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9 Votes
57 Comments
What will you do with your old iPhone?
News Type: Opinion — Seeded on Thu Jun 12, 2008 1:32 PM EDT
Article Source: msnbc.comadvertisement
Those customers who bought iPhones since May 27 and later will be eligible to turn in their phones and get a new iPhone — and a refund, less a 10 percent re-stocking fee, for what they paid for the first-generation iPhone, Siegel said.
If a customer bought an iPhone before May 27, and wants the new iPhone, they will have to purchase it, with no trade-in being provided, and sign a new, two-year contract, Siegel said.
Msnbc.com would like to know what people who already have iPhones but want the new model will do with their old ones. Are you bothered that AT&T isn't offering an upgrade or a special contract for people who got the iPhone before May 27?
Published to:
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 | New iPhone will cost a bit more, not less | Associated Press | Wed Jun 11 | 3 |
| An iPhone for the masses | Associated Press | Mon Jun 9 | 3 |
| Ripe for picking: Apple or BlackBerry | Associated Press | Tue Jun 10 | 4 |
 | Review: Sprint's phone is iPhone clone done right | Associated Press | Wed Jun 11 | 7 |
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{"commentId":1947197,"authorDomain":"mark-umphred"}
what a scam
{"commentId":1947197,"threadId":"287019","contentId":"1566884","authorDomain":"mark-umphred"}
- 1 vote
#1 - Thu Jun 12, 2008 1:42 PM EDT{"commentId":1952111,"authorDomain":"TeddRi"}
Those customers who bought iPhones since May 27 and later will be eligible to turn in their phones and get a new iPhone — and a refund, less a 10 percent re-stocking fee, for what they paid for the first-generation iPhone
That + $10 upgrade is a scam ? Have you ever received any update from Siemans, Nokia, Motorola, Sony Ericcson, LG, Sanyo, HTC,Palm, Blackberry, Samsung or any cell company ? or any electronics company ?
I have owned one of each of those, never received a dime, and most every PC ever made, again, never a dime. Early users alway pay top dollar in electronics. That is what happens when you want to be first. No scam, just things cost less when made in massive volumes and new lower cost technology becomes available.
{"commentId":1952111,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 5 votes
{"commentId":1952560,"authorDomain":"bluecollarbytes"}
Good point.
Apple should just announce NOW, that sometime in the future, 6 months to a year, there will be better IPhones available, more powerful with better storage. Once the public realizes technology improvements come with time, and that Apple can't be expected to soothe the feelings of anyone who's ever bought Anything tech one week only to see it replaced the following week with newer/better, they'll understand and accept how these things work. not.
{"commentId":1952560,"threadId":"287019","contentId":"1566884","authorDomain":"bluecollarbytes"}
- 1 vote
{"commentId":1953090,"authorDomain":"roybatty"}
The hard fact is that Apple is another "high fashion" company out to separate you from you hard-earned dollar.
Do you need it or want it?
Buy into it or not.
{"commentId":1953090,"threadId":"287019","contentId":"1566884","authorDomain":"roybatty"}
- 1 vote
{"commentId":1954103,"authorDomain":"TeddRi"}
Apple should just announce NOW, that sometime in the future,
See thats the entire point. It has nothing to do with Apple. Its Electronics. Period.
My First Trimble GPS was $5000, 6 years later, my Garmin GPS which did far more was $179.
My Windows 98 Sony Vaio XG19 Laptop was $3999, my Compaq Windows XP Pro was $799.
My Nikon CoolPik 950 3 mb camera was $750, now you could get that for less then $50.
My Sony DVD play was $825, now they are about $100.
Most electronics prices change at a exponential rate, memory prices go all over the place an its impossible to judge will will work and what will not. But the first buyers, always pay far far higher just to have the new stuff.
{"commentId":1954103,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 4 votes
{"commentId":1947455,"authorDomain":"eastmemphismo"}
I just paid a fortune for the i-phone and now they come out with a better one? I should have known better.
{"commentId":1947455,"threadId":"287019","contentId":"1566884","authorDomain":"eastmemphismo"}
- 1 vote
#2 - Thu Jun 12, 2008 2:12 PM EDT{"commentId":1954109,"authorDomain":"TeddRi"}
I should have known better.
Yep...that is know as progress. it always happens, with all vendors, unless its a bomb and gets discontinued.
{"commentId":1954109,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 2 votes
{"commentId":2031844,"authorDomain":"allison-sheppard"}
Just like everything in technology, it always gets cheaper (and sometimes better) with time. My boyfriend has been scoping out a new graphics card for his computer for about 3 months, and is waiting to buy the current model, until they release the new one. If you are a consumer of any type of technology, this is expected. This new 3g Iphone may not even work better in some instances, especially if all you can pick up on is EDGE. UMTS (3G) isnt even available in a lot of rural areas.
{"commentId":2031844,"threadId":"287019","contentId":"1566884","authorDomain":"allison-sheppard"}
- 1 vote
{"commentId":2031893,"authorDomain":"TeddRi"}
Gee do I know that feeling all too well....
{"commentId":2031893,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 2 votes
{"commentId":1947483,"authorDomain":"bigpetah"}
I don't think refunds should be made available at all. Consumership doesn't come with guarantees?
{"commentId":1947483,"threadId":"287019","contentId":"1566884","authorDomain":"bigpetah"}
- 1 vote
#3 - Thu Jun 12, 2008 2:14 PM EDT{"commentId":1947514,"authorDomain":"eastmemphismo"}
Lesson learned.
{"commentId":1947514,"threadId":"287019","contentId":"1566884","authorDomain":"eastmemphismo"}
#4 - Thu Jun 12, 2008 2:17 PM EDT{"commentId":1947536,"authorDomain":"darrell-haase"}
I will be using my current iPhone at least until the 2 years is up and then probably renew it. I don't need to spend another $200 for 3g since I usually am in a wifi anyway.
{"commentId":1947536,"threadId":"287019","contentId":"1566884","authorDomain":"darrell-haase"}
- 1 vote
#5 - Thu Jun 12, 2008 2:19 PM EDT{"commentId":1948409,"authorDomain":"ltflow"}
I am beyond pissed and will not purchase an Apple product again.
{"commentId":1948409,"threadId":"287019","contentId":"1566884","authorDomain":"ltflow"}
- 1 vote
#6 - Thu Jun 12, 2008 3:57 PM EDT{"commentId":1955313,"authorDomain":"masternav"}
And as a consumer you are well within your rights to do so.
{"commentId":1955313,"threadId":"287019","contentId":"1566884","authorDomain":"masternav"}
- 1 vote
{"commentId":1965211,"authorDomain":"torabu"}
Um, I'm pretty sure that iPhone you just bought will still be perfectly functional - in the same capacity for which you bought it. What are you complaining about, Ltflow?
{"commentId":1965211,"threadId":"287019","contentId":"1566884","authorDomain":"torabu"}
- 1 vote
{"commentId":1948769,"authorDomain":"welzofstel"}
Before everyone gets all crazy and BELIEVES everything people tell then, I think this news, like most news, is just something posted to scare us all or hurt someone.( Apple or AT&T) The reason I say this is because I went to AT&T yesterday(June 11th, 2008) to ask them about the pricing for the new iPhone and see if I could compare it to my current plan. They couldn't give me the information on the new iPhone. However, when they looked at my plan which is the PDA connect plan as I currently own a Treo 680, they said my plan was outdated they saved me $10 a month. Since I'm eligible for an upgrade, they told me the same plan would transfer to the new iPhone with NO CHANGES or EXTRA CHARGES. So, I will actually be paying $120 less a year to get the iPhone. I think it's best to do your OWN research and find out if this news really affects you.
{"commentId":1948769,"threadId":"287019","contentId":"1566884","authorDomain":"welzofstel"}
- 2 votes
#7 - Thu Jun 12, 2008 4:32 PM EDT{"commentId":2008247,"authorDomain":"TeddRi"}
Funny as the Two Corporate Apple Stores in Washington State already have extra staff for July 11th, know the exact number of phones with serial number included and got the same story at two local AT&T stores ass on June 19th. So either they are far more organized here or things have changed alot in a week.
{"commentId":2008247,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 2 votes
{"commentId":2008626,"authorDomain":"DrJuice"}
How many will they have?
{"commentId":2008626,"threadId":"287019","contentId":"1566884","authorDomain":"DrJuice"}
- 2 votes
{"commentId":2008747,"authorDomain":"TeddRi"}
That number they are not willing to state....I asked and they said "unofficial the guess was that they had about 2 hours if they were lucky and no germans showed up"
For some reason, we have tons of Germans buying iphones at both the Seattle and Bellevue store, could be that T-Mobiles HQ and Siemans Medical HQ is here, but every time I go in, I run into several of them stocking up in iPhones and goodies.
The ATT stores were totally tight lipped. Other then giving me stores hours and saying to get there early.
{"commentId":2008747,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 2 votes
{"commentId":1948929,"authorDomain":"doobey2doobey"}
That's stupid.shame on AT&T and APPLE for not considering the replacements of first generation Iphones.
Stupid CEO's ....
{"commentId":1948929,"threadId":"287019","contentId":"1566884","authorDomain":"doobey2doobey"}
- 1 vote
#8 - Thu Jun 12, 2008 4:48 PM EDT{"commentId":1950371,"authorDomain":"jaybutler"}
Has Nokia, Palm, Blackberry, Samsung, LG or Motorola ever offered replacements to buyers of the previous version of their phones?
{"commentId":1950371,"threadId":"287019","contentId":"1566884","authorDomain":"jaybutler"}
- 3 votes
{"commentId":1948996,"authorDomain":"roscojim"}
I think it stinks that you have to go with AT&T, If Apple were smart, they'd open it up to all providers, such as Verizon. AT&T service stinks where I live.
C'mon Apple - give the rest of us a chance to own your toy!!
{"commentId":1948996,"threadId":"287019","contentId":"1566884","authorDomain":"roscojim"}
#9 - Thu Jun 12, 2008 4:58 PM EDT{"commentId":1949032,"authorDomain":"bharris68"}
Foolish to be first to adopt and then not think that prices will fall - anyone who posts here being pissed or blaming "Greedy CEO's" has clearly never been watching the Wireless industry: Duh - the new stuff comes out soon after the introductory stuff.
FYI - here's a tip: Early Adopters fund the R&D budget for the later adopters ;) As it is - Apple hooking their cart to AT&T may NOT have been the brightest thing for them to do, I'm not a fan of AT&T at all.
{"commentId":1949032,"threadId":"287019","contentId":"1566884","authorDomain":"bharris68"}
- 2 votes
#10 - Thu Jun 12, 2008 5:03 PM EDT{"commentId":1955329,"authorDomain":"masternav"}
Actually, Apple brought the iPhone to Verizon first who declined the opportunity. ATT was offered next and accepted - with a corresponding spike in contract activation and revenue.
{"commentId":1955329,"threadId":"287019","contentId":"1566884","authorDomain":"masternav"}
- 2 votes
{"commentId":1955527,"authorDomain":"TeddRi"}
Actually, Apple brought the iPhone to Verizon first who declined the opportunity.
Ohhhh...I wish I still worked at Verizon...I sure would have rattled some cages over that decision....big time !!
{"commentId":1955527,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 1 vote
{"commentId":1987936,"authorDomain":"OrionD"}
The reason other carriers may not have wanted to partner with Apple may have been the fact that Apple receives a portion of the monthly data plan revenue as part of the deal.
{"commentId":1987936,"threadId":"287019","contentId":"1566884","authorDomain":"OrionD"}
{"commentId":1988615,"authorDomain":"jaybutler"}
receives a portion of the monthly data plan revenue
Received. I believe that part of the AT&T agreement is over. But, that was one of the reasons why Verizon stayed away (the other may have been that they are a CDMA network not GSM).
{"commentId":1988615,"threadId":"287019","contentId":"1566884","authorDomain":"jaybutler"}
- 1 vote
{"commentId":1949096,"authorDomain":"drwohl"}
I bought my iPhone in January, and figured on upgrades but not a totally new phone. I think that Apple should buy back the original phones (at a discounted price) to help existing customers move onto the newer model. They would sell a ton more phones that way.
The models they buy back could be offered for sale as 'reconditioned' iPhones. They would sell out as quickly as they were turned in. Apple would be heroes - but they'll never do anything like this.
{"commentId":1949096,"threadId":"287019","contentId":"1566884","authorDomain":"drwohl"}
#11 - Thu Jun 12, 2008 5:10 PM EDT{"commentId":1950396,"authorDomain":"jaybutler"}
Way back in November 2007, the AT&T CEO announced that they would have a new 3G iPhone in 2008.
Why no put your old one on ebay and buy a new one?
{"commentId":1950396,"threadId":"287019","contentId":"1566884","authorDomain":"jaybutler"}
- 1 vote
{"commentId":1949133,"authorDomain":"grantcv1"}
Some of the grumbling makes no sense to me. New products come out and make old products obsolete - that is the way it always works. Being upset that you old iPhone is no longer state-of-the-art is silly - that's just life.
However, I am disappointed by the new iPhone. It seems that Apple worked hard to make the new iPhone a great competitor to the Blackberry - but forgot to address such basic mobile phone weaknesses like MMS. Add to that the changes in AT&T's pricing (I used to love AT&T a long time ago - how did I ever come to hate them so) and suddenly the new iPhone isn't a good deal anymore.
I am going to continue to use my current iPhone. I have had it almost a year and love it (except for the MMS weakness). I will reexamine my options in a year when my contract is up. That is the sad thing (for AT&T and Apple) is that this new iPhone isn't locking me into a long term relationship with either one of them.
{"commentId":1949133,"threadId":"287019","contentId":"1566884","authorDomain":"grantcv1"}
- 1 vote
#12 - Thu Jun 12, 2008 5:15 PM EDT{"commentId":1949225,"authorDomain":"pfm721"}
The article is a little deceiving. Yes AT&T did up the fee $10 a month. However the current rate was $10 cheaper than most of the data plans that currently exist because it was on the edge network. Why shouldn't the rate for the iphone be the same as all the other phones that are currently using 3G. Secondly you have to look at it like dial up vs. DSL. You pay a little extra for the boost in data transfer rate. Apple was way behind the times when they released the first iphone, but have done a great job catching up with this latest release. If people do a little research next time instead of being captivated by the hype they won't be disappointed with their purchase later.
{"commentId":1949225,"threadId":"287019","contentId":"1566884","authorDomain":"pfm721"}
- 1 vote
#13 - Thu Jun 12, 2008 5:27 PM EDT{"commentId":1949378,"authorDomain":"sgrandchamp"}
I am absolutley interested in what Apple will do for those of us that want to upgrade to the new iPhone. I am willing to pay up, but would also like some sort of trade in allocation for loyal customers. I recently traded in a 4 year old Magellan GPS Navigation unit on a newer one. The trade in program was a key reason I stayed with Magellan rather than move to a Garmin or other brand.
If there is not trade in or upgrade program, I'll probably have to wait. If there is one, I'll probably find a way to make it work.
{"commentId":1949378,"threadId":"287019","contentId":"1566884","authorDomain":"sgrandchamp"}
#14 - Thu Jun 12, 2008 5:43 PM EDT{"commentId":1949419,"authorDomain":"vincent-decaria"}
Considering that the monthly data plan goes up $10/mo. for the new iPhone (plus additional charges for text messages, which probably won't be included in the new plan) the price difference is a wash after 20 months (or less) and the old iPhone becomes cheaper, overall, after that. I am quite happy with my iPhone purchased on May 15th.
All iPhones get the 2.0 upgrade in July.
I am in WiFi range at home, on the commuter train, and at work, so I am seldom on the Edge network when I am actively using the phone. When I am surfing the web using the Edge, I don't really notice it being all that slow compared to my WiFi connections, anyway. I am quite pleased with web surfing regardless of how I am connected. And, I know what 'fast' is--I am an I/T professional, and my Comcast internet connection at home is smokin'.
Based on the experiences of users of other 3G phones (ATT Tilt, for example) I predict that many iPhone 3G users will be complaining about network reliability, performance, and battery life issues with 3G and will be using the iPhone settings tool to lock out 3G much of the time.
I couldn't care less about the GPS: It is just an adjunct to cell tower triangulation and WiFi location which the original iPhone has already, and like any other handheld GPS, it won't be of much use inside a building or vehicle, anyway. Depending on what you want a GPS for, (Hiking, street navigation, geocaching, etc.) a purpose-built GPS with the right type of map installed is a better option.
If I were in the market for a new iPhone today, I would wait until July 11 and get the new one, but I don't see how anybody who already has an iPhone is getting robbed of anything but bragging rights to the latest/greatest version of the coolest tech toy around.
{"commentId":1949419,"threadId":"287019","contentId":"1566884","authorDomain":"vincent-decaria"}
#15 - Thu Jun 12, 2008 5:47 PM EDT{"commentId":1950066,"authorDomain":"mrarcadian"}
as i always said "money grubbing CEO's".
i will never buy another apple product again, with this tactic, its a extreme shame on apple's part.
for shame APPLE for shame! you will lose alot of consumers because of this apple stock will drop substantially.
Good luck apple
{"commentId":1950066,"threadId":"287019","contentId":"1566884","authorDomain":"mrarcadian"}
#16 - Thu Jun 12, 2008 6:56 PM EDT{"commentId":1955423,"authorDomain":"masternav"}
As much as I understand your disappointment and disgruntlement, I don't understand which tactic you are dunning Apple for. And conversely since they addressed the consumer demands for additional features (for the most part) AND dropped the device price, I fear your prediction of a lot of consumer loss and resulting drop in stock price will prove incorrect.
If you are referring to the plan pricing by ATT, first it is ATT determining that, and the plan price is their 3G plan across the board - not just the iPhone. Please clarify which issue is casuing you the pain.
{"commentId":1955423,"threadId":"287019","contentId":"1566884","authorDomain":"masternav"}
- 1 vote
{"commentId":1950091,"authorDomain":"mrarcadian"}
Also they should have implemented FLASH on the IPHONE, when are they going to put that in!
STUPID APPLE!!!
get with the program!
{"commentId":1950091,"threadId":"287019","contentId":"1566884","authorDomain":"mrarcadian"}
#17 - Thu Jun 12, 2008 6:58 PM EDT{"commentId":1950527,"authorDomain":"leftfromthestart"}
I was planning to get all of my family members (3 more) iphones. This assumed that, of course, ATT would offer a significant deal on trading in my own current model. But, wait, no trades. Do you hear the word Sprint?
{"commentId":1950527,"threadId":"287019","contentId":"1566884","authorDomain":"leftfromthestart"}
#18 - Thu Jun 12, 2008 7:51 PM EDT{"commentId":1952173,"authorDomain":"sqweak"}
Simmer down folks. This is nothing but FUD by MSNBC (hmm, what's the MS stand for again?) As many commenters have pointed out, this upgrade from 2.5g to 3g is as substantial as the difference between Dial-up and DSL/Cable. Apples to apples people: 30/mo is on par with or less than 3g data for any other plan from AT&T. The $40 blackberry plan they mention on competitor T-Mobile is still 2.5g Edge, so you're paying 10 bucks less for better speed. Hiding that it a brief blurb at the bottom does nothing but sensationalize this.
Enzo: Actually, it is true GPS known as A-GPS or Assisted-GPS. It combines the info from Sat GPS chip with additional information from an "assistance server" on the carrier's side (which includes Tower triangulation and other information) in order to be more accurate and accomodating to the use environment. This will help the specific issue you mention about being indoors. It's also part of the rollout for Enhanced 911. The iPhone 3G is one of the first handful of (mostly smart) phones with it implemented.
{"commentId":1952173,"threadId":"287019","contentId":"1566884","authorDomain":"sqweak"}
- 1 vote
#19 - Thu Jun 12, 2008 10:57 PM EDT{"commentId":1952183,"authorDomain":"DrJuice"}
I'll be interested to see how well the GPS in the iPhone stacks up with a dedicated unit. I've been thinking about getting a GPS lately, and buying one device that would replace two isn't a bad idea in my eyes....
However, I won't be upgrading for a while yet, I get some money back from AT&T in August and in the meantime I'll be running 2.0 on my now-ancient 4GB iPhone, which I bought knowing full well a new one would be out that would do some new stuff (or hold more stuff), and maybe even that the price would drop. Here's the thing though: no one came to your house, tortured your family, and forced you to buy an iPhone. You did that on your own. So, you're pissed off because you bought a product from Apple and then they made a new one. Have you guys seen the way tech has been going for, I don't know, the last 50-odd years or so? Why aren't you outraged that your car manufacturer comes out with a new model every year and severely discounts the previous years models? You're ready to kill, maim, and murder over a $400 cell phone, but not a $20,000 car. Interesting. What about your computer?
{"commentId":1952183,"threadId":"287019","contentId":"1566884","authorDomain":"DrJuice"}
- 1 vote
#20 - Thu Jun 12, 2008 10:58 PM EDT{"commentId":1952270,"authorDomain":"amriddell"}
I'm an apple fan. I own the old iphone and love it. I will not be upgrading. Apple will continue to produce amazing products that will change the electronic and computer industry time and time again. Ok, fine to the people who say "I'll never buy an apple product again" but I bet you will.
Remember when Apple gave out those 100 dollar credits for people who paid all that money to have the first iphones then Apple lowered the price and people balked. Apple didn't have to shell out those credits but they did, because they do have customer service and know the importance of customer loyalty. I'm hooked for life, until or unless Apple really screws something up. I know I am not the only one loyal to the company. How many iphones have been sold to date? How's their stock doing?
Apple doesn't need an exchange program for old phones. They're still perfectly good, just a tad bit slower and don't have GPS. Not a big deal. Do people really want to pay all that extra in monthly taxes and fees just for 3G, GPS and a nice plastic shell? Fine by me.
Anyways, to answer the main question: I'm keeping my phone and it's data plan and will enjoy it just like I have this whole time. The new ebay program is going to be my favorite and I'll enjoy the nice software upgrade. Maybe I'll start saving my pennies for their next awesome product to hit the market.
{"commentId":1952270,"threadId":"287019","contentId":"1566884","authorDomain":"amriddell"}
- 1 vote
#21 - Thu Jun 12, 2008 11:11 PM EDT{"commentId":1954455,"authorDomain":"dagwood"}
Too bad. It's not different than the people that bought the first plasma TV's, the first LCD TV's, the first hybrid cars, the first digital cameras, the first GPS, etc. Anytime you run out and buy new technology, obviously you're going to pay more. In addition, they've been talking about coming out with a new iPhone for the last 6 months or more. In today's market, you should research everything you buy. If you didn't research the iPhone before you bought it, don't blame Apple. In addition, every cell phone company sells their new phones for a premium when they are first introduced and then the prices drop on them over the course of a year or two. It amazes me that consumers don't see these trends and just blindly spend money and then complain after the fact.
{"commentId":1954455,"threadId":"287019","contentId":"1566884","authorDomain":"dagwood"}
- 1 vote
#22 - Fri Jun 13, 2008 9:24 AM EDT{"commentId":1957460,"authorDomain":"masternav"}
And in a proper flash of reality, Apple stock has been dropping since the announcement, because........... wait for it..........
traders are afraid that Apple isn't charging enough for the new iPhone and in turn not getting revenue from ATT. The new deal means ATT is subsidizing the 3G iPhone instead of paying out to Apple. This means that the stock price dropped because investors figure that Apple isn't profiting ENOUGH from the iPhone not that they are innovating too fast, "forcing" consumers to upgrade *snort* to the new one.
So yeah. Not consumer sour grapes about price or plan. Looks like it will sell even better now. Consumers will swoop in and buy-buy-buy. But that Apple might just make less money on the new one than the old one. That folks is what drives the stock market. Profitability.
{"commentId":1957460,"threadId":"287019","contentId":"1566884","authorDomain":"masternav"}
- 2 votes
#23 - Fri Jun 13, 2008 2:51 PM EDT{"commentId":1968760,"authorDomain":"DrJuice"}
The new deal means ATT is subsidizing the 3G iPhone instead of paying out to Apple.
A subsidy is when a provider picks up part of the tab on the handset. AT&T is paying Apple (per phone), but they've dropped the revenue sharing agreement they previously had.
Looks like it will sell even better now. Consumers will swoop in and buy-buy-buy. But that Apple might just make less money on the new one than the old one. That folks is what drives the stock market. Profitability.
If they sell better, how is Apple making less money?
{"commentId":1968760,"threadId":"287019","contentId":"1566884","authorDomain":"DrJuice"}
{"commentId":1968890,"authorDomain":"jaybutler"}
If they sell better, how is Apple making less money?
If they sell twice as many at half the price with no future revenue sharing, how will they make higher profits? The application store is one way, but that is a bit of an unknown now. This is probably why the stock market reacted unfavorably to the announcement.
But, if Apple does sell twice as many or three times as many phones, that is an awful lot of potential application store customers. If the application revenue is significant and Apple gets 30% of that, their profits on the phones could go way up.
{"commentId":1968890,"threadId":"287019","contentId":"1566884","authorDomain":"jaybutler"}
- 2 votes
{"commentId":1969713,"authorDomain":"TeddRi"}
If they sell twice as many at half the price with no future revenue sharing, how will they make higher profits?
That is the goal and dream of any Telco. Sell more Hardware=Capital Cost=Write off @ Tax Time and reason to raise tarriff because they are rate regulated + they now have more units in the field=Market share. They win all around. Even if they lose money in the deal, its worth it to say they have the "most" anything, number of phones, number of "bars" (Signal) etc.
{"commentId":1969713,"threadId":"287019","contentId":"1566884","authorDomain":"TeddRi"}
- 3 votes
{"commentId":1971734,"authorDomain":"DrJuice"}
But if the subsidy is the same as other phones, then Apple is still getting it's money on the phones themselves. Part of it comes from the consumer (the $199 or $299) and the rest comes from the carrier. So, assuming the cost is actually the same as the current iPhone ($399 for 8GB and $499 for 16) then Apple is getting $200 a piece from AT&T. That's less than the rumored $11-a-month-over-two-years, but they're still making the same amount on the devices themselves. And since the cost is lower to consumers, they should sell more, meaning more money.
{"commentId":1971734,"threadId":"287019","contentId":"1566884","authorDomain":"DrJuice"}
{"commentId":2007935,"authorDomain":"DrJuice"}
Even as an Apple fan I'm taking this with a planet-size grain of salt, but according to AppleInsider via an Oppenheimer analyst, Apple is collecting $325 for every iPhone 3G sold, in addition to $100 for every new subscriber AT&T gets with an iPhone 3G (whereby I assume 'new subscriber' means "is not upgrading from a previous AT&T wireless plan or has never had wireless service with AT&T").
{"commentId":2007935,"threadId":"287019","contentId":"1566884","authorDomain":"DrJuice"}
{"commentId":1962166,"authorDomain":"evaunit6"}
I'm quite satisfied with my iPhone, and I see no need to go through the hassle of upgrading. After all, I'll still be able to get the 2.0 firmware upgrade for free once it's been made available. I don't need the GPS capability that the new phone will have, and I have wireless at home so I rarely ever end up on the EDGE network anyway. In the end I don't feel I'll be missing out on much...
{"commentId":1962166,"threadId":"287019","contentId":"1566884","authorDomain":"evaunit6"}
#24 - Fri Jun 13, 2008 6:55 PM EDT{"commentId":1967923,"authorDomain":"trekjpf63"}
I will pass my old IPhone on to a Family member
{"commentId":1967923,"threadId":"287019","contentId":"1566884","authorDomain":"trekjpf63"}
#25 - Sat Jun 14, 2008 3:39 PM EDT{"canLink":false,"threadId":"287019","isPrivate":false}
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