At 14 Jul 2007 08:42:55 -0400 George wrote:

> Just think of the interesting precedent that was just set with the
> iphone. If you want it you need to buy it outright. If you want to
> use it you must sign a two year contract with ATT.

That's a pretty unsustainable precedent, however. Apple and AT&T were
able to leverage a "perfect storm" of silence, mystery, and media
coverage to make the whole "experience" unprecedented. The at-home
activation was simply adding to the "this is like no other phone" hype-
kind of like why Toyota put push-button starters on the Prius- to hit you
over the head with the "this isn't a regular car" message.

We don't know how subsidized or unsubsidized the iPhone is, since there's
no "no-contact" price to compare it to.

Even buy-off-the-shelf prepaid phones are subsidized these days- desite
advances in technology and manufacturing, you still can't assemble,
package and sell a Nokia 6030, for example, for the $29 I can buy one for
at Walmart. The phone is sold pre-subsidized on the assumption it'll be
activated, with reasonable safeguards to protect the carrier and
"encourage" the buyer to use it only as intended (i.e. it comes locked,
includes free airtime, etc.)

Perhaps iPhone is sold the same way as a GoPhone: $499/$599 IS the
"subsidized price" and reasonable safeguards insure it's activation: it's
locked, and it's useless as a phone, iPod or web tablet until activated.




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