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T-Mobile Germany Offering Subsidized iPhones with 2 Year Contract
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why subsidize the iphone?
The biggest mistake Apple has made in years was when they dropped the 8 gig from $600 to $400. This made it very inexpensive for world citizens to buy the iphone in US and export it, costing Apple $200 on each sale. Now, MILLIONS of phones are being exported in this fashion, losing Apple hundreds or thousands of millions of dollars and leading to supply shortages in the US, further cutting into profits. They tried to make up for this in other markets by raising the phone's price, but nobody's biting.
The correct strategy would have kept the sale price at $600 but given a rebate with 2 yr contract. This effectively gives the "legit" purchaser a $400 phone, but the Nigerians will pay 50% more. That's what the German rebate experiment is all about.
The biggest mistake Apple has made in years was when they dropped the 8 gig from $600 to $400. This made it very inexpensive for world citizens to buy the iphone in US and export it, costing Apple $200 on each sale. Now, MILLIONS of phones are being exported in this fashion, losing Apple hundreds or thousands of millions of dollars and leading to supply shortages in the US, further cutting into profits. They tried to make up for this in other markets by raising the phone's price, but nobody's biting.
The correct strategy would have kept the sale price at $600 but given a rebate with 2 yr contract. This effectively gives the "legit" purchaser a $400 phone, but the Nigerians will pay 50% more. That's what the German rebate experiment is all about.
This is utter ******** in my opinion because Apple now has sold many and many more phones that it would if it kept it at $600. Those extra phones sold for $400 make up more then enough for the $200 less. Remember that Apple still makes profit on the $400 phone wether they get revenue profits or not.
I think that's a nonsense argument. "Millions"? Really. To import a phone from the US costs us local sales tax, shipping and then import duty. This doesn't put off some people but it's enough to make sure millions of people aren't doing it.
The shortages in the US are likely down to something else.
$200 rebate
With a $200 rebate and a $600 price, legit buyers would only pay $400. The foreigners would still find $600 a bargain, especialyy with the devalued dollar of today.
With a $200 rebate and a $600 price, legit buyers would only pay $400. The foreigners would still find $600 a bargain, especialyy with the devalued dollar of today.
The sticker price of $600 is psychologically very bad.
I'm not sure you have a full grip on how marketing and economics work.
Then the dollar was more worth, and Steve never had the phone as $600 in mind, it was always $400. Now I could imagine another price drop in june. Imagine the upset people for more then 200$ dollar price cut. You have no knowledge in this at all sorry to say it. I'm so sick of all the new people on the forums who think they have the wisdom lying in their hands.
My thought exactly
My thought exactly
ATT subscription gap
Do you really believe that those 1.5 million iphones sold in the US but not signed with ATT were just sitting around? They were all taken to nations where there was no official carrier. AND I bet April 23 Apple will report that number has DOUBLED! or more.
Do you really believe that those 1.5 million iphones sold in the US but not signed with ATT were just sitting around? They were all taken to nations where there was no official carrier. AND I bet April 23 Apple will report that number has DOUBLED! or more.
And so what, those phones still make profit for Apple. Those phones really might not have sold at all if the price was $600. Get a grip.
If it was only marketed in the EU it would have to be certified to get a CE mark, so you'd probably get advance notice that way too.
This offer is limited to 25.000 iPhones.
Now you know, how many iPhones are still unsold and standing in their shelfs...
Maybe they should just send those phones to the US, our stores are out and they are not selling them. At least they will go to a good home here where they will be feed and kept warm and cozy.
LOL
I voted this a negative. They need to decrease the price of their contracts, not give a one-time price cut on the phones.
pricing blunder
Here's where Steve erred. Due to a bit of "overconfidence" Steve underestimated the ease with which the phone could be unlocked. The fact that the phone was locked to a specific carrier was the only thing that makes the phone valuable to the carrier. Once the phone was unlocked, the carriers lost interest in Steve's terms. Once unlocked, phones are taken to out-of-network countries losing Apple revenue as well as bargaining power with new carriers. If the phone is easily unlocked, the only thing to tie the phone to a carrier is a REBATE in exchange for a contract.
THEREFORE- expect to see the 3G iphone exorbitantly priced but with a substantial rebate in exchange for service agreement. That's how Apple should have done the $200 price drop. Don't all you marketing experts agree?
Here's where Steve erred. Due to a bit of "overconfidence" Steve underestimated the ease with which the phone could be unlocked. The fact that the phone was locked to a specific carrier was the only thing that makes the phone valuable to the carrier. Once the phone was unlocked, the carriers lost interest in Steve's terms. Once unlocked, phones are taken to out-of-network countries losing Apple revenue as well as bargaining power with new carriers. If the phone is easily unlocked, the only thing to tie the phone to a carrier is a REBATE in exchange for a contract.
THEREFORE- expect to see the 3G iphone exorbitantly priced but with a substantial rebate in exchange for service agreement. That's how Apple should have done the $200 price drop. Don't all you marketing experts agree?
exactly what I thought!
T-Mobile really knows how to ignore their customer and the customer´s desired.
You know my answer. See my previous posts above.
As for bargaining power. Apple has never been in a stronger position. If you're not feeling that now, wait until firmware 2.0 lands and the 3G iPhone is released. The other carriers and phone manufacturers, if not worried before, certainly will be then.
The mobile phone industry is now the mobile internet communicator industry (I acknowledge the lower end mobile phones aren't included in all this but they're typically on lower priced tariffs/PAYG). People who actually own iPhones will know what I mean.
Yes, this one is also new: 29 EUR/month, 50 minutes included, no SMS included, 500GB data transfer included (100GB from summer 2009 on)."249 euro iPhone with Complete S"
is this true????? I don't see a way to configure any iphone with the S package - only M and up.
The main thing stopping me getting a iphone, is the high monthly cost - wish we could order with a cheapo tarrif.
Edit: Oh, and no hot-spot flatrate included anymore!
I am from Germany, and the reason why the sell-trough of the iPhone sucks here, is plain simple: The iPhone service plans plain suck here in Germany, and are absolutely uncompetetive in contrast to service plans of other carriers here.
The basic problem is, that there are too few "free minutes" and too few SMS/Text to begin with. Basically nobody would want to sign up for that... T-Mobile in Germany basically sucks.
For example,the cheapest service plan up to now:
For 49,- EURs a month you get 100 Minutes and 40 SMS - sorry, but thats completely pathetic. Compare it with AT&T service plan: For $59 you get 450 Minutes and 200 SMS/Textmessages. I mean, come on. Or just compare the service plan with the ones from O2 in England..
iPhone sucks in Germany. That's why I bought an unlocked one in France (what a hassle it was.. but nonetheless I got one) and use BASE with it.
Oh and the best thing: The same T-mobile is offering better service plans in Austria. Now try to get behind that logic.
The basic problem is, that there are too few "free minutes" and too few SMS/Text to begin with. Basically nobody would want to sign up for that... T-Mobile in Germany basically sucks.
For example,the cheapest service plan up to now:
For 49,- EURs a month you get 100 Minutes and 40 SMS - sorry, but thats completely pathetic. Compare it with AT&T service plan: For $59 you get 450 Minutes and 200 SMS/Textmessages. I mean, come on. Or just compare the service plan with the ones from O2 in England..
iPhone sucks in Germany. That's why I bought an unlocked one in France (what a hassle it was.. but nonetheless I got one) and use BASE with it.
Oh and the best thing: The same T-mobile is offering better service plans in Austria. Now try to get behind that logic.
import us phone to germany
so, how much money could I save by buying iphone in US, unlocking it, bringing it to Germany, and signing up for a cheap, non-iphone service plan? THAT'S how much higher the US price point should be! By the way, I had my daughter stand in line for me June 29 and I still think my phone is worth $600! AND, I want you bastards who are getting the next version to pay through the nose. LOL
so, how much money could I save by buying iphone in US, unlocking it, bringing it to Germany, and signing up for a cheap, non-iphone service plan? THAT'S how much higher the US price point should be! By the way, I had my daughter stand in line for me June 29 and I still think my phone is worth $600! AND, I want you bastards who are getting the next version to pay through the nose. LOL
Yes, its the same company and for only 6 €/month more you´ll get
40 times more free minutes and
25 times more free SMS
You got it?
So, does T-Mob Germany cause 40 times more costs ??
Or is the margin 40 times higher ???
do what you want, but i think your AT&T service plan ist very nice and affordable. ^^
This whole situation is mental. Everyone and their dog knows an updated iPhone (of variety) is coming soon but no word from Apple.
The cash set aside for an iPhone is glowing. Glooowiing.
Btw subsidized iPhones should come to the UK. It isn't doing too well here since we're pretty much used to subsidized phones.
The cash set aside for an iPhone is glowing. Glooowiing.
Btw subsidized iPhones should come to the UK. It isn't doing too well here since we're pretty much used to subsidized phones.
Sorry for OT:
If you - like me - bought an iPhone not more than 4 weeks ago, you´ll get a 100 credit note from t-Mobile Germany.
If you - like me - bought an iPhone not more than 4 weeks ago, you´ll get a 100 credit note from t-Mobile Germany.