Retailers discount iPhone 5s down to $120, AT&T offers customers $450 to leave T-Mobile [u]

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Comments

  • Reply 21 of 44

    T-Mobile does indeed do credit checks, which is why their plans are all "O.A.C for well-qualified buyers."

  • Reply 22 of 44
    Quote:

    Originally Posted by wakefinance View Post

     

     

    Best Buy is discounting the phone for consumers.  I think that was fairly clear in the article.  That has nothing to do with Apple's revenue stream in any way at all, and I never implied such.


     

    Exactly. BBY is just running a short promotion to generate some traffic. BBY is selling at a loss on the hardware, but carriers generally pay $100-150 commission / bounty for signing up a new contract. So BBY uses the sales commission to offset discounts.  When carriers themselves discount phones at their outlets, and keep it, that's generally a bad sign. 

  • Reply 23 of 44

    Rumor is that T-Mobile will announce next week that AT&T customers who come to T-Mo will get their early termination fee refunded if they trade in their phone.

     

    AT&T is just fighting back.

     

    If you bring your own phones, for a family of four:

     

    T-Mo costs $100 plus tax with 500MB data each (not shared), and AT&T costs $155 plus tax with shared 2GB data on their Mobile Share Value Plan.

     

    The way I see it, AT&T will have to lower prices to compete.

  • Reply 24 of 44
    solipsismx wrote: »

    Really it is what you suggested. The iPhone isn't discounted, the phone + 2 year contract is discounted. You aren't paying for the phone when you pay $199 or $125, you're paying a deposit on the phone plus 2 years of a given service. It's unlikely that Apple has agreed to take $75 less per unit from the carrier and the contract-free price looks to remain the same across the board. This means the only thing that can be determined is the carrier is looking to increase subscriber-ship by earning slightly less, which over 24 months is only a difference of less than $3.13 pre month. This can said for any vendor's device so long as we don't see the vendor dropping prices.

    While it would be unlikely for Apple of old to offer special wholesale pricing to carriers or dealerships, it does not mean Apple isn't offering some short-term special offers to various outlets to spur sales and garner more attention-getting buzz. This kind of attention costs dearly through advertising, if it can be accomplished through social media for less, or at the same cost for a bigger bang, it makes sense to do so.

    Such targeted sales are common in the retail market for other products and brands. For Apple to do it makes sense (even though it has not been previously done by Apple). A company that is excellent at marketing will not be a standing target for its competitors to shoot at. Remember how it was only a few short years ago. Everyone knew that Apple would be releasing a new iPhone on a certain date with a certain price and planned their releases to take advantage of those known facts. Now, things are not so certain. Apple changes up the dates a bit, offers two new iPhones at two different price points instead of one. They are doing some dodging and weaving now... why not with special pricing?

    The Smart phone market is moving into a more mature market, changing times calls for changing methods...
  • Reply 25 of 44
    trumptmantrumptman Posts: 16,464member

    I checked on this deal this morning. I considered going with it for a year because I don't mind eating some of the upfront costs while the "rebate" of $200 per line comes in 90 days. It was actually a bit less per month however there were still several problems.

     

    1. They wanted $35 per line to activate a sim and I have five lines. I'm paying $180 to activate five sims.

    2. There isn't really any tools to limit the shared data. If a kid decided to stream Netflix without permission one night, I'd be the screwed one. On T-mobile our data is separate and better still the data doesn't stop, but slows down so they can learn about how they are using their phone.

    3. Additional cost to tether. I buy the data, it is mine to do with as I want. Bad form AT&T. I love tethering my iPad to my iPhone.

    4. Free international data and texting in 100 countries. This really is becoming a big deal. So many people in California travel back and forth to Mexico and I can text whomever I want while in Mexico. While I can't text from the U.S. to Mexico yet without a charge (weird I know) I can use a chat app and that app will still work on 2G when in Mexico.

     

    AT&T basically wants to throw some money at you in hopes you won't realize their crappy policies are going to sting you. My five line plan with Tmobile is $130 and two lines have 2.5 gigs of data (the others have half a gig). AT&T wanted $195 for the same five lines to share 4 gigs total.

     

    I feel like Tmobile is really applying the pressure here since the incentives are aimed directly at Tmobile. I suspect a lot of folks like us have taken unlocked iPhones over to their network where the 3G has been re-farmed.

  • Reply 26 of 44
    solipsismxsolipsismx Posts: 19,566member
    While it would be unlikely for Apple of old to offer special wholesale pricing to carriers or dealerships, it does not mean Apple isn't offering some short-term special offers to various outlets to spur sales and garner more attention-getting buzz. This kind of attention costs dearly through advertising, if it can be accomplished through social media for less, or at the same cost for a bigger bang, it makes sense to do so.

    Such targeted sales are common in the retail market for other products and brands. For Apple to do it makes sense (even though it has not been previously done by Apple). A company that is excellent at marketing will not be a standing target for its competitors to shoot at. Remember how it was only a few short years ago. Everyone knew that Apple would be releasing a new iPhone on a certain date with a certain price and planned their releases to take advantage of those known facts. Now, things are not so certain. Apple changes up the dates a bit, offers two new iPhones at two different price points instead of one. They are doing some dodging and weaving now... why not with special pricing?

    The Smart phone market is moving into a more mature market, changing times calls for changing methods...

    Absolutely.

    Two point…

    I would image a vendor in Apple's position would have written their deals to protect themselves from resellers who might wildly alter prices in certain ways to create certain types of buzz. They can do it but only after getting approval from Apple. This would help safeguard Apple from potentially having their brand diminished.

    It would behoove a vendor in Apple's position to increase unit sales without losing face to do so through their distributors. They could even be the ones make the suggestion to a distributor. For example, "We'll give you $65 off each unit you sell if you lower the device cost for each unit sold by $75 for the month of January." I didn't make them the same value because because offering the deal to only Best Buy they know they have an upper hand and it would still be profitable when you factor in other revenue streams from activating an iPhone at BB to having a shopper in the store.

    This goes for any vendor but until we have proof this is happening we have only our speculation.
  • Reply 27 of 44
    Quote:
    Originally Posted by SolipsismX View Post





    Absolutely.



    Two point…



    I would image a vendor in Apple's position would have written their deals to protect themselves from resellers who might wildly alter prices in certain ways to create certain types of buzz. They can do it but only after getting approval from Apple. This would help safeguard Apple from potentially having their brand diminished.



    It would behoove a vendor in Apple's position to increase unit sales without losing face to do so through their distributors. They could even be the ones make the suggestion to a distributor. For example, "We'll give you $65 off each unit you sell if you lower the device cost for each unit sold by $75 for the month of January." I didn't make them the same value because because offering the deal to only Best Buy they know they have an upper hand and it would still be profitable when you factor in other revenue streams from activating an iPhone at BB to having a shopper in the store.



    This goes for any vendor but until we have proof this is happening we have only our speculation.

     

    According to talks with a contact at BBY, they eat the discount. Carriers and Apple make up wide majority of sales. So promotion through BBY wouldn't do much to move the needle for Apple, but it does for BBY. Get people in stores, attach high margin accessories, etc. Discounts can only be temporary. Apple doesn't want to lose sales to its own stores. But also wants to keep resellers happy so that is why they allow them to discount. 

     

    However, there are instances, typically with other brands that have short life, where vendor will add sales support, reimbursing the discount. This happens when inventory levels are high, and for the vendor to sell more, the reseller has to move existing inventory. Samsung is notorious for this. They basically force resellers to take on huge shipments, which leads to them carrying less of competing products. Then will offer promotions so the reseller can clear inventory. 

  • Reply 28 of 44
    dasanman69dasanman69 Posts: 13,002member
    But...but...but iPhones sell as fast as they can be made, there's NEVER a discount on iPhones.
  • Reply 29 of 44
    solipsismxsolipsismx Posts: 19,566member
    According to talks with a contact at BBY, they eat the discount. Carriers and Apple make up wide majority of sales. So promotion through BBY wouldn't do much to move the needle for Apple, but it does for BBY. Get people in stores, attach high margin accessories, etc. Discounts can only be temporary. Apple doesn't want to lose sales to its own stores. But also wants to keep resellers happy so that is why they allow them to discount. 

    However, there are instances, typically with other brands that have short life, where vendor will add sales support, reimbursing the discount. This happens when inventory levels are high, and for the vendor to sell more, the reseller has to move existing inventory. Samsung is notorious for this. They basically force resellers to take on huge shipments, which leads to them carrying less of competing products. Then will offer promotions so the reseller can clear inventory. 

    I agree with all of this in regards to what is most likely but the odds of their being occasions, even if short in duration, where Apple has produced too many of a model or wants to shore up some sales before a certain date that might behoove them to sell at a short term discount to maximize profits statistically has to happen from time to time. I don't see anything that says Apple set this particular BB deal in motion but I also don't think we can discount it as being impossible.
  • Reply 30 of 44

    From WSJ today ---

     

    "AT&T and T-Mobile were slated to be merger partners three years ago, but the Justice Department scuttled the $39 billion deal over concerns it would leave the market too concentrated. Antitrust officials wanted to preserve T-Mobile as a disruptive force in the market."

     

    Thank you DOJ.  Competition = Lower Prices.  Yeah, baby !!

  • Reply 31 of 44
    tallest skiltallest skil Posts: 43,388member
    Originally Posted by dasanman69 View Post

    theres NEVER a discount on iPhones.

     

    Correct: Apple never discounts iPhones, as Samsung cuts its own prices on its devices.

  • Reply 32 of 44
    dasanman69dasanman69 Posts: 13,002member
    Correct: Apple never discounts iPhones, as Samsung cuts its own prices on its devices.

    Sure they do.
  • Reply 33 of 44
    idogeidoge Posts: 4member
    Haha! I love it. T-Mobile is set to announce a $350 credit helping people migrate onto their network. What does Ma Bell do? Ups the ante. Guess who wins? Consumers!
  • Reply 34 of 44

    It is funny AT&T was forced to do this a few weeks after their CEO was quoted as saying subsidies were going away.  <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />   Makes me think Stephenson really doesn't know what he's talking about.  

  • Reply 35 of 44

    Does this mean that AT&T is offering up this $200 credit in order to lock new customers into a contract? Not exactly an attractive trade off to T-Mobile customers, many of whom migrated there in order to get away from contracts.

     

    From what I've read, the rumored T-Mobile plan will pay the termination fee (up to $350) to anyone on contract with a competing carrier.  That plan basically offers up the credit in order to more rapidly move customers from a contract into a contract-free plan.

     

    If it requires a contract, the AT&T plan would do exactly the opposite -- move a contract-free T-Mobile customer into a contract. 

  • Reply 36 of 44
    Interesting, when I asked ATT to refund me upgrade fee $39 or I jump the ship to T-Mobile, they said NO PROBLEM, GO. So I went, and I will never ever look at ATT again.
  • Reply 37 of 44

    The main reason they had subsidies was to encourage ppl to move to higher paying plans. They already have ppl hooked on smartphones who didnt have them 2-3yrs back and they wont be going back.

    I never got a subsidized phone i always paid full price and pay very little for everything unlimited.

    most high end phones cost 600+ but googles nexus phone are like 350 and they are better then most high end phones. very feature rich like phone used as credit card/wireless charging. google nexus phones always have the latest technology in them

     

    if i add up what i pay over 2 yrs with the low low price plan i pay and the very capable nexus phone . i save a shit load of money.

     

    some cheap gsm plans

    -straight talk att $45 - this is lte unlimited plan which throttles at 2.5gb

    -straight talk tmo -$45 same limit as att. but att has better courage area. tmo has free hotspot

    -go smart mobile -$45 for 5gb of 3g data everything else unlimited

    -tmo data centric plan -$30 for 5gb of 4g data unlimited txt but only 100mins

    -simple mobile- $40 unlimited everything data throttled after 1gb

  • Reply 38 of 44
    Originally Posted by Mike Snoow View Post

    -simple mobile- $40 unlimited everything data throttled after 1gb


     

    On whose network does SM piggyback and what are their terms for using said data?

  • Reply 39 of 44
    Bash AT&T all you want. I have a $90/month plan w5gb data, 450 anytime minutes and no texting. Tethering is included.

    I use google voice and talkatone VoIP so that I never use all 450 minutes. talkatone also allows for free SMS.

    Google voicemail is far superior to visual voicemail. I never give out my real number - only GV. call blocking works great. Voicemail doesn't use my minutes up.

    Twice I went overseas and incurred a ginormous bill. Both times I called AT&T before and after, and they cheerfully refunded my money.

    Any issues I've ever had were always resolved quickly and nicely.

    Want to read monkeys using typewriters? Check the AT&T customer forums. Most cellular complaints are idiotic.

    I had a major fight years ago with Verizon when I returned a phone and they said they never got it. I gave them the fedex tracking number that showed they did.

    30 days later they reported me to the credit bureaus as delinquent. I disputed it and they did too, I lost and it stayed on my report for 7 years.

    My wife has the grandfathered unlimited data and they never throttle her. A friend of mine has the same, and an iPhone 3GS.

    She's going tomorrow to get a free iPhone 5c from BBY.

    I'm happy with AT&T service. Could be cheaper, but it just works and I can be 25 days late paying and they don't shut me off.

    That's reality. YMMV. Sucks to be you?
  • Reply 40 of 44
    Quote:

    Originally Posted by vaporland View Post



    Bash AT&T all you want. I have a $90/month plan w5gb data, 450 anytime minutes and no texting. Tethering is included.



    I use google voice and talkatone VoIP so that I never use all 450 minutes. talkatone also allows for free SMS.



    Google voicemail is far superior to visual voicemail. I never give out my real number - only GV. call blocking works great. Voicemail doesn't use my minutes up.



    Twice I went overseas and incurred a ginormous bill. Both times I called AT&T before and after, and they cheerfully refunded my money.



    Any issues I've ever had were always resolved quickly and nicely.



    Want to read monkeys using typewriters? Check the AT&T customer forums. Most cellular complaints are idiotic.



    I had a major fight years ago with Verizon when I returned a phone and they said they never got it. I gave them the fedex tracking number that showed they did.



    30 days later they reported me to the credit bureaus as delinquent. I disputed it and they did too, I lost and it stayed on my report for 7 years.



    My wife has the grandfathered unlimited data and they never throttle her. A friend of mine has the same, and an iPhone 3GS.



    She's going tomorrow to get a free iPhone 5c from BBY.



    I'm happy with AT&T service. Could be cheaper, but it just works and I can be 25 days late paying and they don't shut me off.



    That's reality. YMMV. Sucks to be you?

     

    So you have 2 iPhones with unlimited data and tethering with ATT and you are paying 90? Are you some kind of ATT manager or something, because that plan is not available for public (and it never was)...

    ATT sucks hard, if they decide that 39 dollar upgrade fee is worth losing a customer, then they are dumb.

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