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Iphone as cheap as chips

Price reduction no big thing
Thursday, 17 July 2008, 10:52

THOSE WONDERING how fruit themed toy-maker Apple managed to dramatically drop the price of its Iphone might want to have a look at the deals it did with its suppliers.

According to beancounters Isuppli, Apple cut more than $50 from manufacturing costs per unit since the first-generation phone made its debut last year.

It cost Apple $174.33 to make the 8GB model excluding software development, shipping and distribution, packaging, and miscellaneous accessories included with each phone. It is also shelling out $50 on IP royalties for all that innovation that 'Apple' invented.

Last year Issupli worked out that it cost $227 to make the old model.

Andrew Rassweiler, teardown services manager and principal analyst at the company said that the Iphone was more "cost-effective" than its 2G version. So in other words some of the bits are definitely much cheaper.

The cost of flash memory has also dropped substantially. ยต

L'Inq
News.com

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Cheap but not available to existing customers

After being informed by multiple marketing campaigns that O2 value their existing customers, it turns out not to be the case. The new iPhone is now only available to people buying new contracts. I think the message is pretty clear, despite their attempts to market the contrary.

posted by : Christopher, 17 July 2008 Complain about this comment
COMPLETELY AGREE

Completely agree with you. I signed up with o2 3 months ago when my contract with 3 ended so that, when the i-phone with 3g came out, I could get it. At the time when I signed up to o2, any existing customer could buy the i-phone(but when I signed up to o2 I knew a new i-phone was coming out so I didn't bother getting one. MORE FOOL ME FOR THINKING BEING AN EXISTING CUSTOMER WOULD MAKE IT EASIER TO GET AN I-PHONE. I'm disgusted by o2 and for apple for agreeing this contract. 

It's clear that this has been agreed for 3 reasons. 

1. o2 can bring in new customers - but sod the existing ones! 

2. They can retain any customers at the end of their contract who might be thinking of leaving, with the offer of a shiny new i-phone - but sod the existing customers! 

3. If it was sold in the apple shop, even at a higher price not on an o2 contract some little boffin would unlock it and use it on another network(shock horror and poor o2). 

Is it just me or does this feel like some sort of cohersion or restriction of trade?

And if you phone o2 to discuss the situation???

Well sir, you can have an i-phone......in 14 months when your contract runs out!

or 

Pay 400 quid to get yourself out of your existing one and then take out a new contract with the i-phone.

or

take out another contract with o2 and have two contracts running side by side. No thanks! 

Thank you o2 from the bottom of my heart for rewarding loyal customers with the offer of the latest i-phone.................................. next October!

posted by : John, 26 July 2008 Complain about this comment
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