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I predict a UK price drop...

Archie- said:
Actually what is happening is that Apple is taking the money that would normally go to subsidizing the handset and keeping it for themselves. Remember the contract is still more or less the same amount, and the extra recurring revenue money is not going to the carriers.

Its heartening to see that not too many people are being taken in by this reversal of fortune for the consumer.

If this became commonplace it would slow down the progress of handset technology, as it would price the nicer phones out of the range of the common man.
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I disagree. Re-read my last post.
 
Archie- said:
Actually what is happening is that Apple is taking the money that would normally go to subsidizing the handset and keeping it for themselves. Remember the contract is still more or less the same amount, and the extra recurring revenue money is not going to the carriers.

Its heartening to see that not too many people are being taken in by this reversal of fortune for the consumer.

If this became commonplace it would slow down the progress of handset technology, as it would price the nicer phones out of the range of the common man.
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I'm not sure you understand what subsidizing is. With free handsets, the carrier pays the manufacturer for the phone (thats the subsidy) and then recoups the money from the customer during the period of the contract, any money over that (minus their costs) is profit for the carrier.

Any subsidy money paid by O2 would be for Apple. i.e buying the phones from them.

So I don't know what you mean by "Apple keeping it for themselves" and therefore your point is kind of lost....
 
jontucker said:
I'm not sure you understand what subsidizing is. With free handsets, the carrier pays the manufacturer for the phone and then recoups the money (thats the subsidy) from the customer during the period of the contract, any money over that (minus their costs) is profit for the carrier.

Any subsidy money paid by O2 would be for Apple. i.e buying the phones from them.

So I don't know what you mean by "Apple keeping it for themselves" and therefore your point is kind of lost....
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Fixed that.
 
Padraig said:
Fixed that.
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Wrong.

The subsidy is the money paid to the manufacturer by the carrier on behalf of the customer until they (the carrier) recoup it during the contract.

It's not the money paid to the carrier by the customer.
 
jontucker said:
Wrong.

The subsidy is the money paid to the manufacturer by the carrier on behalf of the customer until they (the carrier) recoup it during the contract.

It's not the money paid to the carrier by the customer.
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Yes it is. e.g. O2 buys a batch of n95s from nokia. You get them for a discount or free. That is the subsidy. You can even ring up the carrier and ask how much of the subsidy you still owe them.
 
Padraig said:
Yes it is. e.g. O2 buys a batch of n95s from nokia. You get them for a discount or free. That is the subsidy. You can even ring up the carrier and ask how much of the subsidy you still owe them.
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The discount from the unlocked price is the subsidy. Instead that discount goes to Apple spread out as recurring revenue over 18 months.

With any other phone you get the discount, and the phone maker gets paid only once.

BTW, if a phone maker does not want to be controlled by a carrier, they only have to sell their phone unlocked.
 
According to a email I got from a iPhonic newsletter im registored to, they just brought the price down!

EDIT: The Carphone Warehouse website says otherwise.
 
im quite glad i sold my when i did..waited another week it woulda lost alot more of its value! rolle on june!:apple:
 
It happened!

Also, according to Engadget, the deal (the price drop) expires in June, which just happens to be the rumored launch date of the 3G iPhone... ;)
 

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Anyway, good intel OP. Just spoke with o2 and they confirmed the price drop will be in effect from tomorrow till June 1st.
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So, 3G iPhone on June 2nd then?????

The price drop could be a last ditch effort to get rid of stock in time for the new release.
 
The report on Engadget also states that you will recieve a £100 voucher refund if you purchased one in the last month, spoke to o2 this morning, and its not the case.:(
 
Hudzilla said:
The report on Engadget also states that you will recieve a £100 voucher refund if you purchased one in the last month, spoke to o2 this morning, and its not the case.:(
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yeah my friend rang apple store lastnight and they knew nothing about the price drop let alone any rebates :rolleyes: typical really they didnt know the release date of leopard til a week or so before in our local store
 
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