Apple seen having leeway to sell iPhone at $99

[AppleInsider]

Apple's very strong real-world revenues and its high iPhone gross margins are now thought to give the company substantial headroom for a price cut that could lead to huge strides forward in market share.

In a Monday investment note from Needham Research, analyst Charlie Wolf reiterates the belief that Apple's doubled revenue in the past year has been 'hidden' by accounting rules but adds that this leaves the company "considerable flexibility" to institute price cuts on iPhones if economic concerns or a simple desire to expand its sales necessitated a drop below today's $199 entry price.

While about two million of Apple's nearly 6.9 million iPhones are counted as worldwide inventory and so hint at a possible decline in iPhone sales in the fall, Wolf explains that iPhone sales are likely to keep increasing and so make a price slash that much more feasible.

More important is Apple's own built-in breathing space for a cut, he says. If Apple TV sales aren't directly included in the equation, Needham estimates an average selling price of about $666 for each iPhone -- an approximately 50 percent gross margin over the actual cost of producing and selling the device. That would leave Apple significant room to cut prices by itself without impacting AT&T's subsidies and could result in a $99 iPhone 3G while still carrying a well-padded 42.3 percent margin.

To the analyst, this could potentially lead to "double or triple" his institution's projected sales for iPhones, which at last check anticipated 15.7 million units in 2009; as a result, it would significantly skew worldwide market share in Apple's favor.

"In short, the iPhone... could figuratively take over the smartphone market leaving only niche players like BlackBerry," Wolf argues.

While it remains to be seen whether Apple aggressively trims prices instead of adding features, the iPhone maker is already known to be outshadowing competitors in some areas: its second-generation touchscreen phone has already outsold the BlackBerry line during the summer quarter and was one of the US' top handsets of any type in the same period.

Wolf is keen to note that Apple is unlikely to stop deferring its revenue per iPhone in the near future and thus won't automatically give a better sense of its potential to lower iPhone prices, even if the company will now make it a habit to report its true revenues with each quarter. However, it's this deferred approach that the researcher believes is key to Apple offering free major updates for each iPhone and thus to guarantee an even greater source of revenue as every iPhone owner gains the option of browsing the App Store and in turn spurs more hardware sales.

"With over 5,000 applications and growing, the App Store has the potential to generate a material revenue stream for Apple," he says. "More importantly, the App Store represents a significant and durable competitive advantage over competing smartphones... In the App Store, Apple has reinvented the PC maxim that software drives hardware, in this case iPhone sales."[ View this article at AppleInsider.com ] (http://www.appleinsider.com/article.php?id=10319)

[Ireland]

The US says bring it on! Of course.

Check out these prices (http://www.o2online.ie/wps/wcm/connect/O2/Home/Shop/Phones/iPhone+3G/Pay+monthly) in 'me' :D

[williado21]

Don't even bother with cheaper prices...Try keeping the storage space in line with the iPod Touch. Here's the pricing structure I'd like to see:

8GB iPhone: $99
16GB iPhone: $199
16GB iPod Touch: $199
32GB iPhone: $299
32GB iPod Touch: $299

Cheaper prices don't always equal more marketshare. Cheaper prices usually equal poorer workmanship and quality of product. This is extremely antithetical to Apple's history from the late 90's to the early 2000's.

[SpamSandwich]

Where did they get a figure of $666? Sounds like a figure picked for controversy... just wait and see.

[DeaPeaJay]

Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.

It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!

[Ireland]

Where did they get a figure of $666? Sounds like a figure picked for controversy... just wait and see.

He was cross referencing his Microsoft analysis 8-)

[sflocal]

These guys should stick with repairing their reputation within the financial sector instead of giving lame "predictions". It's like they have nothing better to do than to sit at their desks pushing pencils and coming up with something just for the sake of doing it.

Hey, if BMW cuts the price of their cars in half, it will be a HUGE market disturbance!
Even better, if Apple cuts the phone to $50, it will be world domination!

<flamebait>

How's about the end-of-life-as-we-know-it...
"Charlie Wolf reiterates that Apple has considerable flexibility to institute price cuts to iPhones down to $0.99 cents! Mr. Wolf firmly predicts this price cut would make Apple the defacto provider of smartphones in the industry!"

I hear the villagers rejoicing!! All hail Chuck Wolf!!

What a moron.

</flamebait> :grumble:

[anantksundaram]

Cheaper prices don't always equal more marketshare. Cheaper prices usually equal poorer workmanship and quality of product. This is extremely antithetical to Apple's history from the late 90's to the early 2000's.

Nice point. Apple should proceed cautiously.

The iPhone does require some degree of computer savvy in use (incl. iTunes and all of its capabilities), i.e., it is not a standalone device. I wonder if the $99 price will attract a potential user segment that does not have the right computers and operating systems (e.g., right amount of RAM, processor speeds fast wifi connections for regular updates etc). The consequence may be an increase in quantity sold at the expense of customer satisfaction, implying a lot of returns, tech support investments, moaning and groaning in lots of public forums etc., all hassles that Apple might want to avoid.

Apple would be far better off sticking to its classic strategy, which is: Find the right price point for the product and stick to, but upgrade the performance and functionality of future versions of the product for the same price. THis is (largely) what they have done with MBs, MBPs, iPods, etc.

O/w, it could be shades of RAZR.

[Ireland]

I mean really, who is this guy? A Shaw Wu wannabe?

What's funny is I know these guys read AI, you'd see them saying things you read here the whole time. I'm waiting for them to quote one of us one of these days! :D

[JeffDM]

While I think it's reasonable to say that Apple has plenty of profit margin to sell the current products $100 cheaper, from a business perspective, they shouldn't do that until the market is saturated at the current price.

[ltcommander.data]

I'm not sure how much of the iPhone's cost is from the flash memory, but given how those prices are falling a $99 iPhone isn't unlikely. I'm not sure they want to go that far though. If the iPhone is selling well at the $199 price point, they shouldn't rush to drop the price so low, because once you introduce a $99 iPhone, it'll be hard to raise the price again.

The current iPhone 3G can be made so cheap because it's so similar to the original iPhone and so is using technology that is more than a year old now. The next iPhone revision will no doubt be a major redesign, especially internally if PA Semi has anything to say about it and it's doubtful they could maintain a $99 price point.

If they do want to cut price, maybe $149 for the 8GB and $249 for the 16GB might be sustainable.

[monstrosity]

Oh that's right. Nokia will go out of the phone biz.


I think it's fairly certain that nokia will take a huge hit over the next few years. And the iPhone will be significantly to blame.

[EagerDragon]

I do not see the point of this story. Apple can sell the iPhone if it wants to for 50 cents. There is no indication that they plan to lower the price, so why write about something Apple could possibly want to do some time in the future or never?

Apple could also stop making the iPhone and get out of the Phone business (not that they will). Is this other potential action by Apple worth a news item?

[Alonso Perez]

Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.

It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!

And I'll add one more to that. Sell it unlocked for $599, even better if it includes the bluetooth headset. I'd buy it. I don't need a fancy data plan.

[BenRoethig]

I don't think we'll see a touchscreen iPhone, but I could see a more conventional iPhone Nano.

[alansky]

If Apple sold the iPhone for $25, they could quadruple market share in no time. Or they could give it away free and have a real shot at an 80% market share within three months.

[satchmo]

We're as likely to see a $99 iPhone as we are to see a $800 MacBook. :rolleyes:

Okay not quite the same, but come on folks...this is Apple. They are a premium brand across their product line. They don't have anything as a throw away or disposable-like in price. Even the diminutive iPod Shuffle still commands $50 when it should probably be around the $25 range.

[iVlad]

I can't see Apple selling such cheap Phone. That's not apple at all. If no-one ever noticed, Apple doesn't go by he rules. Apple creates rules.

[Ireland]

I can't see Apple selling such cheap Phone. That's not apple at all. If no-one ever noticed, Apple doesn't go by he rules. Apple creates rules.

Yeah like not giving us the Copy & Paste, cool!

[Dorotea]

If Apple TV sales aren't directly included in the equation, Needham estimates an average selling price of about $666 for each iPhone -- an approximately


So does anyone really know what the Apple TV sales are? I'd like to know the actual numbers.

[emoney35]

Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.

It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!

Not to state the obvious, but the new iPhone is 3G. That is well worth the extra $10 per month. Also, the iPhone plans are the same as other smart phone plans through AT&T.

Sure, it's ten bucks more a month, but the value is better too. I would be pissed if I was stuck with a first generation iPhone that's EDGE only!

[pooped]

Don't even bother with cheaper prices...Try keeping the storage space in line with the iPod Touch. Here's the pricing structure I'd like to see:

8GB iPhone: $99
16GB iPhone: $199
16GB iPod Touch: $199
32GB iPhone: $299
32GB iPod Touch: $299.

right, so for $299 you can get a 32gb iphone, or a 32gb iphone, but without the camera, or the phone, or the bluetooth, or the mike, or the sms (the ipod touch).
so yeah: that seems like a fair pricing scheme, everybody will now want to have a touch..
:\

[stonybrookadam]

right, so for $299 you can get a 32gb iphone, or a 32gb iphone, but without the camera, or the phone, or the bluetooth, or the mike, or the sms (the ipod touch).
so yeah: that seems like a fair pricing scheme, everybody will now want to have a touch..
:\

Well, that's sort of the point, no? Apple makes a TON of money off each iPhone sold -- not in the initial unit price, but in the amortized REAL cost of the unit for a two year contract. Think of the current iPhone price as an Apple-improved Gillette model. Except here, you PAY for the razor (phone) and the blades (contract).

When Apple sells an iPod, no more money changes hands. An iPhone, however, is a two-year mealticket and a likely upgrade candidate at the contract's termination.

I think Apple would be nothing short of thrilled to have every prospective Touch buyer get an iPhone instead.

[dasein]

Apple's very strong real-world revenues and its high iPhone gross margins are now thought to give the company substantial headroom for a price cut that could lead to huge strides forward in market share.
The problem I see here is ATT not being able to handle an accelerated demand on its 3G abilities...at least not right now.

[vinney57]

Do these people never learn? Buying market share with lower prices? Does that sound remotely like Apple? Jeez.

Apple buys market share with 'awesomeness'*. Much better margins and it protects the brand.


(*Awesomeness is usability + design + supporting infrastructure)

[Xtrail]

Apple wants people to upgrade to each new model. Its great for revenue and stats. Unfortunately, contracts set by providers is 2 or 3 years. They discourage your option to upgrade with penalties. This only benefits providers and forces users to skip models:mad::mad:.

Again, this undermines Apple's potential year over year revenue.

Apple should force providers to a one year max contract:D

OR AS AN OPTION.....

Sell them unlocked at the Apple Store without contract for an extra $100.:smokey:

[DogGone]

The 666 number comes from Jobs comments during the conference call. He quoted the revenue from the iPhone and the sales number so it ain't difficult to work out the ASP even if you're an analyst!

Cheaper iPhones would reduce the threshold for some potential customers (like myself).

[hittrj01]

The 666 number comes from Jobs comments during the conference call. He quoted the revenue from the iPhone and the sales number so it ain't difficult to work out the ASP even if you're an analyst!

Cheaper iPhones would reduce the threshold for some potential customers (like myself).

A cheaper Mac would reduce the threshold for a computer for people, as well, but it's not going to happen. A $99 iPhone 3G would undermine Apple's "premium brand" image. I can see them coming out with a $99 iPhone with no touch screen and less features, but there will always be that premium iPhone, just as there is a premium iPod (touch) and premium Mac (Mac Pro, MacBook Pro).

Also, a previous poster said the iPhone 3G with the new plan costs WAY more than the previous one, which isn't completely true. Yes, it costs more, but when broken down comes out to around $40 extra over the two years. I understand that today's money is more valuable than tomorrow's and paying more upfront does save you more, but even factoring that in, it isn't a huge difference to be upset about, considering competing phones cost the exact same per month and do exponentially less.

[TBell]

If Apple lowered the price, that'd bring the overall cost of ownership down to version one level where the AT&T cost was less.

[bobertoq]

I honestly wouldn't mind that. An iPhone in the sub 100 dollar range. I still wouldn't buy it. No t-mobile. I'm fine with my nice $150 dollar phone from t-mobile that can't do half what the iPhone can do.

[adamroth]

I'm surprised to see so many people arguing that such a scenario is far fetched. It's not, because it's happened before and because Steve Jobs practically telegraphed this move.

First, last year they dropped the price of the phone $200. It had been $600, then it was $400. Nothing's really changed this year. It's still a $600 phone, just that AT&T is subsidizing it. So they can drop the price $100 and still be making a killing.

Second, during the conference call, Jobs said 1) they're not overly concerned with bringing more handset models to market and 2) they are very concerned about not allowing competitors to offer product underneath their price "umbrella." Put those two comments together and there's one conclusion: they're going to drop the price.

The only question is when. I bet Apple doesn't know either. They'll let their sales data make that decision. It might be before the holidays.

[paxman]

I can't see Apple selling such cheap Phone. That's not apple at all. If no-one ever noticed, Apple doesn't go by he rules. Apple creates rules.

Quite. Apple doesn't seem to need to drop their prices in order to gain market share and dropping the prices to such an extent is no guarantee for success. But it is good to know that the latitude is there.

What is needed is lower subscription fees. If the iPhone was made available to all the carriers out there we might see some competition and lowering of prices. I have held out this far but I am about to buckle, and my phone bill will almost double. I am so weak!

[hittrj01]

Quite. Apple doesn't seem to need to drop their prices in order to gain market share and dropping the prices to such an extent is no guarantee for success. But it is good to know that the latitude is there.

What is needed is lower subscription fees. If the iPhone was made available to all the carriers out there we might see some competition and lowering of prices. I have held out this far but I am about to buckle, and my phone bill will almost double. I am so weak!

Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).

Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.

[Esteban]

Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).

Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.

Umm... actually it probably would, since it is the carriers that set subscription rates. T-Mobile's nascent 3G data network is only $25/month unlimited with one of their phone plans (as offered on Google/HTC's G1). That's a difference of $120/2yr contract, if you want any txt msgs; TMob includes 400 with the aforementioned data plan, AT&T rapes you $5 for 200msgs. if you want unlimited txt and data on AT&T, it costs you $50 (TMob unlimited data & txt is $35)... That's $360 over a 2/yr contract.

One item of note-- and I may be on the late late show with this-- I went to AT&T's site and went to view all phones, and where the iPhone had been prominently displayed at the top of the list in the past, it has been removed completely, and as far as I can tell, is no longer available to be purchased online. Was this part of that online pre-approval scheme that they rolled out with iP3g, or is this a newer development?

[rulebreaker]

i am not sure why the US-based posters are so sure that apple wont lower the price or sell it for $0.

in plenty of other countries the iPhone is available for $0 up front.

[reverie]

AT&T would need a $150 price drop from Apple before they could give customers a $99 price drop. The reason for this: Customers are currently enjoying a $300+ subsidy when buying their iPhones from AT&T. Customers that did not want to buy the iPhone at $199 probably also spend less on their monthly telephone bill. Thus, AT&T could only afford to offer those customers a smaller subsidy on their phone. Otherwise, the profits from monthly billings would not make up for the subsidy.

[reverie]

And I'll add one more to that. Sell it unlocked for $599, even better if it includes the bluetooth headset. I'd buy it. I don't need a fancy data plan.

Why would you want to pay that much? You can get an unlocked und contract free iPhone 3G in Italy for €499 incl. VAT, which as of today equals $521.03 without Tax.

[reverie]

Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).

Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.

And the iPhone 3G doesn't work on Sprint or Verizon because it doesn't support CDMA. T-Mobile would be the only alternative to AT&T. Not enough to stirr a lot of competition.

[bigmc6000]

Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.

It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!
Actually, it's not "a lot" and, in fact, it's cheaper than when it first came out. It ends up being like $40 more across 2 years vs the previous cheap version but I bought my 8GB at $600 and the 3G is both cheaper up front and cheaper in the long run. (Add on to that Cingular now allows for corporate discounts and my end cost per month is actually a little cheaper with a 3G iPhone than the 2G iPhone)...

[Dunks]

I can't see Apple selling such cheap Phone. That's not apple at all. If no-one ever noticed, Apple doesn't go by he rules. Apple creates rules.

The iPhone is already available on contracts with an entry price of $0 in several countries around the world.

Everyone knows by now it's the total cost of ownership (including all ongoing payments) that determines the value of what is being purchased.

[zanshin]

While several like it but find it lacking and Apple Nazi-like control oppressive which turns them off and into the arms of Nokia, Samsung, LG, etc...

pretty sure Jobs isn't bursting into homes and setting up death-camps for people they catch using other phones, or even hacked iPhones. ;)

[Imagine Engine]

I don't see Apple lowering the iPhone 3G price even further than it is now for two reasons. One is that it already is priced lower than RIM's Blackberry Bold 9000 which here in Canada it's priced at $299.99 for the Bold. Second is that it cost more than $99.99 to make so there's no way Apple would be dumb enough to undercut their profit. Especially since they no longer profit share on the plans with the carriers.

[reverie]

I draw this conclusion from the phone users around me. Just about all see the iPhone as a glorified iPod with phone. Many see it as a "jack of all trades, master of none" type device. While several like it but find it lacking and Apple Nazi-like control oppressive which turns them off and into the arms of Nokia, Samsung, LG, etc.... Personally, I was more in the "iPhone is ok camp" until a few weeks ago and my Internet went down. I had to go purchase a Nokia so that I could tether my Mac to a phone to get some work done. Sorry but this is Apples fault as it is AT&T's. For 3 days as a modem, my iPhone was useless, and is more so as I have now become used to using my Nokia on a daily basis.

There are USB sticks for that. You don't need to buy a new phone just to go online with your notebook. In Germany it so happens that T-Mobile allows you to use your USB stick under your iPhone contract at no extra charge. They send you a free 2nd sim card for your contract. AT&T would do the same if their 3G network was ready for more traffic.

I for one believe that 75 % of mobile phone users will prefer a smartphone over a regular mobile phone once they are well-designed and cheap enough. Apple has the good design (best on the market so far) and it will get the prices lower in time, so they are poised to become the market leader in smartphones.

[sarges]

Apple seen having leeway to sell iPhone at $99
instead of lowering the "artificial" price, keep the business model as it is and DO offer the iPhone fully unlocked at the price of their choosing, sold at Apple stores only. I hate the current straightjacket model where one can only use the phone with their appointed country's service provider.

I don't care if they sell the phone $500 or even $999 but let me decide which sim card I should put inside, which carrier, which plan and ability to switch carrier as I travel from country to country. $99? it's just a gimmick, your service providers' plan will increase, to make up with the initial loss. Free the iPhone, free us.

[SpamSandwich]

I mean really, who is this guy? A Shaw Wu wannabe?

Would that make him a "Wannawu"? :D

[SpamSandwich]

I honestly wouldn't mind that. An iPhone in the sub 100 dollar range. I still wouldn't buy it. No t-mobile. I'm fine with my nice $150 dollar phone from t-mobile that can't do half what the iPhone can do.

Same here. I'm OK with my lousy Samsung and iPod touch for now. No T-mo, no deal.

[madmaxmedia]

Thank you. Apple has already significantly dropped the price, TWICE.

The main impression I got from the article was not that it was saying Apple would necessarily drop the price further, but that their large margin gives them the opportunity to do so, in response to the current world economy.

I doubt a price drop is planned. But if in 3 months we are all bartering for food and digging for pennies from under the sofa cushions, Apple can drop the price to maintain sales/sales growth and still generate a healthy margin.

I would perhaps see a price drop in conjunction with capacity bumps, so 8GB/16GB/32GB for $149/$199/$299 or something like that. They're not going to reach Motorola RAZR depths or anything like that. If they are able to wait a few more months before doing this, then they're going to basically maintain their original margins due to continually dropping flash memory prices.

I'm surprised to see so many people arguing that such a scenario is far fetched. It's not, because it's happened before and because Steve Jobs practically telegraphed this move.

First, last year they dropped the price of the phone $200. It had been $600, then it was $400. Nothing's really changed this year. It's still a $600 phone, just that AT&T is subsidizing it. So they can drop the price $100 and still be making a killing.

Second, during the conference call, Jobs said 1) they're not overly concerned with bringing more handset models to market and 2) they are very concerned about not allowing competitors to offer product underneath their price "umbrella." Put those two comments together and there's one conclusion: they're going to drop the price.

The only question is when. I bet Apple doesn't know either. They'll let their sales data make that decision. It might be before the holidays.

[justappledotcom]

i'm from Malaysia and i'm a fan of Apple product..especially iphone3G...i wish to get it here..but not from ebay...why Apple doesnt launch in my country!

www.justappledotcom.blogspot.com:embarrass

[charlituna]

the price of the phones is NOT the issue. hard drive is. a 32 gig phone or even higher would be more valuable. maybe drop the existing prices $50 and add a 32G for $349.

the real issue is the ATT prices. they switched from an iphone pricing plan to using the same plans as all smart phones. but that plan is expensive. especially since they dropped the inclusion of texting. split the difference between the plans on all smart phones and some folks would stop complaining. those on an Edge smartphone pay $10 for data, those with a 3G pay $20 for data and make unlimited texting $15. that's $35 total instead of the $50 they want now.

or show some real moves in improving coverage. 3G towers are like 1 in 30 right now outside of the most major cities. why should those folks have to pay for service they can't really use. cut them a break until tower saturation reaches a particular level and have it all upfront so no one is surprised when the price goes up.

[charlituna]

Apple could also stop making the iPhone and get out of the Phone business (not that they will). Is this other potential action by Apple worth a news item?

if it was just a phone, I would agree. but it's not. so I don't see them stopping now.

[charlituna]

Apple makes a TON of money off each iPhone sold -- not in the initial unit price, but in the amortized REAL cost of the unit for a two year contract.

Apple is making little to none of that money. ATT made an investment in the research and development of the phone. that's part of how they got the exclusive rights. so a huge chunk of Apple's share is going to pay back that investment.

I would hazard that Apple is only getting perhaps 5% of the contract money if that much. the rest goes to ATT for service and supposedly paying for more towers

[FJRabon]

I'd be willing to bet that sometime in the near future Apple and AT&T work out a deal to get the iPhone's selling price dropped a fair amount. I'd also look for a new iPhone about 2 years after the 3G launched. This would prime all the current 3G owners to sign new contracts as their contracts are expiring on their 3Gs to get the upgraded phone. I'd then look for apple to take an approach similar to what they're doing with the plastic macbooks and the current macbooks and sell the 3G for something like $99 and then the newer iPhone for $250 or so. I'd be almost shocked if you didn't start hearing rumors of a new iPhone around that time, as Apple wouldn't want buyers to "prematurely upgrade" and miss out on the new iPhone.

[charlituna]

They discourage your option to upgrade with penalties.

This only benefits providers and forces users to skip models:mad::mad:.



i'd check that. ask ATT. if you have an iphone from last year, you get the upgrade price.




Sell them unlocked at the Apple Store without contract for an extra $100

without the contract, ATT ain't paying diddy on the equipment cost. so that's $399 and $499 right there. and if they are going to unlock the phone you can bet it will be more like $200 more. thus the $599 and $699 sites keep saying is out there.

[charlituna]

Sorry but this is Apples fault as it is AT&T's.



actually you may find that it is indeed ATTs fault. they sell a separate 3G modem device and aren't likely to degrade that if they can. thus perhaps a prohibition on tethering with the iphone. unless they can come up with a way to detected and block the use unless you want to pay a higher data plan for a tethering option.

[charlituna]

I don't care if they sell the phone $500 or even $999 but let me decide which sim card I should put inside, which carrier, which plan and ability to switch carrier as I travel from country to country. $99? it's just a gimmick, your service providers' plan will increase, to make up with the initial loss. Free the iPhone, free us.

once again, someone griping at Apple and ATT for doing what every company does. Sidekick is still TMobile only. the LG Dare is only Verizon, the Samsung Instinct is Sprint only.

if you are going to gripe, don't make it an Apple only issue. go out there and put the buzz out to stop all locking. Just like they did in France etc.

[sarges]

once again, someone griping at Apple and ATT for doing what every company does. Sidekick is still TMobile only. the LG Dare is only Verizon, the Samsung Instinct is Sprint only.

if you are going to gripe, don't make it an Apple only issue. go out there and put the buzz out to stop all locking. Just like they did in France etc.
out of USA one can buy handsets from any manufacturers directly at their retail shops, think of Nokia, Sony etc. you pay full price and take it home. No need of activation online. You then insert the sim card of your choice. Full stop. if you decide to change carrier, you give 1 month notice and get another sim card without fuss. Alternatively. if you don't want to pay the hefty price up front, then you get it from a carrier and they lock you in a year plan (not 18 or 24 months like iPhone). Apple makes 1 phone only, that cannot be purchased on its own no matter how much you willing to pay (except in a handful of countries). You got to have your balls tied to a carrier for 18 or 24 months (depending on the country); longer than any other plan in the market.

If you want to comment on these things then you better travel outside USA (if you ever did); there is a big, different world out there.