It's amusing watching all the whining from people who don't understand what a contract is.
Here's a tip: If you don't understand it don't sign it.
Here's a tip: If you don't understand it don't sign it.
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Contract and Subsidy Issues for iPhone Users Looking to Upgrade to iPhone 3G S
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Again, the TRUE cost of production
You abviously know nothing about business. OK, so the parts in the phone cost ~$220. They must be making $379 per phone, right? NO Have you ever seen those nicely made commercials on TV? Or thought about the thousands of man hours in research and development needed to come up with the hardware and software? Or the cost of owning/opperating a store? Or the costa ssociated with employing reapir or help staff? Or the cost of healthcare for all of those employees.
Please. All of the above reasons contribute as to why one phone that hsa $200 in parts can merit a higher cost than one with $250 in parts. The amount of investment necessary to make the phone, plus the cost of selling/marketing it.
Honestly people, you all come across looking like fools.
You abviously know nothing about business. OK, so the parts in the phone cost ~$220. They must be making $379 per phone, right? NO Have you ever seen those nicely made commercials on TV? Or thought about the thousands of man hours in research and development needed to come up with the hardware and software? Or the cost of owning/opperating a store? Or the costa ssociated with employing reapir or help staff? Or the cost of healthcare for all of those employees.
Please. All of the above reasons contribute as to why one phone that hsa $200 in parts can merit a higher cost than one with $250 in parts. The amount of investment necessary to make the phone, plus the cost of selling/marketing it.
Honestly people, you all come across looking like fools.
Why this will backfire...
I am surprised Apple let this happen.
Firstly, I understand why AT&T and O2 are doing this in line with how their mobile phone contract model works, which is fine IF this were just a mobile phone. Its not...
Its a platform for application vendors to put next gen mobile applications, the likes of which we haven't seen yet into the hands of, well, everyone. And Apple stands to punch that ticket each time an app is sold... The revenue stream for Apple is not solely the sale of the handsets, long term app sales will make more money than profit on the device. What this move has done has set the biggest app consumers (the fanboys) and early adopters up to NOT be on the latest hardware. This means the application vendors will be targeting the platform that most people have, the existing 3G model and not the new features of the 3GS. The platform will stall for at least 6 months. Enough of a window for something else to come along...
Think that wont happen? Well look... Apple themselves have said there are 40 million handsets out ther currently, a lot of people who are likely to want an iPhone, already have one. Most of them wont upgrade due to the contracts, and new customers wont exactly flood in. Add to that the fact that pretty much all 3G users (in the UK) are on the same length of contract, expiring at around the same time. If they arent going to buy themselves out of a contract, they arent likely to lock themselves in to another 18 month contract 6 months out from the potential launch of a new device. By any logic, the 3GS will be in far fewer hands than the 3G. No app vendor is going to want to limit their market, therefore the new features on the 3GS will not be exploited nearly as much as Apple would hope by app developers. Therefore stale platform... Better products have died because of similar issues.
This can only play into the hands of competing platforms.
Here is a final suggestion to O2 customers who are looking to upgrade... Consider buying phone insurance that includes contract / upgrade insurance. That way you can invoke the upgrade clause in your insurance policy when you need to get out of one contract in order to upgrade. The premiums cost less that the contract buy out so for situations like this it is perfect.
I can only imagine next time round, Apple and the carriers might work to align the release cycle with the pay-off of the phones since the last release. i.e. 18 months between releases or 12 month contracts.
I have pretty much decided to skip the 3GS at least until its more favorably priced or I can invoke my contract get out clause.
I am surprised Apple let this happen.
Firstly, I understand why AT&T and O2 are doing this in line with how their mobile phone contract model works, which is fine IF this were just a mobile phone. Its not...
Its a platform for application vendors to put next gen mobile applications, the likes of which we haven't seen yet into the hands of, well, everyone. And Apple stands to punch that ticket each time an app is sold... The revenue stream for Apple is not solely the sale of the handsets, long term app sales will make more money than profit on the device. What this move has done has set the biggest app consumers (the fanboys) and early adopters up to NOT be on the latest hardware. This means the application vendors will be targeting the platform that most people have, the existing 3G model and not the new features of the 3GS. The platform will stall for at least 6 months. Enough of a window for something else to come along...
Think that wont happen? Well look... Apple themselves have said there are 40 million handsets out ther currently, a lot of people who are likely to want an iPhone, already have one. Most of them wont upgrade due to the contracts, and new customers wont exactly flood in. Add to that the fact that pretty much all 3G users (in the UK) are on the same length of contract, expiring at around the same time. If they arent going to buy themselves out of a contract, they arent likely to lock themselves in to another 18 month contract 6 months out from the potential launch of a new device. By any logic, the 3GS will be in far fewer hands than the 3G. No app vendor is going to want to limit their market, therefore the new features on the 3GS will not be exploited nearly as much as Apple would hope by app developers. Therefore stale platform... Better products have died because of similar issues.
This can only play into the hands of competing platforms.
Here is a final suggestion to O2 customers who are looking to upgrade... Consider buying phone insurance that includes contract / upgrade insurance. That way you can invoke the upgrade clause in your insurance policy when you need to get out of one contract in order to upgrade. The premiums cost less that the contract buy out so for situations like this it is perfect.
I can only imagine next time round, Apple and the carriers might work to align the release cycle with the pay-off of the phones since the last release. i.e. 18 months between releases or 12 month contracts.
I have pretty much decided to skip the 3GS at least until its more favorably priced or I can invoke my contract get out clause.
Read through the thread. There are plenty of people who are being charged the $699 price even though they SHOULD qualify for the slightly-subsidized $499 price. (32GB)
I personally have no problem paying $499 to upgrade now, and expected as such. (was hoping for just the +$100 over subsidized but whatever)
I'm sure there are plenty of "losers crying" that they don't get the full subsidized price, but the actual problem is the people getting mixed stories.
yes
i know exactly what a contract is. it's amusing watching all the whining about whining from simpletons who possess only the mental aptitude to meander about macrumors going HURR U DO NT KNOW WHT A CONTRACT IS HURR
this situation is efficient breach if i've ever seen one
What about those of us who bought a 3g last summer but did not get any form of subsity on the purchase because our current 2 year agreement had only a few months into it. I bought a 16GB 3g on july 11th for the full meal deal, not the $299 reduced price because only 10 months had gone by on my last contract. I was hoping to upgrade to the 3gs but now it looks like I will not be because there is no way that I'm paying another $599 for the voice and video features that have been added. I guess I will be waiting for the
3gxsffc (extra speed forward facing camera) version that will be released in 2010!
3gxsffc (extra speed forward facing camera) version that will be released in 2010!
IMHO, fair would be offering the 3gs for $100 more than regular subsidy, IF you've had your 3g for a year. That would be pretty comparable to just canceling and starting a new contract (which would be $115 more than regular subsidy as I noted earlier as $175 - ($5 * 12) = $115 cancellation fee).
We can't reasonably expect AT&T to just let us forgo all the rules and have them eat their costs so we can have new customer subsidy, but I don't think it's unreasonable to at least offer us a quick and easy deal that's as good as we could get by jumping through hoops working around their system (ie canceling, paying the fee of $115, and starting a new contract). Geez. Having happy customers and selling more phones would be worth that much I would think.
We can't reasonably expect AT&T to just let us forgo all the rules and have them eat their costs so we can have new customer subsidy, but I don't think it's unreasonable to at least offer us a quick and easy deal that's as good as we could get by jumping through hoops working around their system (ie canceling, paying the fee of $115, and starting a new contract). Geez. Having happy customers and selling more phones would be worth that much I would think.
Of course, but by doing that, they set a standard. Going back on this is like using double standards, and people (like me) hate that, especially if you own a 3G and might want a 3GS. But at this point, since I have to wait until december, I might as well just wait for the contract to expire and see what's out there next June.
You know what? I change my mind: I say keep stinking it up! Maybe just maybe all this hoopla over one phone will cause Congress to bust up these borderline illegal practices Cell Phone companies have been engaged in for years and years.
But really the 15 bucks for text should be raising the most eyebrows and 3G users have swallowed that for too long. People gave AT&T 360 bucks for that one...
But really the 15 bucks for text should be raising the most eyebrows and 3G users have swallowed that for too long. People gave AT&T 360 bucks for that one...
Just spoke to 02 UK upgrade representative. I purchased an iPhone 3G in July last year around launch and it was found that I have to 'buy off' the remainder of my contract and start a new contract to purchase the new 3GS phone at the asking subsidised rate, which works out to be ridiculously expensive. As it will be December before I am eligible for an upgrade, there's no point upgrading to the 3GS as waiting another 6 months I would get (asuming the 12 month refresh cycle on iPhones) a spanking new model. Software 3.0 will keep me going until then. Disappointing but we shouldn't expect anything less on a contract phone, no other carrier would let you upgrade early for the sake of it.
Why can't I upgrade with a line with a original (edge) iPhone to the 3GS?
Thats my only complaint.
I mean that line never got any discount or subsidized phone. Just using a used 1st gen iphone, just seems wrong that I don't get a discount/upgrade.
Someone explain.
SHould I have got a like expensive blackberry and sold it before I activated the iPhone on the second line? I just feel like that line is stuck in a contract for no reason, I didn't get anything out of it, it should be month to month or give a me a damn subsidized upgrade.
Thats my only complaint.
I mean that line never got any discount or subsidized phone. Just using a used 1st gen iphone, just seems wrong that I don't get a discount/upgrade.
Someone explain.
SHould I have got a like expensive blackberry and sold it before I activated the iPhone on the second line? I just feel like that line is stuck in a contract for no reason, I didn't get anything out of it, it should be month to month or give a me a damn subsidized upgrade.
Apple exception
There has to be exception for iPhone.
People are used to buying new iPod without any problems and now they can't do that to iPhone they all complain. Apple needs to think of something so people can upgrade.
There has to be exception for iPhone.
People are used to buying new iPod without any problems and now they can't do that to iPhone they all complain. Apple needs to think of something so people can upgrade.
exactly....
and this is why im convinced o2 will have do do something, most likely with apple involved to address it, as they are going to see sales slump compared to the 3G model, and apple will quickly realize that the gamble they took isnt going to pay off, and o2 will be ******** bricks that they are not recouping enough money..
the status quo is a no win for all parties, regardless of the signed contracts....perhaps if o2 offered 12 month contracts in the first place they wouldnt be in this position....
E X A C T L Y!
'nuff said.
And to be honest - when you see that you can "get a 8 GB iPhone for 1 Euro (T-Mobile) until the 30th of June" - come on, it was not exactly rocket science to figure out a NEW model is coming soon...
And that's the reason why I "held out" with my 1st Gen iPhone for another couple of months over my "initial contract" and enjoyed the OS 3.0 Beta on it - and now I can switch to the 3G S as soon as it's out.
I also "wanted" a MacBook Air or MacBook but didn't NEED one three months ago - now they're more powerful for less money. Again, not exactly rocket science. I guess people will whine when the MacBook Pro's are updated next year... here's a hint: it will happen.
people sometimes...
Totally agree with your logic.
They are setting it up so that most people will have the NEXT model (after the 3GS) and such that not as many people will have the 3GS at any point in time. Of course all apps will have to be optimized for the 3G because that's what everyone has. For the next year, I predict something along the lines of total iphones out there something like 15% 1st gen, 60% 3G, 25% 3GS, and then next year (2010), something more like 5% 1st gen, 30% 3G, 20% 3GS, 45% 4G or whatever it will be called. And the 4G will likely offer more benefit over the 3GS than the 3GS did/does over the 3G, making the 3GS kind of a waste.
It seems to me that although I can understand AT&T/apple's position, that they dropped the ball in really selling the 3GS model.
Then again, I'm sure they've put a hell of a lot more thought into than I have :shrug:
No, I'm saying that AT&T, O2 and the likes should reconsider their contract lengths. Many Apple fans want to get the latest version, especially for relatively low-cost devices such as the iPhone. Currently, anyone is restricted to only being able to get every other iPhone.
I'm not really moaning my situation, I know my contract runs until February (although, it would only run until January if O2 let me get my hands on a white 3G when they first came out), and I am fully aware of the fact that I will probably never own a 3G S since by the time my contract expires it'll only be a few months until the next iPhone is released. I'm just saying that this is probably not the best way to go about providing the iPhone to people.
NO THEY ACTUALLY DO NOT.
They have no obligation whatsoever to accomodate people who can't read a ten-line contract stating 18 MONTHS. duh.
I really dislike attitudes like "this company has to give something to me for free" - why is that? What are the people expecting M$, Nokia or Apple (more than others) to give them freebies? What are these people giving away to others? It's called a business, not Caritas.
Ok here's what I'd like to know... I purchased an 2G on launch day (unsibsidized right?) and a 3G on launch day (subsidized), that adds up to almost 3 yrs of an ATT contract but only one subsidized phone. So why wouldn't I be eligible for the same subsidized pricing as someone at the end of a 2 yr or even 18 month contract. I think this is a very valid point. Sry if someone else already brought this up but I didn't see any post on this specific point.
I think that kind of mentality was lacking somewhat preceding this financial crisis!
I bought the original iphone on launch day. I wasn't financially able to get the 3G until last October. Checking on at&t's site shows that i am eligible for the discounted rate on my 1 year anniversary for 3G, this coming october.