You don't have to be a client to guess that Huberty may be (a) a bold, contrarian AAPL stock analyst, (b) green, (c) willfully ignorant, (d) drinking on the job. You decide.
(e) incompetent (f) on the take by hedge funds (g) irrelevant
Seriously, does anyone think this is going to increase ownership by 100%?!?
Obviously the true cost is paying for AT$T's crappy service.
I have 2 3Gs, 2 other phones, and unlimited "texting" and my phone bill is well over $200 per month or $4,800 over the life of the contract. Add my two $200 phones and I get to $5,200.
Does ANYONE think dropping this to $5,000 is really gonna be a deal maker for anyone
I can?t think of a good reason for Apple to release a cheap iPhone or announce a reduced rate for the current iPhone.........
I speculated on the MR forums that the only way that Apple would do this is if it wants to achieve the following for 4 devices with different configurations.
I see Apple coming out with these devices to have footholds in markets like India and China, which have shown high expectations towards the iPhone. The iPhone failed in India simply because of the price point. Therefore, the low-end models are for geographic segmentation as revenues (India, China, other places) while the high-end models are catered towards marketshare as volumes (US predominantly). This way, Apple hits both ends of the global market in one shot. This is something that MS and others cannot counter at all.
Of course, you might be entirely right as well. Apple would not do a cheap iPhone at all.
Welcome to the other part of the forum. You are dead on about this analyst. I can?t think of a good reason for Apple to release a cheap iPhone or announce a reduced rate for the current iPhone a day before the official announcement. Unless Apple has a special event planned for the iPhone announcement I can?t see that happening, but even then it seems silly to do on a Monday.
because someone finally beat some common sense into steve jobs
if apple wants to expand market share they have to release a low end product that is priced right. my wife wanted an 8GB and i bought her a 16GB just because. she has maybe 2GB of stuff on there and i don't think she's ever hit 2GB on the data plan even with me streaming internet radio a few times a week.
you think the wal mart people are going to want to spend $200 - $300 on a cell phone?
... The Financial Times cited Morgan Stanley analyst Kathryn Huberty as saying, "it's either a $50 or a $100 cut" based on a survey of consumers that indicated a $50 drop "could increase demand by 50 per cent and a $100 cut by 100 per cent."...
I find this really hard to believe.
I don't know anyone who is stopped from buying an iPhone by the initial price. It's expensive but not hugely so and it's not out of line with other common consumer electronic devices. Given that the major part of the cost is the contract, you'd have to be an idiot to care about a hundred bucks here or there on the price when you are paying more than that each month in fees for a two or three year contract.
Everyone I know that's currently "waiting" to buy an iPhone (when the price gets better), is concerned with the contract price only and will buy immediately when the contract gets down to a reasonable level.
Most people don't want to pay anything close to the 70-100 bucks a month the iPhone ends up costing you, and they don't use enough data to justify it anyway. Only when the fees for use change will there be anything like broad adoption.
non china group 16 32 maybe a lower priced 8 with new "inards"
the reporter makes no sense.
BUT
its not the price of the phones its the cost of the data plan that keeps regular phone users from moving up, apple and att know this it just supply/ demand econ
until the total costs come down the market won't grow ( can't relie on taking from other smart phone carriers, their contracts are as long as ATT) especially in a recession
I'm still using a first generation iPhone since 1,5 years, and I must say it's the first time I've ever been using a phone for more than a year and it still feels fresh, fast, modern, works fine, up to date, and I'm not constantly looking at new phone models. So if Apple can just streamline the production of an old iPhone where production is steady already, I think it'll be good enough for a lot of people.
And guess what? You'll have a "new" phone when 3.0 rolls out...Pretty sweet!
because someone finally beat some common sense into steve jobs
if apple wants to expand market share they have to release a low end product that is priced right. my wife wanted an 8GB and i bought her a 16GB just because. she has maybe 2GB of stuff on there and i don't think she's ever hit 2GB on the data plan even with me streaming internet radio a few times a week.
you think the wal mart people are going to want to spend $200 - $300 on a cell phone?
This is the classsic RAZR issue when you only have one version of a phone- it gets stale. The cellphone markwet is extremely fickle. I'vebeen saying for the last 2 years that there needs to be more than 1 version. And now we will finally get it.
a cheaper iphone or any smartphone seems irrelevant to me. the service cost of any smartphone compared to a data-free standard phone service will equal or exceed the cost of the smartphone every year. apple owes it to themselves to get out of the at&t exclusive deal as soon as they possibly can.
how else do you think the razr sold so well? (speaking of that, where the hell is motorola? haven't seen a smartphone from them since the Q that i've heard of)
Another way of thinking of this exclusive deal is at this point, AT&T needs Apple, not so much the other way around, so Apple is in the position of strength in these negotiations. That means if the true cost holding people back is the data plan pricing (which I agree w/ you fully), I would say that Apple is in a strong position to negotiate AT&T to providing lower cost plans to help drive adoption.
Being that I am about to jump onto the iPhone bandwagon, coming from Sprint, that is what I am hoping for, as the cost of the iPhone itself upfront really is not a concern at all for me. I'm just looking at getting the monthly cost as low as I can.
Welcome to the other part of the forum. You are dead on about this analyst. I can?t think of a good reason for Apple to release a cheap iPhone or announce a reduced rate for the current iPhone a day before the official announcement. Unless Apple has a special event planned for the iPhone announcement I can?t see that happening, but even then it seems silly to do on a Monday.
From this and other posts, you seem to be missing the fact that WWDC starts on Monday. And the keynote is on Monday at 10am PST.
Isn't that a problem with all ATT 3G phones? You can always switch to Edge.
I guess but why bother when your paying for that 3G contract? I'm amazed by this problem still. AT&T keeps adding more and more phones to its 3G network and advertising relentlessly for them.
I guess but why bother when your paying for that 3G contract? I'm amazed by this problem still. AT&T keeps adding more and more phones to its 3G network and advertising relentlessly for them.
I'm still hoping for the AT&T network box that will route calls over your IP connection that was rumored several months ago. The AT&T signal in my condo is TERRIBLE.
Comments
You don't have to be a client to guess that Huberty may be (a) a bold, contrarian AAPL stock analyst, (b) green, (c) willfully ignorant, (d) drinking on the job. You decide.
(e) incompetent (f) on the take by hedge funds (g) irrelevant
Seriously, does anyone think this is going to increase ownership by 100%?!?
Obviously the true cost is paying for AT$T's crappy service.
I have 2 3Gs, 2 other phones, and unlimited "texting" and my phone bill is well over $200 per month or $4,800 over the life of the contract. Add my two $200 phones and I get to $5,200.
Does ANYONE think dropping this to $5,000 is really gonna be a deal maker for anyone
I can?t think of a good reason for Apple to release a cheap iPhone or announce a reduced rate for the current iPhone.........
I speculated on the MR forums that the only way that Apple would do this is if it wants to achieve the following for 4 devices with different configurations. Of course, you might be entirely right as well. Apple would not do a cheap iPhone at all.
Welcome to the other part of the forum. You are dead on about this analyst. I can?t think of a good reason for Apple to release a cheap iPhone or announce a reduced rate for the current iPhone a day before the official announcement. Unless Apple has a special event planned for the iPhone announcement I can?t see that happening, but even then it seems silly to do on a Monday.
because someone finally beat some common sense into steve jobs
if apple wants to expand market share they have to release a low end product that is priced right. my wife wanted an 8GB and i bought her a 16GB just because. she has maybe 2GB of stuff on there and i don't think she's ever hit 2GB on the data plan even with me streaming internet radio a few times a week.
you think the wal mart people are going to want to spend $200 - $300 on a cell phone?
Aren't you at all curious about the Pre at Sprint which synch your iTunes?
engadget claims the iTunes syncing is extremely hackish. I wouldn't expect Pre syncing to last very long, frankly.
if apple wants to expand market share they have to
From Apple's historic behaviour it's clear that they are more interested in a quality product than achieving mass market acceptance in a short period.
... The Financial Times cited Morgan Stanley analyst Kathryn Huberty as saying, "it's either a $50 or a $100 cut" based on a survey of consumers that indicated a $50 drop "could increase demand by 50 per cent and a $100 cut by 100 per cent."...
I find this really hard to believe.
I don't know anyone who is stopped from buying an iPhone by the initial price. It's expensive but not hugely so and it's not out of line with other common consumer electronic devices. Given that the major part of the cost is the contract, you'd have to be an idiot to care about a hundred bucks here or there on the price when you are paying more than that each month in fees for a two or three year contract.
Everyone I know that's currently "waiting" to buy an iPhone (when the price gets better), is concerned with the contract price only and will buy immediately when the contract gets down to a reasonable level.
Most people don't want to pay anything close to the 70-100 bucks a month the iPhone ends up costing you, and they don't use enough data to justify it anyway. Only when the fees for use change will there be anything like broad adoption.
china group includes a lower priced 4gb
non china group 16 32 maybe a lower priced 8 with new "inards"
the reporter makes no sense.
BUT
its not the price of the phones its the cost of the data plan that keeps regular phone users from moving up, apple and att know this it just supply/ demand econ
until the total costs come down the market won't grow ( can't relie on taking from other smart phone carriers, their contracts are as long as ATT) especially in a recession
I'm still using a first generation iPhone since 1,5 years, and I must say it's the first time I've ever been using a phone for more than a year and it still feels fresh, fast, modern, works fine, up to date, and I'm not constantly looking at new phone models. So if Apple can just streamline the production of an old iPhone where production is steady already, I think it'll be good enough for a lot of people.
And guess what? You'll have a "new" phone when 3.0 rolls out...Pretty sweet!
engadget claims the iTunes syncing is extremely hackish. I wouldn't expect Pre syncing to last very long, frankly.
"extremely hackish"?- because it works so well? which is what the NY Times said.
From Apple's historic behaviour it's clear that they are more interested in a quality product than achieving mass market acceptance in a short period.
Then why all the obsession of market share gains for both OS and MACs when these measly changes move from 10 to 12 percent?
Wow! A WHOLE $100 drop?!? KEWL D00D!
Please don't talk/type like that. It makes us think you are or act like a 10 year old.
because someone finally beat some common sense into steve jobs
if apple wants to expand market share they have to release a low end product that is priced right. my wife wanted an 8GB and i bought her a 16GB just because. she has maybe 2GB of stuff on there and i don't think she's ever hit 2GB on the data plan even with me streaming internet radio a few times a week.
you think the wal mart people are going to want to spend $200 - $300 on a cell phone?
This is the classsic RAZR issue when you only have one version of a phone- it gets stale. The cellphone markwet is extremely fickle. I'vebeen saying for the last 2 years that there needs to be more than 1 version. And now we will finally get it.
a cheaper iphone or any smartphone seems irrelevant to me. the service cost of any smartphone compared to a data-free standard phone service will equal or exceed the cost of the smartphone every year. apple owes it to themselves to get out of the at&t exclusive deal as soon as they possibly can.
how else do you think the razr sold so well? (speaking of that, where the hell is motorola? haven't seen a smartphone from them since the Q that i've heard of)
Another way of thinking of this exclusive deal is at this point, AT&T needs Apple, not so much the other way around, so Apple is in the position of strength in these negotiations. That means if the true cost holding people back is the data plan pricing (which I agree w/ you fully), I would say that Apple is in a strong position to negotiate AT&T to providing lower cost plans to help drive adoption.
Being that I am about to jump onto the iPhone bandwagon, coming from Sprint, that is what I am hoping for, as the cost of the iPhone itself upfront really is not a concern at all for me. I'm just looking at getting the monthly cost as low as I can.
I feel your pain. Some friends in NYC have to put their head out their apartment to get a signal that holds. It's a real problem/issue.
Isn't that a problem with all ATT 3G phones? You can always switch to Edge.
Please don't talk/type like that. It makes us think you are or act like a 10 year old.
The is not a grammar blog. We know what he means. You are just fro m a diff generation.
Welcome to the other part of the forum. You are dead on about this analyst. I can?t think of a good reason for Apple to release a cheap iPhone or announce a reduced rate for the current iPhone a day before the official announcement. Unless Apple has a special event planned for the iPhone announcement I can?t see that happening, but even then it seems silly to do on a Monday.
From this and other posts, you seem to be missing the fact that WWDC starts on Monday. And the keynote is on Monday at 10am PST.
Isn't that a problem with all ATT 3G phones? You can always switch to Edge.
I guess but why bother when your paying for that 3G contract? I'm amazed by this problem still. AT&T keeps adding more and more phones to its 3G network and advertising relentlessly for them.
I guess but why bother when your paying for that 3G contract? I'm amazed by this problem still. AT&T keeps adding more and more phones to its 3G network and advertising relentlessly for them.
Yeah it solves the problem but isn't the answer.