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AT&T's iPhone 3G Data Plan and No Longer Revenue Sharing
- Thread starter wakerider017
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OH, i'm not arguing. i am just saying that 90% of the people i associate with are mac users, own 1 if not multiple iPods, and most you would consider
tech geeks. Everyone of them(that i know of) would buy an iPhone in an instant if it wasn't for the price of the plans. The people i know with iPhones made the change because they already paid for similarly priced services with other smart phones. So that is why i don't buy the "too expensive phone argument". i don't think we will ever know because sales will be announced at some point but it won't factor out gen 1 rebuys.
It's true. Both were too expensive for some, but the plans have always been more costly. The dumb person looks at the $399 iPhone and says it's too expensive (and then gets a normal $0 phone...), the smart person looks at the $2000 plan and says it's too expensive (and gets a different smartphone). Maybe Steve's surveys were not specific enough...
And a side note: the iPhone being too expensive for my friend had plenty to do with him working at Subway *snickers*. He could afford the monthly bill, but not a $599 phone up front. He decided he would rather have a touch than save up for an iPhone just to get a bigger phone bill. As for my work, I do web design. A little more profitable.
LOL @ the whiny entitlement monkey on your back.
It's called a subsidy. AT&T pays Apple for the phone so you can buy it for less. Then you pay back AT&T through higher fees.
See how that works?
And at these higher rates, you'd end up paying a lot more to AT&T than if you just paid Apple the real cost of the iPhone. It's a classic come-on.
If you can see that, there's hope for you yet. Maybe you won't be on a consumer debt treadmill the rest of your life.
Then you will not just be having this great device. And in truth, neither will I!
Not the annual inflation rate; the actual total inflation from 2007 to 2008, which includes both CPI price increases and purchasing power decreases. It is approximately 8% (not "over 9"). Look at the historical data in the link you provided and note the acceleration in monthly inflation rates.
No, that's the rule of thumb for cost of living adjustments. This has not been an average year.
If you extrapolate the trend on historical data, you see that prices will have gone up ~7% based on those numbers (they are up 6.16% as of April, the latest data). I used data from the BLS indicating a slightly increase of ~8%, which is the amount in the figure I used.
I presented it both ways, because an SMS plan is optional, and many people simply do not use it. Many people use it heavily, but with unlimited data, there's not a pressing need for it.
It's not. The iPhone plan is on par with the average monthly service plan cost generally. The only real difference is the phone itself, which is $200 cheaper. The complaints they were responding to were that the phone was too expensive, not the service--most people are already spending $70-80 on their phone bills.
It's only more expensive for people who have below-average cellular bills to begin with, and that's because they don't have as many minutes or a data plan. Those people should consider getting a first generation iPhone while they can if they're that determined not to pay for a data plan.
I WISH THEY WOULD ALLOW YOU TO BUY THE IPHONE WITHOUT THE PLAN. It would be a Touch with a phone. PERFECT.
Why the raise to $30 data isn't as clear-cut...
People saying the iPhone is just like any other smartphone so should be charged the same for data should stop calling people who don't want to pay $30 whiners or what not. The one thing that you're missing is that the iPhone represents billions of dollars of revenue for AT&T, and the major problem associated with the iPhone (as Jobs pointed out) is cost.
Why would increasing the monthly plans make it more affordable? For an exclusive, cheaper price, AT&T would get a LOT more customers. It makes business sense, really... There's no other phone that could bring nearly as many customers as iPhone could (well, the Blackberry, but the large majority of blackberry users are business users, and they would pay more for it). It is a smart move on AT&T's part to have a tiered price setup for average users and business users for this reason, as well.
This isn't just a matter of people whining and being upset - it's the idea that we as a whole represent billions of dollars in revenue, and we're locked into one carrier's terms. When most people shop for phones/plans, the carrier itself isn't AS important; they can shop around to get a better deal. However, for iPhone users, we know we want an iPhone, so we're stuck with AT&T; a lot of phones are CDMA/GSM compatible (or there are at least equivalents), so people can shop between different carriers for the best deal. There is no equivalent to the iPhone, however, so we're at the whim of AT&T if we want one. I think this is why people are upset.
This isn't the same worldwide because there are likely multiple GSM carriers in a country, so if someone wants to get out of a bad plan, they can pay the fee and go to another carrier (or buy the phone unlocked). We don't have a GSM carrier that can compete with AT&T (well, I guess if you're in NYC, you can go to T-mobile for 3g).
Believe me, if AT&T had someone else to compete with, they would be subsidizing the iPhone (like O2 is) and offering more flexibility, but they don't. This exclusivity deal is what's killing it for people - I can deal with paying $80/month, no problem, but this time iPhone customers are hung out to dry. For the last rev, Apple used its leverage to negotiate exclusive rates - now they're not doing the same, which is another thing that is upsetting American iPhone buyers.
Considering how much market power we bring to the table, we ARE getting screwed over by AT&T/Apple. Apple shouldn't make it exclusive, and AT&T knows they can make money off of us, so they will. AT&T knows how badly we want it and they're willing to take advantage of that fact to make more money for them (and by us, I mean people who would actually look at this forum). That being said, I'm still going to get the 3g iPhone, because the features I want are there, but the second the iPhone gets on another carrier and the rate plans are cheaper, I'm jumping ship out of principle. Apple is also a -1 in my book; not that my individual consumer choice matters all that much, but I'm going to think twice before getting more macs (Linux is better, anyway).
So people aren't upset just because of $10 more a month; they're upset because of the feeling that Apple/AT&T is screwing them over, and they have legitimate reasons for that...
People saying the iPhone is just like any other smartphone so should be charged the same for data should stop calling people who don't want to pay $30 whiners or what not. The one thing that you're missing is that the iPhone represents billions of dollars of revenue for AT&T, and the major problem associated with the iPhone (as Jobs pointed out) is cost.
Why would increasing the monthly plans make it more affordable? For an exclusive, cheaper price, AT&T would get a LOT more customers. It makes business sense, really... There's no other phone that could bring nearly as many customers as iPhone could (well, the Blackberry, but the large majority of blackberry users are business users, and they would pay more for it). It is a smart move on AT&T's part to have a tiered price setup for average users and business users for this reason, as well.
This isn't just a matter of people whining and being upset - it's the idea that we as a whole represent billions of dollars in revenue, and we're locked into one carrier's terms. When most people shop for phones/plans, the carrier itself isn't AS important; they can shop around to get a better deal. However, for iPhone users, we know we want an iPhone, so we're stuck with AT&T; a lot of phones are CDMA/GSM compatible (or there are at least equivalents), so people can shop between different carriers for the best deal. There is no equivalent to the iPhone, however, so we're at the whim of AT&T if we want one. I think this is why people are upset.
This isn't the same worldwide because there are likely multiple GSM carriers in a country, so if someone wants to get out of a bad plan, they can pay the fee and go to another carrier (or buy the phone unlocked). We don't have a GSM carrier that can compete with AT&T (well, I guess if you're in NYC, you can go to T-mobile for 3g).
Believe me, if AT&T had someone else to compete with, they would be subsidizing the iPhone (like O2 is) and offering more flexibility, but they don't. This exclusivity deal is what's killing it for people - I can deal with paying $80/month, no problem, but this time iPhone customers are hung out to dry. For the last rev, Apple used its leverage to negotiate exclusive rates - now they're not doing the same, which is another thing that is upsetting American iPhone buyers.
Considering how much market power we bring to the table, we ARE getting screwed over by AT&T/Apple. Apple shouldn't make it exclusive, and AT&T knows they can make money off of us, so they will. AT&T knows how badly we want it and they're willing to take advantage of that fact to make more money for them (and by us, I mean people who would actually look at this forum). That being said, I'm still going to get the 3g iPhone, because the features I want are there, but the second the iPhone gets on another carrier and the rate plans are cheaper, I'm jumping ship out of principle. Apple is also a -1 in my book; not that my individual consumer choice matters all that much, but I'm going to think twice before getting more macs (Linux is better, anyway).
So people aren't upset just because of $10 more a month; they're upset because of the feeling that Apple/AT&T is screwing them over, and they have legitimate reasons for that...
i have to agree.
steve specifically said that they want the iphone to be more affordable. they want everyone to have one and be able to afford one.
i would be less upset if it just cost more out of the gate. but why did steve even bother saying that? the new iphone is now not only NOT more affordable, it costs more!
steve specifically said that they want the iphone to be more affordable. they want everyone to have one and be able to afford one.
i would be less upset if it just cost more out of the gate. but why did steve even bother saying that? the new iphone is now not only NOT more affordable, it costs more!
I think the key lesson both companies need to learn (AT&T and other carriers more than Apple) is that not everybody wants to shell out $30 for the data plan. It's just like not everybody wants to shell out the $50+ for a 6Mbps DSL connection. A lot of people like having about 768k for $20/month. To get the iPhone, you're forced to get the one data plan, 3G area or no.
So I do hope that people notice the ruckus some of us are making and just give us some sort of choice. Complaining is what got AT&T to offer a $10/month DSL plan that doesn't require phone service. They advertise it like it's on double secret probation, but it's there.
So I do hope that people notice the ruckus some of us are making and just give us some sort of choice. Complaining is what got AT&T to offer a $10/month DSL plan that doesn't require phone service. They advertise it like it's on double secret probation, but it's there.
Steve Jobs needs to be honest, that's all...
So of course we all know about the increase in data plan for the 3G, and that the overall cost for the consumer over the course over 2 years for having a 3G iphone is actually going to be $40 more (if you need to see the break down in math, please see: http://tech.yahoo.com/blogs/null/94465)
We all saw the keynote, and how one of the "challenges" for the iphone was being more AFFORDABLE. Steve Jobs simply needs to be honest and fair, especially to all of us loyal Apple customers who have the ipods, iMAC's, MPB's, etc. How is it more affordable if it's costing us more money?
We hold believe Apple to be a superior company than the Microsoft's and the Dell's, because we believe Apple to offer a superior product and have a certain level of integrity (for example, we all have benefited at one point or another with 1-800-MYAPPLE and the great customer service they provide!)
However, this is simply lying to his fan base, and deceiving us loyal consumers. I don't know if some sort of petition or something would be in order, but I at least wanted to offer some opinion on the matter to see what you all think.
There is absolutely no debate over whether its going to be more expensive, and before people go attacking me, I am a VERY loyal customer with 2 ipods, a 24" iMAC, and MBP, and was waiting for the new IPHONE b/c I knew it was going to be 3G. Money is not the issue here, so please don't say i'm "crying over a few dollars" or anything to that extent. I'm simply offering the position that Jobs and Apple need to be fair and tell it like it is.
Yes, the Iphone is 199. No, the Iphone is NOT more affordable.
So of course we all know about the increase in data plan for the 3G, and that the overall cost for the consumer over the course over 2 years for having a 3G iphone is actually going to be $40 more (if you need to see the break down in math, please see: http://tech.yahoo.com/blogs/null/94465)
We all saw the keynote, and how one of the "challenges" for the iphone was being more AFFORDABLE. Steve Jobs simply needs to be honest and fair, especially to all of us loyal Apple customers who have the ipods, iMAC's, MPB's, etc. How is it more affordable if it's costing us more money?
We hold believe Apple to be a superior company than the Microsoft's and the Dell's, because we believe Apple to offer a superior product and have a certain level of integrity (for example, we all have benefited at one point or another with 1-800-MYAPPLE and the great customer service they provide!)
However, this is simply lying to his fan base, and deceiving us loyal consumers. I don't know if some sort of petition or something would be in order, but I at least wanted to offer some opinion on the matter to see what you all think.
There is absolutely no debate over whether its going to be more expensive, and before people go attacking me, I am a VERY loyal customer with 2 ipods, a 24" iMAC, and MBP, and was waiting for the new IPHONE b/c I knew it was going to be 3G. Money is not the issue here, so please don't say i'm "crying over a few dollars" or anything to that extent. I'm simply offering the position that Jobs and Apple need to be fair and tell it like it is.
Yes, the Iphone is 199. No, the Iphone is NOT more affordable.
Your point? This belongs in one of the ten threads on affordability that are currently becoming more and more worthless.
He's not lying, he just doesn't care about AT&T or has anything to do with their pricing. It's more affordable from Apple, and that's what matters to him. You still don't know if there won't be a definitive way of getting one without activating. Without revenue sharing, what incentive does Apple have of disallowing iPhone sales just to sell them? I believe that if they're available from the Online Apple Store, they'll not be activated.
He's not lying, he just doesn't care about AT&T or has anything to do with their pricing. It's more affordable from Apple, and that's what matters to him. You still don't know if there won't be a definitive way of getting one without activating. Without revenue sharing, what incentive does Apple have of disallowing iPhone sales just to sell them? I believe that if they're available from the Online Apple Store, they'll not be activated.
For the love of god people, get a life and move on. First of all Apple makes the HARDWARE for the iPhone not the CELL PLAN. So from a Hardware perspective, Yes it is cheaper. From Apples perspective it is cheaper. Steve Jobs was not lying. He was telling you how much his company's HARDWARE was going to be. If you want to bitch about it then bitch to AT&T or if you are outside of the US whatever cell carrier you have. But it is not Apples fault that the Plan is going to be the same as the 3G plan for all other devices. For the love of god, you people have the most f'ed up sense of entitlement that I have ever seen.
I totally agree.
And yes he is lying. He specifically said that this iPhone will be cheaper and now we all know you HAVE to even activate it in the store so there is basically no way to have this without AT&T. Fortunately I can afford the extra $15 but I know everybody is a little perturbed (is that how you spell it?) about this.
But of course, I will be buying the 3g iPhone on July 11....... now the only decision is what color ?
And yes he is lying. He specifically said that this iPhone will be cheaper and now we all know you HAVE to even activate it in the store so there is basically no way to have this without AT&T. Fortunately I can afford the extra $15 but I know everybody is a little perturbed (is that how you spell it?) about this.
But of course, I will be buying the 3g iPhone on July 11....... now the only decision is what color ?
So you guys don't believe SJ has a saying regarding AT&T Iphone pricing policies? or he just doesn't care?
Best regards,
Simon
I'm still confused as to why you Americans are complaining? I don't see anything in your post that makes a good argument. If the iPhone was being sold for $500 and the rate went up to $30 a month since it now in the smartphone catagory....which....it is.....a smartphone, then yes, SJ would be wrong to say its a cheaper phone now. But, he reduced the price of the phone....to $199, it's not a lie, it's fact. You are not paying any more than you would if you had any other smartphone with att, and you are not paying any more than us Brits have to pay on o2.
You had the luxury of paying a lower rate to att for a year, if you had the first iPhone, o2 didnt provide that.
Why do you feel iPhone 3G users should get special treatment over other smartphone users on the att network? You lot are complaining like f**k over paying the same as them, yet imagine the chaos that *could* occur if you were paying less, wouldnt they all (which ammounts to more than iPhone users) have a right to kick up a fuss? I think *that* would be more of a headache than what this is causing. You think they should lower the price for *all* att subscribers? Yeah, that would be a good business move, lose millions in revenue because some iPhone users are boo hoo'ing over $10-$15 dollars (£5-£8 or a pack of cigs or loaf of bread and 2 pints of milk)
I think a lot of you really need to wake up and smell the coffee.
You had the luxury of paying a lower rate to att for a year, if you had the first iPhone, o2 didnt provide that.
Why do you feel iPhone 3G users should get special treatment over other smartphone users on the att network? You lot are complaining like f**k over paying the same as them, yet imagine the chaos that *could* occur if you were paying less, wouldnt they all (which ammounts to more than iPhone users) have a right to kick up a fuss? I think *that* would be more of a headache than what this is causing. You think they should lower the price for *all* att subscribers? Yeah, that would be a good business move, lose millions in revenue because some iPhone users are boo hoo'ing over $10-$15 dollars (£5-£8 or a pack of cigs or loaf of bread and 2 pints of milk)
I think a lot of you really need to wake up and smell the coffee.
This couldn't possibly be more true...
This isn't a big deal. There won't be significant numbers of people upset over the pricing. Those that complain won't cause anything to change. There will still be droves of people lining up to buy the phone.
For those saying its more affordable from apple thats also a lie.... apple is still getting $399 for the 8GB and $499 from the 16gb so they didnt make it more affordable AT&T did by subsidizing.... Steve is such a douchebag making it look like high and might apple is looking out for its customers when its really not, they are still getting the same amount of money for each iphone, but of course he wants to take all the glory and make customers think they are getting less for each phone in order to make people happy. Take that koolaid and shove it you know where.
that being said i'm still buying the iphone because money is not really an issue but i am not going to bow down and kiss steve job's feet and praise him for being such a good samaritan and making less money on iphones to pass the savings on to me. when i know damn well thats not the case.
that being said i'm still buying the iphone because money is not really an issue but i am not going to bow down and kiss steve job's feet and praise him for being such a good samaritan and making less money on iphones to pass the savings on to me. when i know damn well thats not the case.
It is widely known on this forum and otherwise that users can insert the iPhone SIM into a 3G device and have full capability of that device. It is very easy to tell the difference of 3G vs Edge tethering. It has also been confirmed by testing data speeds.
On that note, I will gladly keep the $199 + $15/month in my pocket and stick with the 1st Gen iPhone, pseudo-GPS and 3G tethering.
People choked on the 599.00 price for the phone when it was released last year. Now they can sell it for 199.00 (cheaper then most crackberrys) so now the people that said they can't afford it can. The text message question has still got to be answered (is unlimited now included with 30.00 data price) and will you have free WiFi at all AT&T hotspots?
If they toss in the text messages, its a wash for me becuase I'm paying and extra 10.00 for test messages and it will CHEAPER for the people that paying an extra 20.00 for unlimited texting.
Is Steve being truthful? Sure he is. Apple has really now dis-associated themselves from the carriers. Apple no longer controls the service price...
If they toss in the text messages, its a wash for me becuase I'm paying and extra 10.00 for test messages and it will CHEAPER for the people that paying an extra 20.00 for unlimited texting.
Is Steve being truthful? Sure he is. Apple has really now dis-associated themselves from the carriers. Apple no longer controls the service price...
He's not lying. Here in the UK, the phone is significantly cheaper and the monthly tariff has not been increased. In fact, there is now a cheaper tariff available as well, so you could potentially go from:
£279 for the phone plus 18 X £35 rental = £909
to
£99 for the phone plus 18 X 30 rental = £639
In buying the iPhone, you bow down. If you cared enough about him "lying" to care at all, you wouldn't buy it.