Apple is preparing a significant expansion of its iPhone sales capabilities in its official retail stores, according to sources. Late in August, many Apple Stores in the United States will kick off a pilot program for customers to be able to purchase a new iPhone via the latest carrier upgrade programs: AT&T Next, T-Mobile JUMP, and Verizon Edge. Currently, iPhones bought at Apple Stores must either be purchased on a two-year deal, or at full-price (unlocked) with no contract…
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 …
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
Verizon Wireless, once the gold standard for LTE, has admitted that it is struggling to keep up with demand in the big cities – with some users being dropped down to slower 3G speeds. The carrier’s Chief Financial Officer Fran Shammo said yesterday:
There are certain pockets where we’re absolutely going to experience that down tick from the LTE network down to 3G because of capacity constraints … Read more
There was a lot of confusion yesterday when Verizon’s results were discussed, with more than one commentator confusing activations and sales. For the record, what Verizon announced was that 51 percent of its activations were iPhone, not 51 percent of its phone sales.
If you doubt the importance of this distinction, I have one word for you: T-Mobile. As of 11th April, the carrier had two million iPhone activations. Its iPhone sales as of the same date? Zero: T-Mobile didn’t start selling iPhones until the following day.
The difference between the two numbers is particularly dramatic with high-end handsets like the iPhone … Read more
Walmart has announced that it will be offering both of the new iPhone models in their 16Gb versions, the 5c at $79 (a $20 saving) and the 5s at $189 (a $10 savings). Walmart offers the phones on Verizon, AT&T and Sprint.
What’s interesting here is that Apple Stores usually do price matching so it might be worth a try after waiting on line on launch day. Best Buy will also price match often, so this could trigger markdowns all over … Read more