Comments on: The iPhone's new business model

By: David Annapolis, MD

David Annapolis, MD — Sun, 15 Jun 2008 00:11:29 +0000

The 3 G I Phone…will only sell the products of now and future products that apple makes. I have been with Steve Jobs now for over ten years and he has never let me down or my family…

By: Travis D, Fremont, CA

Travis D, Fremont, CA — Thu, 12 Jun 2008 19:48:09 +0000

I don't care about APPL finances or who gets what $, rich getting richer.

All I care about is why Jobs refuses to release a 32GB iPhone? I want the iPhone desperately, but 16GB does nothing for me, and I refuse to buy one until he doubles the storage. If they can make a 32GB touch, why can't they do the same for the phone. Those 1-2 extra chips or whatever can't take up that much space, squeeze em in, charge an extra $100 and I'm all in. Come on Steve, music – games – apps – video – photos – etc – all needs more storage space. I want to give you my money, but help me help you.

By: Pete Beck - New Orleans, LA

Pete Beck - New Orleans, LA — Wed, 11 Jun 2008 13:55:01 +0000

Two key shortfalls of the iPhone still remain: Until the iPhone can handle push email from company servers and not just POP3 email, and also be able to handle WindowsMobile apps such as Word attachements (opening & editing), it will fall short of the expectations of most business users.

By: Mike, Philly

Mike, Philly — Wed, 11 Jun 2008 12:44:27 +0000

@ cynik

The iPhones does cost $40 more. Your upfront price is lower but after 24 months you would have spent more money using a 3G iPhone than the first model that was released last year. Even though the unit (iPhone) costs $199 you have to think of the costs that are mandatory. Now when you buy the 3G iPhone you will have to signup for a contract in store, no more waiting and signing up at home on iTunes. This will dramatically reduce all those "unlocked" iPhones that were on the market.

Even though we will be spending $40 after 2 years with the new 3G iPhone, the upfront costs are much cheaper. Instead of paying $399 we will now pay $199. The extra $40 over 24 months we will pay comes out to an additional $1.66/month. This model will attract much more users than the old model.

By: apple under h20, NY, NY

apple under h20, NY, NY — Wed, 11 Jun 2008 11:42:05 +0000

The growing downturn in the national economy will eventually strike the heart of the AT&T wireless footprint. Competitive inroads by other smart phone makers will chip away at this number as well. Htc & Blackberry come to mind. As fewer people are in the "doing well category" financially, this will eat into Apple & AT&T's customer base.

There is already growing sentiment that this new model doesn't live up the its own hype and they gouge you on the 3g data plans now. So there's a double whammy. Unless your in a secure job that has pay raises tied to the overall increase in the cost of living.. your under water.. can't afford the mortgage, cable-tv bill (sorry cnn), or an Iphone. This is more the reality than this apple/att love fest.

By: Sam, Tri-Cities, WA

Sam, Tri-Cities, WA — Wed, 11 Jun 2008 02:34:38 +0000

"Extending 2 years would mean adding 2 years to whatever is currently left on your deal. That would mean 3 years if you had 1 year remaining right now. Resetting to 2 is the better deal."

You are resetting to a new 2 yr. contract.

Also, Apple told AT&T which data plans to sell with the iPhone. Now they get to choose. All AT&T did was bump it up to the same plans they offer now on any other data device.

The same security features on the old iPhone will be htere in the new. If you unlock the new one and connect it to iTunes, it will disable the phone.

By: rajan, cambridge, MA

rajan, cambridge, MA — Tue, 10 Jun 2008 23:36:30 +0000

Here is why your article is half-baked:

- Apple does in fact not get a cut from carriers but it will get a cut from apps it will sell – how many doctors will buy many of the medical apps shown at the keynote? Many.

- How many new subscribers will MobileMe attract because of iphone? Not insignificant.

- How many developers does iPhone have? From what I can see here at WWDC, from none to now 4000 and waiting. How many other platforms have this many developers? And how fast is the base growing?

It is tempting to be contrarian and say iPhone can not be as great as it is hyped to be. But sometimes products may be outdo the hype.

Does iPhone have momentum? – What does that mean to you?

By: Mike O, York, PA

Mike O, York, PA — Tue, 10 Jun 2008 21:13:11 +0000

that you keep quoting Tony "I Haven't Gotten an Apple Prediction Right Yet" Sacconaghi kinda makes you look dumb. or you two are collaborating on your own distortion field. or you're getting kickbacks from incompetent analysts to make them look good. i don't read you're column all that often, but that's just my opinion from outside both distortion fields

ex ped: He spells his name Toni.

By: Shawn King, Danbury, CT

Shawn King, Danbury, CT — Tue, 10 Jun 2008 20:35:44 +0000

Wrong again and as usual. As pointed out in the MDJ:

"Revenue sharing is indeed gone under this new model, but Apple has given no indication that the practice of amortizing handset revenue over 24 months (as "deferred revenue") will stop. If Toni Sacconaghi's estimate of US$350 to US$700 cost per iPhone from

carriers is right, then _that's_ the amount Apple will recognize over 24 months."

As Matt says in reference to you, "This is not "Are You Smarter Than a Fifth Grader" material, I admit, but it's not rocket science either."

By: VZW User, Dayton, NJ

VZW User, Dayton, NJ — Tue, 10 Jun 2008 19:24:56 +0000

Now that AT&T is not sharing revenue with AAPL. Why don't they make IPHONE for Verizon, this will also add number of units sold to their bottom line.

ex ped: AT&T is said to have signed a 5-year exclusive deal with Apple