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Chris Jacob
My apologies for going slightly off-topic, but did anyone else look closely at the percentage numbers between 2008 and 2009 (3Q)? While Apple soared 4% (to 17%) in one year, Research In Motion (BlackBerry) actually grew 5% (to 21%) in the same period. No question that Apple is making much bigger bucks on their devices than those wireless Canucks, but it is interesting to me how they keep gaining market share even with all of the press focused on Cupertino. Perhaps if Apple finds a way to sell a device on Verizon their market share growth will finally match the BlackBerry, but right now they are still in a second-place growth category - and Android is just beginning to catch the eye of consumers. Looking forward to seeing what happens in 2010.
@Monty: not trying to be a fanboy here, but in my place "Dubai" the iPhone is pulling the BlackBerry with it in the success. All people when seeing the iPhone thinks yea why not to move to smartphone era. They check the data plans and end up buying BB. BB seems to cost less so thats why plans are better.
@Monty: I noticed that too, but consider that Apple is selling a single device on, in many countries, a single carrier. On the other hand, RIM is selling a large lineup of devices on nearly every carrier, which means that they can access every wireless customer out there, where Apple is limited only to customers on a certain carrier. (Yes, customers can switch carriers to get the iPhone, but many smartphones are used for business customers, which may have contracts with only one carrier, so that isn't possible.) Thus for Apple to gain that much marketshare given their much smaller base of possible customers, a 4% growth is comparatively quite huge. To assume all other things equal, if Apple had the same possible customer base as RIM, their growth numbers could more than double.
@djpaetkau: Understood, but Research In Motion has been around for over a decade now, I believe. For them to continue to have growth (ignoring market share) larger than Apple is remarkable, regardless of the number of devices they are peddling.
@Monty: RIM continuing growth is not that remarkable when you account for what medopal just said about how the iPhone is pulling Blackberry with it in success. In other words, RIM is benefiting from a boost in smartphone interest.
@cryguy: Businesses are buying more BlackBerry models because of the iPhone? Sorry, I am not positive about businesses, but I am not buying it. Consumer smart phone knowledge is increasing due to the iPhone and I suspect Android will benefit. However, the BlackBerry controls the business world and they have been on a continued growth pace for years now.
Ok, here's what I want to know. If the cost of an iPhone (and I'm assuming many other high-price smartphones can take up almost half of the price of a data plan....would one be able to pay the full price of a phone up front and get that amount off of the data plan?
Sometimes it's easier to justify one $500 purchase than a promised series of 24 $30 purchases.
@OCEntertainment: I think the answer is that, since your plan costs aren't going to change, every two years you need to buy another subsidized phone and sell it on e*Bay.
@firehunter5: I'm not sure you're understanding me.
The article says there was a price hike in data plans to cover the cost of a phone subsidy (because folks won't buy a smartphone at $500, but they will at $200). This takes the monthly data plan cost from $15 to $30 (not accurate numbers). But lets say I had the full $500 on hand for the unsubsidized phone costs. Could I buy that phone and see a decreased price in data plan? If I gave them all of that cost up front (so now 100% of my data plan money is going to them, rather than partially to the phone manufacturer), could I pay $15-20 for my data plan, rather than the full $30?
My guess is they would not be ok with this. But I'm holding out hope to be pleasantly surprised.
@OCEntertainment: I see your view. I then point out the articles flaw in describing the fact any smartphone (i.e. blackberry, windows mobile, iphone, etc) require the more expensive plan due to the much larger data usage related to the use of such devices. iPhone users on average use 4 times the data then any other phones. I would love a cheaper data plan...despite what the article says, its more use than cost recovery.
@OCEntertainment:
That's how it should be, but I don't believe you can buy an iPhone without buying a data plan (even if the phone is unsubsidized). It is the same way with other carriers and particular devices. The only advantage you get is not having a contract/ETF.
@Caeruleas: See, this is exactly what I want. While I'm probably in the minority, I'd rather have the option of leaving for a better option when and if a better solution comes along rather than having to wait another year and half to avoid having to pay a penalty because my service sucks (or because I simply choose to go somewhere else). If the other carriers offer this kind of option, I may start doing this once my current T-Mo contract is up.
@justinpe: I don't necessarily want no data plan. I would just like to offset the subsidy costs by paying more up front. Though, not having a contract/ETF is a pretty sweet prize. If all it took was simply paying the full unsubsidized price for a phone to lose the contract, I'd start taking that route in a heartbeat.
@OCEntertainment: Having no contract and termination fee is not very appealing to someone who is going to pay the same price for voice and data every month for the next 2 years anyway.
I think it is actually cheaper to buy the phone with the discount, and then pay the early termination fee right away. $200 (8GB 3GS) + $175 (ETF) = $375 or $599 for an unsubsidized 8GB 3GS. Plus the ETF decreases each month that you have service.
@OCEntertainment: Actually they would be if they thought this would happen often. They would much rather have your money sooner than later.
However, I'm betting no normal consumer offers to do this, which means if you offer this the AT&T sales rep will blink at you and say "sorry sir we can't do that". I'd think that for the 3 people in the world that would want to do this AT&T wouldn't want to construct a seperately put together plan.
And why would you want to that anyways? There's always a chance that your finances could be in a jam and you could need to break contract with AT&T, and tell them to stick it where the sun don't shine on their ETF, wrecked credit or not.
It always makes more financial sense on a payment with no interest to put off paying whatever you can for as long as you can.
@cardboredbox: While I'm sure there's no shortage of underpaid labor in the world to be depressed about, that's per unit. Unless it takes a real, live person an hour to put together one phone, chances are that number has little real reflection on what the worker is getting paid.
Granted, some companies associated with Apple aren't the most reputable by our standards (*cough*Foxconn*cough*) but the number tells us very little.
That being said, if that kind of number is indicative of typical manufacturing costs for gadgets, and if that number has any connection to actual people (as opposed to assembly machines), I'd gladly pay a multiple of that if it meant better treatment for the workers that put it together. I mean, seriously, at a $200 price point, who cares if it's ten extra bucks if it means someone else gets to see a better wage?
*sigh*
Then again, I'm an idealist. That could just as easily end up padding the accounts of manufacturing company owners leaving employees still in the dust.
@cardboredbox: Most of the assembly cost is not direct labor, but amortized cost of purchasing, setting up and maintaining the automatic production and test equipment.
@OCEntertainment: Go ahead and pay those 3rd world employees more. They'll just end up with no job at all. You think I kid, but the cost of increased wages to labor very quickly becomes more expensive than the cost of automation when it comes to manufacturing.
So Apple makes ~$2.01 for every dollar spent on the production of the iPhone? Pretty big markup. I wonder what the R&D cost was per phone and what the profit margin looks like.
@Nathan Obbards: it doesn't really matter, since they basically make complete profit off of all the apps that are sold...don't they get like 30% or something?
@Nathan Obbards: very true...so if it's a free app, but they make money off of advertising, do they have to share a percentage of that profit (even though I'm sure it's very little) with Apple?
"The users are the problem" hints at quite the paradigm, doesn't it? Namely, that users exist for the benefit of the system. Personally I think systems exist for the benefit of their users, and a system that doesn't is of little use.
My 3G has had software fritzes recently, such that Apple generously offered me a new 3GS, for only the low, low, subsidized price, if only I'd sign a new 2-year contract with AT&T. No way in hell I took that offer. My contract is up on July 18; I'm counting down the days until I can ditch those assholes and switch back to Verizon.
It's a pity as I adore the phone itself, but I'm sick as all hell of worrying about calls dropping, data service cuts, etc.; when I was on Verizon I always thought it sucked b/c of the limited phone selection, but the past 18 months have taught me and a couple million other people that it's the network that really counts. When Cingular ran those "fewest dropped calls" ads a couple years back, I remember thinking that I'd never experienced a dropped call in my life, and wondered if it was really a problem. Ironically, now that I'm with AT&T nee Cingular, it's a constant of my existence.
I think AT&T is going to have a mass exodus next year, and hope they go broke because of it. But as a 27-year fan of Apple, I only hope they have a backup plan when they start to lose all of that business.
"Can you hear me now? . . . What's that? Oh, I'm the verizon guy? . . . Hello, hello, AT&T? Are you there? I think they're call was just dropped. Guess they can't hear me now."
@not_a_virus.exe.vbs: It's probably relevant to remember that it took large mergers for Verizon to become as large as it is. Buying Alltel was key in vaulting Verizon into a commanding lead in the coverage battle.
As AmphetamineCrown pointed out AT&T has invested heavily in the last two years in expanding and making better their coverage. If there was another provider interested in being bought out you can bet AT&T would be all over it.
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Nevermind, I was thinking of Engadget. I get you guys mixed up sometimes.
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who's worried about money in Dubai, you have friken palm tree islands.
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10:07 AM
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Sometimes it's easier to justify one $500 purchase than a promised series of 24 $30 purchases.
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The article says there was a price hike in data plans to cover the cost of a phone subsidy (because folks won't buy a smartphone at $500, but they will at $200). This takes the monthly data plan cost from $15 to $30 (not accurate numbers). But lets say I had the full $500 on hand for the unsubsidized phone costs. Could I buy that phone and see a decreased price in data plan? If I gave them all of that cost up front (so now 100% of my data plan money is going to them, rather than partially to the phone manufacturer), could I pay $15-20 for my data plan, rather than the full $30?
My guess is they would not be ok with this. But I'm holding out hope to be pleasantly surprised.
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12/09/09
That's how it should be, but I don't believe you can buy an iPhone without buying a data plan (even if the phone is unsubsidized). It is the same way with other carriers and particular devices. The only advantage you get is not having a contract/ETF.
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[www.t-mobile.com]
T-Mo's new service plans is exactly this. The full price of the phone upfront, lower monthly rates. Individual unlimited talk/text/data for $79.99.
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I think it is actually cheaper to buy the phone with the discount, and then pay the early termination fee right away. $200 (8GB 3GS) + $175 (ETF) = $375 or $599 for an unsubsidized 8GB 3GS. Plus the ETF decreases each month that you have service.
09:08 AM
However, I'm betting no normal consumer offers to do this, which means if you offer this the AT&T sales rep will blink at you and say "sorry sir we can't do that". I'd think that for the 3 people in the world that would want to do this AT&T wouldn't want to construct a seperately put together plan.
And why would you want to that anyways? There's always a chance that your finances could be in a jam and you could need to break contract with AT&T, and tell them to stick it where the sun don't shine on their ETF, wrecked credit or not.
It always makes more financial sense on a payment with no interest to put off paying whatever you can for as long as you can.
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12/09/09
Granted, some companies associated with Apple aren't the most reputable by our standards (*cough*Foxconn*cough*) but the number tells us very little.
That being said, if that kind of number is indicative of typical manufacturing costs for gadgets, and if that number has any connection to actual people (as opposed to assembly machines), I'd gladly pay a multiple of that if it meant better treatment for the workers that put it together. I mean, seriously, at a $200 price point, who cares if it's ten extra bucks if it means someone else gets to see a better wage?
*sigh*
Then again, I'm an idealist. That could just as easily end up padding the accounts of manufacturing company owners leaving employees still in the dust.
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It's a pity as I adore the phone itself, but I'm sick as all hell of worrying about calls dropping, data service cuts, etc.; when I was on Verizon I always thought it sucked b/c of the limited phone selection, but the past 18 months have taught me and a couple million other people that it's the network that really counts. When Cingular ran those "fewest dropped calls" ads a couple years back, I remember thinking that I'd never experienced a dropped call in my life, and wondered if it was really a problem. Ironically, now that I'm with AT&T nee Cingular, it's a constant of my existence.
I think AT&T is going to have a mass exodus next year, and hope they go broke because of it. But as a 27-year fan of Apple, I only hope they have a backup plan when they start to lose all of that business.
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Which is...? Verizon?
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Weed?
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As AmphetamineCrown pointed out AT&T has invested heavily in the last two years in expanding and making better their coverage. If there was another provider interested in being bought out you can bet AT&T would be all over it.