Comments on: AT&T's iPhone 3G subsidy will cost 'em

AT&T and Apple renegotiate their iPhone deal, allowing AT&T to subsidize the new handset. But the subsidy comes at a price for the mobile carrier.

[amandachuck]

Well, they can't have it both ways. As long as cell phone companies continue to "subsidize" marked up cell phones (no way an iPhone costs $500 to make even with a 100% margin for Apple), they will have to deal with lower profits. Just let cell phone companies sell phones directly to consumers and then let the providers compete on service and price.

[gsmallfield]

Why would the cell service providers want competition? That's why our plans all have a 1-2 year contract, to minimize competition and maintain their oligopoly. Without contracts, new competitors to our Sprint/ATT/Verizon/T mobile (read: lack of a good choice) could quickly form by leasing tower/data time.

[Coldkilla9]

So does this mean I can get a 3G iPhone for $30 a month with unlimited internet/3G/SMS Text Messaging/Picture-Video Sending/Email?

[aka_tripleB]

No, from what it sounds it's at least $70 a month. $40 voice + $30 or $45 for data. And you can go for higher voice plans if you want also.

[count_schemula]

$10 more per month, over 24 months = $240. Not so subsidized after all, although the extra $10 does get you 3G.

[Knightro2]

That's why I always thought that you having to agree to a 2-year contract on the first iPhone was a bunch of bull. They didn't subsidize the phone at all so they didn't have to make any money back for the phone which is the whole reason for a 2-year contract.

[Miko34]

That's too much. Considering I'd keep the 3G iPhone for more than two years, it's just not worth the extra cost per month. $10/month is too greedy. Looks like I'm gonna look for a new carrier...

Aren't these companies making enough money off of texting that should be included with internet for free anyway? I don't have to pay anymore for texting from my computer at home, why do we have to do it on a cell phone? Well, I guess we don't since I'm not...


Hmm... that Google Phone is looking better by the minute.

[pisceandelusions]

The $200 is also great news for everyone who got the original iPhone and had to pay the higher price - now all they have to do is sell their original iPhone for even just $100 and they already have half of the cost of the new one - making it possible for original owners to upgrade for around $100.

Apple will dominate the mobile phone market, it is inevitable, and as was mentioned, it's all about the ecosystem they're creating around it - and, of course, their ability to constantly meet the needs of the consumer with an elegant product that is extremely functional and very well engineered.

There is no doubt in my mind that the beginning of the end for Microsoft happened way back with the introduction of the iPod, and iTunes for Windows - this gave Windows users a peek at how good Apple software is, even on a Windows PC. And the quality of the iPod, it's beautiful design, coupled with the iTunes software was tempting enough for a lot of people to finally consider getting a Mac.

The iPhone is picking up it's own heavy stream of income and, of course, will further saturate the market with awesome products that will result in even more market share for Mac computers.

Just wait, I say Apple goes over $500 by the end of the next 2 years unless it splits before that. Microsoft is sinking, fast. Switch now while you can, everything Windows is already obsolete and will never even remotely come close to touching the future Apple holds.

Poetic Justice? Indeed. Cheers to everyone who's thought differently through all the years, and congratulations to everyone still suffering through Windows - the end is near and you'll finally see the light.

http://www.pisceandelusions.org

[Vegaman_Dan]

It is ironic that your username includes 'delusions' in it, hmm?

[egghead321]

Sell the first generation iPhone for $100? I konw there are people who are willing for $100 for the 1st generation even the 2nd generation iphone cost $200 w/ activation. However, people who need unlocked iPhone can't really use the 3G, so what is the point to get iPhone w/ out 3G?

[etiahwhite]

I'm really excited for the new iPhone...I don't regret purchasing my iPhone at all. Apple really makes a quality product and more importantly they take care of it after purchase. My only concern is what does this two-year contract agreement mean for current users. We had to sign 2 year agreements to get the phone before...are they gonna make us add another 2 years or just add to our existing contracts so that they are 2 years. I don't take issue with having a 2 year contract it's something I've learned to live with. Other than that $300 is a freaking steal in my opinion I can't believe I have wait another month....oh the suspense!!!!

[Kings X Rocks!]

Right back to the good 'ol "2-year agreement"!

Maybe AT&T could use some cheaper electricity for their switching/cell equipment and abandone the whole 2-yr "recoup our costs" thing. Who knows, I without it, I might choose to buy multiple devices from them...

[bripat22]

and what about the news that "non-upgrade eligible" ATT customers will have to pay an undisclosed higher price for the 3g??? That's horrible!

[rcrusoe]

My initial opinion is that the 3G iPhone hardware and pricing is reasonable. I've been a Bellsouth/Cingular/ATT customer since the early 90's, so a 2 year contract requirement isn't an issue. With that said, I am perfectly content to stay with my 1st gen iPhone. I use a Nuvi 350 gps, so I have no use for an additional gps in my phone. In addition, as an ATT dsl customer I have free access to all of their wifi hotspots, so staying on Edge isn't a problem. Some people will complain about ATT, others about this feature, or price, or something, but Apple will still sell a ton of phones. And I'll upgrade when my present contract is over - and complain about the extra $10/month.

[Rmiami225]

When the dust clears after July 11th I get one of these things ... or maybe two! I would not count Microsoft out too soon ... and yes I bought a Macbook after being exposed to the Mac experience ... but when Toshiba came out with the M700 tablet, I jumped back! The iPhone is great but they still don't have a tablet, their voice and hand recognition sucks, and MS oneNote on this tablet rocks!

[Zaunto]

It will be interesting to see if this arrangement does anything to slow or stop "unlocking". Not everyone wants to be an AT&T wireless customer. Lately, I haven't been getting "more bars in more places", so I'm not sure if the iPhone is compelling enough to keep me with them.

[Malysh13]

So... I want to take an iPhone out of the country with me (Russia). I did this before - bought an iPhone and just never signed up for AT&T and unlocked it and boom - no problem. Now I MUST sign up for AT&T? And if so, what is the cancellation fee? Anybody know?