iPhone

[Kung Fu Guy]

Originally posted by Wired1
When they allow cingular to subsidize the cost, they can subtract appx. $550 from it.  Cingular's business plan is this:

average plan is $40 a month.  2 year contract = $960 gross profit.

They can lose up to $560 and break even on their service at this time.  So, let's say an iphone 20 gig, second gen. costs $1099 even, it will still, after subsidizing by Cingular, be able to be sold for $5-600... the same price as gen. 1.

And if you read the above article, it kinda makes sense.

Oh, and your Mom.:p

That's if you think Cellular makes 100% profit over two years (24*40=960) and they don't have to pay for things like:
-maintaning store locations
-paying for upkeep on their network
-expanding their network
-emloyee costs

I think you confused "gross" and "profit" by mashing them together. (profit = gross-expenses)

Outside of that, i agree that cingular will subsidize the phones eventually, but I dont see it going as low as $99. $199 and $249 seem more realistic, especially when consumers are willing to pay more for the apple brand. (look at ipod prices vs. everyone else)

[Wired1]

Nope.  I didn't confuse GROSS and NET.  They are my client so I deal with them all the time

They GROSS appx. $960 on a 2 year contract.  They NET appx. $560 after business associated costs.

Their goal is to lure consumers in with a phone, break even after 2 years, and then keep the consumer who has at that point developed (hopefully) brand loyalty.  Making a profit in the first two years is desireable, not needed.

So, as I said earlier (see original post: I take out $400 from gross to compensate for Business Expenses), their business plan as it stands leave them appx. $560 over 2 years to subsidize with, profit from, or whatever.

[ile]

looks very apple. i don't want a cell phone so expesinve that i wouldn't dare to use it for opening beer bottles.

[ban381]

Who cares about the iphone, when you can get the tphone!

http://www.youtube.com/watch?v=f_8wuVEYMZ8

Wonder what the T stands for...

[marka]

Originally posted by ile
looks very apple. i don't want a cell phone so expesinve that i wouldn't dare to use it for opening beer bottles.

:lol

That's covered, at least here: http://www.youtube.com/watch?v=1xXNoB3t8vM

[Morita]

It does seem pretty good, functionality-wise, but there's no WAY I'd spend that much on a phone, no matter what else it does.

Originally posted by absolutezero
FIVE HUNDRED AND NINETY-NINE US DOLLARS

:lol Yeah, and besides, I didn't even see "real time weapon change" among it's features, so I definitely wouldn't get it.

[indigo0086]

I can barely read gizmondo or engadget, every other frigging story is about the I phone (Nicknamed stupidly "Jesusphone")

[Jeff B]

i think the damn thing only costs like <$250 to produce, so have fun paying a 100% premium, plus signup and monthly fees.  on at&t's ****ty network.  honestly, who uses at&t for cell phone service?

i can think of 5 better providers than gaet&t in as many seconds.

considering that the iphone doesn't do cdma, just at&t's edge network, you aren't really going to be able to use all of the awesome wireless features to their full speed potential.  i read somewhere that if apple had wanted to put a cdma/evdo chip in the phone it would have drained the battery in less than 2 hours, so they had to go with what would work.

granted i'm not an expert on the subject, but until the phone is cheaper and available on more carriers, you can count me (and almost everybody with half a brain) out.