Comments on: On Subsidization: AT&T is Not Ripping Off iPhone 3G Owners

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By: It Must Be Nice to Be Verizon » Shai Perednik.com

It Must Be Nice to Be Verizon » Shai Perednik.com — Mon, 20 Jul 2009 20:00:54 +0000

[...] must be nice to utilize the same pricing and subsidy strategies as AT&T, but get to remain above the fray while AT&T takes the heat for what the whole industry is [...]

By: It Must Be Nice to Be Verizon

It Must Be Nice to Be Verizon — Mon, 20 Jul 2009 12:40:55 +0000

[...] must be nice to utilize the same pricing and subsidy strategies as AT&T, but get to remain above the fray while AT&T takes the heat for what the whole industry is [...]

By: Smartphones: the Ultimate Model for Green Cars?

Smartphones: the Ultimate Model for Green Cars? — Fri, 17 Jul 2009 13:46:21 +0000

[...] with conventional cars). This is similar to the way we end up repaying phone carriers’ device subsidies through monthly payments over a set contract [...]

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By: R. U. Kidding

R. U. Kidding — Wed, 24 Jun 2009 11:31:22 +0000

Seriously, isn’t AT&T making enough off of all those minutes with all those iPhone customers? Apple, c’mon. I had one of the first iPhones ever to come out, then dropped it in my Big Gulp (that was a $399 Big Gulp). So, last year I just got a cheap phone through AT&T. They tell me now I’ll be eligible for an upgrade to the iPhone3GS in August 2010? R. U. Kidding? Just another reason I’ve never liked AT&T. Apple, get another long distance carrier. I’ll bet they’d be more than happy just to make a mint off of all the new customers through monthly charges.

By: Apple News » 3, 2, 1: We Have iPhone 3G S Launch!

Apple News » 3, 2, 1: We Have iPhone 3G S Launch! — Fri, 19 Jun 2009 14:42:27 +0000

[...] of the country — the iPhone 3G S is already being doled out to anxious customers. Despite the bumpy upgrade plan that has been laid ahead of many current iPhone owners, there are still lines at some [...]

By: 3, 2, 1: We Have iPhone 3G S Launch!

3, 2, 1: We Have iPhone 3G S Launch! — Fri, 19 Jun 2009 14:32:52 +0000

By: eezing

eezing — Thu, 18 Jun 2009 19:35:20 +0000

Here’s where this article goes south:

“At best, they’ve only “earned back” half the $400 subsidy, yet they somehow feel entitled to it all, as if AT&T should just swallow the remaining $200.”

I don’t understand why someone hasn’t argued this point:

The iPhone market price (sold without service) per unit does not equal Apple’s returns per unit from an iPhone sold with service. In other terms, Apple makes more money off of an iPhone sold without service on a per unit basis than in any other case; however, Apple makes more money as a whole through At&t because the amount of units sold is far greater. That being said, that the kick back that goes to Apple from At&t is considerably less on a per unit basis; furthermore, it does not equal $600 per unit.

Simple: Supply & Demand.

By: PO'D

PO'D — Thu, 18 Jun 2009 06:30:40 +0000

Apple is guilty of false-advertising.
The only price they tell you is the price you expect to pay. This is WORSE than bait-and-switch, where one product is advertised and another of higher price is substituted for it when you go to the store to buy it. The real price is more than DOUBLE the ADVERTISED price! That is FRAUD! I did not pay ANY extra cost the last time I upgraded, they just started a new 2-year contract, when I was not through the old one. I got ripped off by paying $200 extra the first time around, on the original iPhone, when they dropped the price by $200 a month after I bought mine. I got the $100 refund (I’m still out $100) from Steve Jobs, but he’s probably not going to do that again this time, he’s probably dead already, has anybody seen him lately? He’s with Elvis. He’s left the building. We ARE being ripped off, I won’t buy the 3Gs, not now, probably not ever! I had to select the 5% gray text on the white background in order to read the “fine print”, but that doesn’t change the fact that Apple has repeatedly MIS-LED us about the price as much as possible. I’ll never stand in line for an iPhone again. I’m getting that Verizon thing when my contract is up.
AND I AM AN IPHONE APP DEVELOPER!
If you have a first-gen iPhone, it’s not worth anything anymore. Let’s bring them to the AT&T store and smash them on the ground in front of the stores! Do it when the TV cameras are rolling, all at once. Let’s picket them! Hack the Planet! Hack the Planet!

By: Apple News » AT&T Allows Even Earlier Subsidized Pricing for iPhone 3G Owners

Wed, 17 Jun 2009 20:52:35 +0000

[...] already on record saying that I think AT&T’s upgrade pricing for iPhone 3G owners is not only comparable to [...]

By: AT&T Allows Even Earlier Subsidized Pricing for iPhone 3G Owners

AT&T Allows Even Earlier Subsidized Pricing for iPhone 3G Owners — Wed, 17 Jun 2009 17:59:09 +0000

[...] already on record saying that I think AT&T’s upgrade pricing for iPhone 3G owners is not only comparable to [...]

By: primedef

primedef — Wed, 17 Jun 2009 16:21:17 +0000

My thing is this apple should have announced there new iphone 3GS when they announced the new software! I think they were screwing the customers by not letting them know! Now people keep talking about subsidized pricing which makes sense for ATT but not to customers! How would ATT loose money buy letting you upgrade your phone it seems like a good strategy to me to let you upgrade and extend your contract? Also if you paid full price for your iphone this year in 2009 you are not getting subsidized pricing anyway so you paid full price and you signed up for another 2 yr contract! I think either way you should be able to up grade and get some kind of discount and especially if you bought your iphone this after hearing about the software upgrade. I paid full price for my iphone 3G why should I not be able to upgrade at a discounted rate to the iphone 3GS?

By: Sen. Kerry Wants Wants His iPhone Unlocked

Sen. Kerry Wants Wants His iPhone Unlocked — Wed, 17 Jun 2009 01:01:53 +0000

[...] Higginbotham | Tuesday, June 16, 2009 | 6:00 PM PT | 0 comments The iPhone has sure brought a lot of whiners out of the woodwork. Today Sen. John Kerry joined them by publishing a blog post on the Save The Internet blog arguing [...]

By: Billybob

Billybob — Tue, 16 Jun 2009 00:34:42 +0000

The thing is, iPhone users are paying premiums that no other current AT&T phone owner has to. Mandatory $40/month internet, and ridiculous texting pricing should have them making up their subsidizing costs rather quickly I’d think, and then leave plenty to spare at the end of the contract.

Not a big deal to me in any case… I’ll pay full price for the phone, then in a year when iPhone is not exclusively tied to AT&T, I’ll switch to another carrier that offers better rates. Coincidentally, AT&T’s contract with Apple expires in one year, from what I understand… almost exactly when my contract expires if they don’t subsidize the cost of my new one. ;)