AT&T's iPhone 3G Data Plan and No Longer Revenue Sharing

[feakbeak]

Didn't Jobs introduce the iPhone 1.0 by telling everyone it was a new model for cell phone sales? No subsidy/no lock in and so forth?

Yes, he did. I'm sure he intended to transform the phone market just like Apple did with the music market. With the phone market, Apple wanted to emphasize the hardware and minimize the service (i.e. carriers). I think AT&T went a long with it figuring they earn a lot of subscribers out of the deal. While the iPhone was certainly innovative and will change the market on that front. I don't think they are moving as many units as Apple had hoped.

iPhones are still a very small segment of the mobile phone industry and I think Apple was forced to give in on quite a few points to try to maintain traction in the market. I think most other markets that Apple is trying to grow into have learned a lot from how Apple dominated the music market and are much more cautious. It seems the carriers have won this round - standard activation practices, standard plans and rates, no portion of the service fees going to Apple. AT&T was definitely able to exert much more influence in this round of their deal.

My guess would be that Apple is shifting gears in the mobile phone market, no longer focusing on hardware profits, as they have always done in the computer market and extended into the music market. This time they seem to be focusing on creating the largest install/user-base that they can with the iPhone and they seem to be leveraging the new AppStore to provide additional revenue - 30% of all iPhone software sales isn't all that bad, especially if you can get a huge user-base on the iPhone. They want to own the platform - sounds reminiscent of a company Apple fans typically dislike.

 

[wakerider017]

ZDNET says it is still $59.99 for the 3G phone???

http://blogs.zdnet.com/Apple

Boy those prices look good to me!!!


I think we are all going to have to slow down, and wait for Apple or AT&T to actually publish something on their site.

 

[powderblue17]

Nice and convenient to leave out features, design and functionality that don't suit your theory.

Slimmer design, better battery, more talk time, an additional style and gee, uh 3G... but of course that wouldn't help your point at all, so of course you leave that out.

Funny, how 3G was the BIGGEST whining point of the iPhone when it was first released, and now that 3G is here, the whiners won't part with a $10.00 bill.

Just pathetic.

I never complained about it not having 3G in the first place but since we don't have 3G at my house anyway why should I have to pay for it?

 

[jrbdmb]

Sadly, you are correct. At-home activation was visionary and genius, as it cut out the underachieving/dropout customer service reps from the process. Depending on AT&T apes to handle your activation is a huge step backwards.

Unfortunately, at-home activation caused 25% (at least) of iPhones to not be activated on the designated network (AT&T), and also resulted in active grey-market sales to Russia and other countries. I suspect that AT&T was mighty p***ed about this and forced a revision of the activation process for the 3G.

As other countries have also signed exclusive agreements with Apple, I suspect a similar activation process elsewhere (and no sales of unlocked phones as some had hoped).

 

[danielsan26]

What happened to MacRumors, it used to be about Mac Fans excited about rumors. Now it's full of children whining about stuff they know nothing about.geesh...

here here, yo.

 

[AlphaBob]

Screw the $30 data plan - way too much !!

I'm out. At 2x the Sprint unlimited data plan, it simply isn't worth it.

Heck my local cable company is charging me $29.99 a month for 20 Gigabytes down and 2 GB up.

AT&T has lost their mind.

(I was really psyched about the iPhone 3G up until AT&T screwed it up).

 

[AppleMojo]

it is $10/month for 2 years. that adds up.

I will be sticking with the 1st gen iPhone. I would probably keep 3G off anyway if I had a new one.

Obviously math isn't the problem here. That isn't the debate.

It's silly how $10 can get someone all worked up, but guaranteed tonight on the way back home to mommy and daddy's house, they'll swing in Burger King and drop $9.00 on a burger and fries...

It's called priorities... If it is worth getting so upset over, then maybe they shouldn't be buying that name brand mayonnaise at the super market. ;-)

 

[cWeems]

it is $10/month for 2 years. that adds up.

I will be sticking with the 1st gen iPhone. I would probably keep 3G off anyway if I had a new one.

yea and those 5-hour energy drinks i get everyday for $2 add up, but its worth it!!! im not gonna lay out a 2yr graph and see how much it will cost me over time, who cares.

$10 a month is nothing, jus buy less butterfingers or mcdonalds people!

 

[proglife]

If 10 dollars a month for faster service is going to make a big financial difference to you, I don't think iPhones should be on your shopping list?

You're getting faster service and a phone at half the price. Seems fair to me?

 

[ziggyonice]

AppleInsider:

The two reports add that AT&T will make all iPhone 3G buyers sign a new 2-year contract which will overwrite any existing contracts. That means AT&T won't tack an additional 2 years onto any existing contracts but will instead wipe existing contracts out and start fresh with a maximum 2-year commitment from the date the iPhone 3G was purchased.

Article link

 

[jrbdmb]

thank you for f***ing me big time at&t. I had waited all this time for a new iphone to come out. I have been using my crappy krzr on t-mobile for the longest time and i am so pissed off with it and now to here that i am going to have to dish out $70+ a month when right now i am paying about $45 without data really makes me mad. At&t you have **** on the coats. You smell like you were dipped in a vat of piss...
right now i get 600min a month with 400 text messages for about $45. To get at&t's crappy plan with only 450min a month and 200 text messages that really seems like a slap in the face.
and subsidizing is even more crap. Apple has found a way to make it cheaper to make the iphone not that you are lowering the cost of the iPhone. maybe i will just have to wait until the next generation iphone. i can't believe i am even saying that.
f*** you very much.

And users like this (who buy the iPhone at an Apple store with no intention of activating it with AT&T) is the reason Apple will now be forced to activate the phone in-store. Good bye online activation ...

 

[AppleMojo]

I never complained about it not having 3G in the first place but since we don't have 3G at my house anyway why should I have to pay for it?

You don't to have to pay for it. It's called not buying the new iPhone. I can hold your hand too if you like, but that will cost you $10.00 as well.

 

[Mr Maui]

You save around 200 bucks on the phone.

You pay about 200 extra in data over the course of the contract.

How is this a deal breaker when you come out even?

As another poster said, you lose $40 over the 2 years. Guess that $1.67 per month is too much for some people to handle. If that is the case, they can't afford to buy an iPhone in the first place or their children will probably starve.

 

[Telp]

Boy those prices look good to me!!!


I think we are all going to have to slow down, and wait for Apple or AT&T to actually publish something on their site.

Wait im confused. I want to believe these prices. I really do. How can they include NO text messages? THAT IS ABSURD. Honostly, if they do that, i may be purchasing a refurb 1G.

 

[atacinus]

Stop saying $10 - this is now a $15 increase since we have learned that our 200 free text messages are gone. $360 in AT&T's pocket for nothing - add that to the price of a $199 iPhone and you'll see that I'd rather have just paid 399 for it up front!

 

[DonSqueak]

Get to keep the old one?

Are people with existing iPhones gonna be able to keep and sell their old 2G iPhone after upgrading (unlocked)? Or do At&t keep it?

M.

 

[/dev/toaster]

Just switch out the SIM card...

If that works, you will only get EDGE level connectivity.

 

[Mr Maui]

I never complained about it not having 3G in the first place but since we don't have 3G at my house anyway why should I have to pay for it?

You don't have to pay for it. DON'T BUY A 3G iPHONE! Easy.

 

[heyp]

I called AT&T customer service and was told the same thing. I am fine with that.

what about those that are existing customers but not iphone customers? if we want to upgrade to the new iphone, do we have to pay extra assuming we're not eligible for an upgrade?

 

[grizzlyadams]

you guys ever read mainstream media?

This morning CNN ran a story confirming an increase in the base rate for the mandatory iphone data package at at & t. However, they have since edited the story expanding their coverage to all developments not just the iphone and that statement is no longer included.

 

[jrbdmb]

From CNN Money ...

"AT&T's exclusive iPhone partnership also calls for the company to share as much as 24% of its monthly iPhone service revenue with Apple."

full article : http://money.cnn.com/2008/06/09/technology/applekeynote.fortune/index.htm

so it seems there is some revenue sharing after all

A direct quote from the AT&T press release ... "The new agreement between Apple and AT&T eliminates the revenue-sharing model under which AT&T shared a portion of monthly service revenue with Apple. Under the revised agreement, which is consistent with traditional equipment manufacturer-carrier arrangements, there is no revenue sharing and both
iPhone 3G models will be offered at attractive prices to broaden the market potential and accelerate subscriber volumes."

Somebody has their fact screwed up, and i suspect it is CNN/Money (not that AT&T hasn't screwed up before.)

 

[Mr Maui]

Are people with existing iPhones gonna be able to keep and sell their old 2G iPhone after upgrading (unlocked)? Or do At&t keep it?

M.

You paid for it, it's yours to keep. You didn't get a discount for buying it the first time around, so AT&T cannot require you to turn it in to them.

 

[Tofaha]

so i will have to choose a plan @ the apple store when buying an iphone??...so i can't hack it for t-mobile instead?

 

[riversky]

I never complained about it not having 3G in the first place but since we don't have 3G at my house anyway why should I have to pay for it?

DUDE put your wallet back in your pocket and walk out of the Apple Store!

Guess what, you now don't have to pay for it!!! WTF

 

[cWeems]

what about those that are existing customers but not iphone customers? if we want to upgrade to the new iphone, do we have to pay extra assuming we're not eligible for an upgrade?

check my post on page 6 or 7, explains it all