[peterbray]

Since when does the FAILED former leader of Apple have any credibility??? Answer: NEVER.

Nothing has changed. He's completely ill-equipped to make a judgment call like that. Thank goodness he has NOTHING to do with Apple any more.

[SockRolid]

Quote

... The only reason I haven't upgraded to an iPhone 5 is because I don't want to lose my unlimited data plan. I am hoping competition heats up and the carriers bring it back.

Are you on AT&T? If so, you can keep your unlimited data plan when you get an iPhone 5. I did.

[icerabbit]

mobycat, on 17 January 2013 - 10:41 AM, said:

Quote

I paid $200 for my iPhone 4 over two years ago and I use the crap out of it every day. If a person can't get $200 worth of value out of their smartphone, maybe they don't need a smartphone. The only reason I haven't upgraded to an iPhone 5 is because I don't want to lose my unlimited data plan. I am hoping competition heats up and the carriers bring it back.

I don't believe you'll lose your unlimited plan. Unless things have changed, AT&T (and I assume Verizon) will let grandfathered subscribers keep their current plans.

I can only speak for VZW, but you are not correct.

I was in the Verizon store last week, for a non-iphone line on our account. After dealing with that, we asked the clerk about upgrading our 4 & 4S to an iPhone 5.

Upgrading to an iPhone 5 at a discount ($200) undeniable meant giving up unlimited data for a 2GB plan.

Buying an iPhone 5 at retail price ($650) meant we could keep unlimited data.

And, both had a $30 activation crap fee to do the upgrade.

[SockRolid]

Re: John Scully's comment: "...you've got to dramatically rethink the supply chain and how you can make these products and do it profitably."

John, John, John. Don't you think Tim Cook, a world-class logistics and supply chain expert, has already done that? It's certain that he and his team have studied the lower-cost iPhone concept. Years ago. And there are three possible results:

"Yes, now." - There is a way to build and ship a lower-cost iPhone in a way that is profitable in emerging markets that won't cannibalize "normal" iPhone sales in the rest of the world. Right now.

"No, never." - No way to do it profitably, either because of low margins or because of cannibalization of the "normal" (higher margin) iPhone 5 etc. Not now, not ever.

"Maybe later." - Maybe it's possible that a lower-cost iPhone can be done, profitably, but not right now. Maybe market conditions need to change (more cell networks and subscribers in emerging nations) or maybe future technology needs to mature ("real 4G" eventually replacing last-gasp-of-3G LTE.)

My pet theory: a lower-cost iPhone could be part of the China Mobile deal. There are hundreds of millions of potential iPhone buyers on their network, which runs an oddball proprietary variant of 3G. Apple could make a China Mobile-only lower-cost iPhone to grab market share and mindshare in China. And that iPhone wouldn't work on any other cell network anywhere else in the world. Zero gray-market. But would it be worth it? Only Apple and China Mobile know right now.

[ingus]

Quote

I paid $200 for my iPhone 4 over two years ago and I use the crap out of it every day. If a person can't get $200 worth of value out of their smartphone, maybe they don't need a smartphone. The only reason I haven't upgraded to an iPhone 5 is because I don't want to lose my unlimited data plan. I am hoping competition heats up and the carriers bring it back. Except that you paid around $20 extra per month for that perk. $240 over 2 years. So you paid at least $480 for the phone. More than likely he paid back full retail price plus interest and fees. Service providers don't "subsidize" anything. They provide the device for an up front down payment and what is essentially a loan with a minimum number of monthly payments or repayment of the balance of the loan, plus fees, for early termination. The difference with the carrier "loan", mistakenly referred to as a subsidy, is that you continue to make monthly payments well after the handset has been paid in full if you don't upgrade to another handset or opt for a cheaper service plan at the end of the contract period.

How 'bout this calculation...
The early termination fee at the start of a contract is $350 (I believe). So to get out of the contract and "buy" the phone the price is the discounted cost + $350. Put in other words, even a free phone costs $350 if bought on contract.

This post has been edited by ingus: 17 January 2013 - 10:54 PM

[HerbalEd]

Skully aside .... I think a "cheaper" iPhone is a great idea and will sell well in the USA & Europe, not just developing countries like China.

And, NO, a cheaper iPhone does not mean the end of Apple or the lowering of it's standards ... no more than a "cheaper" MacBook Air (vs MacBook Pro) or the iPod Shuffle & iPod Nano (vs iPod Touch).

If indeed Apple does make a cheaper iPhone, you can bet it will be a very high quality, albeit cheaper-priced, iPhone.

[icerabbit]

Personally, I would like the retail cost of the iPhone to drop below $500. $650 retail for a phone to keep your data plan is a lot of money for a phone they will discount to half that within a year. I know that's the nature and mentality of the phone industry, hot phone today, obsolete in 12 months; but still.

[stevenoz]

Guess this is why he is an ex-CEO.

[CaptainJapan]

There's a reason he's the former CEO of Apple and he continues to remind us with his dopey insights.

[CaptainJapan]

Quote

... The only reason I haven't upgraded to an iPhone 5 is because I don't want to lose my unlimited data plan. I am hoping competition heats up and the carriers bring it back. Are you on AT&T? If so, you can keep your unlimited data plan when you get an iPhone 5. I did.

Read the contract thoroughly and stop fooling yourself. There's a 5GB cap embedded in there.

[Hologram]

ingus, on 17 January 2013 - 10:53 PM, said:

Quote

I paid $200 for my iPhone 4 over two years ago and I use the crap out of it every day. If a person can't get $200 worth of value out of their smartphone, maybe they don't need a smartphone. The only reason I haven't upgraded to an iPhone 5 is because I don't want to lose my unlimited data plan. I am hoping competition heats up and the carriers bring it back. Except that you paid around $20 extra per month for that perk. $240 over 2 years. So you paid at least $480 for the phone. More than likely he paid back full retail price plus interest and fees. Service providers don't "subsidize" anything. They provide the device for an up front down payment and what is essentially a loan with a minimum number of monthly payments or repayment of the balance of the loan, plus fees, for early termination. The difference with the carrier "loan", mistakenly referred to as a subsidy, is that you continue to make monthly payments well after the handset has been paid in full if you don't upgrade to another handset or opt for a cheaper service plan at the end of the contract period.

How 'bout this calculation...
The early termination fee at the start of a contract is $350 (I believe). So to get out of the contract and "buy" the phone the price is the discounted cost + $350. Put in other words, even a free phone costs $350 if bought on contract.

That's essentially what I said above. See: "...or repayment of the balance of the loan, plus fees, for early termination. ..."

Depending on where the phone is purchased, the cancellation fee is either a fixed amount or the unpaid balance of the loan extended by the service provide plus fees.

If the current telephone subsidy model were applied to the automotive industry, we would all think it absolutely normal to pay a flat monthly fee for gasoline, whether we use it or not and restricted to the oil company which provided the vehicle, including loan repayment for our vehicle of choice.

At the end of the agree to term we would then have three choices:

• Continue to pay the same rate including the loan repayment amount every month and keep the vehicle. The service/gasoline provider would love that.
  
• Continue to pay the monthly fee and upgrade to a newer vehicle. Not the service providers favorite outcome, but at least they have us on the hook for another term.
  
• Shop for a monthly package which does not include the loan repayment amount. Monthly fee is reduced by the loan repayment amount but the plan often does not include all the features of the original term plan.

Sounds kind of silly, yet most of us have no problem signing that type of contract when it comes to a phone while we would never consider doing so for a vehicle or household appliances.

This post has been edited by Hologram: 19 January 2013 - 06:48 AM