AT&T Subsidizing the iPhone 3G by $325
The latest iPhone has more intrigue than a spy novel. The most recent mystery is: How much does the iPhone 3G really cost? Yair Reiner, an analyst with Oppenheimer, notes that AT&T is subsidizing the iPhone to the tune of $325. If you could buy an unlocked iPhone 3G, without the required contracts, it would retail for close to $525, making it more expensive than the original iPhone.
Courtesy of Apple
According to Reiner, the highly subsidized price “reflects AT&T’s faith in the iPhone’s ability to attract new subscribers and increase ARPU (average revenue per user).”
While many individuals are overjoyed with the iPhone 3G, I must admit I’m less than pleased with the continued lack of choice in carriers, the locked-in contracts, and the price of the service contracts. The iPhone 3G still looks like a great phone and mobile network platform, it’s just one that I won’t be using for a while.
Do you think the current business model for wireless carriers is a good one, or would you rather see an open model, where the phone and the phone service are independent purchases? Let us know!!
Comments
I’m with you. The iPhone 3G has a number of attractive features, but I don’t like being forced to use a specific provider.
The phone and the service should be separate purchases, and the final decision about the provider and service should be made by the consumer, not the phone manufacturer. I’d even be willing to pay more for the phone in order to have the freedom to choose my own provider.
Rita
Consumers should be able to choose their own providers, period.
I see no benefit for consumers in the current model — not even the cheaper phones.
All anyone requires is a basic mobile ‘phone to make and receive ‘phone calls & texts.
The iPhone is just a toy that people might want but nobody needs. I will stick with my very basic Nokia which I can use anywhere at home or abroad.
The “it’s just a toy” argument is sooooo tired. Windows users have said that about Macs for years, without ever having actually used a Mac.
And let’s face it: Very few people NEED a cell phone, no matter who makes it. Is a cell phone handy? Sure. But that doesn’t, for the vast majority of people, make it a necessity.
Finally, the problem isn’t the iPhone, it’s the service contract and Apple’s choice of provider.