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View Diary: ETF, WTF: Why Mobile Fees Matter (26 comments)

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  •  You think AT&T is selling the IPhone (0+ / 0-)

    for what it costs to manufacture? You think that they are just going to sell it for $99 without a contract?  

    If I recall correctly, when there were discussions of selling IPhones without contracts, the estimated price was something like $599.  

    The consumer should have the choice.  Pay the cheap hardware fee and lock yourself in for 1 or two years, or pay more up front for the hardware but use it any way you want.  

    You can't expect to pay $99 for an Iphone without a service contract attached.  

    •  actual costs (0+ / 0-)

      I posted this below too, but I think it's worth posting here.

      The carriers aren't forthcoming about the true costs of phones. Read this for more: http://www.freepress.net/...

      •  Yeah, I forgot they owe us cheap cell phones. (0+ / 0-)

        ::rolls eyes::

        You can go get a pay-per-minute phone from any Wally Mart or Convenience Store. Sorry if you can't surf Dkos on your paygo phone.

        The world existed and interacted pre-Blackberry.

        Donk: Poker term referring to someone who pretends to be talented, smart and good at life. Syn.: Poser, faker, wannabe, loser.

        by DonkSlayer on Wed Mar 10, 2010 at 12:24:52 PM PST

        [ Parent ]

    •  Actually (0+ / 0-)

      I know what the iPhone costs.  I've got two of them that I jailbroke and cracked to run on Tmobile.

      And I am talking about the $600 price which is ridiculous.  A full-blown laptop doesn't cost $600 anymore.  The iPhone is a vastly overpriced toy -- the basic form factor of it is nothing special.  It is not some oogly new technology that is so damn expensive only Apple knows how to make it.  The only thing that's special is the interface and that's software.  Apple overcharges for it because they overcharge for EVERYTHING.

      And the Droid is pushing them out of the market.  I expect in another two-three years people will be going iWhat? and Apple will be begging to sell those things for $200 a pop.

      And, btw, they are manufactured for shit.  You have to UNSOLDER the battery from the motherboard to replace it, and after only a year or so, the battery life dwindles to just 8 hours.  My fiancee is about to junk hers because we don't want to spend $100 to have the battery replaced, an operation that for any other mobile phone user costs $20 and takes 2 minutes.

      Take America back -- Tax the rich, shove healthcare reform down Republican throats, and grab a mop. DO NOT apologize.

      by slippytoad on Wed Mar 10, 2010 at 12:02:15 PM PST

      [ Parent ]

      •  This is exactly why Apple CAN charge (0+ / 0-)

        those prices for an IPhone:  

        .  It is not some oogly new technology that is so damn expensive only Apple knows how to make it.  The only thing that's special is the interface and that's software.

        What's so special about it?  Only a couple of unique things that only Apple came up with, like the software.  But that's exactly why Apple is entitled to charge what they want for it. Those couple of unique things, like software, give Apple the right to charge whatever they want for the unique things they have come up with.  They have every right to sell it at whatever price they want. Nobody is entitled to an IPhone. If the price is higher than consumers think it is worth, they will buy another kind of smart phone.  

        If somebody comes up with a really cool idea for a product, they are entitled to sell it for whatever the public is willing to pay for it.  Apple included.  If I don't think it's worth what Apple wants to charge for it, I don't have to buy one (and I didn't).  Nobody owes me an IPhone at a price I think it is worth, or at a price that is cost plus some profit margin I think is reasonable.  If Apple wants to make 100% profit over cost on every single IPhone they manufacture, that's their right.  Because the public can simply refuse to buy one.  There's LOTS of competition out there for the IPhone.  There are LOTS of smartphones on the market.  If Apple makes the IPhone too expensive, people will decide it's not worth it and buy another kind of phone.  That's exactly what competition means in a capitalist economy.

        •  They DON'T charge $599 for the phone (0+ / 0-)

          You aren't paying attention to the dynamic here.

          They charge $99 and lock you into an exclusive agreement.  Absent the exclusive agreement, the iPhone WOULD NOT SELL on the open market for almost $600.  It is NOT THAT FUCKING GREAT.  Put aside the multi-touch user interface, the actual mechanics of the phone are mediocre at best, and the battery sucks ass.

          Subject it to real market forces, separate it from the exclusive contract, and its costs would fall to probably around $250 which is all it is actually going to be worth to anyone.

          Take America back -- Tax the rich, shove healthcare reform down Republican throats, and grab a mop. DO NOT apologize.

          by slippytoad on Wed Mar 10, 2010 at 01:24:27 PM PST

          [ Parent ]

          •  That's because the contract subsidizies (0+ / 0-)

            the phone.  The unanswered question is, what would they be able to charge for the phone alone, without a contract?  We don't know that.  It certainly would be higher than $99 (my original point).  It certainly would  be much, much more than it costs to manufacture the Iphone.  It would be as high as they could convince people to pay. Which is exactly how capitalism is supposed to work, particularly when you are talking about a luxury like the IPhone, which has many cheaper (bare-bones phones, for example) competitors.  I pointed out that the number $599 was floated at one point.  If people wanted an IPhone enough to pay $599 for it without a contract (and sadly, I think there are a lot of people who would pay that) that's what they'd sell it for.  They, like any other business (especially a company in the business of selling high-end luxury items) will sell it for as high a price as they can get.  

            •  You are working a tautology (0+ / 0-)

              Ignoring the already-demonstrated fact that the phones are overpriced, and that as the system is currently structured there is no incentive for the wireless providers to either (1) lower prices or (2) improve serivce.

              Take America back -- Tax the rich, shove healthcare reform down Republican throats, and grab a mop. DO NOT apologize.

              by slippytoad on Thu Mar 11, 2010 at 07:46:35 AM PST

              [ Parent ]

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