will be around much longer, except possibly to occupy a lower price point spot like the 4 GB did originally. Reason: with all the new apps which will be available for the iPhone, it's in everyone's interest to have more capacity.

5. See point 1 above.

Agreed 100%.
Great post.

 

[veeco3110]

Please don't take this as an attack-but is English your primary language?

hahahahahhahaha wow i just read my post over again...typing on an iphone isn't the best without proof reading. sorry about my horrible grammar on that...kinda drunk on that one too...not very good...disregard my post everyone haha

 

[lazyrighteye]

Part of what made the 1st iphone so appealing (aside from how it looks) was the cheap $20/month data plan.

So true.
I began saving for the device when it was announced, but feared AT&T's rates would be the deal breaker. I was pleasantly surprised when those figures were announced.

Here's hoping these plans remain as untouched as possible.

 

[Diode]

Although I would love to upgrade to v2 for $200 less I doubt this will happen. I don't think apple would want to have $199 iPhones in the At&T store and then $399 at the apple store. They have always wanted consistent pricing and I don't think would let that happen. Also with the rate of sales in the US I don't think they need to have a lower price, when 3G comes out people will buy at the current price. Lately I have been seeing tons of people with iPhones around here including kids, so people don't really mind the current price.

Unless you could use the 3G iphone on your current contract w/o renewing. You already have a 3G capable SIM ... just wondering if the data plan will allow 3G access

 

[Kavik]

Although I would love to upgrade to v2 for $200 less I doubt this will happen. I don't think apple would want to have $199 iPhones in the At&T store and then $399 at the apple store. They have always wanted consistent pricing and I don't think would let that happen. Also with the rate of sales in the US I don't think they need to have a lower price, when 3G comes out people will buy at the current price. Lately I have been seeing tons of people with iPhones around here including kids, so people don't really mind the current price.

What if...the price is $399 everywhere (both at the at&t and Apple online and retail stores), but you get a $200 rebate when you sign up for a 2-year contract through iTunes. The phone itself would be unlocked, but come with an at&t 3G SIM when purchased in the U.S.

That way at&t could claim continued "exclusivity" of the iPhone (carrier sales, "exclusive" rebate, bundled SIM, only service option thru iTunes), but anyone could buy the phone and use it on the GSM network / in the country of their choice.

Seems like this would solve most of Apple's current issues: unlocking/service debacles, cat & mouse games, worldwide iPhone black market, locking out large numbers of potential customers with other carriers -- and at the same time enabling them to do a true worldwide rollout of the 3G iPhone. Apple could even have similar arrangements with one or more carriers in other countries for that matter.

Just a thought, but it's what I would do if I were Stevie

 

[rockstarjoe]

Remember this? https://www.macrumors.com/2007/04/17/apple-considering-50-150-rebate-on-iphone/... these analysts will say anything.

 

[Mikey B]

Mikey...Bought any Gas lately...done much food shopping...tried to buy a house?....it's a different world from last summer when people lined up for days to drop $600 + a 2 year commitment for a cell phone.

Homeboy, that's my point. I'd hardly, in the States at least, call our economy to be in much worse shape than a year ago. It sucks now and it sucked then. Especially where I live in Michigan, gas is only about .30 more than a year ago. It's not that different of a world right now than a year ago in Metro Detroit. And people still camped out waiting to drop $600 on the iPhone.

 

[deputy_doofy]

I hope there's some truth to this, but at the end of the day, I'll still pay full price for a 2G (3G) iPhone.

 

[BenRoethig]

I don't see this happening. Wouldn't it lead to more expensive data/phone plans?

Maybe, maybe not. The data packages seem to be about the same price as the other smart phones.

 

[impact_blue]

How would this reflect on us who already have a phone? Granted, we paid full boat for our first one but would they let us subsidize for a replacement 3G? They already have us locked into 2 year contracts of which nobody is yet half way through. Just a curiosity.

Another early adopters fee

 

[SolRayz]

We may not have the answer to this yet. But my question is this. My wife and I both have iPhones on the family talk plan. Will I be able to upgrade to the 3g iPhone at the reduced rate? And if so if I were to upgrade only my phone can we still share the family talk plan with two differnt versions of the iPhone?

 

[Mikey B]

We may not have the answer to this yet. But my question is this. My wife and I both have iPhones on the family talk plan. Will I be able to upgrade to the 3g iPhone at the reduced rate? And if so if I were to upgrade only my phone can we still share the family talk plan with two differnt versions of the iPhone?

The second question I'm sure is a yes. Because your original iPhone purchase was unsubsidized, you can freely upgrade at any time to any full-priced phone you want. Which leads to the first question, which I believe the answer to be no. I doubt that they would let you get a rebate unless your contract was up, or perhaps if you renew a contract. I see that as the only way.

 

[edoates]

MSRP is exactly that...

Apple will NEVER let them do that!

Apple can only suggest a price: Manufacturer's SUGGESTED Retail Price; they cannot dictate to a retailer what to sell the phone for, nor can they pull a product if it is sold "too cheaply." They can prohibit advertising that price (Rickenbacker does that with guitars for example). As long as ATT comply with their contract with Apple, the price can be whatever ATT wants. It will hurt sales at Apple stores if ATT stores sell it for less and the discount happens with the sale, not later on as a rebate when you buy a two year contract.

$299? I'm in.

Eddie O

 

[benmrii]

Apple can only suggest a price...

As much as I hope you are correct, there is nothing that says their contract agreement with them does not require certain pricing restrictions such as subsidizing the cost or being within a certain amount of Apple's price.

 

[edoates]

As much as I hope you are correct, there is nothing that says their contract agreement with them does not require certain pricing restrictions such as subsidizing the cost or being within a certain amount of Apple's price.

Company A cannot tell Company B what to sell things for, even if B bought them from A: antitrust; in California, one used to be able to pull a franchise if a retailer didn't sell for the "fair trade" price (like Fender guitars in the 60's), but that is now illegal in CA.

Company A CAN restrict who the authorized dealers are so that Company B has exclusivity in a given area (think high end audio, for example).

Subsidizing vs discount pricing is misty at best, though. The iPhone was locked to ATT, and ATT only offered two year contracts. But ATT or Apple could have sold the iPhone for anything they wanted.

Eddie O

 

[cameronjpu]

We may not have the answer to this yet. But my question is this. My wife and I both have iPhones on the family talk plan. Will I be able to upgrade to the 3g iPhone at the reduced rate? And if so if I were to upgrade only my phone can we still share the family talk plan with two differnt versions of the iPhone?

Everyone on a family plan must have the same exact phone. EXACT!

 

[Justinerator]

I don't see it happening, although I wish it were true. I guess we won't know till summer roles around!

 

[BiggieSized220]

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.

So you're saying you essentially get the unlimited texting and data plan for free, and pay $5 less a month? How does that work? Were you an existing AT&T customer that switched?

I don't have an iPhone but have been an Apple fanatic my whole life. I wanted to see where they went after the first adopters gave a little feedback. I think that we can rest assured that whatever is unveiled at WWDC will be an improvement, no matter how small. I'm getting myself ready for the switch.

I also had a question for everyone. What's the deal with porting a number to an already existing plan? Can I get a new iPhone with plan, then wait for my Verizon contract to end to port my number to AT&T?

 

[Rhinestorm]

Meh, AT&T makes at least $60 a month from each of their customers. They can easily pay Apple back, especially, since it's 24 months of paying AT&T $60+.

 

[None Such]

Company A cannot tell Company B what to sell things for, even if B bought them from A: antitrust; in California, one used to be able to pull a franchise if a retailer didn't sell for the "fair trade" price (like Fender guitars in the 60's), but that is now illegal in CA.

Company A CAN restrict who the authorized dealers are so that Company B has exclusivity in a given area (think high end audio, for example).

Subsidizing vs discount pricing is misty at best, though. The iPhone was locked to ATT, and ATT only offered two year contracts. But ATT or Apple could have sold the iPhone for anything they wanted.

Eddie O

Are Nintendo, Sony and Microsoft under a different set of rules with their game systems?

 

[lazyrighteye]

Remember this? https://www.macrumors.com/2007/04/17/apple-considering-50-150-rebate-on-iphone/... these analysts will say anything.

Exactly.
Thread over.

 

[samab]

Company A cannot tell Company B what to sell things for, even if B bought them from A: antitrust; in California, one used to be able to pull a franchise if a retailer didn't sell for the "fair trade" price (like Fender guitars in the 60's), but that is now illegal in CA.

Company A CAN restrict who the authorized dealers are so that Company B has exclusivity in a given area (think high end audio, for example).

Subsidizing vs discount pricing is misty at best, though. The iPhone was locked to ATT, and ATT only offered two year contracts. But ATT or Apple could have sold the iPhone for anything they wanted.

Eddie O

There is no anti-trust issue when Apple is a brand new phone manufacturer with zero existing market share. Have you ever seen McDonald's selling a big mac for a different price down the street?

For all we know --- this could be another Apple vs. Orange France situation. Apple wants Orange (the French carrier) to reduce price for the iphone because sales were bad. Orange said --- sales are great in France, but if Apple wants us to reduce the price for the iphone, then Apple should be prepared to drastically reduce its revenue sharing terms (or killing it entirely).

Everybody thinks that it's AT&T's idea to drop the iphone price --- but we already have seen the French situation. AT&T must have seen the what the French carrier is doing --- Apple wants it more than the carrier, so let's try to kill the existing revenue sharing terms.

 

[Mikey B]

Company A cannot tell Company B what to sell things for, even if B bought them from A: antitrust; in California, one used to be able to pull a franchise if a retailer didn't sell for the "fair trade" price (like Fender guitars in the 60's), but that is now illegal in CA.

Company A CAN restrict who the authorized dealers are so that Company B has exclusivity in a given area (think high end audio, for example).

Subsidizing vs discount pricing is misty at best, though. The iPhone was locked to ATT, and ATT only offered two year contracts. But ATT or Apple could have sold the iPhone for anything they wanted.

Eddie O

You are utterly and completely wrong about the pricing. Apple would not have entered into an agreement with AT&T without setting price points so their retail stores wouldn't be under cut. I'd almost guarantee that they have to approve any price cuts and I don't see them doing so.