backtop


Print 15 comment(s) - last by avxo.. on Oct 23 at 10:53 PM

Apple iPhone 3GS is seeing huge demand even after being around for two years

When Apple introduced the iPhone 4S earlier this month, it also made some changes to its iPhone family at the low end. The company introduced a cut down iPhone 4 with only 8GB of memory for $99 with a two-year contract. In addition, the boys from Cupertino decided to let the iPhone 3GS (8GB) soldier on for yet another year as a free smartphone with a two-year contract.

 
That move has proven to be quite beneficial for AT&T, which has already seen its wireless subscriber count pass the 100 million threshold in the past quarter. AT&T Mobility CEO Ralph de la Vega today explained:
 
I also mentioned in my notes that we have another device that I think is going to dramatically change those people that are on smartphones and quick messaging devices, the 3GS, which is free with a 2-year contract. We've seen a tremendous, tremendous demand for that device even though it's a generation old. And actually, we're getting more new subscribers coming on the 3GS on the average than other devices. So we also have an inventory sold out on that device. 
 
Given the jump in battery life, speed, display resolution, and build quality going from the "free" iPhone 3GS to even the $99 iPhone 4, one would think that many people wouldn't mind spending $100 (an extra $4/month over the course of a two-year contract) to get a newer phone. However, for many customers, free is all they need to see to sign on the dotted line.
 
Interestingly enough, two can play at the game when it comes to cheap phones. Verizon Wireless (through Amazon Wireless) is currently offering a number of current generation Android smartphones for just a penny with a new two-year contract. Everything from Motorola Droid Bionic 4G to the HTC Thunderbolt 4G to the Motorola Droid X2 can be had for the low price of entry.

Sources: Mac Rumors, Seeking Alpha



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Most people suck at math or don't care
By tayb on 10/20/2011 8:46:47 PM , Rating: 2
I think a lot of this may be parents getting their kids phones. It's old, cheap, and most likely easy to replace. I've heard this logic a lot of times from parents.

Also, a lot of people just flat out aren't good at math and can't figure out that $100 over two years is a small amount of money. These same people sign up for "cheap" cable television plans that end up costing them $12,000 after 10 years.




RE: Most people suck at math or don't care
By tayb on 10/20/2011 10:01:36 PM , Rating: 3
Also, just to clarify, Apple isn't giving these phones away. AT&T is giving these phones away. Apple will sell you an iPhone 3GS off contract for $375. AT&T is probably buying them a bit cheaper than that, however, which is why they're offering them for free.


RE: Most people suck at math or don't care
By Solandri on 10/21/2011 3:10:20 AM , Rating: 2
Alas, in the U.S. it makes little sense to buy phones off-contract. Only T-mobile will give you a discount on your monthly fee if you have an off-contract phone. The other carriers all charge you the same amount per month regardless of whether your phone is in-contract, out-of-contract, or off-contract. (Which should be illegal - I'm amazed the FTC hasn't taken them to task over it yet.)


RE: Most people suck at math or don't care
By Aikouka on 10/21/2011 8:19:43 AM , Rating: 2
I don't think that's possible, because AT&T and Verizon don't specifically spell out that their data and voice plans are where you "pay them back" for subsidizing your phone.

It makes sense to buy a phone off-contract if you're still on-contract for a previous upgrade. In the Apple world, phones tend to have high resale values. So it's possible to upgrade as long as you find someone else that is willing to purchase your old phone.


By heffeque on 10/21/2011 1:57:23 PM , Rating: 4
Look at this:

http://www.bob.at/smartbob

1000 minutes (incoming calls are free, unlike in the US) + 1000 SMS + 1000 MB = 9,9 €/month

Now go and wonder why phones in the US are so heavily subsidized.


By avxo on 10/23/2011 10:53:40 PM , Rating: 3
quote:
Only T-mobile will give you a discount on your monthly fee if you have an off-contract phone. The other carriers all charge you the same amount per month regardless of whether your phone is in-contract, out-of-contract, or off-contract. (Which should be illegal - I'm amazed the FTC hasn't taken them to task over it yet.)


Why should it be illegal? Why should an agency of the Federal Government be dictating contract terms between consenting parties? What sane, Constitutionally valid reason, is there for this?


RE: Most people suck at math or don't care
By tng on 10/21/2011 10:43:18 AM , Rating: 4
quote:
Also, a lot of people just flat out aren't good at math and can't figure out that $100 over two years is a small amount of money.


? It is still $100! I know the same people, me being one of them and I will take the free phone any day. The next time I need a new phone I will again take the free phone.

I have friends that are in that constant must have the newest upgrade cycle. They have spent thousands, literally, on phones. I use the same phones, one gen back and I spent nothing......


By Zoomer on 10/21/2011 1:35:43 PM , Rating: 3
And the $100/month is nothing. Geez.


Hmmmm.
By JazzMang on 10/20/2011 8:44:31 PM , Rating: 2
Thru Amazon, I'm not seeing the Bionic at 1 cent, as the article refers to.




RE: Hmmmm.
By Brandon Hill (blog) on 10/20/2011 8:51:33 PM , Rating: 2
That's because it's backordered now. At the time this was originally posted, it was still in stock for a penny.


RE: Hmmmm.
By seamonkey79 on 10/20/2011 10:11:59 PM , Rating: 2
My sister got, and loves, her Droid 3 for $0.01... I'm a bit jealous of her, as my Incredible finally started showing its age visibly to me when I messed with her phone a little bit...

Thankfully, February isn't that far away :-D


RE: Hmmmm.
By MDE on 10/20/2011 10:33:42 PM , Rating: 2
Was the penny price for new contracts only, or renewals too?


DUH!
By Dr of crap on 10/21/2011 8:55:26 AM , Rating: 2
Like I've been saying - IT'S a CELL phone.

I have not paid over $40 for a cell phone since I got my first and will not pay for these OVER priced new ones.

Glad to see others have the same thinking.
But go out and spend $400 or more for those iphones. I'm sure it's worth it!! NOT!




RE: DUH!
By xti on 10/21/2011 10:25:50 AM , Rating: 2
$40? wow...unclench. Joe's Crab shack costs more than that.


RE: DUH!
By name99 on 10/21/2011 2:45:55 PM , Rating: 4
"Like I've been saying - IT'S a CELL phone."

This may come as a surprise, but it's ACTUALLY a small computer. It can play movies and music, show maps, browse the web, retrieve your email, ...
Welcome to 2011.

But, hey, if you want to feel superior with your crappy Nokia from 2002 and T-9, go right ahead. You might want to take the time to also tell us how word-processing is a phase; and that pretty soon everyone will drop these new-fangled arabic numerals and go back to roman numerals.
Heck, why don't you do it right --- give us a rant about how ALL cell phones are stupid, that no-one needs a portable phone, and that we should all be using land-lines with rotary dialing?


"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki