iPhone sales could be threatened as subsidized costs become more visible, say analysts

iphones

How much did your iPhone cost? If you said $199, $299 or even $399 you’re somewhere near $350 off. As some consciously forget, the carriers often shield the owner from the real total cost of the iPhone. That may not last.

iPhone sales could be hurt as carriers switch from so-called subsidized contracts, where customers pay only a fraction of the cost a new iPhone up-front, to deals where the true cost of the phone is more visible, argues a piece in the WSJ.

Many U.S. iPhone customers are not aware that the full cost of an iPhone ranges from $549 for a 16GB 5c to $849 for a 64GB 5s. The reason is that carriers have traditionally asked for only $0 to $200 up-front, hiding the balance of the cost in the monthly tariff. With carriers now switching to separate instalment costs for the phone, and the cost of upgrading every year or two more visible to consumers, analysts believe some will choose to upgrade less often …

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Apple agrees to participate in “Smartphone Anti-Theft Voluntary Commitment” program

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Apple has agreed to back a new initiative along with a host of Android manufacturers and all of the major U.S. cellular carriers that would require all smartphones manufactured after July 2015 to come with specific anti-theft features. The program is the latest attempt to prevent theft of smartphones, which some have blamed for increasing crime rates.

To this end, Apple introduced a first-of-its-kind system in iOS 7 that blocks freshly-restored iPhones from being used until the original owner logs in with the Apple ID associated with the device. Today’s agreement between the carriers and handset manufacturers essentially states that all parties will ship this exact type of system on new phones.

Specifically, the required anti-theft measures are broken into four kinds:
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Leaked T-Mobile ad hints at plans to cover ETF for switchers

Say what you will about T-Mobile CEO John Legere’s audacious personality (no, really, I’m sure he won’t mind), but under his lead and the company’s Uncarrier campaign the carrier has made quite a few consumer-friendly moves with its policies.

In what the carrier is calling Uncarrier 4.0, the company is likely to announce plans to cover the early termination fees charged to customers switching from AT&T, Verizon, and Sprint during a contract.

That’s according to an ad which leaked and was later pulled. The ad (shown above) was first spotted by Droid-Life which reports the new policy will cover ETF fees up to $350 when you move at least three lines to T-Mobile… Read more

With T-Mobile? AT&T will give you $450 to switch … kind of

Photo: Fox

Photo: Fox

AT&T has announced incentives worth up to $450 for T-Mobile customers who switch to their service. The move is being made in response to T-Mobile’s Uncarrier offers, after AT&T recently said that it too expected to move toward separating device and service charges.

Proving the old adage that there’s no such thing as a free lunch, the deal of course comes with strings. First, $250 of that is the maximum you’ll receive in return for trading in your existing T-Mobile handset. To get the full $250, you’ll need a recent handset in good condition – in which case you’d almost certainly get more selling it privately …  Read more

Report: Sprint wants to buy T-Mobile USA in 2014

(via Flickr)

Almost two years to date since AT&T pulled its bid for T-Mobile USA, rival carrier Sprint is reportedly preparing its own offer to purchase the fourth largest carrier in the US.

That’s according to a The Wall Street Journal report which claims Sprint is currently looking into regulatory concerns that could be voiced if the third largest US carrier acquired the company which runs the fourth largest US carrier.

Sprint hasn’t yet decided whether to move ahead with a bid. Going forward despite regulators’ concerns would be highly risky. Any pursuit of a bid by Sprint could be aimed at testing antitrust officials’ reaction to a deal, and a bad reaction could put an end to the effort. Read more