1. AnteL0pe's Avatar
    I'm not even sure that makes sense. The iPhone was Apple's attempt to create what they though every phone should be, why would they now take out half of that functionality? Could it happen? Of course, but i'm still not sold on it.
    07-25-2007 02:54 PM
  2. braj's Avatar
    I'm not even sure that makes sense. The iPhone was Apple's attempt to create what they though every phone should be, why would they now take out half of that functionality? Could it happen? Of course, but i'm still not sold on it.
    Was it 'what every phone should be' or 'what every $600 phone should be '? What is their take on what every $200 phone should be?
    07-25-2007 03:32 PM
  3. taylorh's Avatar
    I think it's intended to be bait to get people on an iphone for a low cost, then want to upgrade in the future. I also think there's a market of people who want a music/phone but not pay for a data plan (and not use data.) Though this goes directly against what AT&T is trying to do which is upsell data plans.
    I dunno, it's just what I read. I don't know if the iPhone is what a phone should be as much as Apple making a phone people will want to pay for. And there must be a whole untappd market of people that won't pay $600 for any phone. So Apple has to create a "low cost" model.
    I'm sure we're all wrong anyway, no one knows what Apple is up to except Apple
    07-25-2007 03:44 PM
  4. rambo47's Avatar
    I'm quite the Apple Fanboi myself, but no way am I getting a first generation iPhone. Clearly I'm in the minority though. Take a look at Apple after hours:



    And it's gone a couple of points higher since this quote was current.
    07-25-2007 10:27 PM
  5. furio's Avatar
    Actually Apple sold 270,000 iPhones in the first 30 hours (weekend). That ain't bad at all. Considering the estimates they missed were only guestimates by analysts with their own agendas. Jobs expects to sell 1 million iPhones by the end of the quarter, which I think they will hit.
    07-25-2007 11:14 PM
  6. braj's Avatar
    270,000 is a lot of anything to sell in 30 hours.
    07-25-2007 11:32 PM
  7. AnteL0pe's Avatar
    So Apple has to create a "low cost" model.
    Apple has rarely done that in the past.

    270,000 is a lot of anything to sell in 30 hours.
    The only problem being that ATT reported that only 147,000 were activated that first weekend and Apple blames the activation delay for the rest of them which I don't buy. I think someone's numbers are off.
    07-26-2007 10:43 AM
  8. ktm97's Avatar
    In another thread a poster reported palm sold roughly 75k treos per quarter
    07-26-2007 10:49 AM
  9. surur's Avatar
    In another thread a poster reported palm sold roughly 75k treos per quarter
    Palm sold 738 000 Treo's to consumers last quarter, about half WM5 and about 75% in the US.

    Surur
    07-26-2007 11:04 AM
  10. TazUk's Avatar
    Jobs expects to sell 1 million iPhones by the end of the quarter, which I think they will hit.
    What will be interesting is seeing how many second hand iPhones are being sold at that point too
    07-26-2007 11:21 AM
  11. braj's Avatar
    The only problem being that ATT reported that only 147,000 were activated that first weekend and Apple blames the activation delay for the rest of them which I don't buy. I think someone's numbers are off.
    Maybe surur is right when he said Apple is counting 'shipped to AT&T as 'sold'. Which doesn't mean they aren't sold to the customer by now anyway, but it could explain the discrepancy.
    07-26-2007 11:49 AM
  12. taylorh's Avatar
    AT&T is reporting "Activated" phones.
    Apple is reporting "Sold" phones.
    At the rate of phones being sold per hour, It's conceivable that a large number of phones were bought but not yet activated within that period of time they're accounting for. For one thing the activation system was messed up for a day or two which could be part of the problem.
    Unlike normal phones which are activated by AT&T before you leave the store, people could have bought the iPhone a not yet activated it.

    Not that this is necessarily the case, but it seems likely.
    07-26-2007 12:34 PM
  13. taylorh's Avatar
    Apple has rarely done that in the past.
    Well look at the iPod.
    First the iPod (expensive) then the ipod shuffle (Cheap.)
    While the shuffle is more than just cheaper, a similar concept goes to it.
    If they make an cheaper iPhone with smaller screen, reduced funcitonality and cost, how is that much different from introducing the iPhone shuffle for $99?
    The iPod line has various cost models, and I assume Apple is going to milk every penny they can out of the iPhone line.
    There is a consumer demographic that will NEVER pay $600 for any phone. Why not create a product to tap the under $600 market as well? Put Motorla's wireless division out of business for good? Get people hooked on iPhone so they want to upgrade at Christmas.

    If anything the Playstation 3 at only $100 more than the XBOX 360 is evidence of a psychological price barrier. Then the Wii is flying off of shelves because it's half the price. Reduced feature set, but hey, there are a lot of people that won't pay $500 for a game console.

    Of course other factors contribute to the console wars so it's not really the best analogy, but a lot of it does have to do with prices.

    I used to work at TiVo, we launched the Series 3 at $700 or so. We knew there was a very small market for that and had to get the $300 or lower HD box with reduced feature set (and cost reduction) out ASAP to hit mass market. The series 3 would have been cheaper except it was so dang expensive to build we couldn't.
    07-26-2007 12:43 PM
  14. surur's Avatar
    The iPhone Shuffle will have no screen, and will just know who you should be dialing.

    Surur
    07-26-2007 12:57 PM
  15. taylorh's Avatar
    The iPhone Shuffle will have no screen, and will just know who you should be dialing.
    Surur
    (Chuckle)
    07-26-2007 01:06 PM
  16. braj's Avatar
    The iPhone Shuffle will have no screen, and will just know who you should be dialing.

    Surur
    Actually a tiny little phone you could clip on your lapel with earbuds only use (but with voice dialing, managed within iTunes) might not be all bad. Especially if you could use it on the same line as your iPhone. So if your number rings, it will ring on both, but the shuffle would only let you know you have a call if your headphones are plugged in (no built-in speaker). No display or speaker could mean good battery life even though it is so small. I'm thinking this would only be for sports, jogging etc. Maybe driving. Just a (maybe dumb) thought.
    07-26-2007 01:32 PM
  17. mikec#IM's Avatar
    What will be interesting is seeing how many second hand iPhones are being sold at that point too
    It won't matter...Apple makes money on the sales, and on the subscription revenues (very lucative for them...why get $600 from a customer with you can get $1800 over two years? (assuming Apple getting 50% cut of an average $100/month phone bill)

    (I have no idea what percentage Apple gets, but whatever it is, it's gravey on the original sale.)
    07-26-2007 03:12 PM
  18. mikec#IM's Avatar
    The iPhone Shuffle will have no screen, and will just know who you should be dialing.

    Surur
    Now that is funny...
    07-26-2007 03:14 PM
  19. Malatesta's Avatar
    It won't matter...Apple makes money on the sales, and on the subscription revenues (very lucative for them...why get $600 from a customer with you can get $1800 over two years? (assuming Apple getting 50% cut of an average $100/month phone bill)

    (I have no idea what percentage Apple gets, but whatever it is, it's gravey on the original sale.)
    Are you referring to this?

    From the Street.com (treat as "rumor")
    People close to the companies tell TheStreet.com that AT&T is paying Apple a bounty of between $150 and $200 per phone -- plus $9 a month per phone over the life of the typical two-year customer contract.
    source

    That's $416 per iPhone that AT&T pays to Apple, if true. Say 200,000 phones sold so far = $83 million?

    Yikes.
    07-26-2007 03:20 PM
  20. mikec#IM's Avatar
    Are you referring to this?

    From the Street.com (treat as "rumor")

    source

    Yikes, if true.
    I was not referring to that specifically; if that is the the case, that means selling each iPhone is ~$1000 in revenue to Apple - almost like a full computer.

    If they negotiated that deal, more power to them.
    07-26-2007 03:23 PM
  21. mikec#IM's Avatar
    Had to give this thread a bump...

    Saw my 4th iPhone in the wild yesterday in the heart of Appleville.

    Hadn't seen one in a while...was getting worried about the sales forecast for Sept. But now that I've seen another, all is well.

    The back to school crowd will save the day.
    08-12-2007 11:52 AM
  22. Pearl_Diva's Avatar
    Back to school crowd? So far I've only seen adults with iPhones, which is as it should be IMO. There's no way I'd give that to a kid! Look what they do with regular cell phones(or worse, cars) and parents are going to buy them this???

    P.S. I suspect your statement was a little tongue in cheek, but still I really wouldn't like to see lots of kids with an iPhone. The breakage, abuse and theft possibilities scare me. JMO though.
    08-12-2007 12:32 PM
  23. cjdaniel's Avatar
    Back to school crowd? So far I've only seen adults with iPhones, which is as it should be IMO. There's no way I'd give that to a kid! Look what they do with regular cell phones(or worse, cars) and parents are going to buy them this???

    P.S. I suspect your statement was a little tongue in cheek, but still I really wouldn't like to see lots of kids with an iPhone. The breakage, abuse and theft possibilities scare me. JMO though.
    Are you kidding, where i live I see them in kids hands in droves, and you know when the next toy phone comes out, their parents will pay penalty and buy them the new phone.
    08-12-2007 12:37 PM
  24. mikec#IM's Avatar
    Diva,

    Tongue was firmly planted in cheek, ala Selma Blair and Sarah Michelle Gellar.

    While I agree that kids are not the target demographic, never underestimate the culture of entitlement that today's teens (and young college students) live in. Their parents give them pretty much whatever they want.
    08-12-2007 12:44 PM
  25. Pearl_Diva's Avatar
    Where are you cglaguna? In CA?

    How are the kids taking care of these? It's sturdy and fragile at the same time. I know 2 adults who busted their screens(not on iPhone) just having them in their pocket and forgetting to take them out when I think sitting or standing up, and apparently the screens bent somehow and broke. People dropping phones on sidewalks is not uncommon also.
    08-12-2007 12:46 PM
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