There has GOT to be something we can do about AT&T...

[99X]

you know what you could do? stop whining!

AT&T is the reason the phone is 199 now, they are paying (subsidizing) for the majority of the phone and LOSING MONEY on it. They arent expected to turn a profit for two years from this deal.

I'm sorry, but you're completely wrong. They are not losing money on it at all. They are raising the rates so that they get back that money and then some. Companies don't do this to be nice, they do it to get more customers in contracts.

 

[Mad Mac Maniac]

EXACTLY... I just don't understand a complete lack of understanding business seen in so many posts on this subject. "I want every new feature under the sun, I want 1,000 hours battery life, i want it cheap, and oh by the way I want unlimited data and calls for $10 a month"

But i'm not asking for everything under the sun. There are TWO things I want. Better camera and the old data plan.

I don't see what is so hard about those 2 things. I mean the data plan has been used for the last year so that seems realistic and the camera upgrade wouldn't be that difficult, I mean there are much worse phones with much better cameras...

 

[Mad Mac Maniac]

Plus, supposedly at&t is keeping ALL of the reveues from the plan. This = more money for at&t...

- $200 subsidy
+ $240 extra from higher data plan
+ $120 to get 200 text plan which was previously included
+ $whatever what previously given to apple

AT&T = + $160 PLUS the revenues apple used to receive

I'm sure that it ends up being over $200 more that at&t is getting from this, so now the question is does it really cost $200 more to keep the 3G running??....

 

[aristobrat]

I'm sorry, but you're completely wrong. They are not losing money on it at all. They are raising the rates so that they get back that money and then some. Companies don't do this to be nice, they do it to get more customers in contracts.

AT&T seems to see it a little differently.

Probably because when someone buys a iPhone 3G, AT&T loses $200 from the get go. (Gene Munster from Piper Jaffray said that it costs AT&T $400 to buy the 8GB iPhone 3G from Apple). AT&T will make up that $200 loss over the lifetime of the customers contract.

When someone bought the old iPhone, AT&T didn't lose a bunch of money up front -- they shared their revenue with Apple over the lifetime of the customers contract.

Just a guess.

In the near term, AT&T anticipates that the new agreement will likely result in some pressure on margins and earnings, reflecting the costs of subsidized device pricing, which, in turn, is expected to drive increased subscriber volumes. The company anticipates potential dilution to earnings per share (EPS) from this initiative in the $0.10 to $0.12 range this year and next, with a 2008 adjusted consolidated operating income margin of approximately 24 percent and a full-year 2008 wireless OIBDA margin in the 39-40 percent range. As recurring revenue streams build without any further revenue sharing required, AT&T expects the initiative to turn accretive in 2010.

http://www.att.com/gen/press-room?pid=4800&cdvn=news&newsarticleid=25791

 

[aristobrat]

so now the question is does it really cost $200 more to keep the 3G running??....

Google for how many billions of dollars AT&T's invested into it's 3G network. Then Google the stat that shows that iPhone users use data way more than other phone owners. Be interesting to see...

I was going to, but it's lunch time, and I'm hungry.

 

[Mad Mac Maniac]

Google for how many billions of dollars AT&T's invested into it's 3G network. Then Google the stat that shows that iPhone users use data way more than other phone owners. Be interesting to see...

I was going to, but it's lunch time, and I'm hungry.

but doesn't the fact hat at&t is the EXCLUSIVE carrier of the iphone count for anything? I thought that was why the original data plan only cost $20 in the first place!

 

[DavidLeblond]

you know what you could do? stop whining!

AT&T is the reason the phone is 199 now, they are paying (subsidizing) for the majority of the phone and LOSING MONEY on it. They arent expected to turn a profit for two years from this deal.

Heh, I promise you AT&T is not losing a penny on this deal. Yes, each customer is a liability but one that is guaranteed to pay out, and in the long run bring in a crapload more moolah.

AT&T knows what they're doing, I'm sure they didn't have to have their arms bent back to pursue THAT subsidy.

 

[citron230]

but what if i really really want it!!? and have been planning on buying it for 2 months now!!!

then buy it and don't complain. you know what the costs are.

 

[103734]

you know what you could do? stop whining!

AT&T is the reason the phone is 199 now, they are paying (subsidizing) for the majority of the phone and LOSING MONEY on it. They arent expected to turn a profit for two years from this deal.

WRONG!!! Even the first gen iPhone cost under $200 to make and this phone is even cheaper to make than the first gen was when it was released.

 

[aristobrat]

WRONG!!! Even the first gen iPhone cost under $200 to make and this phone is even cheaper to make than the first gen was when it was released.

What does how much it costs Apple to make the iPhone have to do with AT&T?

AFAIK, for the first gen phones, AT&T bought them from Apple at $399 each, and then turned around and sold them for $399 each.

For the second gen phones, AT&T's buying them from Apple at $400 each, and then turning around and selling them for $199 each. (At least that's what one analyst is saying)

 

[jrbdmb]

Email Holy Steve, he can change AT&t

 

[joekun]

Jobs said that 56% of people who wanted iphones didn't buy them due to the price. I was one of those people, but it wasn't the price of the phone, but the price of the service compared to my current plan that stopped me. Are people who couldn't afford the iphone at $400 really going to jump all over it now that it's $200 with a $90 monthly bill ($40 voice + $30 data +$5 Text +$15 tax)? I just don't follow the reasoning.

 

[NT1440]

I'm sorry, but you're completely wrong. They are not losing money on it at all. They are raising the rates so that they get back that money and then some. Companies don't do this to be nice, they do it to get more customers in contracts.

Of course they are going to make money on it, otherwise they wouldnt have done it, but theres something people just cant understand about companies exsisting for profit, and i really dont get it.

 

[Jschultz]

ROFL!! That's awesome, and pretty much illustrates how some people see him in this community!