Comments on: iPhone 3G: Apple Re-Invents the $99 Budget Smartphone

By: Chris

Chris — Thu, 11 Jun 2009 17:31:33 +0000

By the way RIM did this a while back with the Curve for $99. They also did a buy one get one free with Verizon. So in essence Apple is not the first one to do this nor did they re-invent a budget smartphone market.

By: Tmotytn

Tmotytn — Thu, 11 Jun 2009 15:51:26 +0000

This is going to be a huge issue for the Death Star when the $99 consumer drops their phone like it’s hot when the USPS drops off their first bill…

One of my neighbors has 5 lines of service…all smartphones, including 2 iPhones, BUT NO DATA…I mentioned to him a few months ago to be prepared for ATT to do an audit, adding data to his 2 iPhones…he said he wasn’t worried…lo and behold his bill came in at $500 from 180…over 2 hours on the phone with the Empire netted him a credit, but also 2 new data plans at $60 per month…He says he’s looking at Tmo now…and not planning to pay any ETFs…

Not to be stereotypical, but the average $99 consumer won’t spend ANY time on the phone with the Empire…bright side is people will soon be able to pick up iPhones off CL and Ebay for cheap…

We have already seen it happen with Tmo and the G1…people returned them or just stopped paying the bills when they realized the monthly cost…

By: capo

capo — Thu, 11 Jun 2009 15:50:45 +0000

something else to consider is the GPS cabability. Standalone GPS devices are what...200 bucks for the most basic ones?

Why would anyone purchase a GPS when you can get the whole package in an iphone?

By: awmawm

awmawm — Thu, 11 Jun 2009 15:33:34 +0000

Apple and AT&T will suck in people with the $99 3G who are not used to pay $30 for a data plan on top of the calling plan. They look at $99, think it is a great deal and are later “surprised” when they receive the monthly phone bills. Yes, they should read the contract – unfortunately, a lot of people new to mobile data do not understand the (costly) implications until they receive their first bill.

By: striatic

striatic — Thu, 11 Jun 2009 07:37:58 +0000

it is almost predatory to sell a phone with that cost per month for 99 dollars.

if they gave them away for free and increased the per month cost to compensate, people might make a more informed decision with the monthly costs more in mind.

By: sting7k

sting7k — Thu, 11 Jun 2009 02:51:25 +0000

Data plan is still too expensive for many people who would buy a $99 phone. Then throw on $5 for only 200 texts.

By: Carl

Carl — Thu, 11 Jun 2009 02:23:20 +0000

@frog you guys are so lucky!

By: frog

frog — Thu, 11 Jun 2009 00:39:02 +0000

It’s $0 upfront and $59/month here in Australia, because all the carriers offer the iPhone here! There’s talk of it dropping to $49/month, and maybe even $29/month lol

By: Rocky Romero

Rocky Romero — Wed, 10 Jun 2009 23:59:45 +0000

Agreed.

People will look at the initial outlay to spend.

The real pricing difference is in the TCO (total cost of ownership).

That could mean about $1k. That's what the competition will drive to the newbie user.

And their right, if it's just for a phone.

It's taken me 6 months of iPhone usage to find a couple of apps that locks me into the iPhone.

Now, it's almost irrelevant what new hardware is out there.

"Can't touch this".

By: Rene Ritchie

Rene Ritchie — Wed, 10 Jun 2009 23:38:02 +0000

@cardfan: Probably more than you imagine. $99 is a HUGE psychological barrier for mainstream, non-enthusiasts who might now consider this over a feature phone.