“Service” and “hardware” are two different things. When you figure that out let me know.
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iPhone X Apple is losing its mainstream, non-fan core with the X
- Thread starter MarkB786
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“Service” and “hardware” are two different things. When you figure that out let me know.
??? That exchange wasn't about winning anything - in a discussion, it really helps when you actually say what you mean. Especially online when you only have words and no intonation or nonverbal communication. Nothing at all to do about winning, just clarifying what is actually being said so there is no misunderstanding.
And going from the 7 (and I can imagine 8 as well) to the X where it simply is not identical. And the same in reverse, I now find myself swiping up on my wife's phone. Or left/right at the bottom to switch applications. I'm wondering where the portrait modes are when using the camera. And even, as the internet is **** down under, where to toggle settings and notifications. Other than the grid layout there is actually a lot of variation in using it.
The thing is I’m not defending them I’m just pointing out the holes in your posts.
Firstly it was a 1 to 1 exchange rate, not true.
Secondly you have made claims about tax, I haven’t defended the practice.
Thirdly you said Apple lose out if YOU stop buying due to price increase, again not true if they increase prices yet still sell like hot cakes.
So, Jim, which of these two is right?
(Just pulling your chain a little. Happy New Year! )
So, Jim, which of these two is right?
4 AppleCare Plus, 4 leather cases, 4 Mophie chargers. I think it's pretty close.
Regardless of how many people you actually "Know", it's not an accurate representation of the overall success of the iPhone X. It's also fair to speculate the majority of iPhone X owners are likely pleased with their purchase knowingly the overall satisfaction of the iPhone in general. To me, terrible sounds like an over exaggerated experience, versus saying something that somebody might be displeased with instead.
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The big difference is the cost of the phone was 'baked' into the service fee. You paid a $40 (I believe) smartphone access fee for the life of the device....even if you kept it beyond when the contract was up. If you kept an old iPhone for over 2 years, you were essentially paying that baked in equipment fee even though the device was paid off.
When they removed subsidies, it made it a lot more transparent. If your device is paid off or you BYOD, your service fee is a lot lower than it used to be. The hardware cost is a clear line item component and you know exactly how much you owe.
For a carrier the profit is in the service, not the hardware. That's why current BOGO offers like AT&T has with the iPhone 8 are tied to DirecTV subs and adding a line. The extra service fees is where they will make their money.
I am currently in the Unlimited Plus plan. I do not have DirecTV nor do I want DirecTV. I could get, right now, a free $0 iPhone 8 if I open a new line as part of the purchase I made within the last 30 days on my son's iPhone X.
Adding a line to my Unlimited Plus plan will cost me $20 a month or $480 for the duration of the 2 year contract on the free $0 iPhone 8.
The free iPhone 8 has a $699 retail. At the typical 20% profit margin in the category, it means it costs AT&T $559 to buy the iPhone 8 from Apple.
$599 cost. $480 revenue from the incremental line. That is a loss of $119 for AT&T in this transaction. Oh, and that doesn't take into account the cost of the actual service for phone, text, and gobs of data. What do you think? You think that the cost to AT&T in that $20 a month is $10? $15? Pick a number, makes the loss over $150 for AT&T all-in. Oh, forgot to mention. I purchased 2 iPhone X's in the last 30 days, I could get two of these free iPhone 8's bringing the loss to over $300 for AT&T all-in.
It's fun talking in generalities, isn't it? Let's see you talk in math. In the real world. Carriers give iPhone's away to obtain and retain customers. That's a fact. Just because it wasn't offered to you doesn't mean it doesn't happen.
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Technically, that $20/mo is $480 over the duration of the 2 years. Mind, as an Unlimited Plus subscriber, you likely also have a pretty expensive plan to begin with.
I'm paying ~$160/mo for 4 lines or ~$40/line on a shared 20GB plan inclusive of taxes and fees. Typically have 5GB or so carryover data every month.
Corrected the original post, thanks.
Unlimited Plus plan is $145 for 2 lines. I have 4 more lines at $20 each. Grand total is $225 per month for unlimited text, voice, and data for 5 iPhones plus 1 iPad or an average of $38 per device.
The iPad was subsidized as it is a cellular version. My daughter's iPhone 6 was subsidized too. My wife and I paid full price for the X's but the 2 I got for my son's were only $699 each.
So if you look at one of my son's math, looks like this:
$1250 - $699 = $551 discount. At 20% markup that discount cost ATT $441.
For the 2 year contract, the $38 per device is $912. $912 - $441 = $471.
$471 over 24 months = $19.62 per month that AT&T is ahead in this transaction. So now you have to look at the cost to ATT for the service itself. The consumer cost of each line is $38. And the price adding of a line is $20. So unless it costs significantly less than $19.62 to give my son hundreds of talk minutes, thousands of texts, and 28 GB of data, they are working short or getting hurt in this transaction.
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The thing is the network is already there. They're actually renting them to MVNOs wholesale. If MVNOs are able to offer similar at $30-35 per line, at your spend level, you can be sure you're a fairly valuable customer to AT&T. You're focusing on the additional line cost when really, to AT&T, you're $5,400 every two years in revenue and yes, they wouldn't want to lose you to Verizon or Sprint or T-Mobile.
That $119 is peanuts compared to the profit they will make over that time for your service and potential adhesion of a future AT&T customer on your line or future lines. In fact, that $20 service fee for the extra line will likely cover that amount within the first year.
The AT&T BOGO requires a 30-month commitment so they can collect $600 of revenue and you have to pay the difference if you try to upgrade early.
You mention the actual cost for phone/service and text like it actually costs AT&T an extra $20 (or more) to add an extra line. Like I said, they make a profit from the providing the service...especially on family lines where the amount of extra data/voice/sales used is incremental and the have the ability to not have additional administrative costs for separate lines.
I'm very happy paying $225 a month for unlimited everything on 6 lines. Before the new UDP's I was paying $35 a month (now $20) for my kids and that included 2GB of data (now unlimited) and they were always going way over the limit to the tune of $50 or $70 a month (now $0) so it's a win all around.
The big change compared to years past is the lack of heavily subsidized hardware. For my wife and I, we'd always get the highest capacity new iPhone for $199 and for the kids they'd get the one that was $0. So when AT&T offered me 2 iPhone X 256GB for $699 each it was greatly appreciated, a bit of a throwback to the old days.
The 4 iPhone X's now in the family will last us more than the usual 2 years, I can't see Apple doing much to advance the genre from here. Edge-to-edge display, wireless charging, OLED, facial recognition, stereo speakers, great camera, I think we're at the end of the line as far as true innovation.
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AT&T is entitled to make a profit. I have no idea why people think it's not. Point is they will make less profit on my family because of the subsidized iPhone X's they just offered us and I pay less money because of the discounted equipment. Just like the old days when subsidies ran rampant and the carriers were bleeding millions of dollars as a result.
I was not offered the standard BOGO. I went through their Loyalty division, I was offered the 2 discounted iPhone X's for the good ol' 2 year contract, it's 24 months not 30 months.
If I used one of my old paid-off iPhones on the exact same plan as I did the new equipment, it would have cost me the same thing each month. The equipment is the variable, not the service.
This whole tangent of the thread was based on the fact that some refused to believe that US carriers actually gave away equipment. They actually did. And today, while not free, the discount AT&T ate to retain my business on the X's was a greater discount in dollars than the free iPhone 5C they gave me a few years back.
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I have no issue with AT&T making a profit and didn't imply that I did. They are in business to make money. I'm probably more accepting than a lot of posters who will blindly defend Apple's insane profit margin, yet start a jihad against carriers if they raise their rates $5.
Good post.
For me, simply put, my 2 sons each have 256GB iPhone X's, they were discounted $551 each, and at $20 a month for my having them on my Unlimited Plus plan, that $551 savings equals 27 months of free AT&T service for each of them.
That's the beauty of subsidies and it's the reason they were shut off a few years ago and offered now to only the most loyal AT&T customers.
No its not. At my job which us 40+ nobody has the X. About a quarter have an iPhone, another quarter has flip phones and half have Android.
The iPhone X is a beautiful phone and if it was available when I upgraded in September I would of considered it. It's a nice phone but not enough to sell my note 8 and go for a X
lol, yea, your poll of 40 people vs 7 billion in the world isn't skewed at all
There's only 7 billion people in the world? You don't understand polls if you're saying this first off Lmao
Actually, it appears you don't understand. First, @g.t. rags is Actually making a relevant comparison. In general, you can't compare 40 people to the world around in the sense where we physically see the iPhone X because the demographic of your workplace. There are too many variables that you're not factoring.
Also, when G.t. Rags Estimated that there are 7 billion in the world, that claim was actually somewhat accurate based off Wikipedias estimate, but nonetheless, it was a fair guess in the number they stated.
https://en.m.wikipedia.org/wiki/Earth
First polling it and then extrapolating it is a fairly decent way to do polling. Obviously it varies but also to go with thr 40+ people in my job plus the thousands I see at my job I would still say only 20% to 30% of all iPhones are an iPhone X. And to just use another data point. People from various sites have stated it could very well be sold out into 2018. You could find them since mid December and sales from various sites have now said sales have been low.
It's not a bad phone. If it came out in September I probably would have one now but Meh.
Secondly you should never use Wikipedia as a source.
Also just want to add this from Forbes
https://www.forbes.com/sites/gordon...-buy-sales-specs-new-iphone-release-date/amp/
I wouldn't call it a cancelation of thr X but more of the X was a special edition phone and they would be including the features in future phones down the line.
https://www.forbes.com/sites/gordon...-buy-sales-specs-new-iphone-release-date/amp/
I wouldn't call it a cancelation of thr X but more of the X was a special edition phone and they would be including the features in future phones down the line.
It's price in my environment. Only people that like having new tech are buying these phones. People just hold their own phone next to it and say; Nah, not good enough compared to what I have.
Which is absolutely true when spending so much money.
That said, people around me now like FACE ID more than touch id from what they've seen. It being winter also helps a lot since I can just use normal gloves + siri for everything.
Which is absolutely true when spending so much money.
That said, people around me now like FACE ID more than touch id from what they've seen. It being winter also helps a lot since I can just use normal gloves + siri for everything.