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What's the Big deal about the Price?

garyklimeck

garyklimeck

macrumors newbie
Original poster
May 23, 2007
15
0
Texas
I am sick and tired of the jealous crowds claim that the price of the iPhone is too much. Are they smoking crack! One device that does it ALL and finally a wireless provider who can’t place their slimy hands on my fully purchased device with all of its functionality! That alone has me in line with my wallet out.

$499 or $599 iPhone + a monthly service charge and a 2 year agreement.

Here is an example of what the Death Star Verizon offers:
Verizon Palm Treo 700 Smartphone $249.99 after $150.00 mail-in rebate with a 2 year contract and a monthly service charge PLUS Verzion has exclusive rights to ALL features of a PALM device. Oh yea and retail price for the phone is $499.99.

Read the fine print

“Certain mobile phone features are dependent on the capabilities and settings of your service provider’s network. Additionally, certain features may not be activated by your service provider, and/or their network settings may limit the feature’s functionality. Always contact your service provider about feature availability and functionality. All features, functionality and other product specifications are based upon the latest available information and are believed to be accurate; however such product specifications are subject to change without notice or obligation.”

The iPhone is exclusively controlled by Apple. AT&T will provide service and support only. For $599 you just can’t beat this and everyone knows it.

BI/AI
Before iPhone/After iPhone
The release of the iPhone in June will turn the Wireless phone industry on its head. I'm siked!
 
I think many US cellular consumers are used to heavily subsidized devices. Considering the price of other (unlocked) cell phones and the price of the original iPod and all, the iPhone isn't so expensive. Of course being that it supposedly isn't subsidized, you really should be getting an unlocked device at that price.
 
The big deal is that $500/$600 is a lot of money for most people. It's either going to be worth it or it isn't.

More to the point, if the iPhone is only competing for the Palm Treo's market, it's going to be a huge failure.
 
miloblithe said:
The big deal is that $500/$600 is a lot of money for most people. It's either going to be worth it or it isn't.

More to the point, if the iPhone is only competing for the Palm Treo's market, it's going to be a huge failure.
Click to expand...

for me it isn't that it is worth it, but the price tag makes an accidental drop all that more meaningful!!!:eek:

I am very careful with my $1,000 laptop as I know a drop could be lethal, but with an iPhone and the way it would be carried, how many times it would be fumbled out of a pocket, holder or bag to quickly answer the phone, leaves all too many ways it could be damaged or destroyed all too easily.

ON the flip side how many people do you know now that have had to replace their nice phone they broke and didn't realize the second one would NOT BE FREE OR $9.99 or even $49.99, but hundreds of dollars because it is not subsidized.
 
garyklimeck said:
I am sick and tired of the jealous crowds claim that the price of the iPhone is too much. Are they smoking crack! One device that does it ALL and finally a wireless provider who can’t place their slimy hands on my fully purchased device with all of its functionality! That alone has me in line with my wallet out.
Click to expand...

Instead, you get a wireless provider who puts their slimy hands in your wallet and offers ****** service and quality in return :rolleyes:
 
The problem is that they make you pay 600 dollars for an unsubsidised phone and to sweeten the deal they also force you into a 2 year (presumably) very expensive contract. Think 600$ + (80$ * 24 months) = 2520$ is more likely the actual price of the phone. Assuming a 40$ voice + 40$ data plan forced on you by the contract.

Of course if the rumours turn out to be true and you can get the phone with a pay as you go deal then a lot of people will be happy and 600$ is just right. But you still end up with a locked phone you have to pay the full price for.
 
The price of the phone doesn't matter much to me because most of what you pay is for the service anyway. I can only figure the problem for some people is sticker shock, so I don't get why they don't just subsidize the thing. I guess Apple wants to keep selling iPods too.
 
It's not jealousy, it's more resentfulness for being ripped off. It is VERY overpriced. A phone at that price with expensive and lengthy contracts is absurd. It's neat looking and just ever so slightly innovative (but really, it's missing a lot of features its competitors have, such a 3G and batteries you can swap) we love our brand loyalty... ...but frankly I think the price is ridiculous. but it's :apple: so it's OK, right? :rolleyes: please. Sometimes the think different crowd really needs to think different.
 
The price isn't ridiculous at all. I bought my first ipod (4G photo) when it came out for $600. I bought my last phone (RAZR) when it came out 2+ years ago for $500 WITH a 2 year contract (which, thank god, I have just completed).

New things are expensive. They are also cool. You just have to decide if it is worth it to buy it right now. In the future, it will be cheaper. :)
 
I hope this way of selling phones never takes off here (Belgium). I really don't want to be limited in my choice of phones by whatever phone operator I happen to use ... or the other way around.

I don't care if you pay less for the phone, at some point you're paying for it anyway. Besides, my phones tend to be fairly cheap, less than €200.
 
apfhex said:
I think many US cellular consumers are used to heavily subsidized devices.
Click to expand...

You guys need to come up with a new word to replace the word "subsidized". Subsidy implies that the consumer gets the product for less money than what it's normally worth. But we all know that is not the case. Even if you get the phone for "free", you are paying for it in the service-expenses. I have heard people say that "You can get Nokia N95 for free!". Nokia N95 has a retail-price of over 700 euros, and Nokia WILL get every penny for the device. They are NOT giving them for free to operators or anyone else. Same applies to every other phone in the market. The operators buys the phones, ties it to a service-contract that you sign up for. And while the phone might be "free", it's cost has merely been hidden tio the price of the service.
 
even it's a big deal, like somebody said before, it's still a big money for many people. mostly people don't carry expensive phone they usually use cheaper and reliable one. even for some people, a part of feature iphone provides isn't necessary at all. $500 ~ $600 for phone? it's too much. it depends on how people really want or really need. but at least, that's not a big deal as long as Apple & AT&T will keep the same price with two contract. in this forum, mostly we will get one because we love Apple. but it's different story. it's not easy that you just come there to grap that phone, walk away. you have to think few times before decision. with $600, you'd better buy cheaper mac. :)
 
Evangelion said:
You guys need to come up with a new word to replace the word "subsidized". Subsidy implies that the consumer gets the product for less money than what it's normally worth. But we all know that is not the case. Even if you get the phone for "free", you are paying for it in the service-expenses. I have heard people say that "You can get Nokia N95 for free!". Nokia N95 has a retail-price of over 700 euros, and Nokia WILL get every penny for the device. They are NOT giving them for free to operators or anyone else. Same applies to every other phone in the market. The operators buys the phones, ties it to a service-contract that you sign up for. And while the phone might be "free", it's cost has merely been hidden tio the price of the service.
Click to expand...

The service providers in the United States subsidize the initial purchase cost of the phone for the consumer and then recoup it by amortizing it against monthly service fee revenues. I don't think there's anything technically incorrect about that diction. That's the way the term is normally used, at least in the United States. Granted that, unlike situations like government subsidies, the cost ultimately amortizes out to the same person (consumer) who got the product (phone), but it's still subsidy.

Even in the case of government subsidies, there typically is "no such thing as a free lunch." If the government subsidizes services to the poor, then it has an economic impact on wealthier individuals and companies that employ and/or provide to poorer consumers, and it's possible for that impact to circle back around in the form of higher product costs for products consumed by the poor.
 
Oh... I see, only the iPhone is a lot of money!

We are speculating on what the pricing plans will be. We do know that the iPhone is $499 or $599. Is it just me noticing that 1 out of 5 people in the airports or malls has a Batman utility clip around there waste with roughly $700 worth of electronics? Give me a break. The real deal is that those who have reacted pessimistically to the device and the price fall into a couple of categories. 1. They are locked in to another SP and are not willing to pay the cancelation fee. 2. AT&T is not a good provider in their area. 3. They live in Europe. 4. They hate Apple. 5. They own a crackberry or a Q or a Treo and enjoy using Lotus Notes.
 
garyklimeck said:
We are speculating on what the pricing plans will be. We do know that the iPhone is $499 or $599. Is it just me noticing that 1 out of 5 people in the airports or malls has a Batman utility clip around there waste with roughly $700 worth of electronics? Give me a break. The real deal is that those who have reacted pessimistically to the device and the price fall into a couple of categories. 1. They are locked in to another SP and are not willing to pay the cancelation fee. 2. AT&T is not a good provider in their area. 3. They live in Europe. 4. They hate Apple. 5. They own a crackberry or a Q or a Treo and enjoy using Lotus Notes.
Click to expand...

The iPhone IS a lot of money when it's locked to one carrier (and a crappy one at that) and requires you to sign a 2 year contract. I purchased a Windows Mobile phone that cost me over 500 bucks, but it's unbranded, unlocked so I can use it on ANY GSM carrier, and best of all, I didn't have to sign 2 years of my life away to a carrier to buy it. I'd have no problem spending that money on the iPhone if it could be purchased without a contract and SIM lock. But I would have never spent that kind of money on my WM phone if it was locked and required a contract.

Oh, and did you ever think that the people who reacted pessimistically to the iPhone just want a cell phone that makes phone calls and nothing more? Some people don't want internet, MP3 player, e-mail, camera, video conferencing, etc on their phone.
 
Everybody acts like it's a bad thing for EVERYBODY to sign up with a carrier for 2 years. I have no problem with it. For ME, ATT is best provider in my area, fastest download speeds, lowest number of dropped calls, so I don't have a problem committing for 2 years. It varies from person to person, but as far as I'm concerned, as long as I can have my iPhone, I have no objections.
 
yg17 said:
Oh, and did you ever think that the people who reacted pessimistically to the iPhone just want a cell phone that makes phone calls and nothing more? Some people don't want internet, MP3 player, e-mail, camera, video conferencing, etc on their phone.
Click to expand...

They can buy my 6 year old Nokia b&w phone if that's what they're wanting. It will not cost you more than $20 :D

Seriously, you can't find a phone that just makes phone calls anymore. Why would anyone think Apple would fill that market?
 
MovieCutter said:
Everybody acts like it's a bad thing for EVERYBODY to sign up with a carrier for 2 years. I have no problem with it. For ME, ATT is best provider in my area, fastest download speeds, lowest number of dropped calls, so I don't have a problem committing for 2 years. It varies from person to person, but as far as I'm concerned, as long as I can have my iPhone, I have no objections.
Click to expand...
A lot of people don't want to change carriers, like me.
 
You can always buy a iPhone lookalike.

MacNut said:
A lot of people don't want to change carriers, like me.
Click to expand...

All those that are WM savvy and content and all those that like their SP can remain there and get whatever attempt they will provide to counteract the iPhone, because in 2 to 3 weeks, the wireless market will have a new look and everyone will jump on this bandwagon. In USA Today Verizon claims that they are coming out with a phone that will attempt to placate their customers. Hooray for them.

BI/AI
Before iPhone/After iPhone
 
garyklimeck said:
All those that are WM savvy and content and all those that like their SP can remain there and get whatever attempt they will provide to counteract the iPhone, because in 2 to 3 weeks, the wireless market will have a new look and everyone will jump on this bandwagon. In USA Today Verizon claims that they are coming out with a phone that will attempt to placate their customers. Hooray for them.

BI/AI
Before iPhone/After iPhone
Click to expand...
That is assuming that the iPhone is a success, I still think the jury is still out on that. It's all hearsay at the moment.
 
miloblithe said:
The big deal is that $500/$600 is a lot of money for most people. It's either going to be worth it or it isn't.

More to the point, if the iPhone is only competing for the Palm Treo's market, it's going to be a huge failure.
Click to expand...

I agree with miloblithe. $500/$600 isn't a lot of money when you think about what your getting, but its still $500/$600 which is something most people dont have at their disposal, myself included. I still think think they'll sell out the first day.
 
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