IT PRO: Blogs: Nicole Kobie: NEWSFLASH: iPhone 3G S to cost lots

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NEWSFLASH: iPhone 3G S to cost lots

Posted in Uncategorized on June 10, 2009 at 1:07 pm

Apple unveiled its third-gen iPhone on Monday — the weirdly named 3G S — and the day after O2 revealed its pricing… and then a bunch of Apple fan-boys and -girls curled up into the fetal position in tears, sobbing hysterically.

It seems that O2 will not let owners of the second-gen iPhone get out of their contract early, not without paying off their contract first. For any “early adopters” (how can you be an early adopter of a phone that hit wide availability for everyone on the same day?) that means they could have six or seven months to pay off, in order to get the new 3G S.

At £35+ a month for contracts, that is a lot of cash. But if they don’t pay it, they’ll have to wait those months out — and this is much, much worse — with their entirely useless year-old phone.

On top of that, O2 hasn’t slashed prices. Between the first gen and the second gen of the iPhone, O2 cut prices rather dramatically. This hasn’t happened this time around; indeed, some versions of the phone are even more expensive than last year’s.

The shock. The horror. I’m practically in tears as I write this. Who would have ever imagined such terror — that an expensive, top-end phone would be expensive to re-buy every single damn year.

Here’s a tip: wait six months. I know, I know, it’ll mean you’re not the coolest kid on the block. But if you just bought one last year, why do you need a new one? You don’t. You’re just buying into the hype. Calm down.

And yes, it is an expensive phone. Apple must be crazy to launch with such prices in the middle of a recession, and O2 isn’t being generous… but then, why would they? They’re a company with a bottom line, not your mom who just wants you to be happy.

So grow up, and stop moaning about the iPhone pricing. There’s a better tactic, in fact. Just don’t buy it. If the silly gadgets sit on the shelf long enough, they’ll be discounted — and if you’re lucky, it’ll be just as your O2 contract is coming up, too…

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Comments

Pingback by IT PRO: Blogs: Benny Har-Even: http://www.itpro.co.uk/610982/o2-to-get-palm-pre-exclusivity-in-uk - June 10, 2009 on 3:24 pm

[…] ohmygod- the prices! Nicole has already let rip at those crying into their milk at the fact that they won’t be able to upgrade without paying […]

Comment by John - June 11, 2009 on 12:06 pm

You didn’t bother to actually think the crux of your entire article though did you?

Say I wait six months and buy in december, then there’ll be a new iPhone in june 2010 and my contract will run till june 2011

It’s a lose/lose.

Comment by Nicole - June 11, 2009 on 1:05 pm

Fair point, John. Or you could just not buy a new phone every single year. Upgrading annually is expensive, you can’t really be surprised by that?

Comment by Darren - June 12, 2009 on 8:13 am

This is precisely the reason I went PAYG with the iPhone 3G. There is an initial high outlay but it is a more flexible option. I can upgrade to the 3Gs and make my girlfriend very happy for a similar price to the iPhone 3G.

Comment by n97boy - June 12, 2009 on 10:02 am

Well, it’s not as expensive as the N97 that I’m getting (OK, I admit it, I’ll be on an 18 month lock-in contract).

In terms of the cost - making it a high ticket item initially will help offset the huge marketing cost that Apple will have had to spend to grab people’s attention - don’t forget, the new Samnsung Omnia & the Nokia N97, also heavyweight smartphones, are being released roughly at the same time, so whoever shouts loudest out of the 3 companies will certainly end up benefitting more.

..but, as you’re article is alluding to, iPhone lovers might argue that Apple doesn’t need to do much more, as it already has hungry buyers, so why slap them with such restrictive measures.

Maybe I’m wrong, but it’s probably O2 that’s trying to take a big slice of the cake that’s really causing the problems. Economically, you can go for volume at a lower proce, or make the device a high ticket item & sell less units initially…I can only guess what O2 & Apple must’ve agree on behind the scenes…..

n97boy
http://n97mobile.co.uk

Comment by Kevin Davis - June 12, 2009 on 4:36 pm

I have 3 words for O2:
Twelve Month Contract.

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