18 free months?

[QCassidy352]

well, no matter how they do it, there have to be discounts somewhere. They can't sell the phone for apple's full retail price, then charge $40/month for talk time AND $25/month for a data plan. I mean, I know people are wild for the iphone, but that's a little much.

Somewhere along the way we're going to see a discount, and I'm pretty sure that no matter whether they apply it to the phone, the voice plan, or the data plan, it will be in the neighborhood of $200 off, all told.

 

[BigPrince]

well, no matter how they do it, there have to be discounts somewhere. They can't sell the phone for apple's full retail price, then charge $40/month for talk time AND $25/month for a data plan. I mean, I know people are wild for the iphone, but that's a little much.

Somewhere along the way we're going to see a discount, and I'm pretty sure that no matter whether they apply it to the phone, the voice plan, or the data plan, it will be in the neighborhood of $200 off, all told.

/me hopes ur right.

 

[TheAnswer]

The screaming lunatic giving out awful stock advice on CNBC? The man who refused to see the dot com bubble bursting until April 2000? Reputable? The homeless man with the 2000 word sign sitting out in front of my local Starbucks is more reputable than Cramer.

I'd have to agree...my old boss and his friends play the market, they never miss Jim Cramer's show, though...because they take his advice and do the opposite.

 

[chatster18]

I'd have to agree...my old boss and his friends play the market, they never miss Jim Cramer's show, though...because they take his advice and do the opposite.

HAHA, atleast he is useful!

 

[sandman42]

I think there's some truth to this

I seem to recall there being some legitimate talk about this right after the iPhone was announced. I think the basic premise here is that Apple wants to control sales (and service) of the phone (to provide a consistent, positive user experience). So, if Cingular/ATT won't be handling the hardware sales, they can't sell at a discount, making up the revenue with a protracted contract. Instead, the plan was to sell the phone at full (non-subsidized) price, then offer some kind of discount on the service as a sales incentive. Cingular will be able to afford to do this since they didn't have to subsidize the purchase price of the phone.

Think of it this way: instead of cheap phone + expensive monthly charges, you get expensive phone + cheap (free?) monthly access fees (for a while). You still spend the money, it's just a matter of when. Somehow Apple and Cingular will have to work out who pays who and how much, but that's standard in the business now. It's just that this time it's going the other direction.

I'm almost positive Steve Jobs even said something about this during the MWSF keynote, and I think it was something about some amount of free service with full-price phone purchase. I'll have to watch it again...

 

[feelthefire]

During the iPhone announcement it was clearly stated that the prices given at the keynote were AFTER the carrier subsidy. The given prices ALREADY include the $200 or whatever discount. This way, apple can announce one price, that you'd pay whether you bought the iPhone at a cingular store or an apple store, that includes the discount.

Since the phone won't be available without service, this plan works. There won't be a way to buy the phone for the higher, contract free, full retail price.

So the discount is already in place, and expect a pretty expensive service fee as well. This is a premium item for people with premium bank accounts, and Cingular knows it.

 

[mugwump]

Okay, smartypants, when during the keynote does he say what you claim?

 

[ftaok]

During the iPhone announcement it was clearly stated that the prices given at the keynote were AFTER the carrier subsidy. The given prices ALREADY include the $200 or whatever discount. This way, apple can announce one price, that you'd pay whether you bought the iPhone at a cingular store or an apple store, that includes the discount.

Since the phone won't be available without service, this plan works. There won't be a way to buy the phone for the higher, contract free, full retail price.

So the discount is already in place, and expect a pretty expensive service fee as well. This is a premium item for people with premium bank accounts, and Cingular knows it.

I'm not saying you're interpretation of the Keynote is wrong, but your statement is incorrect.

Jobs' keynote stated that the $499 and $599 price for the iPhone was with a 2-yr contract. He did not say anything about the carrier (Cingular) subsidizing the phone in any way.

Again, I'm not saying that the iPhone won't be subsidized by Cingular/AT&T, I'm only commenting on what was explicitly stated at the Keynote.

ft

 

[sandman42]

This is true

I'm not saying you're interpretation of the Keynote is wrong, but your statement is incorrect.

Jobs' keynote stated that the $499 and $599 price for the iPhone was with a 2-yr contract. He did not say anything about the carrier (Cingular) subsidizing the phone in any way.

Again, I'm not saying that the iPhone won't be subsidized by Cingular/AT&T, I'm only commenting on what was explicitly stated at the Keynote.

ft

I just watched the portion of the keynote where S.J. talks about pricing the iPhone, and when he presents the prices, they appear on screen with the sub-text "two year contract". He doesn't actually say anything about the contract or about subsidies.

What this could mean, but certainly may not, is that when you buy the phone Cingular is going to make you stick with them for 2 years, but they might still offer reduced rates for an initial period. If they do this I think it would just be a way for them to take the sting out of the initial purchase price, simply because Apple won't let them discount it. If this is their marketing plan, it would work on me.

I really wish I could remember where I read or heard this, but I'm certain a credible source said that the phone wouldn't be discounted but the service would be, at least initially.

 

[ftaok]

I just watched the portion of the keynote where S.J. talks about pricing the iPhone, and when he presents the prices, they appear on screen with the sub-text "two year contract". He doesn't actually say anything about the contract or about subsidies.

Yeah, you're right. He didn't say "2-yr contract". Still, there may or may not be any subsidies attached to the iPhone. And you're right, the subsidy doesn't have to be the standard $$$ off the price of the phone. It would be great to subsidize the monthly fee. Either way, it works.

ft