It would be hard to find a good reason to want to buy another phone that tries to compete at the $200 price point. Even with the iPhones shortcoming, it still gives you a ton for your money.
you are forgetting the horrible price point the internet plan went up ten dollars so you are actually paying more for the phone over the two year contract in theory.
Extra ten dollars over two years= $240 Iphone price: 199.99
New Price $440.00
They just hid the cost in another spot. No wonder you can't buy one without a plan. I wouldn't expect ten million to be buying this phone. Service cost is just too high.
seth, nobody forgot anything. The entry price on the iPhone dropped by 50%. Period. That's all most people care about. I expect it will actually sell more than 10 million worldwide. If you disagree, then you probably don't know a whole lot about marketing and capitalism.
The phone is $199, they didn't hide the cost, they put the data plan right in line with every other smartphone. And in the end, if you bought the original and want to upgrade or if you are just wanting to get the new one, you have just pointed out that the price for an iPhone is the same so why is this a huge deal? Its easier to get an iPhone and spread the cost out over 24 months though.
You're seeming to forget that a large proportion of all iPhones sold were jailbroken, unlocked, and NOT used on AT&T's network (read: T-Mobile). The fact that this is no longer available I think will have a significant effect on sales in the US.
Although people are often stupid, pinching them in the wallet is the best way to teach them anything....
I can see a lot of your average joes running into the store to get one and then giving it a second thought when they see the planning prices. I mean you already get screwed enough for data plans, do you think the extra cost will go unnoticed? (Although I am sure this phone definitely WILL sell, you can't ignore Seth's argument.)
BTW, just saying words like capitalism and marketing does not make you smart. Especially since rational choice theory holds that people will do exactly like Seth says and balk at the extra costs.
I don't think it will have much of an effect at all. People will still find a way to get unlocked iPhones. Even if they can't you will see more people coming to AT&T (who actually has a 3G network) and buying it for a much more affordable $199 price.
This data plan is the same as my samsung blackjack II...i think people who are already familiar with smartphone data plan pricing won't bat an eye at the contract price.
The real seller is $199 price up front....that is why I will be lining up and 399 was the only reason I didn't have one already.
Most people could care less about paying it monthly.....
Why do you think we have so many people with credit card debt?
People don't care about paying it off monthly they would much rather pay it off in the contract than fork over a lump sum.
Obviously you have never seen what your $70 bill from AT&T looks like after they slap on Gov't Expense fees, taxes, service fees, poop fees, etc. Turns $70 into about $80 every month.
Justin, what my point is is that AT&T is collecting even more from you then the additional $10 a month on the service plan, because the way they slap on fees is directly proportional to how large your bill is - The higher the bill, the larger the fees slapped on.What this means is that they are collecting even more than what is being calculated. Some of the "governmental cost recovery fees" include lawsuits they lose that they have to pay out on. Yep, that's right, the consumer pays for lawsuits ATT wireless loses. Hell, It would probably be cheaper to buy it, then just pay the $175 ETF a day later instead of trying to buy it overseas.
my current phone costs $200 through verizon and data costs $40 a month. Windows mobile is terrible and so is windows media player. $10 less per month at the same initial cost but with a phone that is 100x better? I'll buy.
The price of the bill BEFORE FEES! is the same for all other att smartphones.
My bill for a blackjack II with unlimited data and unlimited text and insurance is approximately $90 a month (minimal voice minutes) and that is BEFORE FEES...comes to like 110-120 after fees. If you take iphone at 70 dollars and add 20 for unlimited text you are still looking at $90 a month.
Not to mention the blackjack II (maybe changed recently) was being sold for $199 with a contract!!
Were people griping at ATT for price gouging on that one?
The price of the contract is not what people look at when they purchase a phone, plain and simple. $199 for the arguably the most versatile phone on the market...that is all people will look at. A $5-20 range in the contract price will not effect decisions to purchase the phone.
If you have a blackjack ii, I'm assuming that you probably sync email of some sort also. If you have exchange mail that you get, enjoy that extra fee being dumped on the iPhone too. Btw, your blackjack II wasn't $199 after signing a 2-yr contract was it? Because if it was you got robbed, especially if you are paying for that data plan.
There is no extra fee for using exchange on iphone...get your facts right dude...it's part of 2.0. And blackjack retailed at 199 after 2 year contract when it was released...it wasn't until like january they did a MAIL IN REBATE to get the phone for $99....do you know anything about what you are talking about? seriously!
Zak, it isn't really a 50% price drop, because you end up paying $240 more than the old plan over the two-year contract (3G is supposedly $10/mo. more than EDGE plans). People need to be more outraged with this if we are ever to get lower-cost mobile phones and mobile network coverage in this country.
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Epic fail. When the 3G sells about 50% the units of the 1st model, link back to this post.
I think you're grossly underestimating the effect a 50% price drop will have. This thing will sell well over 10 million this year.
Zek, I think you're grossly overestimating the market for these things..
Sadly Zac is probably right. The sheep are probably already lining up at their Apple Stores.
So you agree with Rob that a 50% price drop on the iPhone isn't going to help it sell more? That it will actually sell LESS?
Really?
It would be hard to find a good reason to want to buy another phone that tries to compete at the $200 price point. Even with the iPhones shortcoming, it still gives you a ton for your money.
@Cal,
hahaha that's great.
you are forgetting the horrible price point the internet plan went up ten dollars so you are actually paying more for the phone over the two year contract in theory.
Extra ten dollars over two years= $240
Iphone price: 199.99
New Price $440.00
They just hid the cost in another spot. No wonder you can't buy one without a plan. I wouldn't expect ten million to be buying this phone. Service cost is just too high.
The cost is not hidden.. You do not HAVE to buy this internet plan. Kids will want it because it looks 'cool'.
seth, nobody forgot anything. The entry price on the iPhone dropped by 50%. Period. That's all most people care about. I expect it will actually sell more than 10 million worldwide. If you disagree, then you probably don't know a whole lot about marketing and capitalism.
@Seth
The phone is $199, they didn't hide the cost, they put the data plan right in line with every other smartphone. And in the end, if you bought the original and want to upgrade or if you are just wanting to get the new one, you have just pointed out that the price for an iPhone is the same so why is this a huge deal? Its easier to get an iPhone and spread the cost out over 24 months though.
@coolone
You're seeming to forget that a large proportion of all iPhones sold were jailbroken, unlocked, and NOT used on AT&T's network (read: T-Mobile). The fact that this is no longer available I think will have a significant effect on sales in the US.
@ zak
Seth has a point.
Although people are often stupid, pinching them in the wallet is the best way to teach them anything....
I can see a lot of your average joes running into the store to get one and then giving it a second thought when they see the planning prices. I mean you already get screwed enough for data plans, do you think the extra cost will go unnoticed? (Although I am sure this phone definitely WILL sell, you can't ignore Seth's argument.)
BTW, just saying words like capitalism and marketing does not make you smart. Especially since rational choice theory holds that people will do exactly like Seth says and balk at the extra costs.
@Dave
I don't think it will have much of an effect at all. People will still find a way to get unlocked iPhones. Even if they can't you will see more people coming to AT&T (who actually has a 3G network) and buying it for a much more affordable $199 price.
While the plan costs the same as other smartphone plans, 40% of iPhone users previously used Razr's.
The plan price change ($15 extra) may very well have moved the iPhone from the huge consumer market to the small smartphone market.
This data plan is the same as my samsung blackjack II...i think people who are already familiar with smartphone data plan pricing won't bat an eye at the contract price.
The real seller is $199 price up front....that is why I will be lining up and 399 was the only reason I didn't have one already.
Most people could care less about paying it monthly.....
Why do you think we have so many people with credit card debt?
People don't care about paying it off monthly they would much rather pay it off in the contract than fork over a lump sum.
@Justin
Obviously you have never seen what your $70 bill from AT&T looks like after they slap on Gov't Expense fees, taxes, service fees, poop fees, etc. Turns $70 into about $80 every month.
@Dave
I don't get your point....
Justin, what my point is is that AT&T is collecting even more from you then the additional $10 a month on the service plan, because the way they slap on fees is directly proportional to how large your bill is - The higher the bill, the larger the fees slapped on.What this means is that they are collecting even more than what is being calculated. Some of the "governmental cost recovery fees" include lawsuits they lose that they have to pay out on. Yep, that's right, the consumer pays for lawsuits ATT wireless loses. Hell, It would probably be cheaper to buy it, then just pay the $175 ETF a day later instead of trying to buy it overseas.
my current phone costs $200 through verizon and data costs $40 a month. Windows mobile is terrible and so is windows media player. $10 less per month at the same initial cost but with a phone that is 100x better? I'll buy.
Correction, my phone is actually $350 (i760)
@ Dave
I guess you aren't getting what I'm saying.
The price of the bill BEFORE FEES! is the same for all other att smartphones.
My bill for a blackjack II with unlimited data and unlimited text and insurance is approximately $90 a month (minimal voice minutes) and that is BEFORE FEES...comes to like 110-120 after fees. If you take iphone at 70 dollars and add 20 for unlimited text you are still looking at $90 a month.
Not to mention the blackjack II (maybe changed recently) was being sold for $199 with a contract!!
Were people griping at ATT for price gouging on that one?
The price of the contract is not what people look at when they purchase a phone, plain and simple. $199 for the arguably the most versatile phone on the market...that is all people will look at. A $5-20 range in the contract price will not effect decisions to purchase the phone.
@Justin
If you have a blackjack ii, I'm assuming that you probably sync email of some sort also. If you have exchange mail that you get, enjoy that extra fee being dumped on the iPhone too. Btw, your blackjack II wasn't $199 after signing a 2-yr contract was it? Because if it was you got robbed, especially if you are paying for that data plan.
@Dave
There is no extra fee for using exchange on iphone...get your facts right dude...it's part of 2.0. And blackjack retailed at 199 after 2 year contract when it was released...it wasn't until like january they did a MAIL IN REBATE to get the phone for $99....do you know anything about what you are talking about? seriously!
Justin,
You are getting ripped off, BIG TIME.
I am getting
1250 anytime mins
UNLIMITED DATA
Unlimited Messaging
Unlimited M2M
Unlimited N/W starting @ 7pm
Unlimited Roaming
for $49 / month on Sprint's much more expansive and arguably superior EVDO-rev A network on my HTC Mogul.
You are getting royally screwed, but then again, most Apple users do yet remain ostensibly oblivious to it.
@hamidxa
That is impossible...sprint's base plan starts at 69.99 for 450 mins, unlimited data etc...
Did you just subtract 20 bux to try and prove a point or do you work for sprint?
Zak, it isn't really a 50% price drop, because you end up paying $240 more than the old plan over the two-year contract (3G is supposedly $10/mo. more than EDGE plans). People need to be more outraged with this if we are ever to get lower-cost mobile phones and mobile network coverage in this country.
It's not a price drop, and a "subsidized" price doesn't mean anything. Subsidies are just a lock-in scam + loan but for some reason ppl love it.
@ Zak
Well that's 10 million complete idiots. Welcome to America.