Why doesn't ATT lower the cost of IPHONES?

Discussion in 'iPhone' started by rxl125, Feb 26, 2008.

  1. rxl125 macrumors regular

    Apr 15, 2006
    They make their money on service plans, not phones. Why not make the Iphone $250 and get a ton of new people sign up? Of course they would pay apple the cost of the phone, but they'd make it up in the long run. Right now they are "exclusive", but they don't seem to be taking advantage of it. I work with 100's of teachers, only 1 person has an iphone.
  2. DuFFy macrumors regular

    Dec 8, 2007
  3. Jeremy1026 macrumors 68020


    Nov 3, 2007
    Because Apple sets the pricing on the phone, that was part of their exclusive agreement. Apple has all the power over the price, software, marketing. Where AT&T sells the plans.
  4. Drumjim85 macrumors 68030


    Oct 7, 2007
    DFW, TX
    because the part of the monthly bill that would normally go to cover a phone is now going to apple ....
  5. kfordham281 macrumors 6502

    Dec 4, 2007
    True dat. AT&T gave up a lot of control to Apple vs. a traditional phone manufacture (Moto, Nokia, etc). Judging by their latest quarterly results it's paying off too. They have taken in a larger number of new customers where the other carriers are stagnant or loosing subscribers.
  6. gloss macrumors 601


    May 9, 2006
    Agreed with everyone here. Apple is firmly against the carriers subsidizing the cost of the phone because that effectively devalues the hardware (which is, in fact, valuable) and overvalues the service (which is NOT particularly expensive).
  7. kdarling macrumors P6


    Jun 9, 2007
    First university coding class = 47 years ago
    No, it turns out to be bad for AT&T. Over half their new subscribers are GoPhone users, who don't spend squat.

    Verizon, on the other hand, gained many more contract subscribers, and thus Verizon made more income than AT&T.
  8. kfordham281 macrumors 6502

    Dec 4, 2007
    GoPhone users don't have anything to do with iPhone users though. Just because they are attracting a lot of GoPhone users doesn't take away the fact that the iPhone is bringing them customers (where data cost is increasing the average iPhone bill above their other users). You are correct though about the GoPhone users being over 50% of the new customers in the quarter.
  9. ViPa macrumors 6502a

    Dec 4, 2007
    i work at att...you dont know how many people come from verizon just for the iphone..it is a HUGE advantage over other carriers
  10. SFStateStudent macrumors 604


    Aug 28, 2007
    San Francisco California, USA
    I agree...

    Verizon is competing with Sprint and not AT&T & the Apple iPhone. Their touchscreen phones are cheap and cheezy in comparison with the iPhone. Try holding one of "their" phones, after owning an iPhone; you'll also find the navigation on their phones is confusing, after the iPhone experience. Both of their touchscreen phones seem like they were put together to compete with the iPhone, and for some reason they forgot about "good craftsmanship" just to get something on the market. IMHO... :cool:
  11. ert3 macrumors 6502a


    Dec 10, 2007
    You do know it cost $320 dollars to make the iPhone around the day of release and around $230 now (this includes not only parts but also the labor involved and shipping).

    Its apple's call to lower the price and they won't until it is significantly cheaper to produce the iPhone
  12. SilentLoner macrumors 65816


    Dec 29, 2007
    I assume gophone is a payasyou go style phone. If thats the case then gophone users are still valuable because the users who will eventually mature to getting a contract phone will more than likely move to a network they are familiar with. Its a long term strategy but it does work. Look at t-mobile in the uk for an example.
  13. DiamondMac macrumors 68040


    Aug 11, 2006
    Washington, D.C.
    As long as iPhone sales are solid, why should they? They want to make as much money as possible

    When iPhone sales start to slip, expect a drop to occur as already have been rumored
  14. ~*allison*~ macrumors regular

    Feb 17, 2008
    Somewhere You've Never Heard Of, NJ
    I did. I was with Verizon for 9+ years, and wanted to try the iPhone. I love it btw. Verizon and AT&T both have comparible service where I live/travel, otherwise I would've suffered with my WinMo handset and stayed with them. :p
  15. powerbook911 macrumors 68040


    Mar 15, 2005
    Yep. A lot do switch. I switched from T-Mobile. Plus I gave away a phone, and she switched because of that from Verizon.
  16. kdarling macrumors P6


    Jun 9, 2007
    First university coding class = 47 years ago
    Perhaps, perhaps not. Verizon still has less customer churn than AT&T:

    Verizon and ATT neck and neck

  17. SilentLoner macrumors 65816


    Dec 29, 2007
    That being said the pay as you go market is more mature in the UK. How easy it number porting in the us?
  18. Niiro13 macrumors 68000

    Feb 12, 2008
    Because the iPhone's cost to make isn't that low.

    And I am pretty sure that Apple has figured out the best selling price.

    Lowering the price will not necessarily pay off the phone. You'll still get people waiting for 3G, or people who want MMS, etc.

    Lowering it that much won't turn enough people to cover the cost and to make as much of a profit as the price is now.
  19. polynikes macrumors newbie

    Feb 1, 2008
    Dropped Verizon after 6 years to ATT just for iPhone

    I dropped verizon to go with ATT just for the iPhone. Love it so much that my new home computer purchased this month was an iMac. Look forward to the new 3G iPhone this summer, my wife will inherit my current one.
  20. e²Studios macrumors 68020


    Apr 12, 2005
    The one thing I hate about Verizon (besides the annoying commercials) is the fact that all of their phones have the same craptacular interface, I want the real phone menus not some dumbed down Verizon menu system.

    As far as why Apple isn't lowering the price... why would they, the demand is higher than ever. There is really no need to lower the price, they sell just fine at the price they are at now.

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