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The iPhone is helping AT&T while hurting the phone company's competition

Even though the iPhone does not launch for 11 days, the hype surrounding the latest Apple gadget continues to explode.  More than 64 percent of American users and 56 percent of British mobile phone users have at least heard of the iPhone. 

While the iPhone will be an expensive product -- priced at $499 and $599 for the 4GB and 8GB model respectively-- and users will have to sign an exclusive contract with AT&T, many consumers seem unfazed.  According to a study done by M:Metrics, almost 1 in 10 mobile phone users in the United States have "a strong interest" in purchasing an iPhone.  Of the 11,064 people polled for the study, 67 percent are subscribers of a service besides AT&T. 

Further research suggests that as many as 19 million Americans are interested in purchasing an iPhone.

"This is an early indication that AT&T's strategy to use the device to lure customers from competitors could play off," said Mark Donovan, M:Metrics senior analyst.

Analysts also expect AT&T iPhone users will spend an additional $20 per month on data service charges that average AT&T subscribers do not use.

Apple and AT&T have an exclusive agreement for at five years, meaning people wanting the iPhone will be forced to use AT&T.  Analysts expect T-Mobile and Sprint Nextel to be hurt most by the deal.

Apple plans to have up to 3 million iPhones for the scheduled launch on June 29.



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I dont know....
By swtethan on 6/18/2007 1:57:07 AM , Rating: 3
Who here has spent over $300 for a phone?

also... my phones only last like... a year




RE: I dont know....
By awer26 on 6/18/2007 2:03:27 AM , Rating: 2
I spent $400 on my Cingular/HTC 8525 and don't regret it for a moment. I was carrying around a Dell Axim and a phone, plus my wallet, keys, random crap etc and ran out of pockets! Consolidating the PDA and phone was a great choice and the 8525 has all the features I would want or need.


RE: I dont know....
By aurareturn on 6/18/2007 2:05:16 AM , Rating: 5
I really hate the hype surrounding it. The iPhone is the definition of consumerism. Do you really need an iPhone to be happy? Spending $600 for a phone when you can easily get a free one and get the job done? Why not save the $600 for college or buy something nice for your wife/family/mom?

People need think hard and make the right decision, especially those who aren't loaded with money.


RE: I dont know....
By jpcesar on 6/18/2007 7:23:25 AM , Rating: 2
wise and perceptive comment.


RE: I dont know....
By BillyBatson on 6/18/2007 9:00:07 AM , Rating: 2
It's not about needing it to be happy. To some including myself the free phones don't cut it. They are often crap quality, don't last as long, don't offer nearly as many features including simple things like a larger screen, and if you ever owned one of those free phones and a $300+ phone you'll quickly notice the more expensice phone you paid for has better reception and call quality most of the time.
For people like me the iphone is something we want because of the design, the new interface which is just a giant screen, the online options having such a large screen, and the fact that it would definitely replace my ipod completely which means 1 less item to carry around with me. Sure I do not like the price but I understand that it is priced correctly.
IF I were with Cingular I would be buying it within a month of release but alas I am with Spring and will be stinking with them with my Samsung UpStage.


RE: I dont know....
By omnicronx on 6/18/2007 10:10:47 AM , Rating: 1
you make a lot of assumptions based on nothing, you have no idea what this phone will be like. All you know is its a nice sexy looking phone with a crazy touch screen and a built in mp3 player.. what you dont know is will they break easily, is the signal crap, is your nice touchscreen gonna get scratched to shit in 30 days? etc etc.. you just dont know..

please dont make this phone out to be king before it comes out.. because for all you know it could shit the bed for being a crap product..

Just look at all the broken ipods, especially in the first gen.. and that was just an mp3 player ;)


RE: I dont know....
By michael2k on 6/18/2007 2:06:58 PM , Rating: 1
You bring up the iPod... you do realize that the iPod has been successful, right? So in comparing to the iPod you also have to acknowledge that the iPhone could be as successful as the iPod as well.


RE: I dont know....
By omnicronx on 6/18/2007 2:17:08 PM , Rating: 3
i think your logic is flawed.. by your logic i can mix anything successful mixed with something else and it will also be successful.. well unfortunately things don't always work that way.. (fish is good.. so is chocolate but it doesnt mean you can mix the two and have it taste good.. unless thats your thing ;) )

and i was only pointing out the flaws in first generation products.. especially ipods.. one example ill leave you with is battery life.. how do you power a phone for more than a day when you use it as your mp3 player.. and with a battery thats not removable i can see problems arising.

im not gonna have a verdict on the iphone until i see it in action.. thats all im saying


RE: I dont know....
By michael2k on 6/18/2007 3:31:36 PM , Rating: 2
Explain the flaw with bettery life?

I bought a 1st gen iPod in 2001 for my birthday. Claimed it had 10 hours of battery but I routinely got 12 hours. Hmm, how do I charge it? Let's see, I plug it in!

My phone, now, I need to charge every three days.

So if the iPhone claims 10 day standby but really has 5 day, it will be a huge improvement over my current phone; where is the drawback?

You just plug in the charger for the iPhone every couple of days, and you have no problems. It worked for all 100m iPods, I fail to see where the problem will be with the iPhone.


RE: I dont know....
By dankim333 on 6/18/2007 10:21:33 PM , Rating: 2
I BELIEVE what he/she was trying to say was that there is an awful large load being placed on an all in one product with no ability to easily change its battery. What we don't know right now is how well it is gonna stand up to a "real world" test. i.e. 3-4 hours of wifi or 3G (oh wait, no 3G... 2.5G... whatever)surfing while playing music almost continuously through your bluetooth headphones while prank calling/ordering starbucks using google maps... Oh, and perhaps take a call every now and then. ;-) These tasks in and of itself aren't that big of a deal, except for the fact that most phones in this form factor with these capabilities have less than steller battery life. Pidgeonhole that with a nonreplaceable battery, and yeah. There is *some* reason to worry there.

No, we don't know how it's gonna fare right now because apple is very scant on information right now. It will certainly be interesting to see how it pans out. I personally think $500 for a phone is more than a fair price for this type of capability--it does a few things quite right. AAAAND more than a handful of things wrong to where i wouldn't touch it with a 10 foot pole. (i.e. no developers w/o apple scrutiny? battery? no 3G?)

It shore is purdy tho.


RE: I dont know....
By Lazarus Dark on 6/18/2007 5:50:44 PM , Rating: 2
quote:
fish is good.. so is chocolate but it doesnt mean you can mix the two and have it taste good.. unless thats your thing

Quote of teh year.


RE: I dont know....
By masher2 (blog) on 6/18/2007 10:14:42 AM , Rating: 4
> "Why not save the $600 for college or buy something nice for your wife/family/mom..."

What if you've already done all the above? Or what if the iPhone being bought IS a "something nice" for a wife, mother, or other family member?

I don't advocate the phone for someone scraping to pay the rent, but many people have far more disposable income than a $499 or $599 phone requires.


RE: I dont know....
By Hare on 6/18/2007 10:29:35 AM , Rating: 4
Thank you! You hit the nail in the head.

I would just like to add something:
quote:
Spending $600 for a phone when you can easily get a free one and get the job done?


What if I said the same thing about cars, you would call me a moron. You could easily get from place a to b with a cheap small car. Why do people buy expensive cars? Because some people want to travel comfortably and/or want high performance. Some even buy a specific car because they want it to represent themselves. Why eat a nice tasty steak when you could just boil some rice and sleep in a cave?


RE: I dont know....
By crystal clear on 6/19/2007 1:50:09 AM , Rating: 2
quote:
What if you've already done all the above? Or what if the iPhone being bought IS a "something nice" for a wife, mother, or other family member?


"something nice" for a wife, mother, would be crystal clear diamond/s .

Diamonds are a women's best friend & Diamonds are forever,

& NOT an iPhone.

iPhone is for kids to show off at school !
"Back to school buying season is about to start"


RE: I dont know....
By akugami on 6/18/2007 4:39:27 PM , Rating: 2
Well...I spent $400 on my phone and my cousin spent about $650...my brother has spent $1000 on a phone back in the day though nothing over $300 recently. Nokia for one does a pretty darn good business on expensive phones so I would say the market is there. Sony Ericsson, Motorola and Samsung among others have these $400 and up phones for sale.

Consumerism or not, the market is indeed there. And that is why I believe the iPhone will be successful. Couple a seemingly decent phone, especially if the battery life claims hold true, with a little hype and marketing along with Apple's currently good name in the consumer market and you have a product that is more likely to succeed than fail.

I for one am not buying it. My next phone purchase will be in another year. Probably when the iPhone 2.0 comes out.

The biggest obstacle IMHO is battery life. I want a device that can play a full length movie (2-3 hours) play audio for another 4 hours, browse the web for 1 hour and still have enough juice for an hour of talk time. All these fancy smart phones, of which I own one, with their fancy features and half of the features can't be used due to insufficient battery life.

Take Wifi on phones. Wifi on phones are a great idea but bad due to poor battery life. My phone dies in an hour of web browsing over my wifi network. I did it twice to test it out. The experience was not bad, it's just that the wifi component sucked so much power that it was not worth the effort.


RE: I dont know....
By Visk on 6/18/2007 9:44:08 PM , Rating: 2
quote:
Why not save the $600 for college or buy something nice for your wife/family/mom?


...like an iPhone!


RE: I dont know....
By dude on 6/18/2007 2:46:08 AM , Rating: 3
Last year, I got my GF a Sony K800, which was $480 at the time. I also got one too.

A few months ago, she wanted the Nokia 8801, or whatever model it was, but she wanted the black edition, which was $600. Yep, she got it.

The most I've spent on a phone was $900, which was awhile ago on a nokia. My buddy got the Nokia 8800 late last year for $1100. Too rich for me.

To tell you the truth, I didn't and never needed so much in a phone, as I only use it to make calls, text msg sometimes, and set the alarm to go off at certain times, and bluetooth. The rest, like the camera, I haven't used in months!

Of course, if I can find the iphone without contract, I will probably buy it, as long as it cost less than $600-700 bucks.

Same thing, I will not need all the features, but I will probably want it for the "coolness" factor, which will probably wear off after a month or two. Hell, why not enjoy life, even if it is a stupid waste of money?


RE: I dont know....
By xsilver on 6/18/2007 4:25:49 AM , Rating: 2
dont know why you got modded down mate - maybe you sound a bit pompous with your money?

but there are heaps of people that I know that are exactly the same - they have the most bling phones but dont know how to use them and only have it to show off.

when this phone is released in another country - we'll truly see the popularity of the phone. Through sales on ebay and without attachment to at&t.
Personally I dont see it as much more than your standard pda phone with a 4gb or 8gb nano attached.
that is really going to kill your battery, most likly not even getting 1 day use out of it if you're going to put mp3's on it.


RE: I dont know....
By BMFPitt on 6/18/2007 6:43:29 AM , Rating: 2
The Apple/AT&T marketing team has a picture of you in the powerpoint slides at their meetings. You are their target market.

But there aren't very many of you, which is why the iPhone will flop in sales (at least as compared to its hype.)


RE: I dont know....
By spluurfg on 6/18/2007 3:11:39 AM , Rating: 3
K700, K750, K800, N73 when they came out. I only had to pay for the K800, since I got it without a contract. The rest were free with contract. $500 with a 2 year contract is insane -- you can get any phone you want free with an 18 month contract in the UK, including the stupid LG Prada, the 8800 Sirocco, any Blackberry ever made, HTC/T-mobile/O2 PDA phone... Heck they even offer a free phone plus a free PS3 with some contracts.


RE: I dont know....
By xsilver on 6/18/2007 6:07:35 AM , Rating: 2
its the same here in Australia - the US system is probably a bit stuffed.

24months contract + $50 AU (40US) per month (including $50 free calls) = pretty much any phone free N73,E65, LG shine etc.
This would probably only exclude the N95 and phones in that price range. On around a $90 plan though it would be free.

at the end of the contract - sell the phone and pocket the $$$.


RE: I dont know....
By Ralph The Magician on 6/18/2007 10:14:43 AM , Rating: 2
lol

You really think that phone is free? By the time the contract is over you've already payed for the phone, and then some. Of that $50AU you spend a month, $15AU is going to paying off your phone.


RE: I dont know....
By ss284 on 6/18/2007 12:03:20 PM , Rating: 1
lol

The Iphone is $600 with a contract, so that ~$15 a month is going toward paying off the other part of the phone, for a total of roughly $1000 for an phone, compared to roughly $400 for a "free" phone. Still a $600 difference.


RE: I dont know....
By plewis00 on 6/19/2007 1:51:23 AM , Rating: 2
The UK phone market is non-representative. It is one of the few sectors where the UK is one of the cheapest in the world. Because of the way we in the UK embraced phone technology, subsidies on the handsets are some of the largest anywhere (if not the largest) - dealers are paid huge commissions for connecting and keeping customers, networks pay lots of commission because there is loyalty and the additional features are used and manufacturers strike up dealer/network exclusivity deals all the time (but not for 5 years, about the largest one I've heard was 1 month for Carphonewarehouse on the new Nokia 8600 Luna before Phones4u and the rest get it). You can even get 12 month contracts with 12 months free cashback (what I suppose the American market would call, 100% free after rebates). I realised all this after reading about the iPhone, yes, it is expensive but you cannot compare the US phone market to the UK one.


RE: I dont know....
By Ralph The Magician on 6/18/2007 10:11:01 AM , Rating: 2
Most people.

Just because you get a phone for "free" doesn't mean you actually got it for free. That's why you have to sign a 2-year contract. You pay $15 a month for that phone and you don't even realize it.


RE: I dont know....
By Oregonian2 on 6/18/2007 3:01:56 PM , Rating: 2
Our previous contract (to the one we just signed) was a 1-year contract to Verizon. Our monthly payments were only $15/month so I suspect the amount for the phone was less than that. That phone mostly only worked as a phone though. Radical.


RE: I dont know....
By Hare on 6/18/2007 10:16:33 AM , Rating: 3
Seriously... That's like asking "who here has a mercedes" or "how here has a thinkpad"? Many people have high cost or even luxury items or simply costly business tools.

Apple isn't trying to sell this phone to every single consumer (that's what the later iPhone nano is for :P ) and every one has a choice. What's wrong with Apple's approach? Does everything have to be cheap and crappy? Are competitors offering better devices at a lower cost?

I know many people with >400€ phones including many who own a Nokia Communicator (E90) and that's 800€. Some people actually have the money to spend and some even use their phones as tools. I personally have a 400€ phone and think it was definately worth the money. Btw. those prices were just for the phones no operator deals.

In a nutshell. If you want a simple phone for just calls and sms' get something else. If you want the best user experiance currently out there, cool tech or even just a fashion item, get the iPhone.


RE: I dont know....
By TheDoc9 on 6/18/2007 11:04:53 AM , Rating: 2
with so much hype, this thing is going to be fantastic. The only way it can go it down.


RE: I dont know....
By darkpaw on 6/18/2007 11:14:21 AM , Rating: 2
The more something is hyped up, typically the more it sucks.


RE: I dont know....
By WileCoyote on 6/18/2007 11:14:35 AM , Rating: 2
quote:
Who here has spent over $300 for a phone?


I have - 3 times. I'm not bragging because the phones were junk, each lasted about a year and a half, and were bulky as heck. But that's the price you pay when you need a qwerty keyboard or equivalent touchscreen, a good calendar/reminder system, and a web browser that works with most sites.

I'm looking forward to the iphone since it means I get all that but now I don't have to put up with the stress caused by MS Windows Mobile (POS OS).

My 2 cents on why they released Safari for Windows - so more websites will be tweaked to work properly with Safari which allows the browser on the iphone to work with more sites.


RE: I dont know....
By ToeCutter on 6/18/2007 7:10:37 PM , Rating: 2
quote:
I'm looking forward to the iphone since it means I get all that but now I don't have to put up with the stress caused by MS Windows Mobile (POS OS).


ROGER THAT!

How sad is it that one has to setup a shortcut to manually kill off running processes on the Q with WM5?

And that's with a measily 5 or 6 third party apps installed.

Almost makes me long for the days of single-tasking with Palm OS (well, almost, but not quite ;-)

I'm curious to know how many soon-to-be-iPhone users out there are gonna switch not because they want an iPhone, but because they are fed up with WM5 and its frequent crashes/lockups/resource-hogging...


RE: I dont know....
By Oregonian2 on 6/18/2007 2:59:20 PM , Rating: 2
Wife and I each paid a lot more than that once for analog StarTAC phones a long long time ago. Never again though. We just got a couple new unlocked KRZR's for about $180 each, and that's probably around tops that we would go now.


RE: I dont know....
By ToeCutter on 6/18/2007 7:03:40 PM , Rating: 2
quote:
Who here has spent over $300 for a phone?


Just about anyone who has upgraded mid-contract has probably paid far more than 300 bones for a phone.

Even the Moto Q, which close to free with a 2 year goes for $419 retail.

I have had excellent luck signing up month to month then rotating phones every 9-12 months on eBay. It's a far cheaper proposition if you upgrade frequently AND keep your phones looking pristine.

You can damn near break even if you package a few accessories and maintain good feedback.


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