No PAYG=No iPhone

[Ugg]

They point is./..Apple only makes the phone. They don't have anything to do with the wireless plan. They sell the phone for $499 because they can. If and when they can't sell it for that much, they'll sell it for less.

Apple obviously had a lot of input about the monthly rates. They are lower than other plans and quite reasonable in comparison to other carriers, even to AT&T's own plans. So, I think you've over simplified your case.

I don't have a problem with Apple's price, what I have a problem with is the two year AT&T charges of at least $1440. That's simply outrageous for MY needs. Apple wants to sell the iPhone, I'm sure they're getting a small cut from AT&T but Apple's profits are coming from the phone itself, not from the service.

I'm sure they'll offer a PAYG plan in the future, it would be stupid for Apple not to.

 

[yayaba]

Apple obviously had a lot of input about the monthly rates. They are lower than other plans and quite reasonable in comparison to other carriers, even to AT&T's own plans. So, I think you've over simplified your case.

I don't have a problem with Apple's price, what I have a problem with is the two year AT&T charges of at least $1440. That's simply outrageous for MY needs. Apple wants to sell the iPhone, I'm sure they're getting a small cut from AT&T but Apple's profits are coming from the phone itself, not from the service.

I'm sure they'll offer a PAYG plan in the future, it would be stupid for Apple not to.

If I may ask, how do you use your cell service right now? i.e. how many minutes do you talk each month, do you use data, text, etc.

 

[Ugg]

If I may ask, how do you use your cell service right now? i.e. how many minutes do you talk each month, do you use data, text, etc.

I have Virgin Mobile, talk about 60 minutes a month, send about 15-20 texts and don't use data. I can use data for $1 a day on my phone for email but haven't done that yet. It's sort of clunky and slow to access.

I also pay $60 a year for the service. For me it simply wouldn't make sense to sign up for something that costs 12x as much.

 

[Hmac]

Apple obviously had a lot of input about the monthly rates. They are lower than other plans and quite reasonable in comparison to other carriers, even to AT&T's own plans. So, I think you've over simplified your case.

I don't have a problem with Apple's price, what I have a problem with is the two year AT&T charges of at least $1440. That's simply outrageous for MY needs. Apple wants to sell the iPhone, I'm sure they're getting a small cut from AT&T but Apple's profits are coming from the phone itself, not from the service.

I'm sure they'll offer a PAYG plan in the future, it would be stupid for Apple not to.

If Apple is just providing the phone under an exclusive arrangement with AT&T, why would they give a fig about the rates? I'm sure that AT&T is paying Apple for the privilege of selling the iPhone exclusively - why do you think Apple has anything to do with the rates? Think they're getting a cut? I doubt it.

As to PAYG...you think Apple is going to become a wireless service provider? Hmmm....

And you think Apple will be sticking with AT&T forever? You think they'll be leaving all those CDMA customers out in the cold? Doubt it.

 

[fishkorp]

If Apple is just providing the phone under an exclusive arrangement with AT&T, why would they give a fig about the rates? I'm sure that AT&T is paying Apple for the privilege of selling the iPhone exclusively - why do you think Apple has anything to do with the rates? Think they're getting a cut? I doubt it.

As to PAYG...you think Apple is going to become a wireless service provider? Hmmm....

And you think Apple will be sticking with AT&T forever? You think they'll be leaving all those CDMA customers out in the cold? Doubt it.

isn't that part of why Verizon turned them down? because Apple wanted a piece of the rate plan and Verizon said hell no?

and yes, they'll leave CDMA in the cold, it's old hat and everyone in the US will eventually be switched to GSM. by the time the exclusivity agreement ends (rumored 5 years) who knows what will be the happening technology in the cell industry.

 

[Hmac]

isn't that part of why Verizon turned them down? because Apple wanted a piece of the rate plan and Verizon said hell no?

and yes, they'll leave CDMA in the cold, it's old hat and everyone in the US will eventually be switched to GSM. by the time the exclusivity agreement ends (rumored 5 years) who knows what will be the happening technology in the cell industry.

 

[Ugg]

If Apple is just providing the phone under an exclusive arrangement with AT&T, why would they give a fig about the rates? I'm sure that AT&T is paying Apple for the privilege of selling the iPhone exclusively - why do you think Apple has anything to do with the rates? Think they're getting a cut? I doubt it.

As to PAYG...you think Apple is going to become a wireless service provider? Hmmm....

And you think Apple will be sticking with AT&T forever? You think they'll be leaving all those CDMA customers out in the cold? Doubt it.

The point was that Apple's in the business of selling phones. The more phones they sell, the happier Apple is going to be. Not everyone needs or wants to spend $60 a month for a phone. PAYG is ideal for a lot of people, by not offering it, Apple is potentially losing sales. I can't imagine that Apple is intentionally cutting its own market share in the cel phone market.

 

[mchank]

I use TmobileToGo and I hope that you can use PAYG as well, but I seriously doubt that will happen. The only reason that Apple was able to negotiate such good terms with AT&T with revenue sharing and competitive rate plans is because AT&T wants to increase contract subscribers. There's no way that AT&T would do that without guaranteeing that they'd get a regular profit, or else Apple would've just sold the phone unlocked, or without making people renew for 2 years. I think the best chance of getting an iPhone with a PAYG plan is to wait for the iPhone's release in Europe or Asia and importing one as they usually buy unlocked phones and are adverse to contracts.

The point was that Apple's in the business of selling phones. The more phones they sell, the happier Apple is going to be. Not everyone needs or wants to spend $60 a month for a phone. PAYG is ideal for a lot of people, by not offering it, Apple is potentially losing sales. I can't imagine that Apple is intentionally cutting its own market share in the cel phone market.

 

[Ugg]

I use TmobileToGo and I hope that you can use PAYG as well, but I seriously doubt that will happen. The only reason that Apple was able to negotiate such good terms with AT&T with revenue sharing and competitive rate plans is because AT&T wants to increase contract subscribers. There's no way that AT&T would do that without guaranteeing that they'd get a regular profit, or else Apple would've just sold the phone unlocked, or without making people renew for 2 years. I think the best chance of getting an iPhone with a PAYG plan is to wait for the iPhone's release in Europe or Asia and importing one as they usually buy unlocked phones and are adverse to contracts.

I think that's the key. After a certain point once the hubbub has died down and the people who are going to switch have switched, AT&T will be looking for new sources of revenue and PAYG will be one of them. Apple will also be interested in increasing its sales of the iPhone and will push if it hasn't already for PAYG.

Also, if AT&T has a five year contract, wouldn't it be impossible to import a phone from Europe? Well, you could of course, but without a sim, no visual voicemail and all the other goodies that makes the iPhone so appealing.

 

[kamiboy]

All I know is that it might blow really hard to live in Europe, what with us paying more and waiting longer for pretty much any new piece of technology. But we do have wonderful tradition of preventing big corporations to screw us over. Here where I live contracts can't be longer than 6 months and after that time you can call up the provider and they are by law required to give you an unlock code so you can quit your contract and move one to someone else, and many do just that.

So either Apple won't get to screw us as deeply here or the iPhone just won't be sold here. I am looking forward to finding out which way it will go.