DISQUS

Gravitational Pull: New iPhone pricing proves consumers are idiots

  • Conrad · 1 year ago
    Apple is making the phone cheaper. And those of us in the UK are going to benefit from that because our exclusive carrier, O2, have reasonable rates. Apple's announcement of making it cheaper was for the world and it's true. Folks in the States are stuck because of AT&T.
  • John · 1 year ago
    You're absolutely right. People are idiots.

    Last year when the iPhone came out and the plans were announced, my reaction was 'How the hell did Apple manage such a deal for consumers?" and that was about the unlimited data plan for $20.

    Yet most people around the web would only comment about the upfront cost of the iPhone.

    Too bad.
  • AC · 1 year ago
    It's especially troubling that the biggest benefit of GSM technology is the ability to use your SIM chip in any unlocked handset. Signing up with an iPhone-only multi-year contract pretty much negates that...
  • slappy · 1 year ago
    SMS is a rip off by the carriers. I don't use it. AIM type clients will come in soon.
  • rjz · 1 year ago
    Isn't it worth noting that the cost is competitive with other plans out there but the phone is better. In my case, furthermore, the cost of the subscription is subsidized by my company while the phone is not. For me at least this is a deal.
  • N. Chapman · 1 year ago
    Huh? Only "math geeks" understand the time value of money? Wrong, dude. Ask any school kid if he would rather pay $200 now (and $240 over 2 years at $10 bucks a month), or pay $400 today. Anyone with half a brain would chose the first option. Here's a sure bet: take the $200 saved, and buy a share of Apple stock. That share will be worth $400 in 2 years. Wanna bet it won't?
  • Ben · 1 year ago
    If you play lawyer ball the price is actually cheaper. Apple sells the iphone, AT&T sells the service, so technically Apple did lower the price of the phone. AT&T raised the cost to use it, most likely to screw the consumer into paying for a new nationwide 3g network. I'm not sure Apple has much say in how much AT&T can charge to use their network, so clearly the blame goes to AT&T. Apple originally was courting Verizon who wasn't interested in Apple's terms. I can just imagine how much complaining there would be if the price had stayed the same on the iPhone with the new increase on service.
  • Saarinen · 1 year ago
    What you failed to mention in your article is that ATT ALWAYS charged $10 more for it's 3G network access. Were you hoping you would get twice the access speed for free? It's like complaining because your cable company is charging you more money for faster internet access. The only real increase is the $5 we now have to pay for SMS messages.

    Then you neglect to mention the added functionality you are getting in the new phone for $200 less! 3G access speeds, GPS, improved design (better headphone jack) and great battery life for a 3G phone - not to mention version 2.0 of the software and easy access to third party apps.

    Sounds like a great deal to this consumer.
  • N. Chapman · 1 year ago
    The consumers are not the idiots here. This article does a better job explaining the point I was trying to make: http://www.fool.com/investing/general/2008/06/1....
  • JY · 1 year ago
    How dare Joe Blow consumer expect to get faster internet access for nothing! Give me a break - there's nothing wrong with charging more for a better network.
  • Empty_Tank · 1 year ago
    So you pay an extra $40 over a two year period. Let's see: Faster internet browsing, faster internet-dependent software use, true GPS, much better speaker sound quality, much better overall user experience due to faster speed and processing. Now imagine. You are getting all these extra features for ...What did you say? An additional $1.66 per month? Why, has the world gone mad? Who would pay $1.66/month for all those added features? Shoot. My time waiting for the grass to grow as Safari pages render is definitely not worth $1.66/month. I will definitely stick with my lousy EDGE connection and no GPS to save $1.66 --- NOT!
  • AdamC · 1 year ago
    If the product is useful it will worth its weight in gold.
  • ampressman · 1 year ago
    Just wrote a follow-up post addressing some of the excellent points commenters have brought up. See http://gravitationalpull.net/wp/?p=337

    Quick summary: I'm arguing that it's the $200 "price cut" that's behind all the hugely inflating sales estimates for the iPhone 3g, not the added features. If Steve Jobs announces all the great new features but keeps pricing the same, or even increases the monthly fee and keeps the $399 fee, few if any would be talking about anything more than a slight bump up in sales.

    Second, I wasn't trying to say that the iPhone 3G isn't "worth it" for many people. Just that the change in pricing strategy alone will change consumer behavior.

    And third, kind of minor, but the price increase is actually greater than I or most others calculated because AT&T (like other carriers) adds a bunch of surcharges to your monthly bill that are calculated on a percentage of your monthly plan fee.