Blogs Jun 7, 2010 at 11:53 am

Comments

1
They lost me when the max capacity was 32GB. If they hit 64GB then I'd go out and replace my old iPhone
2
Shrug. After my experience with my current iPhone I am not terribly interested in getting another one. Plus there is nothing really revolutionary or all that interesting there. I don't care that much about higher resolution. At this point its not that big a deal. Plus its kind of ugly.

The Windows 7 Phones look much better. As does the Evo 4g.
3
Anthony, are you sure that's $200 for a phone with 16 GB RAM and $300 for a phone with 32 GB RAM? I thought the deal was $1520 to $2960 for a 16 GB phone with two years of service or $1620 to $3060 for a 32 GB phone with two years of service.

Please don't play their marketing games.
4
@3 - Okay, I'll play your game instead. The car I bought wasn't actually $10,000. It was $80,000 because I'm going to have to put gas in it for years to get any kind of use out of it. Also, my house actually cost about a million bucks (or more!), what with the electricity, gas, and cat food bills.

I don't even want to get into how much laundry detergent I've invested in these socks. Shameful!

Please.
5
Also, AT&T just announced they're creating a tiered pricing structure for broadband usage, so re-upping with a new service plan with a new iPhone might end up costing you more in monthly charges, depending on your usage requirements.
6
Say I have an iPhone and want to upgrade. What's the best way to do this? Does it require camping out at an Apple Store, or can I just order one?
7
@5 - Most analysis I've seen (including of my own usage) shows that the vast majority of people will save money on the new plans. David Pogue has a good breakdown.

Of course, things like Netflix for iPhone could push people's usage, and if they ever allow that video chatting over 3G, that'll be interesting, but for now, it looks to me like AT&T's new plans are most likely to save people money. Also, their overage charges are actually reasonable (relatively).

Also, so far they've said that you can upgrade your phone and still keep your grandfathered-in unlimited plan.
8
The best way to upgrade is wait until fall when the new iPad comes out. That will also have an option with a camera. Expect the iPhone 4 to drop in price around then and supplies to become easier to get.
9
@7 - wrong. The cost per megabyte is higher in the new plans.
10
@6 - I wouldn't think it would require camping out. The details haven't been shown yet, but since Apple and AT&T's systems are connected, you should be able to buy (or pre-order) your phone directly from Apple at the upgrade price, as long as you're eligible.
11
Comte brings up a very good point. When you upgrade to this device, you're going to lose your unlimited data plan. It's going to be an extra expense a lot of people probably aren't planning on incurring.
12
no one is going to catch them? how about the people that are already ahead of them in both marketshare and sales?
13
@9 - I didn't say anything about the cost per megabyte. I said most people would save money. You can't compare cost per megabyte between capped plans and unlimited plans anyway.
14
@4: Anthony, when you bought your car, did you have the option of purchasing it to use it as you saw fit, or were you required to enter into a contract with the seller, obligating you to purchase fuel from him for two years?

Will Apple sell me an iPhone for $200 or not?
15
A lot of folks are really disappointed about the lack of any other announcements today. XCode, Mac Pros, Final Cut Studio.

Adobe should forget this Flash business and go after the professional users who are feeling neglected. I appreciate that you can iMovie is now available for the iPhone. Now how about something for folks that aren't writing games for phones?
16
@3 That's the cost of having and using an iPhone, or really any phone. Thats both hardware and service. 199 is the price of the hardware after receiving a discount thanks to agreeing to purchase service. Its no more a marketing game then the free receivers dish network gave me if I agreed to use their service. Now if the service itself cost more or less depending on how you got your hardware then that would something to calculate in. e.g. I buy a subsidized iPhone, but then have to pay an extra ten bucks a month, then it would be fair to add in the ten bucks to the cost of the phone itself.
17
Also, note that while a car is minimally useful without fuel, these wifi-enabled pocket computers are very useful even without GSM service. So again, can I fork over $200 and get a new iPhone in exchange? If not, then they're not available for sale for $200.
18
@16: No, that's the cost of having and using an iPhone on AT&T's network at $55 - $115 per month. The phone is capable of working on any GSM network. This is really easy: Can I buy one of these for $200 or not? My understanding is that you cannot buy a new iPhone unless you agree to also buy 24 months of service on AT&T's network.
19
Okay, Phil, you're pedantic point is technically correct. You can't buy an iPhone for $200 without a contract with AT&T—you'd have to pay the unsubsidized price (which is nowhere near the alarmist prices you listed above). Well done.

Of course, EVERYBODY knows how cell phone pricing works and that this price is with a contract, and this is in no way new or unique, so who the hell cares?
20
You can buy an iphone without a service agreement. It just costs way more. I couldn't find the price, but it's something like $500 to buy the phone without the service contract discount.
21
@18 The unsubsidized price is around 600. Not sure you can buy one from Apple, but you can buy them all over the internet. People have even gotten them working on other networks.

Your question is stupid. No one is denying that you get a discount for agreeing to service. That does not mean that the cost of the service is included in the device as that service has value in and of itself and would cost the same if you showed up with your own iPhone.
22
Okay, so why doesn't Anthony report that the iPhone costs $600 and that you can get a $400 if you also purchase about $2000 worth of service from a company who sold us all out to the NSA?

I'd like to buy an iPhone. I will not do business with AT&T. I'd prefer to purchase prepaid SIM cards.

I cannot purchase a new 16 GB iPhone for $200, because the phone is not available for sale for $200.
23
Okay, so why doesn't Anthony report that the iPhone costs $600 and that you can get a $400 discount if you also purchase about $2000 worth of service from a company who sold us all out to the NSA?

I'd like to buy an iPhone. I will not do business with AT&T. I'd prefer to purchase prepaid SIM cards.

I cannot purchase a new 16 GB iPhone for $200, because the phone is not available for sale for $200.
24
Sorry for the duplicate post. I'd delete one if you let me.

Anthony, what did you mean by "alarmist prices"? Do you disagree that one can either purchase a phone for $600 or a phone with two years of service for about $1500 to $3000, but that one cannot purchase the phone for $200 as you implied in your post?
25
It's a great phone and it'll definitely keep Apple on top of the game for a while, but I wouldn't say that it's going to be hard for anyone to catch up. Their rate is a phone a year, tied to one carrier a lot of people don't like, while Android phones are getting pushed out constantly around the board. Save for the iPhone's higher resolution, the HTC Evo is already on par with this phone. Android isn't going to overtake iPhone in market share this year, but they're already caught up in every other way, and I think it really does matter. Apple is starting to realize they aren't untouchable, which is good news for everyone since it keeps competition and innovation going strong.
26
Because I'm not reporting on the politics of AT&T, or the well-known details of cell phone hardware and service pricing. People who care about such things need no new information from me, because they already know everything.
27
@22 because that is not how cell phone prices are generally reported. People know that the price includes a discount for getting service and since almost everyone gets service thats the price most people pay.

I am not a huge fan of Apple or AT&T as companies, but its not like they are any different in this regard.
28
@25 - I still think Android's fragmentation could be an achilles heel in the long run. More varied hardware isn't necessarily an advantage. Apple has a very different approach, of course, and it's rightly controversial, but it's also proving pretty successful. Android is awesome and will continue to grow, no doubt, but the mind-share thing among the masses is huge and no one is close on that from what I've seen. The Evo, from what I understand, has abysmal battery life. That's the kind of thing that just sucks for the consumer, makes them feel screwed, and is the danger of partnering with 3rd party hardware makers. Ask Microsoft.

In any case, I completely agree that the more competition Apple has, the better. I don't think Apple ever thought they were untouchable, though. There's no evidence they've been taking any of this for granted.
29
...
30
@19: Anthony, what did you mean by "alarmist prices"? Do you disagree that one can either purchase a phone for $600 or a phone with two years of service for about $1500 to $3000, but that one cannot purchase the phone for $200 as you implied in your post?

The normal marketing practices of the mobile networks are irrelevant. Let's start talking about what these devices really cost. Mobile phone network access in the U.S. is outrageously priced, and as long as we keep ignoring it, it's not likely to change. By hiding the true cost of these devices and the bundled service, you're playing the same game as Apple and AT&T are.
31
As someone who bought bucket-load of Apple stock in 1999, I want to thank you all for your continued interest in these products. It is you, dear Sloggers, who let me waste time here everyday.
32
As someone who bought bucket-load of Apple stock in 1999, I want to thank you all for your continued interest in these products. It is you, dear Sloggers, who let me waste time here everyday.
33
OK, so we're all agreed.

Just pay cash and when they won't take it, sue their asses.
34
Some of the higher end Nokia handsets are superior and have many if not all of these features and it will ultimately prevail in their lawsuit(s) with Apple. Anthony's reporting is sloppy due to his omitting of this fact as well as the true pricing of an I-phone over its contracted (and beyond) lifespan. As with anything, the greater time you own it the cheaper it becomes over the long term. Except with contracted data plans. Stay with your original company on a regular, non smartphone data plan and then upgrade to a better touchscreen, pay less per month for data.

The idea now that we have to pay 100s of dollars per month for internet services has percolated through the hipsters--young and old--mind, mostly to grab that song on the go or find your way around in a town you've lived in for 10+years.
35
I'm still going to dump my iPhone for an Android at the end of my contract.
36
Phil M seems like he'd be fun at parties.
37
@36: LMAO.
38
@36: This isn't a party; it's a discussion of Apple's latest marketing blitz.

@37: Really? Not just a chuckle or a "ha"? You're easily amused.

If we can't buy the phone for $200, why, other than to provide assistance to Apple and AT&T, do the media report that such is the price of the phone? The truth is that this phone retails for about $600, but is available with a $400 discount if one also purchases two years worth of network access from AT&T for between $1500 and $3000.

Anthony compared the situation to those in which consumables or maintenance are required in order to make the item any more than marginally, but that's very different. He was not required to commit to purchasing any fuel, much less fuel from one particular company, in order to purchase his car for $10,000. The purchase price was $10,000, and the rest was up to him. Ditto for his house's electricity, gas, and cat food, and for the soap he uses to wash his socks. I pointed this out, but he didn't respond, instead conceding that the phone cannot be purchased for the price he quoted without also purchasing service, but neglecting to correct the information in his post.

When I pointed out the Anthony characterized my seemingly-realistic assessment of the situation as "alarmist" but declined to confirm or deny that my calculations are accurate.

Giffy said that being roped into two years of service is "the cost of having and using an iPhone, or really any phone," but that's not the case. Giffy then confirmed this by noting that the real price for which these phones are offered for sale is $600. I've owned five mobile phones over the years, and only two of them were purchased as part of a hardware/service bundle.

When I asked why Anthony was reporting as the price of the phone not the price of the phone but instead, about 10% of the price of the bundle that Apple and AT&T are offering, Giffy said that Anthony did so because such misleading information is the way phone prices are normally reported.

Why all the defensiveness over my resistance to going along with Apple's and AT&T's bullshit?
39
Yes but will it stop dropping 80-90% of my calls while driving around Seattle? Now that would be a fucking improvement.
40
Phil, How's that Zune working out for you?

I hear you can get a good deal on tattoo removal these days if you want to get rid of that Zune tattoo.
41
Microsoft-free since 1999, SPG. I'm all Linux with the occasional sprinkling or OS X and Palm.
42
@38: "This isn't a party; it's a discussion of Apple's latest marketing blitz."

Ok, I wasn't sure until this line, but Phil M is definitely a cyborg.
43
Well then, he's definitely overdue for a software upgrade.
44
So, in the end, it's basically the same as the Fall version of the iPad, but with a smaller form factor, less memory, and they won't take cash cause AT&T owns your soul.
45
@34 good point - if you buy a Nokia, I get dividends from that, so go for it.
46
@39 - no, that's AT&T that's doing that. You need a different cell provider to get better service in that area.

Please wait...

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