With the news that T mobile will start to offer no subsidized iPhones, my fear is this will, in the coming years, be a serious problem.
Originally it was easy to set up the data deal with AT&T. Of course they would pay the subsidy. There was no real competition in terms of smart phone data consumption. Blackberry was basically a corporate emailing PDA. No where close to the consumption of an iPhone. Fast forward 6 years. Blackberry is dead and android has risen. These are more similar to the consumption of iPhones. In fact I can't even tell the difference at quick glances. Apps and content is growing for android. I fear the days of apple destroying in data consumption will be over Android generally has cheaper phones without subsidy. Will carriers be willing to keep this trend going? Internationally this may be a current problem for the china mobile deal. They don't want to pay and apple knows a majority of Chinese middle and lower class won't pick up a $700 phone. Any thoughts on this future problem?
Post by hellojapan on Dec 10, 2012 14:51:24 GMT -5
Isn't T-Mobile's whole pitch that the consumer will actually save money by buying an unsubsidized phone? That in the long run, you end up paying more than the value of a subsidy over the life of a 2-year contract?
If that is the case, then doesn't Verizon and AT&T actually make money in the long term off iPhone subsidies?
I'm sure I'm missing something basic so thanks in advance for explaining it to me. I just don't understand why, if consumers pay back more than the value of the subsidy, that this would be a practice that carriers would want to end.
Anybody want to put up some kickstarter numbers (WAG basically) on current and future revenue to Apple ?
Does T-Mobile have a chance to become an influence ?
Quick answer, no.
Now here is the lone nugget. T-Mobile has better plans so people who are fiscally smart will do the math and realize that it will be a better deal. TM will require say $100 down and finance the remaining 550 which adds $23/month. With their $50/mo plan you come out way ahead compared to the other carriers. After your phone is paid for ou have your $50/mo plan, sweet deal for T,T&D.
I take it many of you have forgotten that Apple launched the iphone as an unsubsidized phone. (I still have mine) I remember getting a credit to be used at the Apple store. The sales were good, but not earth shattering. To SJ's credit, he recognized the error of is ways and got together with AT&T and came up with the subsidized plan. It (iphone) really saved T from VZ. I hate them both. Well, the moral of this story is that people in general are not fiscally smart , so no, the impact will be small. I still think TM can add 5-6 mil/yr. Not bad, a $4bil addition to rev from 1 med size carrier.
mercel: It's been a long strange trip - good to see you're still around (and in AAPL -my assumption).
May 10, 2019 12:48:32 GMT -5
Zeke: Long time no see. Nice to see familiar names still here.
Mar 25, 2019 14:42:52 GMT -5
sponge: Regarding the future of VR, I think it will be huge. I was a gamer when I was in college. But as an adult I lost interest. Last fall I flew up to visit my son at college and check out his new Vive set up. After playing with it for the weekend, I was
Apr 29, 2018 15:25:17 GMT -5
galleybob: thanks for your answer. I will copy and send to her
Nov 7, 2017 15:32:18 GMT -5
rickag: So since Jan 28th 2015 AAPL is up from 117.27 to 157.21
Aug 21, 2017 20:09:43 GMT -5
artman1033: VXAPL = 29.21 AAPL = $117.27 AFTER EARNINGS
Jan 28, 2015 14:54:46 GMT -5
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Jan 27, 2015 11:12:53 GMT -5