Monday, June 23, 2008

AT&T Blows

Since this has turned into an iPhone 3G blog, here goes:

AT&T just shot themselves in their collective feet. Steve Jobs was brilliant at being able to market the new iPhone at $199. Wait for it... with a small subsidy from AT&T. Nobody knows how much exactly, but I think we're about to find out. Why, you ask? I just got an email reply from AT&T stating that 'regular upgrade eligibility requirements' will apply to iPhone 3G purchases. What does that mean? If you haven't had your current AT&T phone for at least 2 years, you don't get a $199 iPhone. No soup for you. They aren't even sure what the non-subsidized price is yet. We're less than three weeks out and there are going to be hordes of disappointed Apple fans (me) waiting in line at their local AT&T brick and mortar only to be turned away unless they pony up the dough.

With the inclusion of 3G radio gear, GPS and double the memory, I'm guessing we'll see non-upgrade eligible pricing near the same prices as when the original iPhone debuted. Lame, lame, lame. With uncle Steve undoubtedly having similar subsidy agreements with mobile telcos in 70 countries, I'd guess their market penetration will be very small compared to what it could have been. I'm glad I don't own Apple stock right now.

C'est la vie. I'll still be counting the day until I'm 'upgrade eligible'.

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