The great iPhone pricing debacle
Just a few weeks ago, the world was waiting to hear what Steve Jobs had to say about the iPhone 3G. Would it feature GPS? Would it offer MMS and a chat app? Would the iPhone App Store strut its stuff?
All of those questions were answered in one way or another, and although we weren’t too happy with everything we heard, one important element of that keynote speech stuck in our minds: the new iPhone 3G would come in at a most astounding price of $199 for the 8GB model and $299 for the 16GB model.
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So much for trying to put an
So much for trying to put an iPhone in everyone's hand.I switched to AT&T before the first iPhone was released but didn't get the first generation because I wanted 3G. And now that it's here I have to pay double because I'm not eligible for an upgrade until October 2009.
I don't know who's to blame, whether it's AT&T, Apple, or both, but I'm not happy with this announcement as are many others judging by comments on articles like this one.
Don...what are you all bent
Don...what are you all bent out of shape about? The iPhone is just being treated the same as every other smartphone. Only people who are eligible for an upgrade -- new activations or those who have been in a contract for 18 months or longer, excluding current iPhone owners (since they didn't get a price break before) -- get the iPhone at the discount. That's the same deal as with every other phone. And the rate plans are exactly the same as every other smartphone too.I agree it's a bit of dirty marketing for Jobs to be pimping the price the way he did, and I dislike AT&T's rates as much as anyone, but the fact is the iPhone is now treated the same as EVERY OTHER SMARTPHONE, and *most* people who want the new iPhone should be able to get it for $199.
To clarify, I'm saying I
To clarify, I'm saying I think it's *right*, I'm just saying this isn't limited to the iPhone, and if this battle is going to be waged against the carriers and cell phone manufacturers then it encompasses pretty much every handset made. Samsung did the same thing with the pricing on the Instinct, but no one seems to whine about that.Seriously man, think
Seriously man, think business... The way Apple/AT&T are able to offer the 3G at the reduced price is because you are signing an agreement to have service with them for two years. Do you really expect them to give you $200 off a phone every time new technology is released? The price still makes sense without the subsidy, I mean if the 16GB iPod Touch is $400 and the 16GB iPhone is the same device PLUS a phone then it should be more money!Finally you state "Once again, the early adopter has been dragged over the fire and Apple has been the culprit." The definition of insanity is doing the same thing over and over expecting a different result. You obviously realize that 1st generation products from Apple follow this trend so why not wait for the 2nd Gen like others did?
This sentence: "Once again,
This sentence: "Once again, the early adopter has been dragged over the fire and Apple has been the culprit," is completely and totally wrong. The only people who will have to pay $399 or $499 are people who have been with AT&T for less than a year and who don't have an iPhone already.All the iPhone early adopters (loosely defined as anyone who bought the original iPhone) are eligible for the $199 or $299 price, as are those who plan to become new AT&T customers with the iPhone 3G, as are long-time AT&T customers who don't have an iPhone.
As usual, you have little idea as to what you're talking about, and a distinct lack of interest in the facts. Must be fun, though, throwing bombs without having to be accountable for what you say. I can't wait to hear the next installment of "You know what really grinds my gears?"
You Know What Really Grinds
You Know What Really Grinds My Gears?When someone like you doesn't read the entire column, nor the press release that was sent out by AT&T. Read through it and you'll find that the promised price of $199 and $299 that was advertised as the ONLY price by Steve Jobs is not even close to the real price a whole slew of people will need to pay.
Please, please, read through the column and realize that I'm not trying desperately to beat up on your beloved Apple, but to display the trickery that happened here.
Stay tuned for the next installment.
-Don
"Read through it and you'll
"Read through it and you'll find that the promised price of $199 and $299 that was advertised as the ONLY price by Steve Jobs is not even close to the real price a whole slew of people will need to pay.""A whole slew?" How many people do you really think fall into that category? In the article, you claim that a "vast majority" of potential iPhone 3G customers won't get the $199/$299 price, and I see nothing backing that up.
Again, the only people who will pay that price are those who have been with AT&T for less than a year and don't already have an iPhone. If those people wanted to change their current phone and buy a BlackBerry, or a LG Whatever, they wouldn't be eligible for the subsidized prices for those models either.
Here's the sentence from AT&T's 6/9 release, which was the same day the iPhone 3G was announced: "Under the terms of a new agreement with Apple, AT&T remains the exclusive U.S. carrier of the iPhone 3G, which will be available beginning July 11 at a starting price of $199 with a two-year contract." In case you didn't catch that, it says "starting price," not "ONLY price." What else could "starting price" mean than "there is more than one price?"
Here's the paragraph from today's release: "iPhone 3G will be available for $199 for the 8GB model and $299 for the 16GB model. These prices require two-year contracts and are available to the following customers:
* iPhone customers who purchased before July 11
* Customers activating a new line with AT&T
* Current AT&T customers who are eligible, at the time of purchase, for an upgrade discount"
One of your main points was that early adopters are getting screwed. They aren't; they'll pay $199 or $299. The only people who might have been tricked by this pricing scheme were current AT&T customers who had no idea that they aren't necessarily eligible for discounted upgrades TO ANY PHONE in the first year of their contract.
So, then your main point of contention seems to be that in his keynote, Steve Jobs didn't tell AT&T customers who have less than one year completed on a two-year contract and didn't already have an iPhone (which you claim with no proof is a "vast majority" of potential iPhone 3G buyers) that they might have to pay a higher price depending on their eligibility for AT&T's upgrade discount program.
If you want to rail against two-year contracts with subsidized pricing schemes, I'm all for that. But you didn't; in your usual flame-first-think-later style, you blamed Apple for tricking a subset of people into thinking they might get a cheaper price for the iPhone 3G. Do you really think Apple sets AT&T's upgrade pricing schemes?
Honestly, do you have any idea how formulaic your rants appear? Do you really think your self-styled tech crusader persona carries any weight with people who follow these topics?
I was floored by AT&T's
I was floored by AT&T's pricing schedule. I was so excited to finally be able to afford the iPhone and I was making plans to head to my nearest Apple Store on July 11th. However, according to the pricing schedule, I'm going to be left out in the cold. I am a LONG time AT&T customer, but back in Feb. 2007, I got a new phone and re-upped my contract and now I'm not eligible for an upgrade until October. If I want the iPhone, I'm going to have to pay $399 and not the "maximum price of $199" as promised by Jobs.So, clearly, more people than you think are not eligible for the $199 price.
The iPhone should be treated
The iPhone should be treated no different than any smartphone, and now it's not. The problem is, IT'S JUST A PHONE. It's not life and death, so why in the hell are the carriers getting away with this nonsense on any phone, whether it's the iPhone or a Blackberry or an Instinct. Why do they do this? BECAUSE THEY CAN. Consumers have no power in this relationship because all of the carriers do the same exact thing, so we can't choose to go to a provider that doesn't engage in this practice.Hey Don, great run-down... I
Hey Don, great run-down... I do think the story is somewhat different now that the criteria for lower pricing contains the word "or". Though, I rather disagree with your frustration: here's my take. Cheers!All cell phone companies are
All cell phone companies are spawns of the devil.If you bought the first iphone for $399, you'd think it would be a deal to go ahead and upgrage for 200 more bucks, (now you have 2 iphones) but now your locked into a 2 year plan, plus the service is gonna be $10 extra a month!!!!
they're gonna get cha!!!
From the release it seems
From the release it seems that AT&T customers in the middle of an existing contract (non iphone users and not eligible for upgrade) will not be eligible for the $199 or $299 pricing. They will pay $400 for the 8GB model and $500 for the 16GB model. They could cancel their current line, pay the termination fee and then get the new pricing. It would save them money and cost ATT money. You can tell they put alot of thought into that.The lack of informedness in
The lack of informedness in the post and some of the comments is astounding.There is exactly one group of people that DO NOT qualify for the $199/$299 pricing: current, non-iPhone-using AT&T customers who have signed up or upgraded within the last 18-24 months.
If you have an iPhone, you get the $199/$299 price.
If you are an AT&T customer, and are close to the end of your contract, or no longer in contract, you get the $199/$299 price.
If you are not currently an AT&T customer, you get the $199/$299 price. (If you have to pay to cancel your contract with Verizon or whoever, that's your own deal.)
I'm a part of the unlucky group, so I will begrudgingly be plunking down $499 next Friday. That's what happens sometimes. The commenter above who said the iPhone is now being treated like any other smartphone is dead on correct. Don't want to pay the extra money? Wait until your contract is up!
The correct proverb is "The
The correct proverb is "The proof of the pudding is in the eating."I find everyone's view on 1)
I find everyone's view on 1) 2 year contracts and 2) subsidised phones; really strange.Look, I came to a point in my life where I worked out that unless 1) I die or 2) our whole society collapses; that I will be making phone calls until one of them happens. In either case I won't be making calls and I won't be owing any money.
You know what, I will be still calling people in two years. So being in a 'contract' is irrelevant. In fact since I will have a lifetime relationship with 'phone' I may as well have a lifetime contract and just get given whatever new cool thing comes out.
The argument of; 1) a better deal will come along. Um, like what. The deals don't get better. Actually when you do hard maths mostly they get worse. Next; 2) another carrier might come along. Oh yeah, I can see the line up of mobs ready to whip out many billions to offer what, the same towers, made by the same people. 3) the carrier might offer a better deal. My observation has been that if a carrier totally alters their way of ripping you off, well they will make sure you are not left out in the great transition.
So what are you being locked into, making calls? Oh the terror.
Subsidy for phone an issue? What issue, really, or a resolvable one at least.
In Australia, with little choice but Telstra (unless you never leave the safe confines of the central areas of a capital city) who inflict great pain on the country iPhone will be $0 for a $79 plan. The data $ is criminal, the plan is average, the phone is subsidised. That's $1,896 for the 2 year contract BUT...
Now I don't get this in everyone's whining calculations. The phone is not $1,896. Unless of course I put in the cupboard and make no calls. In fact I get $550 of use (no data) a month. That's $13,200 worth of contacting people over two years and a $0 iPhone.
Now you know, I know and the telco knows that since the move to digital packet based networks the true cost of a call is like whatever and an SMS is close to nothing.
Yes basically we are all being ripped off, is this news, is this iPhone, is it even relevant.
So I don't get an iPhone. Doesn't matter, I will still get ripped off by the Telco. Don't go the deal and pay $13,200 over 2 years Yah! Both are not real, the whole thing is a scam.
But guess what. I will still make phone calls for the next two years. Won't you?
So in the false reality that is imposed. I am getting $13,000 worth of Telco imagined calls and a FREE iPhone for $1,900. If the iPhone is also sold for the imaginary yet very real RRP of $1000. I am actually getting a fake/real saving of what $12,000 over two years.
Who is subsidised here. It would appear that the Telco is subsidising me. The illusionary benevolent kindness of the bastards!
In as much to say.
Unless you are willing to launch a global class action of all subscribers against all Telco's for making a profit then basically shut the F up
That goes for ALL the columnists, bloggers and forum spitters.
I personally will keep making calls till I die or society implodes
Okay, I'm totally lost on
Okay, I'm totally lost on the whining here. How many people out there who already bought an iPhone are seriously looking to "replace" it already? If you are, you clearly have more money than brains. I bought an iPhone last September, and never had any intentions of upgrading when the new models came out - I'm just looking forward to the App Store and the software upgrades for my current phone. When I got my iPhone, it came with a 2-year contract - OF COURSE I would expect to pay full price (and certainly not expect to be rewarded) if I tried to "upgrade" before that contract is up. This plan is the same for virtually just ANY OTHER CELL PHONE on the market. The AT&T pricing is obviously designed to drawn in NEW customers, or those wishing to add an additional line, not those who are currently halfway through an existing contract. If I had purchased a new Blackberry last fall, I would not be ellgible for any price cuts on a new model at this point, either. This is not a matter of price-gouging, it's just common sense, which it appears a lot of people out there are lacking. If you have to have EVERY model of a new doo-dad when it comes out, you are going to have to pay for it.Where can a person buy a
Where can a person buy a first generation iphone. Sounds like I could live without the G3 speed, when you figure about 3 Grand for the ATT&T plan (2 year plan). G3 may aka 3 Grand.$60 X 24 months = $1440
phone = $300
me.com = $100
est. taxes = $552
idiot fees = $175
text = $360
PRICELESS = $2927
The 3 is for the three strikes against iphone:
1. The poor people who have an existing dotmac accounts...
They have to change all their incoming email contacts from: dot mac - dot me. ARRRRRRRGH
2. The consumer has to change service provider.
3. The price is out of reach.
Not so smart phone. lol
I am looking into the ipod touch (email, web, etc.) and keep my cheaper phone services.
Maybe if the iphone fails, apple may have to create an iphone that works with other service providers.
Or maybe Nancy Peloci will bailout the customer like she wants to do with foreclosed homeowners.