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See I really really really don't think so.

You can't ignore some of the facts about the iPhone that make this highly unlikely..that we'll see a 3G and GPS phone anytime soon.

#1. The phone as WiFi. Depending on who you are and where you spend most of your time, WiFi can be something thats readily available, almost always. You will spend A LOT of time on WiFi with your iPhone. EDGE will fill in nicely when not on wifi, such as out on the road. Its really not that slow, its just not as fast as 3G. Plus, I personally would rather have full coverage just about everywhere (EDGE) than be part of a service that is strong in some places and weak or non-existent in others (3 G).

#2. GPS. Clearly not needed. Google Maps with integrated functions for directions, turn by turn, with Traffic. You don't need GPS. If you don't know where you are to begin with... you're an idiot.

All I am saying is that they will add new features with subsequent releases. 3G will happen, but GPS is something I was suggesting. None of us knows what Apple has in mind, but you can bet they already have ideas for the next version and the next, and so on.....
 
I don't see it as overpriced if it provides enough value. I remember buying a stupid Compaq Ipaq years back, hoping I had found the PDA I always wanted. But the ipaqs sucked in one way or another.

The iphone is the PDA I always wanted and dreamed of and it's so much more. For $599? That's cheap! They could charge $999 and I'd pay it as it will provide an immense amount of value to me and I can't wait to get one! :)
 
Don't get me wrong, I love the iPhone. But the number one thing wrong with it is the PRICE.

First of all, AT&T is requiring that you sign up for a two year contract yet the rumor is that they aren't even subsidizing the phone. How does that make any sense, if the iPhone was subsidized it would bring it down from the astronomical $500-600 to a more reasonable $300-400. Believe it or not, that $200 price difference would open up the product to a whole lot more buyers. And why would AT&T subsidize every other phone, offer great deals like a RAZR for $25, and then leave the iPhone out in the cold? It just doesn't make sense to me, either some other big announcement is going to be made regarding some kind of discount or rebate with the 2 year contract, or I'm afraid the iPhone is going to be introduced with a fizzle.

Believe me, I know there's definitely some demand out there for the iPhone because it's a revolutionary product, but correct me if I'm wrong but isn't Steve Jobs trying to sell as many phones as possible? The $500-600 price point seems to be acceptable to only the most zealous Apple fans or those in fairly high tax brackets. Ask any average consumer... while they may be very impressed with the iPhone their response will probably be along the lines of "I'm not going to spend 600 bucks for a phone."

Now some of you might say, well it's the price of a Video iPod and a PDA and a Phone rolled into one. That may be true, but Apple is marketing the product as a PHONE. It's not called the iTouchScreenVideoiPodWithPhoneCapabilities. They're targetting the cell phone market, the same market that gives away brand new camera phones when someone signs a contract. So when anyone goes to sign up with AT&T their options will be: Get a RAZR for $25, or get an iPhone for $600. While the iPhone is the greatest phone ever made, the second greatest is ONLY $575 cheaper.

This post isn't about how the iPhone isn't a great product, it's about how if Apple doesn't do something to the price, then the product just isn't going to take off. Right now it's luxury product, and while those products gain a ton of hype, unless their priced right it's like trying to sell a Lamborghini... you're only going to get a handful of buyers even though everyone really wants one.

It is a free market, and it is called "capitalism". If you can't afford the iPhone, stick with second-rate cell phones instead.
 
Most of these people complained about the price. How'd that work out?

Regarding price, in survey after survey, when buyers are asked what they consider about buying a product, price always falls at number 5 or 6 on the list.

it was pretty funny reading throught that thread.
 
Thing is the iPhone follows the same general trend as any major cell phone does. If they know there is going to be large demand as the RAZR, Treo, and Blackberry have had, then they price the units high at first. They do this to recoup costs from development, and because they know that a significant number will get the phone. Now as manufacturing costs drop and demand starts to wane they start to drop the price accordingly to open the phone up to new customers. I say about X-Mas time you'll see the phone drop $100-200. Summer next year a Gen 2 will probably release and the Gen 1 will drop another $200 (or they'll release a much cheaper gen 2 model a la nano). Thats when you'll see it start to become a common phone in line with the RAZR. You may even see special discounts that bring it down to almost nothing start to appear.
 
What about the price in the UK?

Ever since I first saw the iphone I wanted one!

However that was a while ago, now I'm starting to wonder how long it will be before it gets released in the UK!

Even when it does reach our shores are we going to get ripped off as usual, if the Playstation 3 is anything to go by then yes!!

My other concern is features, I would be prepared to pay around £400 for an iphone if it really did fulfill all my mobile needs, however I already have a HTC TYTN so my major concern is that the iphone won't have all the features that my TYTN does already, a good camera/video function plus built-in GPS and the ability to use it as a bluetooth modem for my macbook is want I need!
 
Most of these people complained about the price. How'd that work out?

Regarding price, in survey after survey, when buyers are asked what they consider about buying a product, price always falls at number 5 or 6 on the list.

Personally I think comparing the iPod to the iPhone is really an apples to oranges comparison. Yes you are right when you said there were a lot of naysayers when the iPod came out, however I feel the phone market is different today then what the MP3 player market was back then. There are good phone products available for much less then the iPhone. Don't get me wrong the iPhone is awesome, but it truly is a product for the have's not the have not's. There are rich kids that will parade around showing off their iPhone whenever they can, and that's fine. Since I turned 30 last year, I could care less about what my phone looks like, as long as it works and is compact.

Another difference is that it's not just the $600 initial cost of the phone...there is also a voice/data plan that has to go along with it. Expect a phone bill every month in excess of $100. Of course if you get a very limited plan it might be less, but to really use the iPhone the way it was designed will require a good plan.

So over a 2 year contract one can expect somewhere around $2400 just to use the phones capabilities and then you have to add in a $600 phone. I think $3000 over a 2 year period is a lot of money, however I am sure to many here it is just pocket change.
 
Shame it is only AT&T compatible. I wll not be buying the iphone, not simply because of the price being steep, which IMO it is, but I might have still bought one possibly if it weren't for the fact they won't work with the Verizon network. Unless a new phone comes out with a built in flux capacitor, I will have no reason to leave Verizon's excellent cdma service. I will simply not use GSM for any reason. I truly think they have severely limited their potential sales by jumping in with AT&T only.
 
It's pretty much decided that this product will take off. If pricing were a huge mistake, then nearly no one would be talking about it. Until the iPhone started elevating pricing expectations, not many in the mainstream were talking about the Nokia N95 either. Nokia is right to say that this knock-on effect is real, given all the positive interest for iPhone.

Previously, over $500 for a phone? Crazy talk. But, now that people have come to the table, its a totally different story. I think the Apple exec had it right when he remarked earlier, "You get what you pay for." Wi-Fi is a premium feature. I can gaurantee that you WILL NOT see this feature on a sub-$400 cellphone. Even Helio's much touted Ocean omits the feature, only to begin cutting its customers off from "free" YouTube access over EV-DO.

Yes you can get a sub 400 with wifi. There is the older but reasonably capable 6700 from VZW and Sprint. If you are luck the Cingular 8525 you can get refurbed for $99 from AT&T or new for $250-350 depending on where you go. On T-Mobile Dash you can get $150 with contract $350 with out, the HTC T-Mobile Wing(not to be confused with the HTC Wings) that is $300 not sure with or with out a contract. There are probably some devices I forgot, but yeah just saying.
 
i believe the RAZR was $399 subsidized when it first came out and lots of people still bought them.

I did and was never sorry...but so hated that I have to add each number for a person in a different entry.
...and so hate carrying a PDA & iPod so I can have music & my freaking addresses & calendar/to dos (which I need).

I'm soooooooooo paying $600 to solve those problems (and then some...).

I've done the math...I paid 400 for Razr & 500 for Sony Clie - the iPhone is a bargain! Still need the iPod for video & general storage but my music and some pictures will fit so I'll need ONE device on a day-to-day basis. Yay!

And no - I never considered a "smartphone" before. Clumsy & ugly.
 
I was really convinced that I needed one until I read that there will be an early cancelation fee of $175 for existing customers. I was planning on just buying the phone but not if there needs to be a new two year contract plus a $175 dollar fee. Not subsidizing the phone is one thing, trying to cheat people out of every little penny is another. This is not apples fault but more of an ATT thing.
 
Yes you can get a sub 400 with wifi. There is the older but reasonably capable 6700 from VZW and Sprint. If you are luck the Cingular 8525 you can get refurbed for $99 from AT&T or new for $250-350 depending on where you go. On T-Mobile Dash you can get $150 with contract $350 with out, the HTC T-Mobile Wing(not to be confused with the HTC Wings) that is $300 not sure with or with out a contract. There are probably some devices I forgot, but yeah just saying.
Oh, come on... you didn't just switch to talking about USED and REFURBISHED hardware did you? :) Why would I be comparing new prices to prices that have no clear benchmark? :confused:

You're completely right about the T-Mobile Wing though. Apparently T-Mobile will subsidize it to $299 with a 2 year agreement, a trending willingness that I still think is a relatively recent development. The normal price of the phone is $600 otherwise. I guess my point has to lower to "sub $299" then, but I still think that's a hell of a lot more than the $0-$50 consumers might otherwise be used to. I just think there's something to the price in this area of product that consumers need to be educated on.
I was really convinced that I needed one until I read that there will be an early cancelation fee of $175 for existing customers. I was planning on just buying the phone but not if there needs to be a new two year contract plus a $175 dollar fee. Not subsidizing the phone is one thing, trying to cheat people out of every little penny is another. This is not apples fault but more of an ATT thing.
From what I've heard, if you buy at the Apple store, you walk right out with it, no contract, no fuss. Whether your Wi-Fi will be working, or whether the phone will be usable... is another story.

~ CB
 
You make a good point. Although the price is not an issue to ME, I went to a non-tech community website and asked who's getting the iPhone. No one who responded was getting one. Few if any of them noted reasons like the lack of features, simply the price.

I did the same on a non-tech site - and NONE were planning on buying an iPhone at this point. Price was about 25% of the thumbs down, another 30% were against buying the first release of a "tech demanding" product, another 20% were thumbs down becuse of the feature set, and the rest were because it being locked to the AT&T network.

I paid $499 for the RAZR the day after it came out. I did not mind paying that price because it gave me something that no other phone gave me back then: the ability to put the phone in my pocket. I just hate having something clipped on my belt or a huge bulge (at least on the side of my pants--HA!) on my pockets. Also, I knew when I used the RAZR, people would want to see it and there is something to be said there as well.

In some ways the Razr sales experience is one reason I am trying to cool my jets on the iPhone. For will the iPhone for cel phone history and see price drops a year out? I am guessing not.

I feel in love with the Razr when it first came out, but still don't have one. May end up with one if I decide to switch phones and/or carriers if I don't get the iPhone route. Still love the look and size of the Razr.
 
Oh, come on... you didn't just switch to talking about USED and REFURBISHED hardware did you? :) Why would I be comparing new prices to prices that have no clear benchmark? :confused:

You're completely right about the T-Mobile Wing though. Apparently T-Mobile will subsidize it to $299 with a 2 year agreement, a trending willingness that I still think is a relatively recent development. The normal price of the phone is $600 otherwise. I guess my point has to lower to "sub $299" then, but I still think that's a hell of a lot more than the $0-$50 consumers might otherwise be used to. I just think there's something to the price in this area of product that consumers need to be educated on.
From what I've heard, if you buy at the Apple store, you walk right out with it, no contract, no fuss. Whether your Wi-Fi will be working, or whether the phone will be usable... is another story.

~ CB

I only did because it was listed on AT&T site but yeah. And the T-Mobile Wings is actually $500 for TMO without a contract, but I am sure one can get it on eBay for less if one really wants that phone. If you did sub 299 there is the Dash which is like $150 and the upcoming Samsung i760 which is rumored to go for $170. Well the Razr2 is comming out so I guess we could see how that going to be priced I dunno.
 
I wouldnt get your hopes up about the pricing coming down any time soon....Just look how much the 60 gig video cost 300 bucks.....If the Iphone comes down in price I would think it would atleast stay around 385-450 for the 8gig....Heck even the 8 gig nano goes for 249.

With the iphone being internet, video, music, youtube and so much more it wont come down like you think....Maybe other lesser models will come out without all these features, but even the PDA and smartphones today have a HIGH HIGH price....
 
I wouldnt get your hopes up about the pricing coming down any time soon....Just look how much the 60 gig video cost 300 bucks.....If the Iphone comes down in price I would think it would atleast stay around 385-450 for the 8gig....Heck even the 8 gig nano goes for 249.

With the iphone being internet, video, music, youtube and so much more it wont come down like you think....Maybe other lesser models will come out without all these features, but even the PDA and smartphones today have a HIGH HIGH price....

The point I was making is what happens in 6 to 12 months as demand slacks off for the first release? Will AT&T end subsidizing it it? Or will AT&T demand the iPhone V2 with 16 and 32 gb RAM, GPS and a widget to support it at the current price points?

I think it is safe to say that most cell phones are on the market for at least two years before their replacements come out. Just in time to get a user to sign-up for another two years.

For Apple and AT&T, the iPhone may test the consumers expectations in regards to cell phones. What will happen in a year, year and a half when the battery needs to replaced? How many people will go without their phone for more than a few hours?

In regards to PDA/Cell Phone prices, though I thought I saw a link for the new CrackBerry 8830 world phone for $199 through Verizon (though in writing this post their website says $299).

For myself, the perfect cell phone would have the Internet, "actual" apps to use AIM and YIM natively,PIM and connectivity for the Mac out of the box. Music and videos is nice, but not needed for my use.
 
In my ideal world all US carriers would get rid of subsidized phones. In fact they shouldn't even sell phones. Does your land line provider sell you your phone? (yea they used to rent them, but no more that I know of) Your mobile provider is a telco or an ISP depending on how you view it. They should provide you connectivity and value added services, not equipment. On top of that if the US would standardize on one family of connectivity (like EU/UK/Africa/Australia ie GSM and associated 3G familes) we would be better set for this telco/device maker seperation and see more value added services (because phones would technically work on any US provider).

For the record I am in the US and I buy my phones without subsidy and not from my mobile provider. I'm not locked in a contract and haven't been for at least 5 years. :) And yea, I want an iphone. haha
 
Really, are you a marketing person? I am and run the $20 million web division of my company so I think I know a thing or two about consumer behavior and buying attitudes. Price is the only issue when products are commodities. The iPhone is hardly a commodity item.

You guys miss understand what I am saying. Price is always a factor. If it wasn't then Apple could charge $1,000,000 for it and people will still buy it. Because as you say its not a commodity.

Price is the ticket that gets you in the game. And if you are in the ballpark you aren't in the game.

Someone in marketing should know this.
 
You don't but Apple stuff to get cheap, Apple tends to cost more compared to other similar products.

If a person wants a phone, MP3 player, etc doesn't not factor price into the equation, most buyer who buy a product of these nature purchase on features, brand and looks.
 
Pricing is tough to manage regardless of the product.

That being said, do people think they would have sold twice as mnay products if they priced them at $249 and $299? Probably not. Yet they would have significantly more costs as well. So you have to find the sweet spot where you make the most money, not necessarily only sell the most toal units.
 
I only did because it was listed on AT&T site but yeah. And the T-Mobile Wings is actually $500 for TMO without a contract, but I am sure one can get it on eBay for less if one really wants that phone. If you did sub 299 there is the Dash which is like $150 and the upcoming Samsung i760 which is rumored to go for $170. Well the Razr2 is comming out so I guess we could see how that going to be priced I dunno.
Yeah, if you keep dipping into eBay, you really can't compare anything fairly to a product that will JUST be coming out, without any time to create people with regrets, disinterest, or logistical problems that prompt them to sell at a loss. The T-Mobile Wing price I got was retail. I'm sorry, but I'm not scouring for lowest prices, you can get really "all over the place" with that. I see the Dash going for $350, or $200 with a two-year contract. I don't think its anywhere near accurate to intermix used-product classified listings with retail store prices. Kind of nutty.
Pricing is tough to manage regardless of the product.
That being said, do people think they would have sold twice as mnay products if they priced them at $249 and $299? Probably not. Yet they would have significantly more costs as well. So you have to find the sweet spot where you make the most money, not necessarily only sell the most toal units.
Agreed. I'm interested to understand Apple's strategy better. The assumption is that they don't want to devalue their MP3 player line. Subsidizing would be such a hit though, if they were simply looking to move units. They've certainly got a butt-load of R&D to recoup, and I doubt iSuppli really has the goods on estimated equipment cost.

~ CB
 
Really, are you a marketing person? I am and run the $20 million web division of my company so I think I know a thing or two about consumer behavior and buying attitudes. Price is the only issue when products are commodities. The iPhone is hardly a commodity item.

why don't you turn your $20m division into $200m division? price doesn't matter so that wuold be easy, just increase the prices ten fold. and next month, why not turn your division into a $2B one?
 
I think you're right, but for a lot of people money isn't an important issue when it comes to sub £1k devices. I agree that the price is a little steep and it has pushed me out of the market, but it still doesn't have the features I want! So that price would shoot up for what I need.

IMO the greatest weakness for me is no 3G (The world is bigger than the US, Apple :rolleyes: everyone else moved onto 3G), no GPS and paltry storage space. 8gb? With these 32gb chips I would have expected one of them, or at least 16gb. 4 and 8 for a video, MP3 player and photo viewing machine really isn't enough for me and I'm a fan of carrying around at least all my music (vidoes not so important).
 
Yeah, if you keep dipping into eBay, you really can't compare anything fairly to a product that will JUST be coming out, without any time to create people with regrets, disinterest, or logistical problems that prompt them to sell at a loss. The T-Mobile Wing price I got was retail. I'm sorry, but I'm not scouring for lowest prices, you can get really "all over the place" with that. I see the Dash going for $350, or $200 with a two-year contract. I don't think its anywhere near accurate to intermix used-product classified listings with retail store prices. Kind of nutty.

~ CB

I see what you are saying, but all the prices I got were from the carriers website. The Dash price is what I saw on T-Mobiles site. But what i want to say is that you can get it even cheaper than the carrier if you let say go purchase it from Amazon or something which many geeky people do.
 
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