Comments on: who would thunk the gray lady . . .

By: double d

double d — Mon, 02 Jul 2007 15:14:27 +0000

Just a brief update…First weekend, Apple sells 525,000 units with 95% being the $599.99 model. Overall sales for ONE weekend on equipment only = $430,550,000.

Initial surveying indicates that 52% of iPhone purchasers are new to AT&T service.

I’d say the “exclusive” strategy is pretty successful.

By: brc

brc — Fri, 29 Jun 2007 21:20:13 +0000

I’m a Mac-girl through and through. My iBook and my iPod go everywhere with me. But I really don’t think I need an iPhone. I’m still trying to find a cell phone that’s just a phone. I can see the appeal, but I’m just not a gadget-girl like Shrew.

By: Shrewspeaks

Shrewspeaks — Fri, 29 Jun 2007 21:12:35 +0000

Yeah…don’t make fun of my ghetto-rific cell phone

By: double d

double d — Fri, 29 Jun 2007 20:44:36 +0000

Sanyo? Wow.

By: double d

double d — Fri, 29 Jun 2007 20:27:10 +0000

About 30%…But, remember…the iPhone (at $499.99) isn’t “made” for everyone. It’s all about the “target”.

In reality, Apple knows exactly who their market is and it’s mostly those who aren’t as “tied” to a carrier as they are the device. The exclusive allows for a co-op revenue sharing where Apple can not only make money from selling their devices but I’m sure that AT &T is paying a healthy “subsidy” for their exclusive. This is worth it for them, however, as it is the one thing that will cause people to defect from their current provider and switch to AT&T, as most users don’t understand the crappiness of the service and will switch for the iPhone “privaledge”. Really…how many people absolutely WON’T switch to AT&T if they are a i-phile?

I didn’t say that Apple will NEVER open it up to other providers, but for now they are smart to keep it exclusive…they’ll make more money at a higher price point and “buzz”, then if everyone offers the device and starts giving it away in competition. Their product is then de-valued and lost in shuffle, becoming no more enticing than the Treo’ or Blackberry.

Lefsetz weighs in with his thoughts.

He references the beautiful iPhone Guided Tour from Apple. It’s hypnotic.

By: Shrewspeaks

Shrewspeaks — Fri, 29 Jun 2007 20:27:10 +0000

(Holding up my two year agreement that turns on July 1) I refuse to give up the bonus I have with Sprint dagnabitt!

But considering I don’t even have a camera in my current phone…I guess I can wait two more years to see what Sprint and Sanyo come up with to compete.

By: Shelley

Shelley — Fri, 29 Jun 2007 19:57:16 +0000

so you honestly think apple will be shutting out those NOT willing to switch to cingular?

that’s crazy in my mind.

what exactly constitutes “the lion’s share of the cellular market”?

By: double d

double d — Fri, 29 Jun 2007 19:52:14 +0000

AT&T/Cingular holds the lion’s share of the cellular market and the “exclusive” allows them to (both Apple and AT&T) to set the price point. Shouter is astute in his assertion that Apple won’t expand to multiple carriers. That will only dilute the pricing. With the MINIMUM plan at $59.99 (not including iTunes purchases), there’s simply too much denero at stake to let others in.

What WILL be interesting to watch is Microsoft’s attempt to counter and who they line up with (my money’s on Verizon). For the record, 2nd and 3rd generation is always the more prudent investment/purchase. Bugs are worked out, price point will adjust to more long-term levels, and availability & servicing is more readily available.

By: Shelley

Shelley — Fri, 29 Jun 2007 19:21:14 +0000

i meant…they allow for PC software on their machines.

but i guess both kind of apply

By: Shelley

Shelley — Fri, 29 Jun 2007 19:19:28 +0000

well…they may be all about the “lock in” but it’d be foolish to lock out extra revenue.

i can’t imagine them keeping to one service provider.

afterall…they make Mac software available for PC users. and where would they be if they only sold iPods to Apple geeks?