Comments on: iPhone 3G S pricing kerfuffle shows phone subsidy not widely understood

By: Gadget Talks » Blog Archive » Nokia N900 Launches in the U.S.

Gadget Talks » Blog Archive » Nokia N900 Launches in the U.S. — Wed, 18 Nov 2009 20:05:26 +0000

[...] unsubsidized expense, uniform for a hugely robust smartphone, either — deponent the modern brouhaha beyond everything the iPhone 3GS pricing from customers who were simply a year into their AT&T contracts as [...]

By: Nokia N900 Launches in the U.S.

Nokia N900 Launches in the U.S. — Wed, 18 Nov 2009 19:13:09 +0000

[...] a steep unsubsidized cost, even for a hugely powerful smartphone, either — witness the recent brouhaha over the iPhone 3GS pricing from customers who were only a year into their AT&T contracts as [...]

By: Turner

Turner — Sat, 13 Jun 2009 20:10:37 +0000

You’ve summed it up very well… I’m looking forward to swapping out my BB Curve for the 3GS next week, and am fully aware that I’ll be signing up for a 2 year contract. It’s just the way it goes, people…

Apple will continue to release a new phone every year, it’ll just cost more cash to be a continued early adopter.

By: JP

JP — Sat, 13 Jun 2009 18:59:24 +0000

How dare you come into my internets and make all of this “sense”, with your “logic” and your “reason”.

I have no time for this. I’m building my AT&T logo effigy for tonight’s rally!

To be fair, the service and reception are terrible and people have every right to be annoyed/upset about that. I was initially bummed about the non-subsidy on the 3Gs, but once I thought about it, I understood.

By: fabrini

fabrini — Sat, 13 Jun 2009 18:29:10 +0000

The mobile providers need to eliminate subsidies. When people have to pay full price for phones, then the phone manufactures will start to lower their prices to what people can actually pay. Without subsidies, there is no need for contracts, without contracts there is true freedom.

Oh wait — now I guess we know why there are subsidy. Reminds me of something….. oh yeah. The f’ed up healthcare system in the US.

By: Christina Warren

Christina Warren — Sat, 13 Jun 2009 17:39:45 +0000

I couldn’t agree with your post any more. I feel for people who are seem genuinely confused/confounded that this is how phone subsidies (smart or otherwise) work, but it’s been like this for as long as I can remember. Now, granted, I’m a lot more familiar with how the cell phone industry works than most people. I got my first personal cell phone for my 17th birthday back in November 1999, but my parents both had cell phones or car phones in the 1980s (think bag phone). In high school and college, I worked at Best Buy and although Digital Imaging and Computers were where I spent the bulk of my time, I did do two stints in Wireless (once as a department supervisor), so I know how the activation process works for all major carriers and how contracts, subsidized prices, new line upgrades, existing customer upgrades and new customer prices/contracts all work.

If anything, AT&T customers have an advantage over most other carriers, in regards to the iPhone. Typically, unless you have multiple lines on the same account, you get the good phone deal ONCE — when you sign-up for that carrier. Other upgrades are NEVER as good as they are for first time customers. They might come close, but they are never as good. At least with the iPhone 3G S, customers can upgrade 6-months early at the new-customer price. And it isn’t like that existing iPhone 3G, assuming it is still in working condition (even better if it has Apple Care) won’t fetch at least $200 on eBay for customers who aren’t at an upgrade point in their AT&T contract.

I think a lot of it is the general dissatisfaction with AT&T, and that’s totally deserved. I’ve put off buying an iPhone for the last two years because I hate them so much (well, my hatred actually goes back to Bell South Mobility before they officially became Cingular — I switched to Powertel, now T-Mobile in January 2001 and have had no complaints). I’m grudgingly going to pay $100 to ETF with T-Mobile so I can get an iPhone 3G S, but if my BlackBerry didn’t suck so hard, that would be less of an easy solution.

Anyway, before I get all TL:DR, you rock, and spot on!