iPhone dropping to $97 tomorrow

[rdiddy_25]

Wal-Mart slashes iPhone price to $97 - May. 24, 2010

That says alot about where the price point for the new iPhone will be and looks like the end for the 3G, unless they drop it to $49 and keep that as their low end (starter) price.

 

[Jellotime91]

Or it says they are trying to get rid of it ASAP so that they can offer a brand new iPhone HD at 16GB for $99....

 

[whmurray]

Or it says they are trying to get rid of it ASAP so that they can offer a brand new iPhone HD at 16GB for $99....

Clean out the obsolete inventory? The phone that stopped selling when Gizmodo leaked the 4G? In two weeks they may give it away. Let us hope that they will have to pay people to take it.

 

[9ki]

Clean out the obsolete inventory? The phone that stopped selling when Gizmodo leaked the 4G? In two weeks they may give it away. Let us hope that they will have to pay people to take it.

Especially considering the two year AT&T contract you still have to sign.

 

[jsntrenkler]

Even though it will soon be obsolete, $97 for a new 3GS is still a great deal.

 

[whmurray]

Especially considering the two year AT&T contract you still have to sign.

Seems that one important calculation is to compare the unsubsidized price of the phone to the sum of the contract price plus the early termination fee,

 

[rdiddy_25]

Another thing to think about is u also avoid that jump in ETF also, will stay at $175 instead of the new $325 which takes affect June 1st.

 

[whmurray]

Another thing to think about is u also avoid that jump in ETF also, will stay at $175 instead of the new $325 which takes affect June 1st.

$325- is the cost of the subsidy to the subscriber if not the value to AT&T. The effective penalty goes up with the age of one's contract. If one opts our after one month, one avoids 23 months of contract for 325-. if one opts out after 23 months, one gets one month of contract forgiveness for 325-.

Note the timing of the increase. It is all about the new phone. I want the new phone but I plan to buy direct from Apple at their price, rather than pay AT&T $325 less the subsidy.

One cannot help but wonder whether the $325- ETF is not about retaining subscribers when their exclusivity protection ends. It seems fairly certain that there are a large number of iPhone users anxious to have the iPhone on almost any other carrier. Imagine if in September Verizon were to get the iPhone and offer tethering. I would gladly pay AT&T $325-/year for tethering. While they keep dangling the carrot of tethering, they keep it just out of reach.

More than AT&T's network, it is their business practices that offend me.

 

[whmurray]

Do not get excited. The ad on TV says, "With 2 year AT&T contract." In other words, it hardly has any impact on the total cost of ownership. In three weeks, they really will have to pay you to take one.

 

[lauriefoss]

I did a little checking around today. Neither my local Apple store nor AT&T sales will match the Wal-Mart price yet.

 

[Marcus James]

Not a bad price, but you still have to sign a contract. *shrug*

 

[Jellotime91]

Do not get excited. The ad on TV says, "With 2 year AT&T contract." In other words, it hardly has any impact on the total cost of ownership. In three weeks, they really will have to pay you to take one.

Shhh, consumers do not understand upfront cost vs cost of ownership.

Exhibit A: Recession of 2008.

 

[BLiNK]

i'd be embarrased to even attempt to sell my 3G after the dust has settled

 

[whmurray]

One can get a Samsung/Android phone at Amazon for a penny (with a two year contract). Anyone find that deal irresistible? If Wal-Mart halved the price of the iPhone again, would that make the deal twice as attractive?

 

[whmurray]

Shhh, consumers do not understand upfront cost vs cost of ownership.

Exhibit A: Recession of 2008.

Sorry. The leak was unintentional but then no one listens to me anyway.

 

[whmurray]

i'd be embarrased to even attempt to sell my 3G after the dust has settled

Yes, but the kids love them, particularly those whose families have an AT&T family plan. Others simply use them as iPod touches or do Skype, IM, or Facebook over WiFi.

 

[j00w00t]

I know someone who purchased the 3GS the day before the price slash. I wonder if they'll reimburse.

 

[Smlk]

I kept my old (2G) around as a "touch" with speaker and mic. It didn't seem like a big deal then I gave it to my daughter and bought a touch to replace what I was using it for and THEN I realized how nice the speaker/mic built in was.

 

[whmurray]

I know someone who purchased the 3GS the day before the price slash. I wonder if they'll reimburse.

$100 over the life of th contract is no big deal. Still $100 is a hundred dollarss. One might return it and then buy another.

 

[zarquon]

Seems that one important calculation is to compare the unsubsidized price of the phone to the sum of the contract price plus the early termination fee,

I've never really understood this logic; even if you pay the unsubsidised price up front to avoid a contract, you're still paying the same phone bill each month for the the next two years, contract or not. I understand the hatred of contracts in principle, but in practice it only really matters if you plan on not having a phone anymore sometime in the next two years (unlikely), or if you have some need to jump carriers a lot.