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Old Jun 8th, 2008, 02:12 PM   #1
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Financial Times: Apple 'relents' on iPhone subsidies = less expensive new iPhones

FT.com / Companies / Telecoms - Apple relents on iPhones subsidy

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Apple relents on iPhones subsidy
By Andrew Parker in London, Paul Taylor in New York and Richard Waters in San Francisco
Published: June 6 2008 22:39 | Last updated: June 6 2008 22:39
The new version of the Apple iPhone is set to be sold at significantly lower prices than the existing one, in a tacit acknowledgement by the US technology company that its previous sales strategy was not sustainable.

Apple has bowed to pressure from mobile phone operators and agreed they can subsidise the latest iPhone, expected to be unveiled by Steve Jobs, Apple’s chief executive, on Monday.


The subsidy arrangements should increase Apple’s chances of hitting its target of selling 10m iPhones during 2008.

The target has been made challenging by the global downturn. Apple has reported selling 1.7m iPhones so far this year.

Analysts said AT&T, the US mobile operator selling the iPhone, could provide a $200 subsidy on the handset, enabling it to go on sale to consumers for $200 or less. The first version costs US consumers $399 because there is no subsidy.

Apple has accepted that the new iPhone should be subsidised in the US and western Europe by the mobile operators who sell it to consumers, according to people familiar with the matter.

The operators are willing to bear the subsidy costs because the iPhone provides them with revenue opportunities such as advertising.

Apple has also forgone a portion of the monthly revenue paid to the operators by iPhone users, said people close to the situation.

Such arrangements have been in place between Apple and AT&T, O2 of the UK, France Telecom and Deutsche Telekom.

All the companies declined to comment.



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Old Jun 8th, 2008, 04:58 PM   #2
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Thanks for quoting it, you have to be a member of that site to read it. It's an interesting article. I hope they subsidize it but if they didn't I would still pay full price anyway much like a lot of other people
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Old Jun 8th, 2008, 05:17 PM   #3
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I don't like subsidies because they always tack on a 3 year commitment to make up for it.

I'd much rather pay more and not be locked into a contract.
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Old Jun 8th, 2008, 05:29 PM   #4
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Originally Posted by ruffdeezy View Post
Thanks for quoting it, you have to be a member of that site to read it. It's an interesting article. I hope they subsidize it but if they didn't I would still pay full price anyway much like a lot of other people
I'm not a member of the Financial Times site and opened the article easily...

Thanks for the public attestation that you'll pay whatever they charge. Mr. Rogers thanks you.
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Old Jun 8th, 2008, 06:38 PM   #5
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Originally Posted by kloan View Post
I'd much rather pay more and not be locked into a contract.
ditto
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Old Jun 8th, 2008, 06:56 PM   #6
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Quote:
Originally Posted by HowEver View Post
I'm not a member of the Financial Times site and opened the article easily...

Thanks for the public attestation that you'll pay whatever they charge. Mr. Rogers thanks you.


You surprise me. You are usually very accurate, insightful re your comments.
Except ~
He didn't say he'll pay 'whatever' they charge.
He indicated he'd be prepared to pay Apple for a phone and NOT be locked into a 3 year contract with Rogers or anyone else!
( after all, any 'subsidy' per se is subsidized by the three year deal.... one pays one way or the other!)
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Last edited by imobile; Jun 8th, 2008 at 06:58 PM. Reason: correction in information/additional reference
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Old Jun 8th, 2008, 11:50 PM   #7
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I wouldn't put it past Rogers to charge the "regular" price on the phone for a 3 year contract and charge like $700 for no contract.

Other than that, I'm really hoping the new one does actually come out tomorrow, 3G connectivity would really be something nice to have. No way I'd ever pay $700 though, it would be another road trip to the states for me.
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Old Jun 9th, 2008, 12:14 AM   #8
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Originally Posted by DS View Post
I wouldn't put it past Rogers to charge the "regular" price on the phone for a 3 year contract and charge like $700 for no contract.

Other than that, I'm really hoping the new one does actually come out tomorrow, 3G connectivity would really be something nice to have. No way I'd ever pay $700 though, it would be another road trip to the states for me.
I don't think that would happen, especially if it's still $399/$499 a short drive south of here.

Quote:
Originally Posted by imobile View Post
You surprise me. You are usually very accurate, insightful re your comments.
Except ~
He didn't say he'll pay 'whatever' they charge.
He indicated he'd be prepared to pay Apple for a phone and NOT be locked into a 3 year contract with Rogers or anyone else!
( after all, any 'subsidy' per se is subsidized by the three year deal.... one pays one way or the other!)
Thanks for that.

I'm always surprised when people use Rogers but don't take advantage of the subsidies offered on cell phones. Chances are you'll be a customer for a lot longer than three years. But if you're on a contract, you get new customer pricing on new phones every three years at the least; and more like every two years for your hardware upgrades; and sometimes every year if you have the right corporate account.

You can re-sign for three year contracts as little as a few months into your current contract, in order to get new phone pricing.
Elect - Hot deal for Rogers Wireless Customers - RedFlagDeals.com Forums

But if you're leaving the country in a few months, or are 'going away' some other way, there is always pay as you go too.
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Old Jun 9th, 2008, 09:32 AM   #9
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I still think unlocking an iPhone will be a bettr option for people. Especially considering how easy and the support that exists to do so.
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