There was no contract required when it was $599. I bought one. That was the cash price out the door.
Quote:
Originally Posted by mfryd
Apple is not offering the "most expensive iPhone ever." The iPhone 6 128GB is $499 with a 2 year contract. When the original iPhone first came out it was $599 with a 2 year contract.
"iPhone goes on sale at 6:00 p.m. (local time) on Friday, June 29 and will be sold in the US through Apple’s retail and online stores and AT&T retail stores. iPhone will be available in a 4GB model for $499 (US) and an 8GB model for $599 (US), and will work with either a PC or Mac®. All iPhone monthly service plans are available for individuals and families and are based on a new two-year service agreement with AT&T. Individual plans are priced at $59.99 for 450 minutes, $79.99 for 900 minutes and $99.99 for 1,350 minutes. All plans include unlimited data (email and web), Visual Voicemail, 200 SMS text messages, roll over minutes and unlimited mobile-to-mobile and a one-time activation fee of $36. Family plans are also available."
Wrong again "cool" gut: Here in the States, Southwest Airlines has been the only airlines to hedge fuel prices.
FedEx is not an airline. They are a parcel delivery service company.
Most of their fuel costs go into ground vehicles.
Plus the freight and airline industries have vastly different business models. Airline customers are basically consumers and will absorb the price of fuel fluctuations. Corporations rely on freight companies to maintain rates for a long time, as frequent changes to parcel delivery costs would be too disruptive.
The article is largely full of shit. When FedEx fill their planes with gas, they don't pay the price at the pump. They are in long term contracts for their fuel to insulate them from price fluctuations (just like every other industry that relies on a commodity that has market pricing). Furthermore, Apple is already getting great rates on shipping through the volume they ship. Savings will be a drop in the bucket for a company Apple's size.
Dollar wise, Apple is potentially in for more than a "ding". Their products are going to become more expensive overseas (which is already a soft market). They do have a strong lineup, but just because people are saving $15 per fill up is not going to negate the currency issue.
If you have data on Fedex's hedges, share it with us.
Hyperbole much? - the tax was already 68 cents per gallon, and the increase is meant to fund
changes in climate control regs which might, one would hope, keep the planet going a while longer.
Not a bad way to spend the 7 cents.
BTW, yes, here it was $4.50 six months ago (SoCal), but is still $2.90 or so where I am...$2.40 sounds pretty good!
Ha, so to rewrite the hysterical hand-wringer's whine: "Soon, though, a 7 cents per gallon surtax will be slapped on to California gas sales. It's just unending here."
God help us, Apple and California are doomed. Sell your black Yukon now. Or move to Texas.
The opec wanting to kill fraking yarn is pure speculative noise.
The economic benefits to apple ... Possibly. But this has NOTHING to do with their use of renewables (which don't replace oil in their business).
Economics is nearly pure BS because you can retrospectively tell any story you want while prospectively being able to predict almost none of the big moves.
This article is just like a Business Insider clickbait junk "article".
What does it say about you that you read it? Leaving aside the fact that you even commented on it? " src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />
The article is largely full of shit. When FedEx fill their planes with gas, they don't pay the price at the pump. They are in long term contracts for their fuel to insulate them from price fluctuations (just like every other industry that relies on a commodity that has market pricing). Furthermore, Apple is already getting great rates on shipping through the volume they ship. Savings will be a drop in the bucket for a company Apple's size.
Dollar wise, Apple is potentially in for more than a "ding". Their products are going to become more expensive overseas (which is already a soft market). They do have a strong lineup, but just because people are saving $15 per fill up is not going to negate the currency issue.
Well, first of all, I agree that savings from shipping costs are not the big deal here. The big deal is that customers in the US have more $$$ to spend this holiday season due to lower energy costs, and a certain fraction of those savings will end up coming to Apple in the form of either more sales or at least upgraded purchases such as higher memory configurations. I don't know whether the situation is similar at the gas pumps in other countries, so it's hard to get a grasp on how this affects overall earnings. So basically, I think that the author of this article overplayed the shipping cost savings and underplayed the consumer side, significantly in the States and perhaps elsewhere too.
Secondly, your comment that Apple's products are going to become more expensive overseas is not universally true. In some markets Apple either already has (Russia) or will raise prices. In other markets, Apple won't raise the prices but will eat the difference on margin. As for the former solution (raised prices) it is unclear how large the effect will be. Apple prices are already at the high end of the spectrum where there is no price elasticity. Raising the price 10% does not knock out 10% of your sales. In general, these are the wealthiest people in the country, and they want their Apple products come hell or high water. Such people probably go ahead and buy the iDevice at the new higher price and then skimp elsewhere. Of course, there are exceptions to that rule... the people that can't quite afford an iDevice but go ahead and get one anyway at the expense of other financial issues. A newly raised price will knock some of those folks out of the picture. It's not clear what fraction of folks do that, though. The bigger issue for Apple's earnings comes in the countries where the prices stay fixed but Apple's margin in US dollars is decreased. It all depends on just how much the currency has fluctuated versus the dollar. I trust Apple to balance these competing forces appropriately in each market, along with employing hedging schemes as well.
Having said all of that, I don't expect either the earning gains from the first paragraph (lower energy costs) or the earnings losses in the second paragraph (strong dollar) to be that large on a relative basis, i.e. when compared to the massive business that Apple is doing this holiday season. All of this is to say that, in my opinion, Apple is setting up to significantly break the earnings record for any company in any quarter. They already have 3 of the top ten quarters of all time. The other 7 are all energy companies, and Apple's best quarter is mere percentage points behind the number one on the list. This holiday quarter will see Apple take the number one spot, potentially by a ten percent difference. An unprecedented pants-down whoopin'.
Currency issues are short term things. The demonstrated ability to build a product that blows away the competition, that's a long term competitive advantage that remains after this latest nervous-nellie panty bunch-up over exchange rate volatility goes away. These wall street types fall apart over every little thing. What pansies.
The article is largely full of shit. When FedEx fill their planes with gas, they don't pay the price at the pump. They are in long term contracts for their fuel to insulate them from price fluctuations (just like every other industry that relies on a commodity that has market pricing). Furthermore, Apple is already getting great rates on shipping through the volume they ship. Savings will be a drop in the bucket for a company Apple's size.
Dollar wise, Apple is potentially in for more than a "ding". Their products are going to become more expensive overseas (which is already a soft market). They do have a strong lineup, but just because people are saving $15 per fill up is not going to negate the currency issue.
I'm willing to bet that Apple is not getting great rates in shipping because of the volume they ship. I'm willing to bet that Apple is actually willing to pay a premium to their shippers to ensure that their cargo get shipped first. (At least around the time any of Apple's new product release dates.) In other words, if a shipper have more cargo than the scheduled flights can handle, Apple paying a premium ensures that their cargo gets loaded first. Even if it means Apple shipments ends up filling all fights to capacity.
Not sure if drop crude oil prices are affecting consumer costs. Gas is still in the $3.50 / gallon range in northern california.
The point I noticed was that Samsung had failed with their new products because they failed to excite and were poorly made.
I find that particularly interesting because Apple's success is built on product quality. Samsung had a growing market share and were successfully competing for the mid-range market (where there is some profit to be had). Rather than choose to improve the quality of their products and become more competitive in the higher range market, Samsung decided to go cheap and paid for it.
It goes to show that most companies fail to understand that quality wins business. They are too obsessed with the bottom line and market share that they do not realize that customer satisfaction is what builds business.
This is a pivotal moment. The chance for Samsung has gone and Apple succeed again.
One day there may be a new company that comes along to beat Apple at what it is good at. Not yet my friends.
Its now under $3 at most places in Northern California
Hyperbole much? - the tax was already 68 cents per gallon, and the increase is meant to fund
changes in climate control regs which might, one would hope, keep the planet going a while longer.
Not a bad way to spend the 7 cents.
BTW, yes, here it was $4.50 six months ago (SoCal), but is still $2.90 or so where I am...$2.40 sounds pretty good!
I remember all of those anti-fracking ignoramuses! Boy, were those morons and frackfaces ever wrong!
Thanks to American fracking, OPEC bastards are hurting, Russia is hurting, terrorists in shitty countries all over the place are hurting! This is awesome! Frack them all!
And also, Apple should raise their prices in certain foreign countries, where the exchange rate has changed significantly enough to warrant a change. Apple should not have to eat the cost of anything. People must pay their fair share! If they don't like it, then go buy a cheap Android device, and have a miserable life! It's their choice!
I remember all of those anti-fracking ignoramuses! Boy, were those morons and frackfaces ever wrong!
If you remember, then detail who was against fracking? I only seem to recall people that were against unregulated and unsafe fracking, not fracking itself.
If you remember, then detail who was against fracking? I only seem to recall people that were against unregulated and unsafe fracking, not fracking itself.
Those loonies are against all fracking, not just unregulated or unsafe fracking. There has been an anti-fracking (against all fracking) movement in the US, and even worldwide.
It's mostly made up of ignorant green people, uneducated leftists and some despicable democrats.
A quick Google search would produce many results of anti-fracking protests and anti-fracking movements.
Colorado was recently under siege by these anti-American lunatics. They lost.
Here's a photo of liberal child abuse. I doubt that these children are scientists, yet their questionable parents brainwash their children into walking around like a bunch of fools, holding ignorant signs.
Here's a photo of potential Mensa candidates, voicing their opposition to all Fracking in New York.
Here's a photo of an anti-Fracking concert event in California.
Before going nuts in favor of fracking... Its not exactly cheap to extract oil. The reserves are fairly unproven on top of that.
Also the conservationalists need to understand that lower energy usage with efficiency generally leads to more oil usage over time, not less. Folks will have an extra child if they have surplus money.
Anyway none of these perspectives have any real meaning for Apple excpet that there will likely be more consumer money out there for buying iThings.
Yeah, another casual dismissal of Econ 101 on your part. Really, if you don't know much about something, you should not make such bombastic comments aout it.
Ever heard of SO2 and acid rain, and how the problem was solved?
Comments
There was no contract required when it was $599. I bought one. That was the cash price out the door.
Apple is not offering the "most expensive iPhone ever." The iPhone 6 128GB is $499 with a 2 year contract. When the original iPhone first came out it was $599 with a 2 year contract.
Source: Apple/AT&T press release from June 26, 2007
$2.40 here. First time back down since climbing back up to there in aught nine or so after the collapse.
Cali, though; that’s always going to be high. What was it, $4.50 six months ago
Soon though, a 75 cents per gallon tax will be slapped onto California gas sales. It's just unending here.
Hyperbole much? - the tax was already 68 cents per gallon, and the increase is meant to fund
changes in climate control regs which might, one would hope, keep the planet going a while longer.
Not a bad way to spend the 7 cents.
BTW, yes, here it was $4.50 six months ago (SoCal), but is still $2.90 or so where I am...$2.40 sounds pretty good!
Wrong again "cool" gut: Here in the States, Southwest Airlines has been the only airlines to hedge fuel prices.
FedEx is not an airline. They are a parcel delivery service company.
Most of their fuel costs go into ground vehicles.
Plus the freight and airline industries have vastly different business models. Airline customers are basically consumers and will absorb the price of fuel fluctuations. Corporations rely on freight companies to maintain rates for a long time, as frequent changes to parcel delivery costs would be too disruptive.
The article is largely full of shit. When FedEx fill their planes with gas, they don't pay the price at the pump. They are in long term contracts for their fuel to insulate them from price fluctuations (just like every other industry that relies on a commodity that has market pricing). Furthermore, Apple is already getting great rates on shipping through the volume they ship. Savings will be a drop in the bucket for a company Apple's size.
Dollar wise, Apple is potentially in for more than a "ding". Their products are going to become more expensive overseas (which is already a soft market). They do have a strong lineup, but just because people are saving $15 per fill up is not going to negate the currency issue.
If you have data on Fedex's hedges, share it with us.
Otherwise, move along.
Ha, so to rewrite the hysterical hand-wringer's whine: "Soon, though, a 7 cents per gallon surtax will be slapped on to California gas sales. It's just unending here."
God help us, Apple and California are doomed. Sell your black Yukon now. Or move to Texas.
So Apple is now going bankrupt???
No but it will take 2 years longer till Scrooge McApple has to build the next money bin...
This is worse than a cnbc article...
The opec wanting to kill fraking yarn is pure speculative noise.
The economic benefits to apple ... Possibly. But this has NOTHING to do with their use of renewables (which don't replace oil in their business).
Economics is nearly pure BS because you can retrospectively tell any story you want while prospectively being able to predict almost none of the big moves.
This article is just like a Business Insider clickbait junk "article".
What does it say about you that you read it? Leaving aside the fact that you even commented on it?
" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />
The article is largely full of shit. When FedEx fill their planes with gas, they don't pay the price at the pump. They are in long term contracts for their fuel to insulate them from price fluctuations (just like every other industry that relies on a commodity that has market pricing). Furthermore, Apple is already getting great rates on shipping through the volume they ship. Savings will be a drop in the bucket for a company Apple's size.
Dollar wise, Apple is potentially in for more than a "ding". Their products are going to become more expensive overseas (which is already a soft market). They do have a strong lineup, but just because people are saving $15 per fill up is not going to negate the currency issue.
Well, first of all, I agree that savings from shipping costs are not the big deal here. The big deal is that customers in the US have more $$$ to spend this holiday season due to lower energy costs, and a certain fraction of those savings will end up coming to Apple in the form of either more sales or at least upgraded purchases such as higher memory configurations. I don't know whether the situation is similar at the gas pumps in other countries, so it's hard to get a grasp on how this affects overall earnings. So basically, I think that the author of this article overplayed the shipping cost savings and underplayed the consumer side, significantly in the States and perhaps elsewhere too.
Secondly, your comment that Apple's products are going to become more expensive overseas is not universally true. In some markets Apple either already has (Russia) or will raise prices. In other markets, Apple won't raise the prices but will eat the difference on margin. As for the former solution (raised prices) it is unclear how large the effect will be. Apple prices are already at the high end of the spectrum where there is no price elasticity. Raising the price 10% does not knock out 10% of your sales. In general, these are the wealthiest people in the country, and they want their Apple products come hell or high water. Such people probably go ahead and buy the iDevice at the new higher price and then skimp elsewhere. Of course, there are exceptions to that rule... the people that can't quite afford an iDevice but go ahead and get one anyway at the expense of other financial issues. A newly raised price will knock some of those folks out of the picture. It's not clear what fraction of folks do that, though. The bigger issue for Apple's earnings comes in the countries where the prices stay fixed but Apple's margin in US dollars is decreased. It all depends on just how much the currency has fluctuated versus the dollar. I trust Apple to balance these competing forces appropriately in each market, along with employing hedging schemes as well.
Having said all of that, I don't expect either the earning gains from the first paragraph (lower energy costs) or the earnings losses in the second paragraph (strong dollar) to be that large on a relative basis, i.e. when compared to the massive business that Apple is doing this holiday season. All of this is to say that, in my opinion, Apple is setting up to significantly break the earnings record for any company in any quarter. They already have 3 of the top ten quarters of all time. The other 7 are all energy companies, and Apple's best quarter is mere percentage points behind the number one on the list. This holiday quarter will see Apple take the number one spot, potentially by a ten percent difference. An unprecedented pants-down whoopin'.
Thompson
BTW, yes, here it was $4.50 six months ago (SoCal), but is still $2.90 or so where I am...$2.40 sounds pretty good!
Not a bad way to spend the 7 cents.
Except that’s meaningless.
Geezaloo. And people whine for a minimum wage increase instead of questioning a dollar’s difference in gas.
Currency issues are short term things. The demonstrated ability to build a product that blows away the competition, that's a long term competitive advantage that remains after this latest nervous-nellie panty bunch-up over exchange rate volatility goes away. These wall street types fall apart over every little thing. What pansies.
The article is largely full of shit. When FedEx fill their planes with gas, they don't pay the price at the pump. They are in long term contracts for their fuel to insulate them from price fluctuations (just like every other industry that relies on a commodity that has market pricing). Furthermore, Apple is already getting great rates on shipping through the volume they ship. Savings will be a drop in the bucket for a company Apple's size.
Dollar wise, Apple is potentially in for more than a "ding". Their products are going to become more expensive overseas (which is already a soft market). They do have a strong lineup, but just because people are saving $15 per fill up is not going to negate the currency issue.
I'm willing to bet that Apple is not getting great rates in shipping because of the volume they ship. I'm willing to bet that Apple is actually willing to pay a premium to their shippers to ensure that their cargo get shipped first. (At least around the time any of Apple's new product release dates.) In other words, if a shipper have more cargo than the scheduled flights can handle, Apple paying a premium ensures that their cargo gets loaded first. Even if it means Apple shipments ends up filling all fights to capacity.
Hyperbole?
http://www.usnews.com/opinion/economic-intelligence/2014/09/10/california-carbon-gas-tax-could-cost-drivers-big
Cap-and-trade is a giant scam.
I remember all of those anti-fracking ignoramuses! Boy, were those morons and frackfaces ever wrong!
Thanks to American fracking, OPEC bastards are hurting, Russia is hurting, terrorists in shitty countries all over the place are hurting! This is awesome! Frack them all!
And also, Apple should raise their prices in certain foreign countries, where the exchange rate has changed significantly enough to warrant a change. Apple should not have to eat the cost of anything. People must pay their fair share! If they don't like it, then go buy a cheap Android device, and have a miserable life! It's their choice!
If you remember, then detail who was against fracking? I only seem to recall people that were against unregulated and unsafe fracking, not fracking itself.
If you remember, then detail who was against fracking? I only seem to recall people that were against unregulated and unsafe fracking, not fracking itself.
Those loonies are against all fracking, not just unregulated or unsafe fracking. There has been an anti-fracking (against all fracking) movement in the US, and even worldwide.
It's mostly made up of ignorant green people, uneducated leftists and some despicable democrats.
A quick Google search would produce many results of anti-fracking protests and anti-fracking movements.
Colorado was recently under siege by these anti-American lunatics. They lost.
Here's a photo of liberal child abuse. I doubt that these children are scientists, yet their questionable parents brainwash their children into walking around like a bunch of fools, holding ignorant signs.
Here's a photo of potential Mensa candidates, voicing their opposition to all Fracking in New York.
Here's a photo of an anti-Fracking concert event in California.
Also the conservationalists need to understand that lower energy usage with efficiency generally leads to more oil usage over time, not less. Folks will have an extra child if they have surplus money.
Anyway none of these perspectives have any real meaning for Apple excpet that there will likely be more consumer money out there for buying iThings.
Hyperbole?
http://www.usnews.com/opinion/economic-intelligence/2014/09/10/california-carbon-gas-tax-could-cost-drivers-big
Cap-and-trade is a giant scam.
Yeah, another casual dismissal of Econ 101 on your part. Really, if you don't know much about something, you should not make such bombastic comments aout it.
Ever heard of SO2 and acid rain, and how the problem was solved?