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Thread: Uncle Steve Gave You A Cheap iPhone? Nope Randall Stephenson Did.

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A USA TODAY article from yesterday, July, 31st, brings some interesting information regarding the revamped price points of the iPhone. The general consensus of people polled for this article –
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    Default Uncle Steve Gave You A Cheap iPhone? Nope Randall Stephenson Did.
    A USA TODAY article from yesterday, July, 31st, brings some interesting information regarding the revamped price points of the iPhone.

    The general consensus of people polled for this article – me, me, and me – thought that given Steve Jobs' hands on approach – ya know, him taking his personal jet everywhere that has a tarmac for it to land on and then billing Apple – was in an attempt to get the iPhone into as many countries as possible. This seems to be working for Cupertino, and it would also stand to reason that the lower price point would've been his idea, or at least someone in Cupertino. They do have to meet that one percent of the market in about 18 months deadline they set for themselves last year. Consensus smashed however,

    "Stephenson, who became AT&T's chairman and CEO a year ago, championed the idea of paying Apple (AAPL) about $300 per device, analysts estimate, to help hold down the retail cost."

    Stephenson had ideas when he stepped up to CEO, he knew that the iPhone was different, "[The iPhone] changes what you see and how people interact, socialize and communicate." He knew, and according to the article, and common sense, Jobs probably did too, that for the iPhone to really take hold and get to its new demographic, to no longer be the phone of yuppies and fanboys or the uber rich, but everyone, they would have to get the phone into consumers hands for much less. "The $199 price point is where demand leaps," he says. This holds true for much of the technology market, think PS3, XBOX, Blu-ray players, et cetera.

    I, personally, have always thought Apple dropping the cost of the iPhone so drastically, while a good thing for me and a lot of other people, was not really their style. We could pull out several different products from Jobs and Co. that were priced high and stayed high until their discontinuation – Lisa, NeXTcube, 20th Anniversary Mac, and one could even argue the iPod Hi-Fi. So, I supose it isn't sooooooo surprising that someone else had to, in all likelihood, stand his ground with Steve and fight to get things to change. Perhaps, though, Apple realized that they were not going to hit that one percent and just needed a shove in the direction of cheaper to make it happen. Maybe they've learned from past mistakes of pricing and are realizing that they are no longer a niche product, they are mainstream – the third largest computer hardware manufacturer in the business – and that to continue to put the fire of God in Redmond they need to continue to drive sales in any way possible.

    Things also change as far exclusivity is concerned. The contract AT&T has with Apple has been extended into 2010 acording to the article. Check our own post on the issue here.

    [USA TODAY via MacRumors]
    Last edited by ajustcircle; 08-02-2008 at 02:00 AM. Reason: added a link to sayam's post on contract extension

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    Green Apple alerx7's Avatar
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    basically .... we are all pawns and apple is planning on controlling us
    i saw , i bought, i unlocked!

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    Green Apple moribo's Avatar
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    lol apple is nothing like microsoft :P lol

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    I love the idea of having an apple product out side the reach of mainstream america. Mainstream America is so controllable and so dumb. They do whatever TV tells them to do/buy.
    If I helped you out in any way, hit the Thanks Button.

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    iPhone? More like MyPhone PlatoTheForms's Avatar
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    Quote Originally Posted by alerx7 View Post
    basically .... we are all pawns and apple is planning on controlling us

    hahah lmaooo yeah

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    yay apple rules haha.

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    Ugh, once again, it's NOT cheaper. The total cost of ownership just increased by $160 over 2 years due to the $15/month increased cost of Data / SMS. It just LOOKS cheaper to naive / stupid people and reporters hopping on the tow the Apple PR line bandwagon.

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    Retired Moderator bhz1's Avatar
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    I sort of figured it was ATT offering the discount, hence the death-grip they have on activation.


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    iPhone, the Swiss Army knife of the 21st Century.

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    It's not AT&T with the deathgrip, it's Apple. AT&T could care less about the phone, that's not what's making them money. It's the cell plans that continue and continue to bring a constant flow of dollars in. They could give a **** about what you do or what you pay for the phone.

    Apple wants to control every part of the iPhone distribution and how you use it, and what your doing with it. AT&T just says, OK.

    The great thing about such a "mainstream" product, is the community being such as this one is. Apple will never have control over this, and the people that "free" these devices. Personally, without this community and what people out there are doing for it, the iPhone isn't any better then anything else. It's trendy, and it's a novelty. Modmyifone.com and it's other teams and sites they work with, make whatever it costs worth it.

    AT&T still reaps benefits, because we STILL have to pay for the service fees. It's been proven time and time again, if it's trendy in this country, cost doesn't matter. As long as it's not geared towards the super rich, and middle class families can afford it, it's still going to sell. Apple wants more market, and now the price plays to a whole different set of people and families. Sounds like a pretty smart move to me, but they'd still would have sold the same amount of the first week if it was 400 or 200.
    Last edited by Slimz; 08-02-2008 at 07:00 PM.

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    The only people that are saving money here are AT&T and Apple themselves. The customers are paying far more overall then with the 1st gen. This is a well established fact yet you ignore that with this article.

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    Retired Moderator bhz1's Avatar
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    Perhaps when it comes to jailbreak/ customizing ATT couldnt care less but I was referring to the ATT plans. Had a frustrating time dealing with ATT over the difference between being "primary" and "authorized" on the account. Posted about here:
    http://www.modmyi.com/forums/chit-ch...e-awesome.html


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    What's Jailbreak? Dnc95's Avatar
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    Slimz
    It's not AT&T with the deathgrip, it's Apple. AT&T could care less about the phone, that's not what's making them money. It's the cell plans that continue and continue to bring a constant flow of dollars in. They could give a **** about what you do or what you pay for the phone.

    You make no sense... If ATT doesn't have the death grip for activation then they wouldn't have any money going in, It was the fact that people paid full price that sooo many phones were unlocked and NOT used on the ATT network. The 250k that weren't on they're network pissed ATT of so much they made that much harder to walk out of the store with a phone... You can't even buy one from apple.com anymore they tell you where to find it now. It's apple that doesn't really care how much the end user pays, because ATT put up half the price of the phone so that they could sell more of them and make new contracts. So yeah ATT deathgrip due to the activation first or NO purchase...

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    Quote Originally Posted by ajustcircle View Post
    ...
    Maybe they've learned from past mistakes of pricing and are realizing that they are no longer a niche product, they are mainstream the third largest computer hardware manufacturer in the business and that to continue to put the fire of God in Redmond they need to continue to drive sales in any way possible.
    ...
    Um, sorry to nitpick, but I think the expression is to put the *fear* of God into X, not the "fire". (Religion is big on scaring people, not so much on burning them, typically...)

    Also, I do agree with other users who point out that the total price for an iPhone 3G is a good deal higher than $199. Just count up the early cancellation fees in an AT&T or Rogers contract, and the phone itself ends up at more like $6/700-ish. Of course, YMMV.

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    It is cheap by the value of parts they used. like for example, the plastic back. like WHAT THE F*** DUDE!?

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    one day, everyone will realize one simple thing.
    the only way to control the world in this age of technology is to connect everyone.
    a handheld computer that just happens to make cell phone calls solves a major problem with this plan.
    no one wants to carry more than one device.
    by combining the phone with the ipod and covertly including an OS and web browser they have reached their goal.
    the next step obviously is to reduce costs to reduce price to increase availability to connect everyone.
    I type this from my living room on my iphone over wifi (my neighbors!
    the revolution will not be televised!
    it will be bookmarked in my youtube app!
    conspiracy theorists unite!

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    Quote Originally Posted by moribo View Post
    lol apple is nothing like microsoft :P lol
    apple is worse than microsoft.. microsoft at least doesn't try to control EVEYRTHING.. I hate apple so much Mac's are way to f ing expensive but the iPhone is just awesome

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    Quote Originally Posted by rosskey711 View Post
    apple is worse than microsoft.. microsoft at least doesn't try to control EVEYRTHING.. I hate apple so much Mac's are way to f ing expensive but the iPhone is just awesome

    WHAT?????

    u obviously need to do some more research!

    microsoft is the worst about tryin to control everything.

    do some searching, i am not gonna waste my time enlightening you on why you are wrong, but you inexperience on this site is showing in your statement.

    macs are expensive because they work! the best! all the time!
    u can run windows XP as a program on a mac!
    how is that more control than microsoft?
    you cant run mac on PC (without a hacked copy of mac and the proper hardware) microsoft wont allow it!
    a mac can do everything a PC can do in the background of OSX!
    i had a friend burn me a blueray dvd in xp on his mac, this was minimized and burning while he surfed this site in OSX with no slowdowns or crashes.
    on XP if you burn a dvd, THATS ALL YOU CAN DO, you try to do other stuff and you will probly crash!

    you hate apple but you love the iphone?

    grow up.

    while you are waiting on that to happen, watch these.

    [ame=http://www.youtube.com/watch?v=bkFqKTfE7Gk]YouTube - Mac vs Pc: Who said windows couldn't ruin hardware???[/ame]

    [ame=http://www.youtube.com/watch?v=O8JT0zRxlFg]YouTube - Mac vs Pc: Busting another Mac Myth and a few posers to boot[/ame]

    [ame=http://www.youtube.com/watch?v=YKmIhVIE1So]YouTube - Mac vs Pc: You think Xp can touch osx?[/ame]

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    iPhoneaholic tyfly867's Avatar
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    Quote Originally Posted by rosskey711 View Post
    apple is worse than microsoft.. microsoft at least doesn't try to control EVEYRTHING.. I hate apple so much Mac's are way to f ing expensive but the iPhone is just awesome
    Apple has quality control. Apples are a little more expensive, but you are paying for better engineering, better design, better aesthetics, better support, better operating system, everything.

    And you can get a fully functional mac mini for under $600. Perfect for all those cheap a$$es out there.

    Microsoft whores its OS to any company that it can get.
    If I helped you out in any way, hit the Thanks Button.

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    Quote Originally Posted by tyfly867 View Post
    Apple has quality control. Apples are a little more expensive, but you are paying for better engineering, better design, better aesthetics, better support, better operating system, everything.

    And you can get a fully functional mac mini for under $600. Perfect for all those cheap a$ out there.

    Microsoft whores its OS to any company that it can get.

    word!

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    iPhone? More like MyPhone dillonsmith9147's Avatar
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    Quote Originally Posted by mrtonyyx View Post
    It is cheap by the value of parts they used. like for example, the plastic back. like WHAT THE F*** DUDE!?
    i hate it when people say that APPLE did that just to make it cheaper, THEY DIDNT, omg it was for better reception if i felt like it i would show you how gettofied it would have to look to still have good reception and a metal back
    Quote Originally Posted by tattoojack View Post
    a mac can do everything a PC can do in the background of OSX!
    i had a friend burn me a blueray dvd in xp on his mac, this was minimized and burning while he surfed this site in OSX with no slowdowns or crashes.
    on XP if you burn a dvd, THATS ALL YOU CAN DO, you try to do other stuff and you will probly crash!
    i agree with most in your post, but i didnt watch the vids so they may contradict this, are serously kidding me though if you have a pc that can only burn dvd's and nothing else you have the shittiets pc ever, i can burn a dvd, surf the web, use adobe photo editor, or w/e else i want, plus, umm arent mac's made of Intel's, hmm, core 2 duo's are all the same, the board may be different but my pc will do what ever i want it to, and thats just a laptop with a 1.8 core 2 duo, so if you ask me you can get which ever you like, but pc's are more customizable and can do everything a mac can(cept run two os's) so if you ask me its just personal prefrence, the only reason mac's are better is because there os is a little bit better

    oh you mite want to read this though, it shows some truth to both sides of the "control"
    Apple Is Now More Controlling Than Microsoft Ever Was
    Last edited by dillonsmith9147; 08-04-2008 at 04:44 PM. Reason: Automerged Doublepost

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