I can't speak to the validity of these rumours, but there are always
rumours swirling around about Apple coming out with a lower end/cheaper
iPhoen, especially for specific geographic markets. I doubt they would
do this unless they start losing market share to other smart phone
providers.

On 16/02/13 08:25, Sieghard Weitzel wrote:
> Hi Dave,
> 
>  
> 
> I highly doubt that at least in the short to medium term Apple will
> suddenly start to sell a new iPhone for $399 or $499. Apple is one of
> the few companies who is actually making a good margin on their products
> meaning unlike Amazon which basically gives a Kindle Fire away at cost
> or even below cost to get people to use their service, Apple sells the
> iPad at a price where they make money. Keep in mind that if they sold an
> iPhone for a greatly reduced price, people would no longer buy an iPod
> Touch and would expect iPad and iPad Mini prices to come down as well. I
> somehow don’t forsee any changes in how big carriers do business and
> believe they will continue to offer contracts and subsidized phones.
> Keep in mind that a carrier like the one mentioned may offer an
> unlimited plan for $49 with no contract, but they will not give you a 16
> Gb iPhone 5 for $199, instead you have to pay $649 and buy one at full
> price. The math is easy: Over 2 years you spend 24 month times $49 a
> month = $1,176 + $649 for the iPhone which means a total of $1,825.
> 
> Now assume you are on contract and spend $80 a month, the total is 24
> times $80 = $1,920 + $199 for the phone = $2,119.
> 
> So, yes, the contract does cost you $294 more over 2 years given you do
> actually have a $80 plan, if you find one that is $70 which maybe gives
> you 2 Gig of data and limited voice, but maybe it’s all you need then
> the total would be $1,879 over 2 years which is only $64 more. For many
> people it’s easier to spend an extra $20 or $30 a months without having
> to come up with the high upfront cost. It’s really no different than any
> sort of financing, people buy all sorts of stuff they probably shouldn’t
> because they really don’t have the money so they finance it and pay
> every month and in the end if you add it all up you pay hundreds or even
> thousands more than had you saved up the money to buy an item outright.
> 
> And what I haven’t even thrown into the calculation is the fact that no
> matter if you buy the phone outright or on contract, it’s worth the same
> at the end of the 24 months if you sell it. However, if you paid $650
> for the phone, you are maybe more inclined to keep it for another year
> or so because you spend all that money for it and you would have to
> again spend the same to get a new phone. If you only paid $200 for it,
> you can probably sell it for that or very close to that since you can
> ask for an official unlock which makes it easy to sell the phone. Then
> your new phone is basically paid for by the old one.
> 
> I had bought both my iPhone 4 and 4S unlocked directly from Apple since
> here in Canada you can do this and you can get it right away at the
> release date in that way. However, now carriers here have to unlock your
> phone after 90 days and I think I heard this maybe changing to 30 days.
> This takes away one reason to buy an unlocked phone at full price which
> is the fact that if you travel and want to put in somebody elses SIM you
> have to have an unlocked phone. I think it makes sense and actually
> don’t see why carriers lock their phone at all, after all, the fact that
> they have to let you unlock it doesn’t mean you can get out of the
> contract. If you do that you still have to pay out the contract which
> menas essentially that you have to pay them back the amount they
> subsidized your phone for.
> 
>  
> 
>  
> 
> Regards,
> 
> Sieghard
> 
>  
> 
> *From:*[email protected] [mailto:[email protected]] *On
> Behalf Of *Dave Baker
> *Sent:* Saturday, February 16, 2013 1:34 AM
> *To:* [email protected]
> *Subject:* Re: A great new carier for your iPhone: unlimited everything
> $49 per month!
> 
>  
> 
>     Awesome, so they do this without a contract also. And they take
>     money off your bill when you get friends to sign up? I'm just glad
>     to see competition in the contract-free unlimited-data mobile space.
>     I especially think this is important for us using these recognition
>     and GPS apps. I rarely talk using my phone, but with family members
>     deployed in the Armed Services, i find it nice if they want to call
>     and can't use Skype for whatever reason, I don't have to worry about
>     it. Personally, I think there'll be a time when carriers find it in
>     their best business interest to ditch the contracts, and handset
>     manufacturers, including Apple, will find ways to bring costs down
>     without the subsidies. 
> 
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-- 
Christopher (CJ)
chaltain at Gmail

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