The new 3G iPhone\'s game plan... 199 $ ???
The new Apple iPhone 3G has changed the game plan for AT&T. AT&T is still the exclusive carrier in the U.S. and the iPhone comes with a 2-year plan, but AT&T will no longer be sharing subscription revenues with Apple. Instead, it would pay it upfront and offer the iPhone with a subsidy at an attractive $199 for the 8GB model, and $299 for the 16GB version. Based on data released by AT&T, Apple will no longer receive a cut in carrier subscription revenue for iPhone 3G.
For first generation iPhones, that amounted to $10 per iPhone per month, or about $240 over the 2-year contract. Instead, AT&T is subsidizing iPhone purchases, presumably paying Apple about the same amount on the day of purchase. So who cares? Well, Apple and AT&T investors do: despite charging $10 more per month for the iPhone 3G data service, AT&T will take a hit of about $600 million annually over the next two years, all of which presumably will show up on Apple\'s balance sheet due to subsidies. Note carefully: this does not mean that Apple is discontinuing its accounting for iPhone sales prices over 24 months -- it simply means that it isn\'t getting monthly payments from the carriers for iPhone 3Gs. The original iPhone subscription payments will continue for the full two years.
In-store activation is now required in the US. AT&T has forced in-store activation of the phone, presumably to ensure that it earns back its iPhone subsidies from subscriptions. Expect that Apple will no longer sell its phone online through the Apple Store.
For first generation iPhones, that amounted to $10 per iPhone per month, or about $240 over the 2-year contract. Instead, AT&T is subsidizing iPhone purchases, presumably paying Apple about the same amount on the day of purchase. So who cares? Well, Apple and AT&T investors do: despite charging $10 more per month for the iPhone 3G data service, AT&T will take a hit of about $600 million annually over the next two years, all of which presumably will show up on Apple\'s balance sheet due to subsidies. Note carefully: this does not mean that Apple is discontinuing its accounting for iPhone sales prices over 24 months -- it simply means that it isn\'t getting monthly payments from the carriers for iPhone 3Gs. The original iPhone subscription payments will continue for the full two years.
In-store activation is now required in the US. AT&T has forced in-store activation of the phone, presumably to ensure that it earns back its iPhone subsidies from subscriptions. Expect that Apple will no longer sell its phone online through the Apple Store.
The new 3G iPhone does have GPS, photo geo-tagging and multi-mode, location-based services available. While simple GPS doesn\'t work well in the shadows of buildings in cities, the 3G iPhone integrates multiple sources of location information - cell tower triangulation, WIFI network triangulation, and GPS - into its location service. The result: the iPhone\'s location services may actually be better and more reliable than those you get from your average Garmin or Tom-Tom personal navigation system, simply because it will work in more places. Location-based software expected to become increasingly popular. One step toward personal GPS devices.
As you all have noticed iPhone is not just a consumer device, but is Apple\'s third big developer platform, following the Mac and the iPod.
Further Apple pushes the delivery of the new iPhone in 72 countries, it seems to have gotten overly enthusiastic in countries like Romania, Portugal, Austria, Italy, and Australia, some of them has gotten two carriers offering the new 3G iPhone. So much for exclusive carrier deals.
As you all have noticed iPhone is not just a consumer device, but is Apple\'s third big developer platform, following the Mac and the iPod.
Further Apple pushes the delivery of the new iPhone in 72 countries, it seems to have gotten overly enthusiastic in countries like Romania, Portugal, Austria, Italy, and Australia, some of them has gotten two carriers offering the new 3G iPhone. So much for exclusive carrier deals.
The iPhone 3G will go on sale at 8 a.m. local time July 11.
AT&T Inc. said Tuesday that it will offer customers Apple Inc.'s new iPhone without requiring a two-year contractif they're willing to pay an additional $400.
AT&T said the no-contract iPhones will sell for $599 or $699, depending on storage capacity, and will be available sometime "in the future."