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06-29-2011, 09:50 AM #1
Apple May Offer 3GS Free With 2-Year Contract
According to an analyst from RBC Capital Markets, Apple is possibly preparing to offer the iPhone 3GS free with a two-year contract. Mike Abramsky of RBC stated that Apple is expected to offer this deal when the iPhone 5 releases this year. This approach he claims is one of Apple's many steps to combat the ever-growing Android mobile platform.
In a note to investors, Abramsky provided survey data to show the folllowing:
14% of consumers are either very or somewhat likely to buy an iPhone 3GS if it does become free with a two-year contract. This will exceed the original iPad (13%) and iPhone ($9). Although AT&T already offers a $49 iPhone, Abramsky claims that a $0 provides a significant growth in the "compelling offer" factor.
Apple's decision to offer the 3GS deal could increase potential market opportunity and expansion to more than 150 million smartphones says Abramsky. Providing a subsidized plan and iPhone offer, in Apple's mind, could be a strong move against Google and Android's growth.
Because the iPhone 3GS will able to support Apple's new upcoming iOS 5[/URL], the offer may not be such a bad deal. However, this move will be contrary to past actions as Apple has discontinued two-year old phones in the past. For example, when the iPhone 4 released, they discontinued the iPhone 3G. With the iPhone 5 soon to release, will they ultimately discontinue the iPhone 3GS or will Apple hold true to the speculation?
Last edited by Joshua Tucker; 06-29-2011 at 12:18 PM.
06-29-2011, 12:02 PM #2
"Because the iPhone 3GS will able to support Apple's new upcoming iOS 5, the offer may not be such a bad deal."
I think you misread the article you linked.
"Report: iOS 5 Will Be Incompatible with iPhone 3GS"
I certainly know plenty of people who would jump on a free 3GS. It makes the early upgrade fee easier to take.
06-29-2011, 12:17 PM #3
06-29-2011, 12:36 PM #4
Don't people know? Apple stop supporting these older model phones with updated iOS or make it so slow it is almost unsuable?? Have we not learned the less with iPhone and iPhone 3G?
Free obsolete phone that runs slow as xxxx, I am sure some people will still buy it but it will only show free Android as a better deal.
06-29-2011, 12:41 PM #5
06-29-2011, 01:04 PM #6
This is already happening in Canada with Bell Mobility, only catch is that you have to sign up for a 3-year term as opposed to two.
06-29-2011, 05:05 PM #7
This article should say AT&T offer free 3GS, because only AT&T has 3GS and it is AT&T that subsidize the phone not Apple. Yes it may be selling on Apple, but it is with AT&T's offer.
06-29-2011, 05:13 PM #8
06-29-2011, 05:25 PM #9
The retina display is the single most costly component of the iPhone 4. As such Apple can drastically reduce manufacturing costs by resupplying the market with 3GS devices while at the same time gobbling up market share in places like India where the iPhone 4 isn't as heavily subsidized as it is in the US.
Also, the free Android devices out there are garbage. And when I say free I don't mean an online buy one get one free offer with a mail in rebate. I mean walk into a store and walk out with a contract, a new phone, and not a cent less in the bank. I for one would consider buying an Android device if only for the hardware, but I'll be damned if I'm going to settle for a crap free phone; give me the Galaxy S2 or give me nothing.
07-03-2011, 07:03 AM #10
A free android may be "a better deal" but I know so many people who have had problem after problem with each different android they try. And when something goes wrong with the phone, there are no motorola or samsung (or htc, etc. etc.) stores to go to.
Apples computers appeal to an older more conservative crowd because of the simplicity of the OS layout. The iPad is able to be successful with an older generation for similar reasons. While android phones are just as capable (ignoring the shortcomings, which seem to vary between models), the user still has to make too many decisions compared to when using iOS. (This has been my own experience, as well, and I'm 24 with a 19 year history of heavy computing.) This free iPhone price tag, if it happens, could draw that same generation in to another device. They may not consider the 'capabilities' of the iPhone worth a single penny if they can get a standard flip phone for free. But once they try an iPhone for free and are switched over, they may be more willing to get another one later.
But hey maybe I'm way off.