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iPhones for Everybody?

Posted on Jun 8, 2009
Courtesy of Apple

Apple unveiled a faster, more powerful version of its popular iPhone Monday, but the bigger news is that the company slashed the price of the current model to $99. That makes a robust portable computing experience available to a much bigger crowd, assuming they can handle AT&T’s horrendously overpriced service.

Not to let Apple get all the credit and none of the blame. AT&T pays Apple hefty fees for each device it sells (as much as $425 for some iPhones, according to one report), allowing the overall price of the phone to stay relatively low. That might explain the carrier’s $20 charge for unlimited text messaging, a service that costs surprisingly little to provide.

Apple is notorious for its high profit margins, but with the iPhone the company is building a proud tradition of aggressive pricing—one that has forced competitors to slash their own prices. If Apple continues to push prices down and AT&T and the other carriers keep their greed in check, they will foster a mobile explosion with profound cultural ramifications. Indeed, it has already begun.

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By Wintersport, November 9, 2009 at 12:00 pm Link to this comment

It’s so crappy that they didn’t introduce somekind of upgrade plan. They only offer 2 year plans here (Netherlands) so that’s too bad for people that have a 3G…

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By Blackspeare, June 9, 2009 at 12:13 pm Link to this comment


Boy, you’re tighter than a crab’s ass and that’s water tight!

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By grumpynyker, June 9, 2009 at 9:12 am Link to this comment
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I have a TracFone ($20), battery removed that’s collecting dust on my dresser.  I plan to buy minutes when I go on vacation in July.  I get more pleasure reading a dictionary.

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By Blackspeare, June 9, 2009 at 7:06 am Link to this comment

Actually, if you don’t make many calls and those you do are for short duration and you don’t need all the bells and whistles, then the most economical way to go is to use a debit cell phone.  At current prices it cost $7/month to maintain service.

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By Cathy, June 9, 2009 at 5:45 am Link to this comment

Actually, unlimited texting is $20 on Verizon, too, which is the service I use, although I don’t have the texting feature and flipped out the other day when my son borrowed my phone and I discovered 19 text messages coming to $3.80.  I couldn’t everything to the penny these days.  I pay $50 for my phone (lowest-priced plan) and I never go over my minutes. 

How many iPhones have there been so far?  It seems like every few months another phone is coming out.  It is wasteful and unnecessary.

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By ben, June 8, 2009 at 7:08 pm Link to this comment
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well, unfortunately for apple, not everyone wants a stupid phone that can juice vegetables, record videos, and babysit their children. i just need something that I can CALL people on. frankly, i barely need that anymore. get a hold of yourselves, consumers!

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By herewegoagain, June 8, 2009 at 4:27 pm Link to this comment
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About two years ago, I got rid of my cell phone. Never miss it.

Further, I find it irritating when attempting to have a “live” conversation with someone while he/she is texting on her phone. It is amazing how many otherwise well-mannered people think this is a perfectly acceptable thing to do.

Finally, I think the iPhone’s marketing strategy of regularly unveiling a “newer, better” version is wasteful and environmentally destructive.

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