Lack of hype and Apple's stock going down

[drchipinski]

The ads plastered all over apple.com say "Twice as fast. Half the price."

That seems to match what Engadget has Steve Job's quoted as saying, which is "iPhone started off at $599 for an 8GB device, which now sells for $399 -- we want to make it even more affordable. I'm happy to tell you the 8GB model will sell for $199."

"We think the iPhone 3G will be affordable to almost everyone. 16GB model for $299 -- for that model we have a white one."

"The big news, is $399 to $199 -- we think we can check off more affordable.""

I mean, to me, that could't be any more obvious that "affordable", in the context that he used it, specifically referred to the price of the phone itself. Not the TCO.

In some circles, what Jobs said would not only get you fired, but could come with a heavy penalty. FTC.

If someone could walk up, buy the phone for $199 and not activate it, his "pitch" would be legal. But on the contrary, you cannot buy one without activation, so is he pinning the higher cost on ATT? Looks like it to me.

Either way...who cares? He is a marketing machine...so I understand him doing what he does.

I am bothered by people saying it is not a downgrade....when it is. No metal, no dock, higher monthly bill...and so on.

I will wait to see if ATT makes any moves regarding the monthly rate...if they stick to their guns, I will pass on this iphone.

 

[BongoBanger]

I don't understand the how people mix up the concept of a 50% MSRP decrease with the concept of TCO.

They're two totally valid, but totally different, concepts.

The original iPhone most recently sold for $399. The new iPhone 3G will sell for $199. $199 is "half the price" of $399. Period.

TCO is a valid point, and it should be considered, but it has nothing to do with the statement that the iPhone 3G is half the price. IMO, anyways.

Oh come on. It's damn good marketing but using the word 'affordable' implies TCO.

 

[semi5]

Report: half of prospective smartphone buyers eying iPhone 3G

http://www.appleinsider.com/articles/08/06/30/report_half_of_prospective_smartphone_buyers_eying_iphone_3g.html

 

[mark34]

In some circles, what Jobs said would not only get you fired, but could come with a heavy penalty. FTC.

If someone could walk up, buy the phone for $199 and not activate it, his "pitch" would be legal. But on the contrary, you cannot buy one without activation, so is he pinning the higher cost on ATT? Looks like it to me.

Either way...who cares? He is a marketing machine...so I understand him doing what he does.

I am bothered by people saying it is not a downgrade....when it is. No metal, no dock, higher monthly bill...and so on.

I will wait to see if ATT makes any moves regarding the monthly rate...if they stick to their guns, I will pass on this iphone.

OK, so I expect that I will buy a new iPhone every year. They will likely continue to allow iPhone upgrades with only the extension of your commitment required. The lower unit price of the hardware is beneficial in this case even with higher (more standard) service fees.

And the product is in no way a downgrade, it simply is not. I will take that back only if it turns out to look, feel, and/or operate like cr@p, but I highly highly doubt that will be the case and nothing, including history, indicates that it will. I love the iPhone, but couldn't come to grips with such a beautiful browser operating at Edge speeds. There is no question that the new 3G iPhone is natural evolution of a product that will continue to improve every year.

 

[aristobrat]

I am bothered by people saying it is not a downgrade....when it is. No metal, no dock, higher monthly bill...and so on.

That's subjective.

Obviously to you, the metal back, dock, and subsidized data plan mean a lot. I don't use the dock (it charges in my iHome radio), I put a case on mine (so I'll never see the back), and the higher monthly bill is no higher than when I had my Windows Mobile smartphone on Verizon (I find a value in being able to use an iPhone for the same price).

What's your favorite color? Maybe we can bother you by all not having the same one.

If someone could walk up, buy the phone for $199 and not activate it, his "pitch" would be legal.

Out of curiosity, how would you pitch that the price of an iPhone has gone from $599 to $399 to $199?

 

[ImNoSuperMan]

The ads plastered all over apple.com say "Twice as fast. Half the price."

IMO this one statement can definitely be termed misleading. They say TWICE AS FAST. I m sure they are talking bout the internet speed only. So they are promising faster internet while slashing the price to 50%. This is 100% lie. Arent they charging more for that TWICE FAST internet? In two years this will be about 240$. So correct statement should be:-

"TWICE AS FAST, JUST 40$ MORE"

instead of what they are telling in all their adverts. They are asking for extra 240$ in the next two years compared to the first iPhone, only for the faster internet. Then how can they claim they are giving away twice the bandwidth for half of price? I`d say this is very misleading advertisement. Poor Job from Apple marketing. I m disappointed.

 

[Teh Don Ditty]

IMO this one statement can definitely be termed misleading. They say TWICE AS FAST. I m sure they are talking bout the internet speed only. So they are promising faster internet while slashing the price to 50%. This is 100% lie. Arent they charging more for that TWICE FAST internet? In two years this will be about 240$. So correct statement should be:-

"TWICE AS FAST, JUST 40$ MORE"

instead of what they are telling in all their adverts. They are asking for extra 240$ in the next two years compared to the first iPhone, only for the faster internet. Then how can they claim they are giving away twice the bandwidth for half of price? I`d say this is very misleading advertisement. Poor Job from Apple marketing. I m disappointed.

Wrong. Apple isn't asking for an additional $240 or $10 extra a month, AT&T is. Apple's marketing campaign is correct. The phone is twice as fast and half the price. The plan is an extra $240 over the life on the contract.

 

[drchipinski]

That's subjective.

Obviously to you, the metal back, dock, and subsidized data plan mean a lot. I don't use the dock (it charges in my iHome radio), I put a case on mine (so I'll never see the back), and the higher monthly bill is no higher than when I had my Windows Mobile smartphone on Verizon (I find a value in being able to use an iPhone for the same price).

What's your favorite color? Maybe we can bother you by all not having the same one.


Out of curiosity, how would you pitch that the price of an iPhone has gone from $599 to $399 to $199?

I get his "pitch". But you can not claim that it will be more affordable to the masses when the actual cost (24 months...you know the routine) is more than last time.

Regarding my subjective view on the lack of a dock, no metal, etc. It bothers me because they (Apple) are like many other companies that cut corners and put inferior products out there compared to their past offerings. I am not saying Apple is doing this with this Iphone entirely, but cutting corners is cutting corners.

I remember the day that when Ipods actually came with an AC adapter!

If the phone feels as nice as it looks...and it looks sexy as hell, I will lean towards getting one.

Back to the monthly cost issue.....I have both VZW and an ATT Iphone. VZW's coverage and call quality BLOW ATT away in Northeast Ohio. Hence, my frustration over paying even more money for lack-luster service.

However, I am hoping that 3G will be an improved service over their current one.

 

[aristobrat]

Oh come on. It's damn good marketing but using the word 'affordable' implies TCO.

Oh come on, could he have been any more clear about the context in which he was using the term "affordable"?

How can you read the quote below and think he was referring to anything other than the price that's going to ring up on the cash register for people buying the iPhone 3G?

"iPhone started off at $599 for an 8GB device, which now sells for $399 -- we want to make it even more affordable. I'm happy to tell you the 8GB model will sell for $199."

"We think the iPhone 3G will be affordable to almost everyone. 16GB model for $299 -- for that model we have a white one."

"The big news, is $399 to $199 -- we think we can check off more affordable.""

 

[drchipinski]

Oh come on, could he have been any more clear about the context in which he was using the term "affordable"?

How can you read the quote below and think he was referring to anything other than the price that's going to ring up on the cash register for people buying the iPhone 3G?

"iPhone started off at $599 for an 8GB device, which now sells for $399 -- we want to make it even more affordable. I'm happy to tell you the 8GB model will sell for $199."

"We think the iPhone 3G will be affordable to almost everyone. 16GB model for $299 -- for that model we have a white one."

"The big news, is $399 to $199 -- we think we can check off more affordable.""

If ATT is footing the bill...until they pass it along to us, why didn't Apple just make the phones FREE?

FREE phones! Now that is more affordable!

 

[Teh Don Ditty]

If ATT is footing the bill...until they pass it along to us, why didn't Apple just make the phones FREE?

FREE phones! Now that is more affordable!

Like you would make the hottest device on the planet available for free. Give me a break.

 

[drchipinski]

Like you would make the hottest device on the planet available for free. Give me a break.

If ATT is paying the bill why not? Someone (us) will eventually pay for it.

Your comment states...Give me a break....that is how I feel about the nonsense regarding "we made it more affordable"

 

[Teh Don Ditty]

If ATT is paying the bill why not? Someone (us) will eventually pay for it.

Your comment states...Give me a break....that is how I feel about the nonsense regarding "we made it more affordable"

They dropped the effing price for christ sakes! $200 for an 8GB iPhone. If you told me that late last year, I would've said you're full of crap. $200 is cheap for a device that can make phone calls, play videos, play music, surf the real internet (sans Flash of course, but that's another thread), check email etc and you want it for free. Wow, just wow. They can get away with it in the UK and a few other places, but not here in the US my friend, we are too far behind the curve.

Hey you know what, I want a friggin' F22 Raptor for free.

 

[Scooterman1]

Maybe this is what they call 'New Math'.

 

[WhySoSerious]

Hey you know what, I want a friggin' F22 Raptor for free.

*cough* ...can i get one of those too please?

 

[ImNoSuperMan]

Wrong. Apple isn't asking for an additional $240 or $10 extra a month, AT&T is. Apple's marketing campaign is correct. The phone is twice as fast and half the price. The plan is an extra $240 over the life on the contract.

Then why is apple promising faster speeds? They are not providing the extra speed. AT&T is. Sounds ridiculous to me. Doesnt your explanation sound similar to you.

Apple is the one promising faster internet for lower price. They are comparing this iPhone with the last year`s iPhone. Now they are asking more in data plan only because this one is faster than the First iPhone. So atleast this one statement is nothing but a lie. They can say "twice better and cheaper". "Better" can include all the improvements including faster internet, GPS, App store which cumulatively increases its capabilities many fold, not just twice. But as far as FASTER for CHEAPER is concerned, its a lie. I cant get faster internet without that 3G data plan. To reach that FASTER speed I`ll need to shell out 240$ more than the current iPhone. So it in no ways is cheaper than the old iPhone. At best they can say FASTER WITH LOTS OF NEW FEATURES @ SAME PRICE. No way it can be claimed cheaper.

 

[NT1440]

i know quite a bit about economics. i would just like some kind of source showing the tie between gas prices (as you said) and apple's stock (as i own stock in apple).

show us the tie between there being "little hype" for the 3G and apples stock being slightly lower.....

everything is purely speculation, thats how the market works

 

[NT1440]

Then why is apple promising faster speeds? They are not providing the extra speed. AT&T is. Sounds ridiculous to me. Doesnt your explanation sound similar to you.

apple is providing the support for 3G so yes, Faster

 

[greenmymac]

I just wish they would say what freaking time they will release it in 10days!!!!

 

[aristobrat]

So it in no ways is cheaper than the old iPhone.

How is a $199 charge to your credit card for the purchase price of the iPhone 3G not 50% cheaper (or, as the Apple stuff states, "half the price") than the $399 charge to your credit card from when you bought the old one?

The purchase price of the iPhone 3g is absolutely cheaper than the old iPhone.

 

[drchipinski]

They dropped the effing price for christ sakes! $200 for an 8GB iPhone. If you told me that late last year, I would've said you're full of crap. $200 is cheap for a device that can make phone calls, play videos, play music, surf the real internet (sans Flash of course, but that's another thread), check email etc and you want it for free. Wow, just wow. They can get away with it in the UK and a few other places, but not here in the US my friend, we are too far behind the curve.

Hey you know what, I want a friggin' F22 Raptor for free.

I think they lowered the price so that they can continue to compete. There are not too many other phones that are in the $400+ range anymore. If Apple came out with another $600 phone, it would be safe to say they would not fly off the shelves.

I know we are behind in times...but to say the Iphone is cheap is very subjective. I can waltz into an ATT or VZW store right now and buy the latest BB for less than $100. Please do not tell me how crappy surfing the web is....I am in sales and travel every day....I do very little of any surfing. I need my emails, contacts, and calendar. The other items are all gravy.

 

[Mr Maui]

What are you smoking?

Are you honestly purposing that we switched from a gold standard to an oil standard as the basis of the value of the US dollar? Holy smokes...

Influenced by oil, absolutely. Based on oil, not a chance. It's a market economy, and oil is very important, but not the basis.

We did not switch to an "oil standard". That much is true. However ... We DID disconnect our country from the "gold standard". Prior to the separation in the early 1970s (or whenever it was), oil and gold used to moved in direct relation to each other. Then US politicians decided to separate America from the "gold standard" and since that time, oil and gold can move in completely opposite directions, or largely the same direction with no rhyme or reason. The dollar is influenced more by oil these days than gold.

Stock prices (and dollar values) generally regress as oil prices rise, and generally rise as oil prices fall. However, in the US, gold is no longer a safe-haven in a struggling economy.

Additionally, back in the early portion of the last century, all circulating American currency had to be backed by gold. Then it fell to 40% , and today, not one circulating dollar has to be backed by gold. Circulating US Federal reserve notes today are backed by more paper (i.e. government bonds and notes, and corporate stocks). And for those who are not aware, the Federal Reserve is made up of mostly foreign banks.

So while we are not on an OIL STANDARD, we are ALSO not on a GOLD STANDARD anymore.

 

[2002cbr600f4i]

They dropped the effing price for christ sakes! $200 for an 8GB iPhone. If you told me that late last year, I would've said you're full of crap. $200 is cheap for a device that can make phone calls, play videos, play music, surf the real internet (sans Flash of course, but that's another thread), check email etc and you want it for free. Wow, just wow. They can get away with it in the UK and a few other places, but not here in the US my friend, we are too far behind the curve.

Hey you know what, I want a friggin' F22 Raptor for free.

Oh, no problem... I'll just go down the street to the Lockheed Martin plant in Marietta where they're building it and grab one for ya...

Seriously though, I see the Raptors flying off the assembly line all the time.... That is one BAD *SS plane! Makes the F-16 chase plane look like a little toy.

(And yes, I work for Lockheed)

 

[greenmymac]

I don't what the anti iphone media has to say... they forget to see what happened whent he 1st gen iphone was released.... every carrier has adopted some sort of touch device when before it was rare ( except for crappy palm )

 

[ImNoSuperMan]

How is a $199 charge to your credit card for the purchase price of the iPhone 3G not 50% cheaper (or, as the Apple stuff states, "half the price") than the $399 charge to your credit card from when you bought the old one?

The purchase price of the iPhone 3g is absolutely cheaper than the old iPhone.

Yup. But the so called FASTER INTERNET is not. You have to pay extra for that. I m not taking into account anything else but this line. Otherwise I can easily argue that this is what AT&T charges for all its 3G data plans. But its this one line advert from apple which makes you think you are getting the twice faster bandwidth while only paying half as much. Which certainly not the case. Hence the reason I think this one line is very very misleading if not exactly a Lie.