Free Runner price vs iphone 3G price

[Ortwin Regel]

Your calculations may well be correct for the awful situation in the
USA. In other parts of the world, this is drastically different!
Please keep that in mind.

Ortwin

On 6/11/08, ian douglas <ian.douglas at iandouglas.com> wrote:
> Robert Taylor wrote:
>> Just compare equal things.
>
> We'll have to agree to disagree on the definition of "equal".
>
> Hear me out:
>
> By my calculations below, a consumer buying an iPhone or a Freerunner,
> and using AT&T for a voice/data plan, is going to spend about $2600 over
> two years no matter which phone they buy.
>
> Jorge's original posting in this thread said the following:
>  > the new iPhone 3G price was announced, and the 8 Gigas version will
>  > cost only $199 USD
> and
>  > now the FreeRunner is less competitive than the iPhone in terms
>  > of price.
>
> He was asking about straight out-of-pocket expense, not about subsidies.
> The end consumer is only going to see the price tag on the phone itself.
>
> The consumer will look at the iPhone and see a price of $199.
> Then they'll look at the Freerunner and see a price tag of $399.
>
> If they choose the $199 iPhone, they get locked into a two year
> contract, likely paying $100 per month for a voice/data plan. Over 24
> months, their total cost is going to be about $2600.
>
> If they choose the $399 Freerunner, they aren't locked into a minimum 2
> year contract, but they'll still need monthly service for the same
> 24-month period. As I mentioned in a previous message, a plain
> voice/data plan with AT&T is still going to cost $90 or more depending
> on the plan you pick. After 24 months, they've still paid $2600.
>
> That looks pretty 'equal' to me, and *I* believe the average consumer
> will feel the same way. If you don't agree with that, then you and I
> simply don't agree on it, but that still doesn't warrant calling
> someone's communication "nonsense" simply because you don't agree with them.
>
> The Freerunner would perhaps be cheaper if the consumer buys "pay as you
> go" minutes/data instead of a monthly plan.
> The Freerunner would *definitely* be cheaper if they buy the iPhone and
> start buying applications through iTunes for their phone.
>
>> If you want to compare the total cost, compare the total cost of buying
>> the new iphone UNLOCKED at retail cost (you can't) plus the data package
>> and THEN we can talk.
>
> But the consumer isn't asked to pay the full unlocked price of the
> iPhone. Just because AT&T subsidizes the phone by lessening the profit
> they make on the $100/month you'll pay them for using their service, the
> consumer isn't paying "more" for the phone since they'd still have to
> pay for the same voice/data service to use a Freerunner. It just means
> AT&T makes more profit on the voice/data plan because they haven't
> subsidized anything.
>
> And you still haven't followed up with how you calculated the iPhone to
> cost 'twice' as much as the Freerunner.
>
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