US carriers' move to installment plans seen accelerating iPhone upgrade cycles

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Comments

  • Reply 61 of 76
    rogifanrogifan Posts: 10,669member
    mike1 wrote: »
    Not necessarily. Look at the psychology of it. Even though, in the long run, you might be paying the same, many people would rather have the lower monthly payment and pay $199 up front for the subsidized phone. People will spend for the one-time purchase, but may balk at an extra $25/month on their cell plan. Spending beliefs are compartmentalized in the brain. It's the same reason, you don't give a second thought about spending a buck for a can of soda from a vending machine, but would never pay $12 for a case in the supermarket.

    How much less were people paying per month? Yes my bill is more but that's only because I chose the 12 month option, which means I get a new phone every year.
  • Reply 62 of 76
    rogifanrogifan Posts: 10,669member
    pk22901 wrote: »
    I agree iPhone will be very competitive, probably dominant on premium to premium sales.

    What about phones going for $10/mo? This will be the critical choice for Apple buyers. I believe many buyers will choose to upgrade to a premium $25+ a month and Apple needs to win the $25+ game on merit. I'm optimistic that for the short and intermediate term Apple will win on best security, privacy, UX, service, support, and 'just works' reputation.

    I don't think phones for $10/mo were ever competing with iPhone.
  • Reply 63 of 76
    dickprinterdickprinter Posts: 1,060member
    Funny, I just read an article to the contrary saying that this will hurt Apple because now the "high cost" of an iPhone won't be hidden inside of a 2 year contract.
  • Reply 64 of 76
    atlappleatlapple Posts: 496member
    Quote:

    Originally Posted by Dick Applebaum View Post





    It seems funny (odd) to me that in all the discussions of nice-to-have vs need-to-have -- I don't recall any mention of a job image



    Thats because the under 25 generation has about the worst work ethic in that last 100 years. 

  • Reply 65 of 76
    atlappleatlapple Posts: 496member
    Quote:

    Originally Posted by sog35 View Post

     

     

    Not very long way off.  Especially when Apple starts making cars everyone else will be forced to copy that feature.

     

    And that's why TouchID and the security of iOS vs Android is so important.




    LOL. Since I've been on this forum you now have Apple making cars, tv's, bendable and foldable phones. Not to mention you're stock predictions. Thank God you're not an analyst or AAPL would be at about 0.35 based on your predictions or expectations. 

  • Reply 66 of 76
    foggyhillfoggyhill Posts: 4,767member
    Quote:

    Originally Posted by sog35 View Post

     

     

    Smartphones have a LONG way to go as far as processing power.

     

    And Apple is constantly sneaking in new hardware/software features that won't work with older phones:

     

    3GS - 3G

    4 - retina 

    4s - Siri

    5 - larger screen

    5s - touchID

    6 - ApplePay, larger screen

    6s - force touch

     

    7 - zero bezel

    8 - foldable screen


     

     

    Foldable screen is not happening in 8, or possibly 9. Durability is a major concern when you any moving part in something used so extensively. Imagine foldable phone with current tech in back pocket! Just asking for destruction!

  • Reply 67 of 76
    relicrelic Posts: 4,735member
     Quote:
    Originally Posted by Dickprinter View Post



    Funny, I just read an article to the contrary saying that this will hurt Apple because now the "high cost" of an iPhone won't be hidden inside of a 2 year contract.



    I'm sure it will have some negative impacts, especially the lost of customers who don't qualify for financing or don't even bother applying. Whatever happens though, I'm sure Apple will come up with a beneficial system for everyone.

  • Reply 68 of 76
    taniwhataniwha Posts: 347member
    Quote:

    Originally Posted by sog35 View Post

     
    Quote:
    Originally Posted by AtlApple View Post

     



    LOL. Since I've been on this forum you now have Apple making cars, tv's, bendable and foldable phones. Not to mention you're stock predictions. Thank God you're not an analyst or AAPL would be at about 0.35 based on your predictions or expectations. 


     

    did i pin any date on Apple making cars?  no.  But it is coming.

     

    New AppleTV is coming very soon.

     

    bendable phones will be coming within 3 years.

     

    I'm sorry if I'm more visionary than you and can see past 6 months.


    Not more visionary ... but definitely more self-conceited and way overboard.

  • Reply 69 of 76
    relicrelic Posts: 4,735member
    Quote:
    Originally Posted by sog35 View Post

     

     

    A MotoG is $220.

     

    You can buy a 5C for $450.  In 2 years you can sell that 5C for $150.  The Moto will be worthless.  So you save $80 over 2 years.

     

    I guess some people are so hard up for cash that $40 a year is a massive deal.......even thought their cell bill is $70 a month.

     

    In 2 years you will be paying a total of $1900 for cell service and MotoG.

    In 2 years you will be paying a total of $1980 for cell service and iPhone 5C.

    Looking at total smart-phone cost that $80 is immaterial.

     

     

    That is literally a dime more a day for the 5C that is superior to the G.




    That's insane, here in Switzerland, you would pay 940 dollars for the phone and the service. It costs 30 USD a month for 5GB data, unlimited calls and SMS, prepaid. Hardly anyone uses traditional GSM anymore here so the mobile providers just started throwing in free phone service, what you pay for is the LTE speed, as even though the contract states only 5GB, you won't get charged if you go over, they just throttle the connection. The phone, if in good condition when you sell it, can get easily 150 USD. I sell my phones all the time so I know what the market is like. I just sold one of my Nokia E7's from 2010, because I had 4 of them,  I got 200 CHF, 220 USD. In February, I sold a Sony Z1 Ultra, I got 250 bucks for it, only paid 300, from the same place I bought it. I know it's the popular consensus to think that any phone that isn't an iPhone is worthless once you buy it, however it can't be farthest from the truth.

     

    I also couldn't imagine choosing an iPhone 5C over the new Moto G,

  • Reply 70 of 76
    sog35 wrote: »
    I mean seriously.  Who could foresee TouchID, large screens, force touch, ApplePay, siri, ect?
    Other than people who already had phones with fingerprint scanners, large screens, Google Wallet, and/or voice recognition (I'll give you force touch)?
  • Reply 71 of 76
    dasanman69dasanman69 Posts: 13,002member
    sog35 wrote: »
    I mean seriously.  Who could foresee TouchID, large screens, force touch, ApplePay, siri, ect?
    Other than people who already had phones with fingerprint scanners, large screens, Google Wallet, and/or voice recognition (I'll give you force touch)?

    BB Storm?
  • Reply 72 of 76
    bluefire1bluefire1 Posts: 1,243member

    Considering the phenomenal sales of the 6 and 6 Plus over the past year, will the 6s/Plus have similar numbers? Will Force Touch and camera improvements be sufficient to continue the outstanding numbers?

    Maybe not, but even halving those numbers would still be exceptional.

  • Reply 73 of 76
    dasanman69 wrote: »
    BB Storm?
    Fingerprint scanner: Moto Atrix
    Apple Pay: Google Wallet
    Siri: Google Voice Actions (not a perfect 1-to-1 mapping, but it supported a lot of the things people typically use voice search for)
    Large screens: ...just about everyone
  • Reply 74 of 76
    froodfrood Posts: 771member
    Quote:

    Originally Posted by sog35 View Post

     

    Yet most in Wall street is saying these installment plans are a negative to Apple because customers will opt for cheaper Android phones once they find out iPhones don't cost $199 but rather $650.

     

     

    I say hogwash.  Most customers don't care.   All they care about is their monthly payment.

     

    iPhone with installment plan will cost about $70

    Android with installment plan will cost about $57

     

    People don't care.  They want the nice shinny iPhone.  As long as they don't have to pay the $650 upfront it won't matter.


     

    That is one decision, and I believe you have it right, Apple fans are going to stick with Apple.  The other challenge though is phone upgrades are getting increasingly incremental.  The Samsung S5 family tanked largely because there was no compelling reason to upgrade from the S4.  It was a little bit faster.  Apple got a huge boost from the iPhone 6 because the larger screens were a complete compelling reason to buy.

     

    The question with the new plans for Apple fans would probably be:

     

    I've paid off my iPhone 6.  Do I want to pay $19.99 a month for my plan, or upgrade to the 6s and pay $70 a month.  What does the 6s have that the 6 doesn't that warrants that?

     

    It is a challenge for Apple- but a bigger one for the even more budget conscious Android users.

  • Reply 75 of 76
    atlapple wrote: »

    Those are "wants" not "needs". We are a long way off from it becoming the standard to starting our cars and open our doors. When I was a teen we were suppose to be driving around flying cars by now. Technology and the adoption of technology moves slow. People aren't going to run our and replace all their equipment so an iPhone can control them. Over time when they want to upgrade they may buy a smartphone controlled device but people just don't replace everything at once. 

    We have generations are are still scared to shop online let alone have smartphones control their homes. Everytime we hear about a major cyber attack like Target it makes those generations even more hesitant to change. 

    Did you ever take a look at teenagers these days? I have to agree with sog here. To them the smartphone is simply indispensable. Hell, even teachers start asking for mandatory what's app groups and distribute homework through such means. Apart from being a total queer if you haven't a smartphone when you're 12 just sit down in a coffee shop and observe. You'll find groups of kids but not so malice talking than each one fiddling around with their phone. Their communication is around sharing stuff from FB and more from YouTube.

    And the importance will rise not decrease. We may be still years away from the scenario sog depicted but we're heading there clearly.
    And in tech time moves on very quickly. You may remember phones with a dial. My kids don't.

    So this generation that doesn't shop online while being there soon will be not important. Because some of them will start doing this, and many many new users grow up with it like its the most natural thing on the world.

    Ever noticed that kids assume already all screens they see are touch screens?

    Time flies.
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