Apple dictates the iPhone's selling price (just as they do with the iPad, the iPod Touch, their computers, etc), even among third parties like AT&T. Given that the telcos make most of their money in the contract (and the upfront cost is marginal), haven't you ever wondered why they never competed on device price? Sure, not a problem in the US where Apple ceded control entirely to AT&T, but in Canada there is identical iPhone pricing across all carriers.
Wondered why Android devices with the same no contract prices go for "TWO FOR ONE!" and other values while the dated iPhone 3GS sat at $99?
Apple saw this as an image thing, and it has worked. Remarkable the number of people who'll talk about "giving away" Androids when the devices come with often thousands of dollars in contract fees.
But now the competition is underfoot. Wasn't it just a few days ago that Siegler was talking about how Apple wouldn't lower themselves to selling lower-end devices (which the 3GS overwhemlingly qualifies), and the sentiment was that they would never compete on price?
Wondered why Android devices with the same no contract prices go for "TWO FOR ONE!" and other values while the dated iPhone 3GS sat at $99?
Apple saw this as an image thing, and it has worked. Remarkable the number of people who'll talk about "giving away" Androids when the devices come with often thousands of dollars in contract fees.
But now the competition is underfoot. Wasn't it just a few days ago that Siegler was talking about how Apple wouldn't lower themselves to selling lower-end devices (which the 3GS overwhemlingly qualifies), and the sentiment was that they would never compete on price?
http://blog.yafla.com/The_Biggest_Lie_That_Ever_Was_Told/