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.

By: cardfan

cardfan — Wed, 10 Jun 2009 22:45:04 +0000

Too bad its a year old and slow compared to devices like the Pre or even iphone 3GS. Oh and you still have to pay the same insanely priced AT&T plan?

C'mon...Palm could easily offer the Pre at 99.00 next year as well as keep the same prices for a Pre2. But it would be dumb.

How many people are going to pay for last year's tech when its just another 100 to get current? Especially when they're already paying close to a 100 a month for the plan?

By: Carl

Carl — Wed, 10 Jun 2009 22:44:17 +0000

Hopefully this will increase the market presence for apps!

By: TosaDeac

TosaDeac — Wed, 10 Jun 2009 22:33:20 +0000

I agree this is a great entry point, but I think the biggest issue is the data plan. $30 + $5 for the minimum 200 texts is going to scare off a lot of people. If they offered a capped data plan with some number of texts then I could see this taking off. Or if they actually sold it with texting plan only and no data plan (never gonna happen I know!) then they would sell a TON! From friends I know without iPhones the data plan is more of what scares them off than the upfront cost of the phone.

In my mind if you are going to have the same monthly data charges with either a 3G at 8GB and a 3GS at 16GB + some other improvements (voice control, digital compass, NIKE+, speed, etc) then it really ends up being a question of $4 a month for 2 years to justify the $100 difference. To me a no brainer, go with the 3GS.

By: Dionte

Dionte — Wed, 10 Jun 2009 22:05:33 +0000

can’t beat 99 bucks for an iphone, next year maybe that one will be free on contract

By: Bebo

Bebo — Wed, 10 Jun 2009 21:58:04 +0000

I agree. Now…if ATT would do some kind of entry level, capped, etc. data plan for this same segment of people who would jump on these $99 iPhones…that would just be killer!

By: Truth

Truth — Wed, 10 Jun 2009 21:30:17 +0000

This could be the smartest thing Apple has ever done. I like the price point. I wonder if it will hurt 3GS sells. I hope it does, then maybe we can get a real update to the 3g.