3 ms·

There's a potential downside to this for Apple though: if they start allowing users to bypass carrier services, then the monthly cost of the service will start

by rewind 16y ago

There's a potential downside to this for Apple though: if they start allowing users to bypass carrier services, then the monthly cost of the service will start to go down as users use fewer features, but that also means Apple will get less of a subsidy from the carriers. Most people don't want to spend $700 on a mobile phone, so I'm sure they're not going to go out of their way to decrease carrier significance to any large extent.

drewcrawford 16y ago
> Most people don't want to spend $700 on a mobile phone Until quite recently, Apple hasn't been in the "most people want" business. Their marketshare has been going up, but I'm not convinced that they've totally changed direction from high-end. The carrier locking has always struck me as a bit of a detour. If you look at Jobs statements circa the original iPhone he's clearly aiming at crushing the subsidized market. They've experienced a setback since then, but I don't think they're defeated. The real story here is that all this time, we thought the renegotiations surrounding VOIP were about getting Skype et al in the app store. In reality, they probably really slipped terms in to allow Apple to do VOIP calling (even if it's only over WiFi, I doubt they were allowed to under the old noncompete clause...) Suddenly, AT&T's rapid reversal on iPad pricing makes sense. AT&T must have gotten wind of FaceTime.
raganwald 16y ago
The money comes from the end-user either way. So right now the difference is between paying $250 for an iPod Touch vs. $99 or more for an iPhone plus a contract of some kind that embeds the subsidy in the monthly fees. If Apple wants to offer iPod Touches for $25 or even free and recoup the cost through monthly fees, it can do so without the carriers by bundling them with MobileMe subscriptions or by offering Apple Credit Cards. Apple really doesn't need the telcos to offer financing to its customers.

by rewind 16y ago

drewcrawford 16y ago

> Most people don't want to spend $700 on a mobile phone Until quite recently, Apple hasn't been in the "most people want" business. Their marketshare has been going up, but I'm not convinced that they've totally changed direction from high-end. The carrier locking has always struck me as a bit of a detour. If you look at Jobs statements circa the original iPhone he's clearly aiming at crushing the subsidized market. They've experienced a setback since then, but I don't think they're defeated. The real story here is that all this time, we thought the renegotiations surrounding VOIP were about getting Skype et al in the app store. In reality, they probably really slipped terms in to allow Apple to do VOIP calling (even if it's only over WiFi, I doubt they were allowed to under the old noncompete clause...) Suddenly, AT&T's rapid reversal on iPad pricing makes sense. AT&T must have gotten wind of FaceTime.

raganwald 16y ago

The money comes from the end-user either way. So right now the difference is between paying $250 for an iPod Touch vs. $99 or more for an iPhone plus a contract of some kind that embeds the subsidy in the monthly fees. If Apple wants to offer iPod Touches for $25 or even free and recoup the cost through monthly fees, it can do so without the carriers by bundling them with MobileMe subscriptions or by offering Apple Credit Cards. Apple really doesn't need the telcos to offer financing to its customers.