Free Runner price vs iphone 3G price - Things clear

Robert Taylor subscribers at
Wed Jun 11 05:31:28 CEST 2008

Carsten Haitzler (The Rasterman) wrote:
> not so simple. i think he business plan is changing because before this
> happened with the 1st iphone. people could buy without contract. it was assumed
> that the phone lock would force people to get a contract anyway and apple bore
> the risk by losing out on their cut of the carrier's revenue (at&t). so they
> sold it at $399 or $499 etc. and din't get any money from at&t after that.
> now it changes with the 3g iphone. you must sign up when you buy. sure - you
> can now take that phone, unlock it, re-sell it, but you are stuck with a
> contract you must keep paying for... with no phone to use on that contract
> unless you buy another phone - outright. there will be contract termination
> clauses if you want to cancel then and this will help cover the subsidy - of
> not completely cover it and then some.
> sure - some (a very few) phones will somehow be smuggled from the factory or
> from shipments before they get to an apple or at&t or other carrier store, and
> some may be sold "under the counter" without contract - but i guarantee that
> that likely is a business losing proposition for anyone as they get a rebate
> once they sign you on a contract. selling without a contract will mean hey have
> to jack up the price to cover the lost rebate money.
> as such - legal, legitimate and easy to get 3g iphones WITHOUT contract are
> going to be much more than $199.
Precisely.  And if you want to quit your contract you will pay A FEE 
that will make your phone far more expensive than $600.

I wish people would stop saying nonsense.

It really doesn't matter if you unlock the phone or not, the person that 
bought it will end up paying the full retail price of it no matter what, 
quitting contract or not quitting contract.

To sign the contract is to agree to finance the retail cost of the v.2.0.

You will not be seeing 2.0 versions on ebay for $199 that are legit.  
Those that aren't legit are either stolen, knockoffs or refurbished, in 
which case who gives a damn, they are stolen, knockoffs or refurbished 
and not in competition.

The math simply doesn't add up fellas.

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