In Australia, price plays very little part of the actual consumer reaction to a product. In fact, if the consumer has to pay anything for a phone, they're quite unhappy, and would rather take a lesser phone that costs nothing on a plan.
This makes price issues somewhat less of a worry here - carriers just completely subsidize everything.
Personally, I disagree with this business model however, for several reasons. First, I'd rather pay a cost at the start to understand the full financial impact of the device. Plan business models mean that a device's pros aren't fully weighed against its cons because you're thinking "who cares, it costs me nothing today" - a stupid mentality that only causes one thing: more spending to get three devices after realizing you didn't get the right phone for you. Second, hiding the price of a device under a plan is really in no one's interests except the carrier. The carrier gets to lock you into a plan that is otherwise open ended and they are guaranteed an overhead. If they don't get it, they approach the debt collectors and get the money anyway.
If I didn't have an iPhone at the current time, I would buy outright to overcome this pathetic situation in the Australian market.
Way too late, you might get lucky and find an old stock, but it's been discontinued for quite some time. It seems like it's been a year or two. I don't know if they were any good. I really never had a chance to use them, but it seemed suspicious that they didn't have tweeters.
That, plus the fact that the cell phone industry involves carrier subsidies, is insanely price sensitive, and represents a market that Apple has a legitimate shot at taking a much larger chunk of, suggest that all historical models may not be relevant.
Another good point. We shall see soon enough. Place your bets!
The iPod model is to do that plus create entirely new form factors to cover the spread.
However, the iPhone is uniquely resistant to "new form factors" in that the UI dominates the device to the point that it literally defines it, and that UI is less amenable to a simple shrink than, say, the click wheel was.
That, plus the fact that the cell phone industry involves carrier subsidies, is insanely price sensitive, and represents a market that Apple has a legitimate shot at taking a much larger chunk of, suggest that all historical models may not be relevant.
Is the "spread" now going to be covered by "cellular radio type/data speed," with all other iPhone hardware/software being just about the same? (This assumes that on a low data speed model like EDGE or even UMTS, certain high-capacity data features are disallowed, such as uploading video, or downloading iTunes movies.)
If so, assuming there is a $99 model, will it be an 8GB 2G EDGE model or will it be an 8GB 3G UMTS model (with the 16GB version going for $169)? Will the 2-year AT&T unlimited data plan price for it be set at $15, $20, or $25/mo since certain uploads/downloads are disallowed? Or will AT&T take the dreaded limited data route?
I'm also assuming $199 for the 16GB HSPA 7.2 model and $299 for the 32GB version. Hopefully the 2-year AT&T unlimited data plan price stays at $30/mo. Maybe they could add in 200 SMS/MMS messages to make it a more competitive value (wishful thinking??). (Actually, this pricing issue is why it would be good for the Pre to be competitive.)
And I assume the other 2 SKUs are the TD-SCDMA models (16GB, 32GB) for China only. Big news for AAPL stock.
I would imagine they are clearing out ALL inventory, even if they plan on selling an 8gb model.
i thought that interesting that there was no mention of the 8gb. so what they are going to soup up the 16 but not the 8. that doesn't make sense.
[quote}
They'll only sell products which are current and up to date right out of the box.[/QUOTE]
not entirely true. there have been times when the phones in the box were not 100% up to date. no one really minds cause the updates are free. the touch users would be the ones with the issue cause so far they can't do major updates for free.
Is the "spread" now going to be covered by "cellular radio type/data speed," with all other iPhone hardware/software being just about the same? (This assumes that on a low data speed model like EDGE or even UMTS, certain high-capacity data features are disallowed, such as uploading video, or downloading iTunes movies.)
If so, assuming there is a $99 model, will it be an 8GB 2G EDGE model or will it be an 8GB 3G UMTS model (with the 16GB version going for $169)? Will the 2-year AT&T unlimited data plan price for it be set at $15, $20, or $25/mo since certain uploads/downloads are disallowed? Or will AT&T take the dreaded limited data route?
I'm also assuming $199 for the 16GB HSPA 7.2 model and $299 for the 32GB version. Hopefully the 2-year AT&T unlimited data plan price stays at $30/mo. Maybe they could add in 200 SMS/MMS messages to make it a more competitive value (wishful thinking??). (Actually, this pricing issue is why it would be good for the Pre to be competitive.)
And I assume the other 2 SKUs are the TD-SCDMA models (16GB, 32GB) for China only. Big news for AAPL stock.
We'll know in 7 days.
My modestly informed guess would be that Apple will sell the current 8GB model for $99, possibly tied to a cheaper AT&T data plan. So the "base"model would be able to run all extent software but forgo the new hardware features such as the magnetometer, video capable camera and larger storage capacities.
I could imagine them putting a faster processor in such a model, since that moves the platform closer to an across the board customer experience that I think they want (since it appears to me the current model just barely manages same). But maybe not, as the iPhone has been a huge success just as it is, and "snappier" is a good reason to spring for the more expensive model.
So the current $199 goes to 16GB storage with whatever new hardware features are in store, and $299 gets you the 32GB model.
As we know, Apple's price points aren't only (or even mostly) based on their costs, but rather a carefully calibrated range with healthy incentives for the up-sell.
Of course, I'm also the guy who thought an "iPhone" would be marketed as an extension of the iPod line, leveraging the enormous good will and name recognition thereof. And of course it's been the opposite: "iPod" is rapidly becoming a subset of the iPhone/Touch platform, with dedicated players seeming ever more trivial. So what do I know?
Comments
In Australia, price plays very little part of the actual consumer reaction to a product. In fact, if the consumer has to pay anything for a phone, they're quite unhappy, and would rather take a lesser phone that costs nothing on a plan.
This makes price issues somewhat less of a worry here - carriers just completely subsidize everything.
Personally, I disagree with this business model however, for several reasons. First, I'd rather pay a cost at the start to understand the full financial impact of the device. Plan business models mean that a device's pros aren't fully weighed against its cons because you're thinking "who cares, it costs me nothing today" - a stupid mentality that only causes one thing: more spending to get three devices after realizing you didn't get the right phone for you. Second, hiding the price of a device under a plan is really in no one's interests except the carrier. The carrier gets to lock you into a plan that is otherwise open ended and they are guaranteed an overhead. If they don't get it, they approach the debt collectors and get the money anyway.
If I didn't have an iPhone at the current time, I would buy outright to overcome this pathetic situation in the Australian market.
Way too late, you might get lucky and find an old stock, but it's been discontinued for quite some time. It seems like it's been a year or two. I don't know if they were any good. I really never had a chance to use them, but it seemed suspicious that they didn't have tweeters.
your joking right ??? i am brucep not jeffdm
9
That, plus the fact that the cell phone industry involves carrier subsidies, is insanely price sensitive, and represents a market that Apple has a legitimate shot at taking a much larger chunk of, suggest that all historical models may not be relevant.
Another good point. We shall see soon enough. Place your bets!
your joking right ??? i am brucep
Sorry about that.
Isn't it "existent"?
Damn, lost at work on this PC without my "cmd-ctrl-D"
"supply of original iPhones were close to non-existant"
Isn't it "existent"?
Damn, lost at work on this PC without my "cmd-ctrl-D"
Hey, that rhymed! I'm a poet and I didn't even know it!
The iPod model is to do that plus create entirely new form factors to cover the spread.
However, the iPhone is uniquely resistant to "new form factors" in that the UI dominates the device to the point that it literally defines it, and that UI is less amenable to a simple shrink than, say, the click wheel was.
That, plus the fact that the cell phone industry involves carrier subsidies, is insanely price sensitive, and represents a market that Apple has a legitimate shot at taking a much larger chunk of, suggest that all historical models may not be relevant.
Is the "spread" now going to be covered by "cellular radio type/data speed," with all other iPhone hardware/software being just about the same? (This assumes that on a low data speed model like EDGE or even UMTS, certain high-capacity data features are disallowed, such as uploading video, or downloading iTunes movies.)
If so, assuming there is a $99 model, will it be an 8GB 2G EDGE model or will it be an 8GB 3G UMTS model (with the 16GB version going for $169)? Will the 2-year AT&T unlimited data plan price for it be set at $15, $20, or $25/mo since certain uploads/downloads are disallowed? Or will AT&T take the dreaded limited data route?
I'm also assuming $199 for the 16GB HSPA 7.2 model and $299 for the 32GB version. Hopefully the 2-year AT&T unlimited data plan price stays at $30/mo. Maybe they could add in 200 SMS/MMS messages to make it a more competitive value (wishful thinking??). (Actually, this pricing issue is why it would be good for the Pre to be competitive.)
And I assume the other 2 SKUs are the TD-SCDMA models (16GB, 32GB) for China only. Big news for AAPL stock.
We'll know in 7 days.
I would imagine they are clearing out ALL inventory, even if they plan on selling an 8gb model.
i thought that interesting that there was no mention of the 8gb. so what they are going to soup up the 16 but not the 8. that doesn't make sense.
[quote}
They'll only sell products which are current and up to date right out of the box.[/QUOTE]
not entirely true. there have been times when the phones in the box were not 100% up to date. no one really minds cause the updates are free. the touch users would be the ones with the issue cause so far they can't do major updates for free.
Is the "spread" now going to be covered by "cellular radio type/data speed," with all other iPhone hardware/software being just about the same? (This assumes that on a low data speed model like EDGE or even UMTS, certain high-capacity data features are disallowed, such as uploading video, or downloading iTunes movies.)
If so, assuming there is a $99 model, will it be an 8GB 2G EDGE model or will it be an 8GB 3G UMTS model (with the 16GB version going for $169)? Will the 2-year AT&T unlimited data plan price for it be set at $15, $20, or $25/mo since certain uploads/downloads are disallowed? Or will AT&T take the dreaded limited data route?
I'm also assuming $199 for the 16GB HSPA 7.2 model and $299 for the 32GB version. Hopefully the 2-year AT&T unlimited data plan price stays at $30/mo. Maybe they could add in 200 SMS/MMS messages to make it a more competitive value (wishful thinking??). (Actually, this pricing issue is why it would be good for the Pre to be competitive.)
And I assume the other 2 SKUs are the TD-SCDMA models (16GB, 32GB) for China only. Big news for AAPL stock.
We'll know in 7 days.
My modestly informed guess would be that Apple will sell the current 8GB model for $99, possibly tied to a cheaper AT&T data plan. So the "base"model would be able to run all extent software but forgo the new hardware features such as the magnetometer, video capable camera and larger storage capacities.
I could imagine them putting a faster processor in such a model, since that moves the platform closer to an across the board customer experience that I think they want (since it appears to me the current model just barely manages same). But maybe not, as the iPhone has been a huge success just as it is, and "snappier" is a good reason to spring for the more expensive model.
So the current $199 goes to 16GB storage with whatever new hardware features are in store, and $299 gets you the 32GB model.
As we know, Apple's price points aren't only (or even mostly) based on their costs, but rather a carefully calibrated range with healthy incentives for the up-sell.
Of course, I'm also the guy who thought an "iPhone" would be marketed as an extension of the iPod line, leveraging the enormous good will and name recognition thereof. And of course it's been the opposite: "iPod" is rapidly becoming a subset of the iPhone/Touch platform, with dedicated players seeming ever more trivial. So what do I know?