Rogers Canada Committed to $150M iPhone 3G's, Caused Cuts to Nokia
We know the $199 initial price tag of the iPhone 3G is carrier subsidized, but we don't really know by how much, or for how many. Rogers Wireless president Nadir Mohammed, however, shed some light on what just might be representative of iPhone 3G deals world wide. During Rogers Q2 results call, Mohammed revealed that they "didn't anticipate that we would launch that device under any model this year," but once announced on June 9, it "slammed on the brakes" on their other handsets -- ouch -- and led to a huge cut on the Nokia N95 to try and get some demand back.
The subsidy on the iPhone 3G, meanwhile, is reportedly the steepest Rogers has ever offered, but is worth it due to the iPhone 3G being "highly, highly attractive" to those willing to pay more on their monthly contracts to support the handset -- just the kind of customers Rogers (and all carriers) value most. The very same customers that Rogers believes will quickly recoup the $150 million worth of iPhone 3G's they committed to up front. (Apple Insider assumes at $450 a unit times 333,000 units).
That's a lot of loonies!
Editor-in-Chief of iMore, Executive Producer at Mobile Nations, co-host of Iterate and ZEN and TECH, cook, grappler, photon wrangler.
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selling something nice for a cheaper price than competition will always cause competition to lag behind.
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