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Open Roads Forum  >  Technology Corner

 > Has anyone heard this APPLE story?

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2cyber71

Pennsylvania

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Posted: 11/06/11 04:45pm Link  |  Print  |  Notify Moderator

I heard this from a good source.
Apple charges the cell phone company $600 for every iPhone.
But I just paid $199 for mine?

Who ate the other $401?


Is that why Sprint said it will take two years to break even on the iPhone?

One thing I would do if I was the CEO of a wireless provider. I would support the competitors, Android and Blackberry as much as possible.

If Apple slips and the others take off, bye bye Apple.
I'd drop them like a lead bucket.
Someday Apple will get payback from the wireless providers.

It's because of this I don't see Blackberry going away like Palm did.
Till then, well we all can see what has happened.





tktplz

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Posted: 11/06/11 05:02pm Link  |  Print  |  Notify Moderator

Allot of the $401 is your plan that you are locked into for the next 2 years with the carrier.


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Posted: 11/06/11 05:10pm Link  |  Print  |  Notify Moderator

All the cell phone manufacturers do this not just Apple. It's also supported by the the phone companies. What would happen to their business if you could buy a phone at Walmart and use it on any carrier? They'd have nothing left to distinguish their service over that of their competitors. Just like the food-fight in the Windows PC world. Everyone using the same parts to build the least expensive system to run a common Operating System.

2cyber71

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Posted: 11/06/11 05:17pm Link  |  Print  |  Notify Moderator

Let's see this another way as the CFO of the wireless provider.
We have a -$401 in revenue for each signed iPhone contract for this year. Then we get ($30x24months) increased revenue over two yrs +$720 over two years.

So we spent $401 to get a + $319 over 24 months. Looks like a bad deal for the wireless provider.
$319/ 24 months only averages $13.30 / month thru the two year contract.

Not worth the $600 investment.

I'd vote it down at a finance meeting.
I guess that's what Verizon did back in the beginning.
And Sprint is stuck, they gotta do the bad deal.

Looks like a bad cash flow deal. If pricing gets tough it will even look worse.

Let's figure 1,000,000 phones. This year will be a -$401,000,000.
Wow!

rockhillmanor

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Posted: 11/06/11 05:23pm Link  |  Print  |  Notify Moderator

Remember when the iphone first came out people WERE paying around 500.00? Then the second wave came out for less and then the first purchases complained and apple gave them some of their money back?
How long did this price go on for 1 million phones or more? They got their money. Also loose you phone or dump it in a lake and then go to buy another one, you won't get the second one for 199.00!

Its based on your credit what you pay for the phone. Zip credit = 500.00 phone. I met several upper level income people who filed BK and actually paid $500.00 for the phone.

The whole cell phone issue is getting to be a giant joke. That's why I won't download updates on my sprint mobileband, contract expired 5 years ago and I like it that way!

http://wiki.answers.com/Q/How_much_did_a_PS3_cost_when_it_first_came_out


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2cyber71

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Posted: 11/06/11 05:28pm Link  |  Print  |  Notify Moderator

rockhillmanor wrote:

Remember when the iphone first came out people WERE paying around 500.00? Then the second wave came out for less and then the first purchases complained and apple gave them some of their money back?
How long did this price go on for 1 million phones or more? They got their money. Also loose you phone or dump it in a lake and then go to buy another one, you won't get the second one for 199.00!

Its based on your credit what you pay for the phone. Zip credit = 500.00 phone. I met several upper level income people who filed BK and actually paid $500.00 for the phone.

The whole cell phone issue is getting to be a giant joke. That's why I won't download updates on my sprint mobileband, contract expired 5 years ago and I like it that way!

htt
p://wiki.answers.com/Q/How_much_did_a_PS3_cost_when_it_first_came_out




AT&T initially passed on the high price to the customer. And we all saw what happened. AT&T made Apple take the hit. It's Apple pricing that is the issue.
MRSP for the iPhone is $599. That's the kicker. Or Joke, or what ever.

frogkisser

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Posted: 11/06/11 05:37pm Link  |  Print  |  Notify Moderator

Where are you getting $30 figure from? I haven't seen a plan for $30 a month for the iPhone.

I got two iPhones and paid $400 up front. I then was locked into a 2 year contract for $120 per month for both phones. So $120x24=$2880+400=$3280. I'd say that's a pretty good return.

TMBLSN

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Posted: 11/06/11 05:43pm Link  |  Print  |  Notify Moderator

2cyber71 wrote:

($30x24months)


$30 for an iPhone plan? Where? Every iPhone plan is over twice that much.


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hershey

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Posted: 11/06/11 05:44pm Link  |  Print  |  Notify Moderator

Apple (Mac) is a real monopoly builder in its hardware and software. You have to use ITunes and its not really a friendly option for people who want the flexibility of PC use. Having said that, I just joined the Mac cult about 4 months ago and like the Mac, but the flip side of my Mac is loaded with Windows 7 for flexibility.


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Deetour

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Posted: 11/06/11 05:44pm Link  |  Print  |  Notify Moderator

frogkisser wrote:

Where are you getting $30 figure from? I haven't seen a plan for $30 a month for the iPhone.

I got two iPhones and paid $400 up front. I then was locked into a 2 year contract for $120 per month for both phones. So $120x24=$2880+400=$3280. I'd say that's a pretty good return.
Ditto

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