Steve Jobs talks about the new iPhone on CNBC
Steve Jobs talks about the new iPhone on CNBC
Too bad NBC didn't ask Steve about the fact that the phone is actually not that much cheaper in the US than the previous Iphone. If you calculate total costs, so including the mandatory 2 year contract I believe costs are exactly the same. But ah well, it was a great piece of marketing though.."Making the Iphone affordable for more people, because we at apple care". Yeah right ;)
1.Technically just about every cheap phone in the us is tied to a contract. You can't get a $100 blackjack without signing a contract. not to mention that technically the 1st ten iPhone was tied to a 2 yr contract in the US, also.
2. Apple has nothing to do with how much carriers charge for service. especially now that they gave up the kickbacks.
3. I dunno what carrier you have "the hook up" with, but for most people, if you want to use a cellphone its "mandatory" to keep on paying the carrier every month. You guys can't reasonably add the cost of service to the price of the phone. Thats a cost that EVERY working cellphone in the world has.
The old iPhone was $4-500 plus monthly service(for us normal folks that had to pay a carrier for service. Wether it was t-mo, ATT, Rogers, etc.). The new iPhone is $2-300 plus monthly service. How is that NOT cheaper?....
2. - True.. Apple just sells them an Iphone for let's say 400 dollar. The carrier gives a discount on it, which it will earn back by charging higher monthly subscription fees. For example, overhere in Holland it is also possible to get a sim-only subscription, no phone attached. Those subscriptions are much cheaper than the ones including a phone. The reason is simple, the carrier does not have to earn back the discount they gave you on the phone so they can charge lower monthly fees.
3. - Simple, because the monthly service fee went up 10 bucks in comparison with the old AT&T Iphone plans. This means AT&T cashes 24x10 bucks extra per contract, which is 240 bucks.
To them it does not matter where to money comes from, if you call it phone or monthly fee. They could also advertise with "Free Iphone" and boost the monthly subscription fee with another 10 bucks.
Total cost of ownership over 2 years is what matters. It is not cheaper.
Because Iphone+subscription are tied, you actually have to look at the total costs.
I did some googling: Check out this article:
If you take a 2G iPhone and subscribe for 24 months, you pay a minimum of $400 + 24($60) = $1840
If you take a 3G iPhone and subscribe for 24 months, you pay a minimum of $200 + 24($70) = $1880
Technically, you could argue that that extra $10/month is going towards the 3G data service and not the iPhone itself, but my bank account doesn't stay full just because i'm supporting AT&T instead. Yes, the iPhone itself is cheaper, but the cost of ownership, the more important aspect, has actually increased mildly.
3G Internet is a more expensive service for all phones. They didn't up the price of 3G just for the iPhone 3G. So yeah, over two years you are paying more than EDGE but it's a better, more expensive service. All 3G phones pay that price.
The real question is, can you buy iPhone 3G and opt out of 3G internet for EDGE and still only pay $20? This will prove if they are purposely trying to get you to pay more.
let me just add that I like hating "el jobso" as much as the next guy (calling him the anti-christ and whatnot) but calling him deceptive for saying that his new more advanced product that costs $200 is cheaper than the original that cost $400 without mentioning that you have to pay a cell carrier a monthly fee for their service, is just pushing it a little. 3g data costs more than 2g data. Everywhere.
It would be like me saying Kawasaki are deceptive bastards because the told me the ninja 250 that I just bought my boy cost me $3k but they didnt mention I was going to have to pay for gas and adding it on my insurance was gonna cost me more a month. Just a little unreasonable. A bit extreme.
text message wont be included.
so youre looking at almost 7-10 extra on that 70 a month
You cannot see the Iphone as piece of hardware you buy for a certain price because you cannot buy just the hardware. The "product Iphone" includes a subscription+phone. Make one cheaper, make the other one more expensive, the grand total won't change.
I actually like Steve Jobs, i was not trying to bash him. It is just fun to see how marketing works and Apple is very good at that trick. If a company really cares about everybody being able to buy their product, they would sell it for a price with little to no profit. Since Apple shareholders like to see their company make profit so they make money, this will not happen. Companies are interested in making money, as much as possible. So when the CEO of a big company stands on a stage and claims they want to make their product affordable for everybody by selling it cheaper, I can't help it, but I have to grin. I don't judge them because of it , that's marketing. But the claim that a 3G Iphone will cost you less money than a 2G Iphone is simply not true.
Make no mistake about it though, I want that 3G Iphone. :)