Steve Jobs reality distortion field…
Technorati Tags: Apple iPhone 2.0
A good read from ZDNet on iPhone 3G – Apple’s reality distortion field redefines the phrase “half the price”
Here’s an extract from the article:
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Here’s the deal. An 8GB iPhone 3G costs $199. Sounds good so far. However, AT&T has added an extra $10 a month to the unlimited 3G monthly fees compared to EDGE, so over the 24 month period of the contract, that sets you back an extra $240.
$199 + $240 = $439
That’s a $40 increase compared to the price of the current iPhone.
…
“
The cost is now push to the operator… and your monthly subscription fees. 
Well, people will still flock to the iPhone regardless cos now, they can spread their cost for enjoyment over a 24 months period. Have fun now, worry later.
that’s exactly what I thought too, that the mobile operators would have a hefty subscription fee tied to the low costing iPhone. 16GB for around SGD400?! Surely they gave it more thought.
Your guesstimates may not be far off the mark.
Apple will sell alot more iPhones and still make a tidy profit with less emphasis on revenue sharing with Telcos. That way, Telcos earn more and are willing to bundle the iPhone with a data plan and they’ll happily charge more per month.
Wilfred
June 11, 2008 at 4:45 pm
You are right on that Wilfred.
Apple is a great company with great marketing focus. That’s the Steve Jobs reality distortion field as they called it.
Mike
June 12, 2008 at 3:51 am