[Singapore news] iPhone analyst speculations.

Discussion in 'iPhone' started by alvintwj, Jun 16, 2008.

  1. alvintwj macrumors member


    May 11, 2008
    I'm sick and tired of Analyst speculations.
    I thought the price of the 8GB model is 199USD worldwide?
    Oh my.
    They just don't bother to watch WWDC Keynote.

    Analysts predict it will be priced between $500 and $1,000 for the 8GB model initially
    By Tham Yuen-C

    The bad news first: When Apple's 'souped up' iPhone model hits Singapore later this year, first-off-the-block seller SingTel is unlikely to throw in a hefty subsidy.

    But the good news is that once the other major telcos - StarHub and M1 - get their hands on the coveted 3G touchscreen cellphone, prices are likely to fall.

    Analysts here gave this crystal-ball prediction.

    In the United States, the 8GB model is priced at US$199 (S$274), while the 16GB model goes for US$299.

    In Britain, the iPhone 3G is even being given free to mobile subscribers who sign two-year contracts.

    SingTel, which will be the first here to sell the phone, is keeping mum on its pricing.

    But telco analysts and market watchers believe the phone will not be cheap initially. They predict the price will be between $500 and $1,000 for just the 8GB model.

    In the US, the low pricing is possible because of heavy subsidies by AT&T, which analysts have pegged at about US$250 per phone.

    Subsidies are a lure to allow phones to be cheaper for consumers willing to sign term contracts.

    Here, telco subsidies typically range from $100 to $500. But the more popular a model, the less subsidy is needed. Since the iPhone 'sells itself', it is not likely to be heavily subsidised.

    Already, Vodafone in Italy has taken that stance. It will sell the phone for 499 euros for the 8GB version and 569 euros for the 16GB one, approximately $1,058 and $1,206 respectively.

    SingTel's pricing will probably be similar, according to a report from research house Casenove.

    'It will likely be offered with as little subsidy as possible initially, since there will be users out there who just must have the iPhone,' said its analyst Lai Voon San.

    In Britain, O2 will give away the 8GB iPhone free to customers who sign up for its high-end phone plan that will cost at least &pound45 (S$120) a month.

    But in Singapore, SingTel and the other telcos will likely take a different tack.

    Analyst Melissa Chau from research firm IDC said the phone will probably be priced to be competitive with other models in the same high-end category.

    For example, the Samsung Omnia with 16GB of memory, seen as a direct rival to the iPhone, will sell for $1,098 here later this month.

    In Britain and Australia, expensive devices are heavily subsidised to entice subscribers to long-term contracts, said Mr Nathan Burley, an analyst from British-based research firm Ovum.

    But in Singapore, customers are usually willing to sign long-term contracts with phone providers anyway.

    Mr Burley's prediction is that the iPhone will go on sale here for at least $500.

    Both StarHub and M1 have indicated that talks are under way for the telcos to bring in the iPhone 3G too.

    Prices will then likely be more competitive.

    'When the other operators come on board, they will be later in the game, and will probably offer higher handset subsidies,' said Mr Lai.

    'And SingTel has shown that it can react very quickly to competition, so it could cut prices too,' he added
  2. JBaker122586 macrumors 65816

    Jun 21, 2007
    If these "analysts" did their research, they'd know the Spanish Vodaphone price is for PAYG, and therefore will not be subsidized like the contract model they will also offer.
  3. samab macrumors 6502a

    Mar 27, 2006
  4. DenniZ macrumors 6502a

    Oct 5, 2007
    Liverpool, UK
    Btw, you may want to correct it, as UK customers are only commited to a 18 month contract not two years.

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