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Thread: iPhone 3G $199/$299 is retail cost, not subsidized cost

  1. #1
    Default iPhone 3G $199/$299 is retail cost, not subsidized cost
    $199/$299 is not a subsidized cost, it is the new retail price point globally for the iPhone. Even the ATT press release admits this in the third line.

    $199 Starting Price Significantly Expands Mass Market Appeal

    Before the original release of the iPhone AT&T tried to pull this same **** of scaring costumers into believing there is no alternative but their preferred method then by the time of launch the online store link was present and Apple created the revolutionary itunes activation. This time around they may eliminate the itunes AT&T activation to in-store activation only but I promise you people will be able to purchase an iphone from apple for $199/$299 and walk out without signing a goddamn thing.
    1win.1 loss.1 draw

  2. #2
    it says 199 with a 2 year contract, that would mean subsidized if you ask me...

  3. #3
    Retired Moderator one1's Avatar
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    Man you know nothing about business or contracts.

    "low price to attract new buyers" No s&^t....... Just sign this contract and ignore the fine print and this new low priced phone can be yours.

    *move along, nothing to see here*

  4. #4
    This fine print is

    Requires new 2-year AT&T rate plan, sold separately.
    Last edited by listenclose; 2008-06-11 at 03:46 PM.
    1win.1 loss.1 draw

  5. #5
    Yea dude, your totally reading this WRONG. That is a subsidized price. Its simple creative speech/writing to attract people.

    Also in the SAME press release:

    "Under the terms of a new agreement with Apple, AT&T remains the exclusive U.S. carrier of the
    iPhone 3G, which will be available beginning July 11 at a starting price of $199 with a two-year contract. "

    Notice the part were is specifically says "with a two-year contract)".

  6. #6
    Retired Moderator Poseidon79's Avatar
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    under the new agreement between AT&T and Apple, there is no longer any revenue sharing for AT&T rate plans (no kick backs). AT&T is now SUBSIDIZING the cost of the phone and making up for it by raising the price of their data package by $10 per month. It has been said that if you walk out of the store without activating you have 30 days to activate at home or the credit/debit card will be charged a penalty.

  7. #7
    iPhoneaholic Kruejl's Avatar
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    How about a direct quote from the very link the OP provided?

    "In the near term, AT&T anticipates that the new agreement will likely result in some pressure on margins and earnings, reflecting the costs of subsidized device pricing, which, in turn, is expected to drive increased subscriber volumes........

    I'm no rocket scientist but I can read.
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