If Apple TV sales aren't directly included in the equation, Needham estimates an average selling price of about $666 for each iPhone -- an approximately
So does anyone really know what the Apple TV sales are? I'd like to know the actual numbers.
Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.
It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!
Not to state the obvious, but the new iPhone is 3G. That is well worth the extra $10 per month. Also, the iPhone plans are the same as other smart phone plans through AT&T.
Sure, it's ten bucks more a month, but the value is better too. I would be pissed if I was stuck with a first generation iPhone that's EDGE only!
Don't even bother with cheaper prices...Try keeping the storage space in line with the iPod Touch. Here's the pricing structure I'd like to see:
8GB iPhone: $99
16GB iPhone: $199
16GB iPod Touch: $199
32GB iPhone: $299
32GB iPod Touch: $299.
right, so for $299 you can get a 32gb iphone, or a 32gb iphone, but without the camera, or the phone, or the bluetooth, or the mike, or the sms (the ipod touch).
so yeah: that seems like a fair pricing scheme, everybody will now want to have a touch..
right, so for $299 you can get a 32gb iphone, or a 32gb iphone, but without the camera, or the phone, or the bluetooth, or the mike, or the sms (the ipod touch).
so yeah: that seems like a fair pricing scheme, everybody will now want to have a touch..
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Well, that's sort of the point, no? Apple makes a TON of money off each iPhone sold -- not in the initial unit price, but in the amortized REAL cost of the unit for a two year contract. Think of the current iPhone price as an Apple-improved Gillette model. Except here, you PAY for the razor (phone) and the blades (contract).
When Apple sells an iPod, no more money changes hands. An iPhone, however, is a two-year mealticket and a likely upgrade candidate at the contract's termination.
I think Apple would be nothing short of thrilled to have every prospective Touch buyer get an iPhone instead.
Apple's very strong real-world revenues and its high iPhone gross margins are now thought to give the company substantial headroom for a price cut that could lead to huge strides forward in market share.
The problem I see here is ATT not being able to handle an accelerated demand on its 3G abilities...at least not right now.
Apple wants people to upgrade to each new model. Its great for revenue and stats. Unfortunately, contracts set by providers is 2 or 3 years. They discourage your option to upgrade with penalties. This only benefits providers and forces users to skip models.
Again, this undermines Apple's potential year over year revenue.
Apple should force providers to a one year max contract
OR AS AN OPTION.....
Sell them unlocked at the Apple Store without contract for an extra $100.
The 666 number comes from Jobs comments during the conference call. He quoted the revenue from the iPhone and the sales number so it ain't difficult to work out the ASP even if you're an analyst!
Cheaper iPhones would reduce the threshold for some potential customers (like myself).
The 666 number comes from Jobs comments during the conference call. He quoted the revenue from the iPhone and the sales number so it ain't difficult to work out the ASP even if you're an analyst!
Cheaper iPhones would reduce the threshold for some potential customers (like myself).
A cheaper Mac would reduce the threshold for a computer for people, as well, but it's not going to happen. A $99 iPhone 3G would undermine Apple's "premium brand" image. I can see them coming out with a $99 iPhone with no touch screen and less features, but there will always be that premium iPhone, just as there is a premium iPod (touch) and premium Mac (Mac Pro, MacBook Pro).
Also, a previous poster said the iPhone 3G with the new plan costs WAY more than the previous one, which isn't completely true. Yes, it costs more, but when broken down comes out to around $40 extra over the two years. I understand that today's money is more valuable than tomorrow's and paying more upfront does save you more, but even factoring that in, it isn't a huge difference to be upset about, considering competing phones cost the exact same per month and do exponentially less.
I honestly wouldn't mind that. An iPhone in the sub 100 dollar range. I still wouldn't buy it. No t-mobile. I'm fine with my nice $150 dollar phone from t-mobile that can't do half what the iPhone can do.
I'm surprised to see so many people arguing that such a scenario is far fetched. It's not, because it's happened before and because Steve Jobs practically telegraphed this move.
First, last year they dropped the price of the phone $200. It had been $600, then it was $400. Nothing's really changed this year. It's still a $600 phone, just that AT&T is subsidizing it. So they can drop the price $100 and still be making a killing.
Second, during the conference call, Jobs said 1) they're not overly concerned with bringing more handset models to market and 2) they are very concerned about not allowing competitors to offer product underneath their price "umbrella." Put those two comments together and there's one conclusion: they're going to drop the price.
The only question is when. I bet Apple doesn't know either. They'll let their sales data make that decision. It might be before the holidays.
I can't see Apple selling such cheap Phone. That's not apple at all. If no-one ever noticed, Apple doesn't go by he rules. Apple creates rules.
Quite. Apple doesn't seem to need to drop their prices in order to gain market share and dropping the prices to such an extent is no guarantee for success. But it is good to know that the latitude is there.
What is needed is lower subscription fees. If the iPhone was made available to all the carriers out there we might see some competition and lowering of prices. I have held out this far but I am about to buckle, and my phone bill will almost double. I am so weak!
Quite. Apple doesn't seem to need to drop their prices in order to gain market share and dropping the prices to such an extent is no guarantee for success. But it is good to know that the latitude is there.
What is needed is lower subscription fees. If the iPhone was made available to all the carriers out there we might see some competition and lowering of prices. I have held out this far but I am about to buckle, and my phone bill will almost double. I am so weak!
Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).
Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.
Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).
Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.
Umm... actually it probably would, since it is the carriers that set subscription rates. T-Mobile's nascent 3G data network is only $25/month unlimited with one of their phone plans (as offered on Google/HTC's G1). That's a difference of $120/2yr contract, if you want any txt msgs; TMob includes 400 with the aforementioned data plan, AT&T rapes you $5 for 200msgs. if you want unlimited txt and data on AT&T, it costs you $50 (TMob unlimited data & txt is $35)... That's $360 over a 2/yr contract.
One item of note-- and I may be on the late late show with this-- I went to AT&T's site and went to view all phones, and where the iPhone had been prominently displayed at the top of the list in the past, it has been removed completely, and as far as I can tell, is no longer available to be purchased online. Was this part of that online pre-approval scheme that they rolled out with iP3g, or is this a newer development?
AT&T would need a $150 price drop from Apple before they could give customers a $99 price drop. The reason for this: Customers are currently enjoying a $300+ subsidy when buying their iPhones from AT&T. Customers that did not want to buy the iPhone at $199 probably also spend less on their monthly telephone bill. Thus, AT&T could only afford to offer those customers a smaller subsidy on their phone. Otherwise, the profits from monthly billings would not make up for the subsidy.
And I'll add one more to that. Sell it unlocked for $599, even better if it includes the bluetooth headset. I'd buy it. I don't need a fancy data plan.
Why would you want to pay that much? You can get an unlocked und contract free iPhone 3G in Italy for ?499 incl. VAT, which as of today equals $521.03 without Tax.
Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).
Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.
And the iPhone 3G doesn't work on Sprint or Verizon because it doesn't support CDMA. T-Mobile would be the only alternative to AT&T. Not enough to stirr a lot of competition.
Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.
It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!
Actually, it's not "a lot" and, in fact, it's cheaper than when it first came out. It ends up being like $40 more across 2 years vs the previous cheap version but I bought my 8GB at $600 and the 3G is both cheaper up front and cheaper in the long run. (Add on to that Cingular now allows for corporate discounts and my end cost per month is actually a little cheaper with a 3G iPhone than the 2G iPhone)...
Comments
If Apple TV sales aren't directly included in the equation, Needham estimates an average selling price of about $666 for each iPhone -- an approximately
So does anyone really know what the Apple TV sales are? I'd like to know the actual numbers.
Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.
It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!
Not to state the obvious, but the new iPhone is 3G. That is well worth the extra $10 per month. Also, the iPhone plans are the same as other smart phone plans through AT&T.
Sure, it's ten bucks more a month, but the value is better too. I would be pissed if I was stuck with a first generation iPhone that's EDGE only!
Don't even bother with cheaper prices...Try keeping the storage space in line with the iPod Touch. Here's the pricing structure I'd like to see:
8GB iPhone: $99
16GB iPhone: $199
16GB iPod Touch: $199
32GB iPhone: $299
32GB iPod Touch: $299.
right, so for $299 you can get a 32gb iphone, or a 32gb iphone, but without the camera, or the phone, or the bluetooth, or the mike, or the sms (the ipod touch).
so yeah: that seems like a fair pricing scheme, everybody will now want to have a touch..
right, so for $299 you can get a 32gb iphone, or a 32gb iphone, but without the camera, or the phone, or the bluetooth, or the mike, or the sms (the ipod touch).
so yeah: that seems like a fair pricing scheme, everybody will now want to have a touch..
Well, that's sort of the point, no? Apple makes a TON of money off each iPhone sold -- not in the initial unit price, but in the amortized REAL cost of the unit for a two year contract. Think of the current iPhone price as an Apple-improved Gillette model. Except here, you PAY for the razor (phone) and the blades (contract).
When Apple sells an iPod, no more money changes hands. An iPhone, however, is a two-year mealticket and a likely upgrade candidate at the contract's termination.
I think Apple would be nothing short of thrilled to have every prospective Touch buyer get an iPhone instead.
Apple's very strong real-world revenues and its high iPhone gross margins are now thought to give the company substantial headroom for a price cut that could lead to huge strides forward in market share.
The problem I see here is ATT not being able to handle an accelerated demand on its 3G abilities...at least not right now.
Apple buys market share with 'awesomeness'*. Much better margins and it protects the brand.
(*Awesomeness is usability + design + supporting infrastructure)
Again, this undermines Apple's potential year over year revenue.
Apple should force providers to a one year max contract
OR AS AN OPTION.....
Sell them unlocked at the Apple Store without contract for an extra $100.
Cheaper iPhones would reduce the threshold for some potential customers (like myself).
The 666 number comes from Jobs comments during the conference call. He quoted the revenue from the iPhone and the sales number so it ain't difficult to work out the ASP even if you're an analyst!
Cheaper iPhones would reduce the threshold for some potential customers (like myself).
A cheaper Mac would reduce the threshold for a computer for people, as well, but it's not going to happen. A $99 iPhone 3G would undermine Apple's "premium brand" image. I can see them coming out with a $99 iPhone with no touch screen and less features, but there will always be that premium iPhone, just as there is a premium iPod (touch) and premium Mac (Mac Pro, MacBook Pro).
Also, a previous poster said the iPhone 3G with the new plan costs WAY more than the previous one, which isn't completely true. Yes, it costs more, but when broken down comes out to around $40 extra over the two years. I understand that today's money is more valuable than tomorrow's and paying more upfront does save you more, but even factoring that in, it isn't a huge difference to be upset about, considering competing phones cost the exact same per month and do exponentially less.
First, last year they dropped the price of the phone $200. It had been $600, then it was $400. Nothing's really changed this year. It's still a $600 phone, just that AT&T is subsidizing it. So they can drop the price $100 and still be making a killing.
Second, during the conference call, Jobs said 1) they're not overly concerned with bringing more handset models to market and 2) they are very concerned about not allowing competitors to offer product underneath their price "umbrella." Put those two comments together and there's one conclusion: they're going to drop the price.
The only question is when. I bet Apple doesn't know either. They'll let their sales data make that decision. It might be before the holidays.
I can't see Apple selling such cheap Phone. That's not apple at all. If no-one ever noticed, Apple doesn't go by he rules. Apple creates rules.
Quite. Apple doesn't seem to need to drop their prices in order to gain market share and dropping the prices to such an extent is no guarantee for success. But it is good to know that the latitude is there.
What is needed is lower subscription fees. If the iPhone was made available to all the carriers out there we might see some competition and lowering of prices. I have held out this far but I am about to buckle, and my phone bill will almost double. I am so weak!
Quite. Apple doesn't seem to need to drop their prices in order to gain market share and dropping the prices to such an extent is no guarantee for success. But it is good to know that the latitude is there.
What is needed is lower subscription fees. If the iPhone was made available to all the carriers out there we might see some competition and lowering of prices. I have held out this far but I am about to buckle, and my phone bill will almost double. I am so weak!
Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).
Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.
Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).
Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.
Umm... actually it probably would, since it is the carriers that set subscription rates. T-Mobile's nascent 3G data network is only $25/month unlimited with one of their phone plans (as offered on Google/HTC's G1). That's a difference of $120/2yr contract, if you want any txt msgs; TMob includes 400 with the aforementioned data plan, AT&T rapes you $5 for 200msgs. if you want unlimited txt and data on AT&T, it costs you $50 (TMob unlimited data & txt is $35)... That's $360 over a 2/yr contract.
One item of note-- and I may be on the late late show with this-- I went to AT&T's site and went to view all phones, and where the iPhone had been prominently displayed at the top of the list in the past, it has been removed completely, and as far as I can tell, is no longer available to be purchased online. Was this part of that online pre-approval scheme that they rolled out with iP3g, or is this a newer development?
in plenty of other countries the iPhone is available for $0 up front.
And I'll add one more to that. Sell it unlocked for $599, even better if it includes the bluetooth headset. I'd buy it. I don't need a fancy data plan.
Why would you want to pay that much? You can get an unlocked und contract free iPhone 3G in Italy for ?499 incl. VAT, which as of today equals $521.03 without Tax.
Again, rate plan pricing is pretty uniform across the board. Verizon and AT&T are both $30 per month for data, then extra for text. Sprint has their unlimited plans, but add up to pretty much the same when compared to other carriers, and t-mobile isn't a big enough player in the US for there to be much consideration (although their plans are about the same prices for a MUCH slower and smaller network).
Having the iPhone on different carriers would not drop rate plans, just like it doesn't for Blackberries, Palms, or any other phone. All it would do is allow more people access to the phone, though that's not such a bad thing either.
And the iPhone 3G doesn't work on Sprint or Verizon because it doesn't support CDMA. T-Mobile would be the only alternative to AT&T. Not enough to stirr a lot of competition.
Oh brother, I certainly hope not. I would much rather pay more upfront and less over time. The iPhone 3G is a lot more expensive then the first iPhone over 24 months. And it's all cause people don't consider total cost, they only look at the initial payment payment.
It's the same story with the mortgage crisis. People just look at the monthly payments and don't consider how much they're actually paying!
Actually, it's not "a lot" and, in fact, it's cheaper than when it first came out. It ends up being like $40 more across 2 years vs the previous cheap version but I bought my 8GB at $600 and the 3G is both cheaper up front and cheaper in the long run. (Add on to that Cingular now allows for corporate discounts and my end cost per month is actually a little cheaper with a 3G iPhone than the 2G iPhone)...