Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

So the Touch price should drop soon, right?

M

mikeyg00

macrumors newbie
Original poster
Jan 14, 2008
20
0
Seems like the Touch price should drop soon, if you can get a 16 GB phone for $299 .....??

I can't believe they haven't been adjusted already.

I suppose there are some who don't want to the phone ... but personally I don't like carrying separate devices for phone and music.
 
possibly a reason why they're including the Touch in the Back to School promotion this year...?
 
the iPhone is being subsidized by AT&T when you sign a 2 year contract, that's why it is that cheap. This does not necessarily mean that the iPod touch will go down in price, and it probably won't, Apple needs to maintain its profit margins across the board, it can't lower all its prices just because the iphone is subsidized. The cheaper price is because you're signing a 2 year contract.
 
Subsidy or not, I think Apple sales of the Touch will go down ... you have to believe that at least 50% of the Touch market (conservative guess) has considered the iPhone. And now that it's more affordable (it could be argued that it's a 'wash' given that the phone plan rates have increased, I know) why not get the phone as well, and carry only one device?
 
I dont see the Touch coming down... The iPhone is only cheap on contract... When the 02 pay & go is released it will most likely to be normal iPhone prices (8GB = £269) because 02 wont b paying the difference for you!
 
mikeyg00 said:
Subsidy or not, I think Apple sales of the Touch will go down ... you have to believe that at least 50% of the Touch market (conservative guess) has considered the iPhone. And now that it's more affordable (it could be argued that it's a 'wash' given that the phone plan rates have increased, I know) why not get the phone as well, and carry only one device?
Click to expand...
because, as has been said many many times, one has a long term contract attached, and the other does not.
 
mikeyg00 said:
Subsidy or not, I think Apple sales of the Touch will go down ... you have to believe that at least 50% of the Touch market (conservative guess) has considered the iPhone. And now that it's more affordable (it could be argued that it's a 'wash' given that the phone plan rates have increased, I know) why not get the phone as well, and carry only one device?
Click to expand...

Since the iPhone is limited to a specific carrier, the iPod Touch remains important in the line up. Some people will not change carriers. Some people will not pay monthly fees. More than some really.
 
Donz0r said:
the iPhone is being subsidized by AT&T when you sign a 2 year contract, that's why it is that cheap. This does not necessarily mean that the iPod touch will go down in price, and it probably won't, Apple needs to maintain its profit margins across the board, it can't lower all its prices just because the iphone is subsidized. The cheaper price is because you're signing a 2 year contract.
Click to expand...

It isn't subsidized by AT&T.

If you buy it from Apple it's $199, if you buy it from AT&T it's $199. Either way, Apple gets all of that money.

There is no longer revenue sharing between AT&T and Apple, so please explain how it is subsidized.

Note: A subsidized phone would charge more over the course of a contract to help cover the lower price of a phone. (see iPhone on O2 in the UK...free) AKA, a provider pays X dollars for a phone from a manufacturer. They then sell it for X-Y. They make up Y dollars over the course of the contract and use that money to pay back the manufacturer. That is not the case here since the price on the phone is not lower and no additional money is going to Apple.
 
mikeyg00 said:
Seems like the Touch price should drop soon, if you can get a 16 GB phone for $299 .....??

I can't believe they haven't been adjusted already.

I suppose there are some who don't want to the phone ... but personally I don't like carrying separate devices for phone and music.
Click to expand...

Pay no attention to the iPhone price because of the contract agreement. Apples to oranges.

But what could cause a price cut is if Apple sees very very very good business from the App Store and decides to make less of a profit on the iPods in order to make more on apps. This is probably why those smaller form factor patents are in the works. They may totally kill all non-Touch iPods aside from the Shuffle so all new iPod buyers will have the option to buy apps.

I would also count on a storage upgrade before a price cut.
 
edesignuk said:
because, as has been said many many times, one has a long term contract attached, and the other does not.
Click to expand...


I've had long term contracts for 10 years with different carriers. Why is this so different? Odds are their current phone is on a two year contract already.

There are several Touch users at my office who are itching for July 11th to get the new iPhone.
 
Michael CM1 said:
Pay no attention to the iPhone price because of the contract agreement. Apples to oranges.

But what could cause a price cut is if Apple sees very very very good business from the App Store and decides to make less of a profit on the iPods in order to make more on apps. This is probably why those smaller form factor patents are in the works. They may totally kill all non-Touch iPods aside from the Shuffle so all new iPod buyers will have the option to buy apps.

I would also count on a storage upgrade before a price cut.
Click to expand...

And if iTouch sales slow, this is exactly what they will do ...

I think they priced them such that the 2 products shouldn't stomp on each other *too* much. But I truly see the demand for the Touch going down soon.
 
I will never buy an iPhone because the monthly rates are so high. The total cost of an iPhone is something like $2000. The iPod touch is a bargain by comparison.
 
earnjam said:
It isn't subsidized by AT&T.

If you buy it from Apple it's $199, if you buy it from AT&T it's $199. Either way, Apple gets all of that money.

There is no longer revenue sharing between AT&T and Apple, so please explain how it is subsidized.

Note: A subsidized phone would charge more over the course of a contract to help cover the lower price of a phone. (see iPhone on O2 in the UK...free) AKA, a provider pays X dollars for a phone from a manufacturer. They then sell it for X-Y. They make up Y dollars over the course of the contract and use that money to pay back the manufacturer. That is not the case here since the price on the phone is not lower and no additional money is going to Apple.
Click to expand...
The last paragraph is perfect but the bolded paragraph is where you've gone wrong. Apple is not charging $199/$299 for the iphones. Apple are charging AT&T considerably more (and is where Apple are making a profit themselves on the phones), and AT&T are in turn are subsidising and selling the phone at $199/$299. The difference between what Apple charges AT&T, and what AT&T charges the customer, as you quite rightly point out, is made up (with a profit) over the course of the contract with AT&T.
 
I was thinking so, but now im not sure, Apple may want more people to buy iPhones so they will sign a contract as then Apple starts getting 10% of your bill (assuming they will have revenue sharing between Apple and the network/carrier, of course).
 
PowerFullMac said:
I was thinking so, but now im not sure, Apple may want more people to buy iPhones so they will sign a contract as then Apple starts getting 10% of your bill (assuming they will have revenue sharing between Apple and the network/carrier, of course).
Click to expand...
From the macrumors frontpage story;

AT&T's iPhone 3G Data Plan and No Longer Revenue Sharing
Meanwhile, AT&T reveals that Apple will no longer receive the revenue sharing from each users plans. It was highly publicized that AT&T paid Apple a portion of its monthly recurring service charges for each iPhone user. Under the new agreement, there is no revenue sharing. AT&T is presumably directing that money towards the $200 subsidy for the iPhone.
Click to expand...
 
brinycbri said:
no, there is no contract to buy a touch, and that contract is worth 200+ in subsidies
Click to expand...

TBH I have no idea how the new system works, but if Apple will still end up getting money from the carrier then they will probably not drop iPod touch prices, if they dont then they most likley will.
 
Please can this thread be closed!

Know one knows what is going to happen. Everyone as expressed their views and i think it should be left now!
 
PowerFullMac said:
TBH I have no idea how the new system works, but if Apple will still end up getting money from the carrier then they will probably not drop iPod touch prices, if they dont then they most likley will.
Click to expand...
Why is this so hard to understand (I'm not just talking to you, many don't seem to "get it").

Apple still sell the iPhone at a cost above the $199 AT&T retail it for.

AT&T no longer have to share revenue made from customer contracts with Apple, there for they are able to subsidise the cost of the handset (letting them sell for $199 even though they're almost certainly paying substantially more to Apple for the unit), because they know that they will claw this money back with the customers they gain, the increased 3G data charges, other services costs, and so on. This is exactly the same as it works with every other handset manufacturer.

None of this effects what Apple charge for a simple piece of hardware like the Touch involving a one off purchase price with no further commitments.
 
PowerFullMac said:
In that case, the price may go down for iPod touches as Apple dosent gain much extra from iPhones with no revenue sharing.
Click to expand...
But they do - Apple have just switched their iPhone model. Instead of making a profit on the sale of the phone to the consumer and through revenue sharing, Apple are now making a profit from each handset that they sell to the telecom companies.

This decision might have come from problems such as difficulties arranging revenue-sharing contracts worldwide, too many people jailbreaking their phones, or any such combination. Either way Apple have decided they stand to make more money shunning the revenue sharing model.


edit: beaten badly by everyone ^^^^.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back