Cingular/Rogers Not Subsidizing iPhone Cost?

[tk421]

Now, the 18-months-free deal would of course change that, but I see that as highly unlikely. If it were true, then that would be the cheapest way to get Cingular service, plus you get a mind-blowingly awesome phone essentially free. 18 months of service at, say $30/month, is $540. Even if you need to sign on to the 2-year contract (meaning, you're paying full price for that last 6 months and have to cancel or renegotiate), that's still one hell of a deal, essentially $540 discount for a 6-month contract. I mean, hell, I'd buy one and just never use Cingular's network, at least!

No, you're paying full price for the phone and getting 18 months of service free. Or you could look at it like you're getting a free phone and paying full price for two years of service. You're not getting "cheap service" and an awesome phone free.

I initially thought the 18 months of free service seemed unlikely, but if Apple's contract forbids subsidising the phone, this 18 month thing seems more likely. I say MORE likely. It still seems like it's too good to be true.

 

[iMacZealot]

Hasn't anyone heard? It's officially AT&T, not Cingular, people.

 

[TheIguana]

Well if Rogers is going to pick up the iPhone, they are going to have end their stupid wireless data plan price points. $100 for 200Mb of data is just absolutely atrocious! I really do hope Apple pushes these carriers into essentially giving away service for the 1.5 years. Otherwise it is just not going to be worth it to buy an iPhone. Especially if I am not going to be able to use all its features while on the go because of a stupid cell phone company not understanding what is a stupid price point for its services.

Iggy

 

[Flowbee]

Assuming all this is true, Apple's incentive to keep iPhone prices high might be the expectation that they will introduce more products based on the same technology (touchscreen iPod). Prices of these standalone devices would be harder to justify if they were compared to discounted/subsidized iPhone prices.

Good analysis, Arn. That and Apple never wants to see one of their products selling on Amazon for "$.01 with 2-year contract."

 

[EricNau]

Hasn't anyone heard? It's officially AT&T, not Cingular, people.

It's the "New AT&T", haven't you heard?

 

[chicagdan]

No, you're paying full price for the phone and getting 18 months of service free. Or you could look at it like you're getting a free phone and paying full price for two years of service. You're not getting "cheap service" and a awesome phone free.

I initially thought the 18 months service seemed unlikely, but if Apple's contract forbids subsidising the phone, this 18 month thing seems more likely. I say MORE likely. It still seems like it's too good to be true.

It's not too good to be true if they do what Arn suggests -- give you a basic contract at that price. Add in more minutes and a data plan and AT&T will make a very nice profit off your business. I sense the AT&T wants to hook us with phone service, then profit off the data.

 

[iMacZealot]

It's the "New AT&T", haven't you heard?

True true, considering that SBC bought AT&T and liked their name better. So they are technically two different companies.

 

[Benjamindaines]

If they're not allowed to change the price they sell the phone for isn't that price fixing?

 

[shadowfax]

If they're not allowed to change the price they sell the phone for isn't that price fixing?

No, price fixing is something the government does to prices of goods that other people make. Or, an organization (like Wal-Mart) can strong-arm suppliers into a certain price point, you could call that price fixing (sort of). This is a free-market economy, and if a company wants to sell its goods at a certain price point, it's free to do so. And if it consents to have its products sold by 3rd-party retailsers, it does this via a contract, in which it can stipulate the minimum price it wants to sell it at.

I think it's pretty important to realize that this is a really good thing. Look at how Cingular and other carriers devalue other companies' products by selling them for jack crap as a bundle with their service: it makes their service more expensive than it should be, and it makes consumers think that cell phones cost $0.01, or $50-100 for nice phones. This is ridiculous, and it's pretty cool that Apple is bucking this trend, if indeed they are.

 

[JonHimself]

WOW!! I may sound like a huge nerd at this point.. BUT... they quoted my post from another thread on the main page!! From this thread https://forums.macrumors.com/threads/268113/ Post #14

"Apparently, the [Canadian iPhone] prices won't be much higher than the US versions (just currency conversion I guess) and that they aren't allowed to subsidize the cost of the phone relative to your contract (ie you won't save more by signing a longer contract) as is customary with most phones"

Is what I posted... is that kinda cool? Or am I just weird for thinking it's cool? Hopefully someone can help me out here and let me know what I should be thinking

 

[mac-er]

What a greed company! $1.99 for this. $29.99 for that. and now $599 for a damn phone? Regardless if this phone is amazing or not. Pay $600 to advanc brain cancer? ...... Materialist world.

Wow! What a concept...a company that is trying to make money. Wow! Imagine that concept. Stop being so naive.

 

[twoodcc]

I would switch immediately if they offer free/discounted service for iPhone customers...

well i already have cingular. i just hope i can get the iPhone and get the discounted/free service as well.....

 

[jettredmont]

No, you're paying full price for the phone and getting 18 months of service free. Or you could look at it like you're getting a free phone and paying full price for two years of service. You're not getting "cheap service" and a awesome phone free.

You're right. Temporary logic board overload at the thought of a cell phone company giving anything away for free.

 

[SpaceJello]

Having lived in Canada and the US, and used multiple celluar companies on both side of the border, it is not surprising that Rogers in Canada got the iPhone. They are really the only company that can use it to its full potential. They have the best of phones where as Bell, the other large celluar network hasn't managed to get the blackberry pearl, LG chocolate and alot of other great and popular phones.

With that said, I am not quite sure if you can apply Canadian cellular practices to American. First off, Rogers and other cellphone companies in Canada usually have a lock down on... here comes..... not 2 years but THREE years on cellular contracts. It is rather shocking compairing American practices and Canadian. For the same discounted price Americans pay for new phones in a 2 year contract, you would need to get a 3 year one in Canada a lot of times. So I think that three year contract would be a huge deterent for Canadian consumers to buy any expansive phones, let alone the iPhone.

While we complain about Cingular's 2 year contract, after looking at the 3 year Canadian one, the 2 year one doesn't look that bad. This is only smart about Apple that they aren't letting any cellular companies to lock their phone users down with some ridiculously long contracts.

What's worst? When you upgrade phones in Canada, alot of times you can KEEP your old contracts and rates...dating back to the dinosaurs. I have friends with cell phone contracts from eons ago when the cellphone was a huge brick and they pay minimal compare to any new contracts. With that, people aren't interested in getting new contracts since they keep shortening the number of hours for free weekends and weeknights for example in newer contracts.

And when you do want to get a new contract, it's cause of a new phone with the subsidize pricing... actually iPhone's price is priced competitively compared to other smartphones/palms/blackberries in the canadian market with no contracts.

In order to keep their sweet old deal, many people do turn to unlocked phones instead of going after some new ones or upgrading etc.

It would be interesting to see how this pans out.

P.S. one pet peeve of mine is the number of logos on phones from American networks compare to the Canadian usual of none. I am glad the iPhone won't be sporting the Cingular/AT&T logo. It will just ruin it.

 

[Philberttheduck]

Not sure if this is exactly news, but the 1.5 years of service rumors has been officially debunked.

http://gizmodo.com/gadgets/cellphon...come-with-15-years-of-free-service-231636.php

So I guess that means service could come at a reduced price?

 

[powermac_daddy]

If you're as stingy as you sound with your money, who's the materialist? Don't be so greedy that you can't part with a load of money for a little piece of functional art. seriously, be generous. it helps the economy

i have no problems with my money. In fact i have many apple products here, right in front of me a 30", down the table a mac pro.

i was talking about $599 for a phone? it doesn't matter if it's a piece of art or design. but there are many people out there can't afford a phone like that. if you wanna get deep into this conversation. you're welcome.

oh yeah, you were talking about art. tell me what do you know about art and design.

 

[Benjamindaines]

Not sure if this is exactly news, but the 1.5 years of service rumors has been officially debunked.

http://gizmodo.com/gadgets/cellphon...come-with-15-years-of-free-service-231636.php

So I guess that means service could come at a reduced price?

The Cingular rep makes a reference to getting hard over the rumors haha wow

 

[Analog Kid]

The one thing I'm worried about with the iPhone is the cost of service-- I don't mind paying $500 for the device, I just don't want to get gouged monthly. If Cingular can bring their service plan to something reasonable I might buy in.

It's the "New AT&T", haven't you heard?

I think it was "The New AT&T" when SBC changed it's name a long time ago. I think it's "The New New AT&T" now...

Frankly that was the worst decision they could have made-- I had no preconceived notions about Cingular, but I know I hated AT&T. I don't associate them with Alexander Graham Bell, I associate them with getting screwed on international calling rates.

 

[Stella]

WOW - Apple knows no bounds...

3rd party controlled Smartphone - the first of its kind ( due to apparently - because you'll crash the entire cellular network - ******** - btw- its impossible. )

Now, Apple want you to pay full price for the phone but to be SIM locked to one provider....
with MULTI-YEAR CONTRACTS!!!!

****ing 'tards.

The iPhone deserves to fail, badly. Its nothing more than a toy.

 

[aswitcher]

I really hope we get some compertition down under.

 

[Stella]

Fido used to have excellent data plans.. until it got bought by Rogers... now they are sky high..

They are having a laugh - pasted straight from fido.ca:

Combine any of these options
with your monthly package. Monthly charge


1 MB
$22 per additional MB $12

3 MB
$10 per additional MB $25

7 MB
$6 per additional MB $40

25 MB
$6 per additional MB $60

200 MB
$5 per additional MB $100

$50 USED TO GET YOU UNLIMITED DATA!!!!

I wonder how long until Rogers will nerf Fido's excellent monthly contracts?

Well if Rogers is going to pick up the iPhone, they are going to have end their stupid wireless data plan price points. $100 for 200Mb of data is just absolutely atrocious! I really do hope Apple pushes these carriers into essentially giving away service for the 1.5 years. Otherwise it is just not going to be worth it to buy an iPhone. Especially if I am not going to be able to use all its features while on the go because of a stupid cell phone company not understanding what is a stupid price point for its services.

Iggy

 

[iMacZealot]

I think it was "The New AT&T" when SBC changed it's name a long time ago. I think it's "The New New AT&T" now...

Frankly that was the worst decision they could have made-- I had no preconceived notions about Cingular, but I know I hated AT&T. I don't associate them with Alexander Graham Bell, I associate them with getting screwed on international calling rates.

Not really because all they did was buy Cingular. There was no merger and Cingular did not buy the New AT&T (SBC.)

The one I really hate is Qwest. Their DSL went out every hour (not kidding) when we had them.

 

[technicolor]

http://gizmodo.com/gadgets/cellphon...come-with-15-years-of-free-service-231636.php

 

[Oshawapilot]

I agree with others sentiments - unless Rogers/Fido lower the cost of data in Canada, the iPhone will be little more then a rich mans playtoy.

Some people may buy it uninformed at how ridiculous the cost of data in Canada really is, only to quickly find out come their first bill.

There will be alot of people who may own an iPhone, but find themselves unable to enjoy the media rich nature of it for fear of going over on their data.

$100 for 200 meager megabytes? $60 for 25 megs? Get real, Rogers!

I've got a Hiptop/Sidekick on a Fido plan with Unlimited data for $20 per month here in Canada - unsurprisingly Rogers recently killed the Hiptop product line in Canada, not giving me much hope that they intend to offer remotely affordable mobile data in Canada anytime soon.

When all of the cellular carriers in Canada rape their customers for data rates in the stratosphere, I look at the iPhone as something that I'd like to have, but will likely never actually own.

I could afford $100 per month for data, but I refuse to be raked over the coals.

 

[SiliconAddict]

I'll never pay more then $350 for a phone. I don't care if it has video, PMP, and can give me.....*coughs* never mind. First and foremost its a dang phone for me. Heck I can't even take one of these things into 2 of the clients I support because of the dang camera. I don't want a camera in my phone. I want a phone that does its telephony exceptionally well. All that other cap is filler to me.

Now this may chance now that my WM smartphone will FINALLY arrive next week, or so I'm told. I've never had a smartphone before. So who knows.