This will happen here in Canada. Apple has already increased the iPhone 5s to $229 and with our dollar dropping I can see this happening. If it does, no more iPhones for me. With phones and plans increasing, I'll have to go Android and get a budget phone. Not to mention everything is starting to go up here, PS4 now $449, games are now $69.99, and so on. It's only a matter of time until Apple already increases the increased prices on there products here.
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iPhone 6 starting at $299
- Thread starter luckydcxx
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This will only happen if the lowest model has 32gb. 16gb for $300 will be too much for most to swallow. Apple sales will definitely suffer.
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Two. That's the mentality of a juvenile who sees his phone as a status symbol and not a communicating device.
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Two. That's the mentality of a juvenile who sees his phone as a status symbol and not a communicating device.
I don't think att doubled down. They know their internal stats. Sure some people like a co worker who just upgraded (subsidized) all 5 of her lines in the past 3 months made off like bandits switching over to the new mobile share and saving money. So she got subsidized pricing plus the $160/10gb data 4 line savings.
But most people are somewhere in between.
I meant 'doubled down' in that they believed enough in the non-subsidized model to provide a strong financial incentive to switch now. They are jumping in with both feet where Verizon is clearly hedging.
I'm sure they ran all the numbers and had a lot of heated discussions about it. And ultimately they felt they could generate more revenue with this model. It'll be interesting to see how it plays out. I can see both sides of subsidy vs. non-subsidy model.
And I'm sure the device manufacturers are anxious too. The US smartphone explosion couldn't have happened if people were paying for their device upfront. The subsidy model maximized sales and provided a cheap incentive to upgrade.
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I think you need to sit down with a bottle of single malt and reevaluate your life. If you need a smartphone for that kind of gratification or to feel superior something else is probably wrong. People who actually have money (not wannabes who like to make people think they do) don't look towards smartphones to show it off. That's what Bentleys, yachts and Tag Heuers are for.
The subsidy model favored the USA carriers for the longest time until they all felt they had to subsidy the high end phones (esp iPhone) at the $199 price for lines 2-5.
You see carriers are their own worst enemy in the USA. In the mid 2000s with race for highest number of subscribers. It was the growth of family lines. Those $9.99 add on lines. It looked good to investors if verizon att etc bragged about more subscribers.
But even verizon stopped reporting average revenue per subscriber 18-24 months ago. Because that number kept going lower. It's because 60% of Americans are on family plans.
So they are giving $400-450 subsidies to lines 2-5 which don't generate as much revenue as line one.
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The note 2 and note 3 both sold for $299 on contract with the carriers.
$299 may work but the note 2/3 doesn't sell in the same volume as the S3/4 with the $199 pricing model with 2 year contract.
With how much the cost of storage has plummeted over the past few years, 32GB should have been the base model for the 5. That you're all still willing (and somewhat eager) to spend $100 extra on the 6 is crazy.
If you had read my entire post, you'd notice I'm averse to the price increase. Heck, I'd actually like to see Apple go back to pre-subsidy pricing ($399-499 for base model). The presence of subsidies artificially inflated smartphone pricing. Hopefully, T-Mobile and AT&T's recent push for Jump/Next would help towards adjusting phone prices to something more reasonable.
Yep. Has to be Rolex.
Everyone has a rolex so that would be too mainstream for the person I quoted. If not a Tag Heuer then one of the many brands on here
http://en.worldtempus.com/watch-brand
Apple supposedly pushed for subsidies, yet it was suggested that prior that that point they had a profit sharing arrangement on the iphone. If you want pre-subsidy pricing, you should look to Apple, not your carrier.
I'm not surprised. I think people will pay it, especially since Apple's 4.7" display is equivalent to Samsung's 5.7" display on the Note...it's very large for Apple.
iPhone 6 starting at $299
How often are analysts right? Even the ones that get it right sometimes generally have awful track records.
How often are analysts right? Even the ones that get it right sometimes generally have awful track records.
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You are right about ATT taking a chance. But, this as all by design. The subsidies will be gone very soon. Lower prices on mobile share plans, the next program, these are all programs to move towards eliminating subsidies. At the rate ATT is moving it would not surprise me at all if they were done with subsidies before the iPhone 6 is released, for sure done by the time of iPhone 7. People better get ready to pay full price, or get ready to finance a phone, and finance charges will come too.
Yeah, I know the high prices are due to Apple. However, without subsidies, I doubt smartphone adoption in the US would have gone as quickly. Smartphone sales, the iPhone in particular, wouldn't be as high either. AT&T cutting subsidies has a strong potential to lower iPhone sales in the US either due to users buying less expensive phones or taking a longer time between upgrades. The iPhone has unusually high market penetration in the US because of subsidies. Without it, Apple might have to cut prices in order to maintain sales.