Love the iPhone but hate AT&T...

[IPhone_Chica]

I strongly believe AT&T is gonna milk the iPhone subscribers for every penny they can. I know someone who works for said company and it was already known that there was no discount on the iPhone itself but they have recently received notification that they will not be getting any employee discounts on their service either. This leaves me to believe that either the plan is already low or as they would have you to believe as low as it can be, or they know that people will by the iPhone no matter what they charge and they will charge you an absurd amount, i strongly believe the latter. I am just really having a problem switching carriers to get hosed all because of my love of the iPhone. Boy I tell you that supply and demand is a monster.

Question: Would you still by the iPhone even if the plans offered where an absurd amount?

 

[TrippalHealicks]

I strongly believe AT&T is gonna milk the iPhone subscribers for every penny they can. I know someone who works for said company and it was already known that there was no discount on the iPhone itself but they have recently received notification that they will not be getting any employee discounts on their service either. This leaves me to believe that either the plan is already low or as they would have you to believe as low as it can be, or they know that people will by the iPhone no matter what they charge and they will charge you an absurd amount, i strongly believe the latter. I am just really having a problem switching carriers to get hosed all because of my love of the iPhone. Boy I tell you that supply and demand is a monster.

Question: Would you still by the iPhone even if the plans offered where an absurd amount?

Thanks, appreciate it.

 

[IPhone_Chica]

Thanks, appreciate it.

What kind of response is that. If you didn't have anything to say or wasn't gonna answer the question than why even come in this thread?

 

[iphonenut]

slow down there, turbo.

look, if you don't want one, don't get one. i don't know if you noticed or not...but people around here are kinda sorta into the iPhone...like, a lot. i don't think they're going to let the data plan cost get in the way.

as for me personally, a $40 data plan on top of my voice plan is the absolute most i would pay. anything more and i would probably reconsider getting one.

 

[askewed]

I'd buy an iPhone if Hitler owned AT&T.

 

[Marksman]

If you can't afford it or don't find value in it then don't buy it.

What the price is, is irrelevant.

If you can afford to pay for it, then you need to make your decision based on whether you feel you will get enough value out of the phone and service at that price. If you can't then don't buy it.

But just running around screaming "ARGH IT IS GOING TO BE TOO MUCH" is not a responsible way to make a purchasing decision.

For me, it is likely the use of this device will allow me to make significant sums of money, so the price and plan is irrelevant. Different people have different needs. If someone just wants an iPod, then it probably doesn't make sense to buy the iPhone.

 

[robhon]

I think the whole thing is far less sinister than iPhone_chica makes it out to be. Yes, I think ATT will probably earn higher margins on this businesss than their normal businesss. But it's new technology! That's life on the bleeding edge!

Being in businesss for a very long time I can tell you there are basic market forces at work here. Supply, demand, customer interest, target market spending dollars, investment cost of setting up the technology, ROI, profit margins... All these taken together result in a market price.

No one at ATT is sitting in some ivory tower wringing their hands about how they're going to screw all their customers. All the information goes in for analysis and they come out with a pricing structure. There is a science and methodology behind it all.

I can guarantee, whatever the pricing is, it's not designed to screw anyone. It may push some customers over the edge of affordability, but don't confuse that with some conspiracy to rape your wallet.

 

[TrippalHealicks]

What kind of response is that. If you didn't have anything to say or wasn't gonna answer the question than why even come in this thread?

No,no.
Thanks, appreciate it.

 

[robhon]

I would also add that, normal product introduction strategies usually start with high end products. So, this is likely to be the most expensive iPhone on the market. iPhone 2.0 and 3.0 are likely to be less expensive in order to capture greater market share.

If you can't afford the first iPhone and associated plan, just hang on for a few months or so. There are already rumors going around about the next model.

 

[ash]

I think the whole thing is far less sinister than iPhone_chica makes it out to be. Yes, I think ATT will probably earn higher margins on this businesss than their normal businesss. But it's new technology! That's life on the bleeding edge!

Being in businesss for a very long time I can tell you there are basic market forces at work here. Supply, demand, customer interest, target market spending dollars, investment cost of setting up the technology, ROI, profit margins... All these taken together result in a market price.

No one at ATT is sitting in some ivory tower wringing their hands about how they're going to screw all their customers. All the information goes in for analysis and they come out with a pricing structure. There is a science and methodology behind it all.

I can guarantee, whatever the pricing is, it's not designed to screw anyone. It may push some customers over the edge of affordability, but don't confuse that with some conspiracy to rape your wallet.

Very intelligent response Robhon! Thank you for that! It's refreshing!

Everyone wants to make money; I would hope that AT&T is going to make some money off of the iPhone. Otherwise, what's the point? I used to stress about buying a car and getting "screwed" by the dealership; then I realized that they have to make money just like I do.

 

[billnye97]

slow down there, turbo.

look, if you don't want one, don't get one. i don't know if you noticed or not...but people around here are kinda sorta into the iPhone...like, a lot. i don't think they're going to let the data plan cost get in the way.

as for me personally, a $40 data plan on top of my voice plan is the absolute most i would pay. anything more and i would probably reconsider getting one.

That's probably as much as I would go also. I just wish that the prices would be known so everyone can make an informed decision. However, if that were the case you wouldn't have a million posts like these and also there would be some customer backlash.

 

[wjp09]

I strongly believe AT&T is gonna milk the iPhone subscribers for every penny they can. I know someone who works for said company and it was already known that there was no discount on the iPhone itself but they have recently received notification that they will not be getting any employee discounts on their service either. This leaves me to believe that either the plan is already low or as they would have you to believe as low as it can be, or they know that people will by the iPhone no matter what they charge and they will charge you an absurd amount, i strongly believe the latter. I am just really having a problem switching carriers to get hosed all because of my love of the iPhone. Boy I tell you that supply and demand is a monster.

Question: Would you still by the iPhone even if the plans offered where an absurd amount?

I wish Apple just sold the phone to everyone as an independent seller. They would make more money and the cell companies would compete with eachother to make their plans lowest.

 

[azwilly]

ATT is using the "Gauge and Gouge" businesss model... First you gauge the demand (let it build to a point that's busting) then gouge the customer for all it's worth. That's why they're not releasing the rates until the last week. By now there are enough folks who would pay anything just to get the phone. Get 'em locked in and then if demand subsides (due to network overloads, pood customer service, etc..) offer lower "incentive" rates to new customers. Thankfully ATT does not sell gas.

 

[robhon]

I wrote a long post a while back about this issue, but I'll say it again. Don't get lost thinking that the game being played in the mobile phone market is about margins. This is an EXTREMELY competitive and pretty much fully developed market. The whole game between the service providers (ATT, T-Mobile, et al) is MARKET SHARE!

These companies spend HUGE money per each customer they take away from a competitor. That is the entire reason ATT wanted this deal. Not because they could gouge anyone. It's because they can use this take customers away from their competitors. If they gouge people then they undo the most important thing they accomplish.

 

[azwilly]

Most Corporations don't really care about the future...only about the next 3 or 4 quarterly dividends to shareholders. Hence the cutting of thousands of jobs, dumping long term employees and shipping the jobs to India...quick profits ignoring the results of crappy customer care by folks who speak broken english.
So once they have their 2 year commitment..it's on to the next customer. If you don't like it - divorce is only $175.00 away...and they make money there too... I am a former ATT then Cingular customer and I can vouch for 100% crappy customer care (5th place if I remember). It just grouches me to think I have to deal with the devil to get what I want....but life is mostly like that after all ...

 

[mlass]

Most Corporations don't really care about the future...only about the next 3 or 4 quarterly dividends to shareholders. Hence the cutting of thousands of jobs, dumping long term employees and shipping the jobs to India...quick profits ignoring the results of crappy customer care by folks who speak broken english.
So once they have their 2 year commitment..it's on to the next customer. If you don't like it - divorce is only $175.00 away...and they make money there too... I am a former ATT then Cingular customer and I can vouch for 100% crappy customer care (5th place if I remember). It just grouches me to think I have to deal with the devil to get what I want....but life is mostly like that after all ...

About what my company does; Buy Sell Merge Fire Hire Lay Off anything to put a penny into the pocket of the invester. Ask for the iPhone I will be willing to pay $20 for the MediaMax Plan, but wouldn't pay $40 for the PDA Plan until 3G is on the phone and can tether it to my laptop.

 

[lasquintanas]

Most Corporations don't really care about the future...only about the next 3 or 4 quarterly dividends to shareholders. Hence the cutting of thousands of jobs, dumping long term employees and shipping the jobs to India...quick profits ignoring the results of crappy customer care by folks who speak broken english.
So once they have their 2 year commitment..it's on to the next customer. If you don't like it - divorce is only $175.00 away...and they make money there too... I am a former ATT then Cingular customer and I can vouch for 100% crappy customer care (5th place if I remember). It just grouches me to think I have to deal with the devil to get what I want....but life is mostly like that after all ...

Most well managed companies have businesss plans from the next quarterly earnings report to 10 years from now. The ones that don't are the ones that go under. ALL companies have to lay off people sometimes. That's what makes a company survive. Allthough you can get really bad publicity doing it.

Just recently Circuit City was in the news for laying of 3500 employees before an earnings report. What most people don't know is that Best Buy ended up laying of almost as many. It's just the way they did it that kept the negative PR off. Circuit City laid their employees off one morning with no warning and no pay decrease. These people had to "reapply" for the jobs they just had minutes ago. Best Buy offered their employees other positions in the company that fit in their downsizing plan.

I'm with Robhon on this. It is all about market share and they cannot afford to screw themselves on this deal.

 

[ColsTiger]

I strongly believe AT&T is gonna milk the iPhone subscribers for every penny they can. I know someone who works for said company and it was already known that there was no discount on the iPhone itself but they have recently received notification that they will not be getting any employee discounts on their service either. This leaves me to believe that either the plan is already low or as they would have you to believe as low as it can be, or they know that people will by the iPhone no matter what they charge and they will charge you an absurd amount, i strongly believe the latter. I am just really having a problem switching carriers to get hosed all because of my love of the iPhone. Boy I tell you that supply and demand is a monster.

Question: Would you still by the iPhone even if the plans offered where an absurd amount?

It depends on how absurd the plans are. If they're $100/month, then no. If they're $40/month, then yes.

I've had nothing but good service from Cingular for the last five years. If the At&t change maintains the same service I've experienced from Cingular, then I'm sure I'll be just as happy in another five years.

 

[applefreak]

I've had cingular for 3 years and AT&T since 1996 before that. I like cingular the best for one reason only: rollover minutes. That feature alone makes my plan the cheapest in the industry. I have 3400 rollover minutes and can never use them up. I will admit one thing though, cingular's internet service always sucked. I hope that part is going to improve.