OK kids, get off the Kool-Aid. AT&T, no matter how cool (or lame) you think they are, is not going to subsidize the second coming of the phone that made people sleep in streets to be first in line to get it. There are probably a lot more than four reasons, but these four make a pretty solid case.
Reason 1: If we are to believe the current crop of improvements over the orignal: thinner, new color, GPS, 3G, Exchange-friendly and 3rd party app groupie; anyone really believe either company is going to offer it for less than the current price? Frankly, I’ll be astonished (and rethinking my AAPL stock purchase) if they don’t introduce a new higher price point.
Reason 2: We paid the ridiculous opening price in droves. We basically told Apple, you make it and we’ll buy it, no matter the cost. Maybe they won’t hit targets this way with the mass populous, but the fun loving iPod (sans Shuffle) isn’t below $149 for a reason. Apple knows we are willing to pay, why would they leave money on the table?
Reason 3: AT&T’s exclusive deal with Apple isn’t over yet. When it is, you bet they’ll compete on price. Until then, it is a potential cash cow that they’ll milk whilst they can.
Reason 4: I don’t believe Apple will stop selling the first gen iPhone. There are enough people that still live without GSM coverage and don’t care about GPS or being thin. AT&T could offer the first gen with a discount and place the gen 2 at the old price (or slightly higher) with no big change other than more sales of gen 1. I bet a lot of folks would jump on that gravy train and I am sure AT&T has some kind of marketing analysis to back that up. iPhone 1 at $199 with the SDK fruit is a pretty compelling argument for folks who’ve been on the fence.
What is your take? Or are you hopped up on the “K” (as we call Kool-Aid on the street)?
I don't think the iPhone needs to be subsidized, but if AT&T;desperately wants to convert people over to their service, then why couldn't they do it. If AT&T;pays Apple full price for inventory and they wish to discount it, is that illegal? Or does Apple have some policy that says their product can only be sold within a certain price range?
What isn't explained is whether the current iPhone is still going to be sold after the 3G model is introduced. Maybe the subsidy will only exist for the current iPhone leftovers. Well, this subsidy business is only a rumor and we are all free to speculate.
In Reason 4, I assume you meant people who can live without 3G coverage, not GSM coverage. No GSM coverage means no iPhone (I should know, as that is my circumstance. And yes, visiting friends with iPhones have expensive iPods when they get here.).
Still waiting in Canada.
Still waiting too…………
Sounds like you are still bitter about paying a high price for your iphone.. didnt you get your rebate??
The price reduction is GREAT news -
Reason 1 – The new phone is replacing the old phone at the same price. Apple already makes a great margin on the phone, plus the revenue sharing with ATT. This is a huge plus for customers and apple. more customers = more revenue. You are suggesting they charge more for the new phone? why?
The reduced price phones (199) will ONLY be available at ATT stores and with a new 2-yr contract. This opens up the phone to many more potential customers. This is good. The phone will be available at the higher , regular price from apple stores and will be unlocked. Apple got ATT to agree to this due to the huge number of jailbroken phones. This is the only way around it.
Reason 2 – You say apple is leaving money on the table by lowering the price. Simply not true. They will make far more money – volume on the data plan.
Reason 3 – True ATTs exclusive deal is not over yet. ATT is making a killing on the very high amount of data and text message usage from the iphone. ATT knows this subsidy will open up the floodgates and they will sell a ton of phones to new customers.
ATT is not making the bulk of their money off the sales price of the phone. Its the plan.
Reason 4 – No way they keep both phones. The 3G phone will work on both networks. Apple is all about the newest and most innovative products. Keeping the old one would be like keeping old ipods and macbooks in stock and selling them cheaper. Not a chance.
If you still think its a bad idea to offer the phone at ATT stores with a subsidy, please explain…
ok ive had some kool aid, but just a taste…..
Dumbass Mactards would pay any price for any Apple shit, but if ATT want to sell to sane people maybe a reasonable price will help.
@ Cello: why charge more for the new phone? Because they can. And we'll pay it.
No way Apple brings out a better product and prices it less. No way.
And there won't be a price difference between Apple and AT&T;stores, it says if you want to jailbreak, buy from Apple. Apple won't give that appearance (even if they like jailbreakers).
"bad idea" from whose perspective? For customers, a $199 gen 2 iPhone would be fantastic. So would $1 petrol and free pot. But get real. When was the last time you wanted something that you would pay lots for but got it for nothing? Keep dreaming dreamer.
Apple loves the family product line. iPods from $49 to $499. iMacs from $1199 to $2199. Why not iPhones from $199-$499?. I see it as a way to do two things: keep feeding us latest and greatest with gen 2 and feed the masses with a $199 phone that they can feel good about waiting for.
I didn't mean to sound bitter, just real.
I dont think apple wants to inventory 2 phones at this time, especially running on different networks. The consumer is already confused enough with the phones and data plans. I agree there is the potential for a phone price drop in tandem with an inflated monthly plan. Lets face it, people worry about hardware costs. Apple will grab WAY more market share with a lower priced phone. Net-net they may even walk away a bit richer per customer. My bet is that the 16gb will be $299 and the 32 gb will be $399. Talk to me in 2 months . . .
no way Apple stocks a $199 version of the old iphone.
The new Iphones at apple store will be 299-499
we will revisit this on June 9th and see who is right
how can you say a $199 iphone with a 2 year contract is 'getting something for nothing"?
There has to be a way that iPhone 1.0 customers can upgrade to the 2.0 version, because I expect many of the die-hards to do that. Restarting a nw two year contract would suck, but I can imagine ATT and Apple forcing you to do that.
There won't be subsidies. Gimme a break. Sure Apple would gain more market share with a lower priced iPhone. They'd gain more market share with a $500 MacBook- think we'll see one of those anytime soon?
Mikey b: right on. Now you are "thinking different" . haha.
The $199 deal is heating up again and no way it is real. No way.
$500 MacBook? No way either.