Piper Jaffray says iPhone 3G's real cost to users: $407

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  • Reply 41 of 153
    teckstudteckstud Posts: 6,476member
    Quote:
    Originally Posted by iPeon View Post


    You can go to apple.com right now and right there it says, "iPhone 3G - Twice as fast - Half the price" You just proved that it isn't. What do you not get? The "Half the price" part is a big fat lie.



    And that's being perpetuated by Apple not AT&T- why is everybody bitchin' about AT&T?

    AT&T hasn't tried to con you with the 3G rate as costing you less than the 2G. Why all the complaining on AT&T- they been very upfront about it.

    Their customer service and reception still sucks but that's beside the point.
  • Reply 42 of 153
    teckstudteckstud Posts: 6,476member
    Quote:
    Originally Posted by AppleInsider View Post


    With a public increasingly puzzled about the actual cost of an iPhone 3G, researchers now see Apple losing some of its early sales to buyers waiting for a less costly upgrade.





    But will they also loose any sales due to false advertising? Goodwill?
  • Reply 43 of 153
    murphywebmurphyweb Posts: 295member
    Quote:
    Originally Posted by solipsism View Post


    I'd like to know how you are so confused. What part of the subsidized price do you not understand? Have you never seen a subsidized item before? The US doesn't require detailed explanations about the TOC on advertisements, live some countries. One of the biggest problem people had with the original iPhone was the lack of subsidization; the fact that they had to shell out $400 up front and not be able to pay for over the length of their contract.



    To say that Apple has lied to you or that it's bullshit is simply ridiculous. If you are referring to the keynote slideshow not having 50 lines of small print explaining exactly what is required to get the $199 price, then you are even more ridiculous. It's a simple presentation, not a contract, unless you can somehow prove that you can possibly be sold an iPhone for $199 without being made well aware of your requirements then your argument is invalid.



    There are a couple other things to consider, too. First, the iPhone wasn't even for sale so pricing and requirements could change (and they have for many carriers), but we both know that the $199 price was a subsidized price for eligible customers. Secondly, saying an item costs x-amount doesn't preclude it from the other charges. It doesn't state the TOC, any required services or sales tax and it's not a lie, it's a simple marketing strategy that is intended to not confuse the customer. Should they really have listed the TOC for all iPhones models with all initial purchase prices with all possible rate plans and additions that could possibly be made? Have you ever seen an effective Keynote/Powerpoint presentation that did that?



    The bottom line is it is half price. I could walk into an AT&T store tomorrow morning and will only pay $199+tax before leaving the store with an iPhone. Well, I'll be getting the 16GB model and a pair in in-ear headphones, but the principle is the same.





    I am sorry but this is not correct at all.



    Carriers do not subsidize phones anymore. We may call it subsidizing but that is nothing more than a marketing term, the proper name for it is financing.



    I lived in the UK for many years where "subsidizing" handsets has always been the norm, and back in the mid to late 90's when we all started getting our mobiles it really was subsidizing, but it has not been for quite a few years. What the carriers do now is nothing more than financing. Take the cost of a new Nokia, say $600, divide by 24 months equals $25 per month, ad a few points on for finance cost, combine with a $30 a month tarrif and hey presto a new Nokia phone for $0 upfront on a $60 a month contract.



    This is not subsizing, and if you really think that you are getting the phone for free then you are a fool!! Same as you are not getting an iPhone for $199 regardless of how deluded you are.



    Two ways this can be proven easily enough..



    1 - in the UK where paying nothing up front for any phone has always been the norm, when you reach the end of your contract and your handset is now legally your own (because you have paid off the HP or finance) You are usually offered a new handset "free of charge" if you renew your contract. But if you keep your own handset you can negotiate a much lower cost on what is effectively the same tariff.



    2. In Australia on Optus they don't even bother trying to hide the fact there is no such thing as subsidizing. On the lowest tarriff you pay $19 per month and the 8GB handset costs you a separate $49 per month finance for a 12 month contract. In this arrangement Optus are slightly subsizing the cost of the handset, but not by very much. You are still paying $600 for the handset. ( US and AU dollar are pretty much close to even at the moment).



    In Australia you can actually buy the iPhone on a pre-pay model. So effectively you are paying for the iPhone upfront in exactly the same way that the 1st generation was bought. It cost $729 for the 8GB.



    Carriers used to subsidize phones and take a punt that the revenue they claw back from you will easily cover the cost and more. But now there is really no such thing as a phone bill, you get bundles that are so neatly matched to your own usage that people rarely ever go beyond their usage and therefore rarely ever get a bill that is higher than their tarrif cost. Subsidizing does not work in this model, therefore the real cost of the handset is always included in all the tarrifs.



    So yes indeed all this rubbish about the iPhone costing $199, and how it was half the price of the last model is of course all bullshit. If you really think you are getting the iPhone for $199 then you are really kidding yourself and even possibly quite naive.



    Everybody is paying the real cost of the iPhone in one way or another and my best guess would be that is around the $600 mark.





    If you buy a $5000 LCD TV tomorrow on 5 years interest free with no payments until July '09 for a $199 downpayment you have have not got a TV for $199! You have still spent $5000 on a TV whether you like to think you have or not. Would you really tell people you got it for only $199?



    What if Sony were advertising in the press that their new TV's were only $199 (no small print to explain) would this be good honest marketing ?
  • Reply 44 of 153
    sdw2001sdw2001 Posts: 17,990member
    Quote:
    Originally Posted by solipsism View Post


    What do you find mysterious about it? If you have an original iPhone under contract with AT&T then you are eligible for the $199 price. Your AT&T account or friendly CSR rep will inform you are eligible or not.



    Quote:
    Originally Posted by solipsism View Post


    You'd rather spend $600 or more for a 3G iPhone that you can still only use on AT&T? How exactly does that make sense?



    Ahhh...the apologists have arrived. Now a major market analyst has said the exact same thing I have. But it doesn't matter. We should pay more, and Apple/AT&T are right. Gotcha.
  • Reply 45 of 153
    hezekiahbhezekiahb Posts: 448member
    Quote:
    Originally Posted by CREB View Post


    I don't get...Apple products have always been pricey, but that never dissuaded those who appreciate design, and the other factors that Apple concentrates on while the others don't. The iPhone 3G is not the be-all-end-all for me as I own other mobile phones, but it should be enjoyable to use and own.



    Actually, they've changed quite dramatically. I get sick of the "apple is so expensive". Our Dell laptops cost us more than our MacBooks both in up front price & service costs, plus the MacBooks blow them out of the water on performance (except for M$ office for Mac, which is garbage).
  • Reply 46 of 153
    sowza1sowza1 Posts: 5member
    Quote:
    Originally Posted by winterspan View Post


    Solipsism is right here. First of all, the OLD 16GB iPhone was sold for $499 a month ago. You can't compare the price of the old phone to the new one, obviously it now has 3G and GPS and Apple has raised the wholesale price to AT&T.



    Secondly, the reason why there was only one retail price for the original 2G iPhone was because it was sold UNSUBSIDIZED i.e., without a discount. So it didn't matter what your situation was with AT&T, everyone paid the same price --- whether you had recently received a discounted phone from them or not.



    Do you own a 2G iphone and are you getting the 3G?
  • Reply 47 of 153
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by winterspan View Post


    Solipsism is right here. First of all, the OLD 16GB iPhone was sold for $499 a month ago. You can't compare the price of the old phone to the new one, obviously it now has 3G and GPS and Apple has raised the wholesale price to AT&T.



    Secondly, the reason why there was only one retail price for the original 2G iPhone was because it was sold UNSUBSIDIZED i.e., without a discount. So it didn't matter what your situation was with AT&T, everyone paid the same price --- whether you had recently received a discounted phone from them or not.



    Don't forget that the old phone had revenue sharing in place too. This shored up final price Apple received for the hardware.





    Quote:
    Originally Posted by 4metta View Post




    Once again: The new iPhone will also run on 2G. And it will do so with much better battery life when compared to running it on 3G.




    I'm quite sure the unlocked version will run on TMobile's network just like the 1st gen does. I think the prices for the 1st gen will drop soon as well so that gives people another option until the AT&T exclusivity as a carrier ends.



    We know that, but why spend $200 or $400 more for the handset if you are just going to keep it on EDGE? Since all iPhones will have v2.0 does that price really justify 25% longer 2G talk time, GPS, and possibly better reception? I'd rather add a Mophie Juice Pack for 16 hours of talk time and a much lower price than you'd have to pay for a 3G iPhone.





    Quote:
    Originally Posted by SDW2001 View Post


    Ahhh...the apologists have arrived. Now a major market analyst has said the exact same thing I have. But it doesn't matter. We should pay more, and Apple/AT&T are right. Gotcha.



    !) How can I arrrive when I have never left.

    2) Common sense is not an apology.

    3) AT&T's eligibly program is not something new for the iPhone.

    4) Such policies are with all carriers that offer subsidized phones.

    5) Subsidized means to pay part of the cost, to think that AT&T or anyone isn't expecting you to have a contract in return is absurd.

    6) YOU ARE NOT REQUIRED TO PAY ANYTHING MORE THAN WHAT YOU ARE NOW. YOU HAVE A CHOICE. YOU DON'T HAVE TO USE AT&T. YOU DON'T HAVE TO HAVE A 3G iPHONE. I DON'T LIKE THE PRICES FOR SMS SO I DON'T USE THEM. IF YOU THINK AN ILLEGAL PRACTICE IS GOING ON BY APPLE CHARGING MORE FOR A NEW PHONE, BY AT&T CHARGING THE SAME FOR DATA AS IT'S OTHER SMARTPHONES, OR BY THE CARRIER LOCK-IN THEN DO SOMETHING LEGAL ABOUT IT.
  • Reply 48 of 153
    Sucks, too, if you pay the extra $200 as a current ATT customer not eligible for an upgrade. Because even though you pay $200 more for the phone, you still have to pay the $10 more 3g monthly plan.
  • Reply 49 of 153
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by HollandX View Post


    Sucks, too, if you pay the extra $200 as a current ATT customer not eligible for an upgrade. Because even though you pay $200 more for the phone, you still have to pay the $10 more 3g monthly plan.



    I do get what all this bitching s about. Everyone has to pay the higher price monthly dues for new contracts. These are data rates that are now the same as their other smartphones, yet we know people are using their iPhone for data much more than any other phone. That surely won't become less with 3G and the new App Store.



    As for the price, At least you're not being required to pay the full retail price of $599/$699 for the device. If you want to be eligible, cancel your current ineligible account first. It's not rocket science to understand which one is cheaper.
  • Reply 50 of 153
    bigmikebigmike Posts: 266member
    The article is confusing. Clarify Piper!!
  • Reply 51 of 153
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by tripo View Post


    Now ,watch closely the tiny little difference :



    you are free to choose how much , where and when you're going to pay for gas ,..ah it's called F R E E D O M E / USA !>? !?

    may be you'll get it : now look at the mobile phone - DO you HAVE a choice !?

    do you think anyone is going to talk to mummy 24/7 ??? or send tons of sms ???

    !? i've paid less than 400 Euro for 24 months in Europe-on regular phone usage.How do you feel about the 2000$ if you travel a lot ? try to use the iPhone in Brazil for instance - say hello to at&t from me !



    This is APPLE , damn it, don't lower them to the "mobile carrier scum level" !

    That's why i can't understand why the hell do they put so much effort in cutting the jailbroken iPhones- they made the brand even more world-wide popular??!?!?



    hmmmm, I have a choice in gas?! what's the use of choice when all gas stations charge you the same?!

    However, you missed the point. He was complaining that Apple said the iPhone is not half the price of the original iPhone after you add in you monthly cost during the contract. Regardless of your carrier you will pay close to $1800 for the 2 years period. Similarly, regardless of where you fill your car with gas in the US you will still pay close to $4 a gallon. Well, Maybe you'll get it
  • Reply 52 of 153
    tripotripo Posts: 74member
    Quote:
    Originally Posted by NasserAE View Post


    hmmmm, I have a choice in gas?! what's the use of choice when all gas stations charge you the same?!

    However, you missed the point. He was complaining that Apple said the iPhone is not half the price of the original iPhone after you add in you monthly cost during the contract. Regardless of your carrier you will pay close to $1800 for the 2 years period. Similarly, regardless of where you fill your car with gas in the US you will still pay close to $4 a gallon. Well, Maybe you'll get it



    nope, you don't get it.

    Do Verizon and At&t have a contract WITHOUT a mobile phone -capito !

    you DO pay for the phone as a significant part of those monthly payments pleeeeease get it already !
  • Reply 53 of 153
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by tripo View Post


    nope, you don't get it.

    Do Verizon and At&t have a contract WITHOUT a mobile phone -capito !

    you DO pay for the phone as a significant part of those monthly payments pleeeeease get it already !



    No, not always. I have an old unlocked phone, which I bought long time ago, that I used with AT&T GoPhone line. When I added that phone line to my family plan, AT&T signed me into a 2 year contract for that line without buying a new phone. So, you do get into contracts without buying phone.



    By the way, we are not talking about unlocked iPhone here. We are talking about the cost of owning an iPhone.
  • Reply 54 of 153
    tripotripo Posts: 74member
    Quote:
    Originally Posted by NasserAE View Post


    No, not always. I have an old unlocked phone, which I bought long time ago, that I used with AT&T GoPhone line. When I added that phone line to my family plan, AT&T signed me into a 2 year contract for that line without buying a new phone. So, you do get into contracts without buying phone.



    with the same monthly payments- i doubt it !!?
  • Reply 55 of 153
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by tripo View Post


    with the same monthly payments- i doubt it !!?



    I only have to pay $9.99/month for the additional line. And they told me if I wanted a data plan for the new added phone then I have to pay another $30/month for the data plan in addition to the $20/month I am paying for my 1st gen iPhone data plan. Regardless of whether you have a subsidized phone or not, you will still be paying for the same monthly fees.



    I am going to upgrade my iPhone and my wife's phone to 3G iPhone. I will only have to pay $40/month more ($10 more for my phone and $30 more for another data plan) while keeping the same voice data plan. if you do the math ($119/month X 24 months = $2856 + $499 (cost of both iPhones) = $3355). That's less that owning 2 iPhones on two individual plans ($3710). Does that means AT&T lost money by selling me the iPhones? I don't think so.
  • Reply 56 of 153
    crebcreb Posts: 276member
    Quote:
    Originally Posted by hezekiahb View Post


    Actually, they've changed quite dramatically. I get sick of the "apple is so expensive". Our Dell laptops cost us more than our MacBooks both in up front price & service costs, plus the MacBooks blow them out of the water on performance (except for M$ office for Mac, which is garbage).



    Apple remains more expensive as I would not use a MacBook in a business setting, but rather a MacBook Pro. You are speaking with someone who has had so many Macs, since 1984, that I do not even care to add-up the expense. However, I never bought my Macs based on price.
  • Reply 57 of 153
    teckstudteckstud Posts: 6,476member
    Quote:
    Originally Posted by murphyweb View Post


    .



    This is not subsizing, and if you really think that you are getting the phone for free then you are a fool!! Same as you are not getting an iPhone for $199 regardless of how deluded you are.





    So yes indeed all this rubbish about the iPhone costing $199, and how it was half the price of the last model is of course all bullshit. If you really think you are getting the iPhone for $199 then you are really kidding yourself and even possibly quite naive.



    Everybody is paying the real cost of the iPhone in one way or another and my best guess would be that is around the $600 mark.



    ?



    It's Apple that's stating it's half the price @ $199, not anybody else- Apple the manufacturer. Are you implying that Apple lies?
  • Reply 58 of 153
    teckstudteckstud Posts: 6,476member
    Quote:
    Originally Posted by NasserAE View Post


    hmmmm, I have a choice in gas?! what's the use of choice when all gas stations charge you the same?!

    However, you missed the point. He was complaining that Apple said the iPhone is not half the price of the original iPhone after you add in you monthly cost during the contract. Regardless of your carrier you will pay close to $1800 for the 2 years period. Similarly, regardless of where you fill your car with gas in the US you will still pay close to $4 a gallon. Well, Maybe you'll get it



    Apple, the manufacturer states that it's "half the Price"- don't you get it?

    LG, Samsung , Blackberry never make a similar claim with their products. If the phone is subsidized it is clearly stated. What is so difficult to comprehend?
  • Reply 59 of 153
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by teckstud View Post


    Apple, the manufacturer states that it's "half the Price"- don't you get it?

    LG, Samsung , Blackberry never make a similar claim with their products. If the phone is subsidized it is clearly stated. What is so difficult to comprehend?



    did you read what I said earlier?!



    Some people mix the cost of the iPhone or any phone with what AT&T charge for their services. What worst is that some people think that AT&T is charging $10 more for the data plan to make up for the cost of the iPhone!!!!! This is ridicules since that is what the AT&T charge you whether you buy and iPhone or BlackBerry and whether you sign a 2 year contract or not. You will pay a minimum $30/month for a data plan period. Based on some people logic, if I give my friend a smartphone as a gift and he used AT&T voice and data plans (say $30 data plan + $39 voice plan) without a contract then the cost of the phone I gave him as a gift over 2 years is (69 X 24 = $1656)!!! I guess some people just don't get that the monthly fees have nothing to do with their phone. The monthly fees are for the voice and data access you get from AT&T.



    I am not defending AT&T nor Apple here. I am saying this because few years ago a friend of mine talked me out of getting a free phone with 2 years T-Mobile contract based on this argument (monthly fees X contract period = the phone true cost). Guess what?! I stayed with T-Mobile for more than 2 years and wish I had gotten that phone since the monthly fees are the same with or without a contract. I hate to see people misinformed the same way I was.
  • Reply 60 of 153
    murphywebmurphyweb Posts: 295member
    Quote:
    Originally Posted by NasserAE View Post


    did you read what I said earlier?!



    Some people mix the cost of the iPhone or any phone with what AT&T charge for their services. What worst is that some people think that AT&T is charging $10 more for the data plan to make up for the cost of the iPhone!!!!! This is ridicules since that is what the AT&T charge you whether you buy and iPhone or BlackBerry and whether you sign a 2 year contract or not. You will pay a minimum $30/month for a data plan period. Based on some people logic, if I give my friend a smartphone as a gift and he used AT&T voice and data plans (say $30 data plan + $39 voice plan) without a contract then the cost of the phone I gave him as a gift over 2 years is (69 X 24 = $1656)!!! I guess some people just don't get that the monthly fees have nothing to do with their phone. The monthly fees are for the voice and data access you get from AT&T.



    I am not defending AT&T nor Apple here. I am saying this because few years ago a friend of mine talked me out of getting a free phone with 2 years T-Mobile contract based on this argument (monthly fees X contract period = the phone true cost). Guess what?! I stayed with T-Mobile for more than 2 years and wish I had gotten that phone since the monthly fees are the same with or without a contract. I hate to see people misinformed the same way I was.





    I am sorry but you clearly do not have a clue what you are talking about.



    I have been buying mobile phone since 1996, I have spent many years working with mobile carriers and operators.



    Did you read my post? When you have your own handset you can negotiate cheaper monthly costs for what are really the same tarrifs, this is because the carriers are not having to factor in the price of the handset. If you cannot do that with AT&T then you have a problem with AT&T. But say for instance in UK if you finished for contract and wanted to continue using your phone you will get a reduced cost if you ask for it. Of course they are a business and here to make money so they are not gonna advertise the fact are they.



    Look at Optus for their iPhone plans in Australia. They start at $19 per month, but all their plans do not include the iPhone, you have to buy that separately and it will cost you $600 to buy, but they will fianance it for you so on a 12 month contract the 8GB will cost you an extra $50 a month on top of your tarrif.



    The iPhone is costing users around $500-600, Networks do not subsidize handsets anymore, they simply finance them.In Australia the customer price for a pay as you go 8GB iPhone is $729!!!! That should tell you everything you need to know about the real cost of the iPhone.



    If Apple said $199 then yes, they were misleading customers. What they should have said was $199 down payment.
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