Has Apple begun clearing iPhone 3G inventory?
Staffers at Apple's (AAPL) flagship Fifth Avenue store in New York City confirm that as of Thursday at 8 a.m., customers are now permitted to buy unlimited quantities of iPhones without an AT&T contract — the very thing the company was working so hard to prevent in late 2007 when the devices were being snapped up in large quantities to be unlocked and re-sold in overseas markets. (See here.)
The new policy — which applies to all U.S. Apple stores — is similar to AT&T's (T) "no commit" pricing plan, revealed last week, whereby customers can buy iPhones without a contract at the full non-subsidized price of $599 for a 8G iPhone and $699 for a 16G model (compared with $199 and $299 with a contract).
AT&T's policy applies only to existing customers and limits them to one unsubsidized phone. Apple is imposing neither of those restrictions, leading some to speculate that the company has plenty of iPhones in stock and may be trying to clear inventory in advance of new models.
"Apple's change in sales policy," writes AppleInsider's Prince McLean, "comes as the company is working to sell off remaining inventory to prepare for the upcoming launch of the new 2009 iPhone, expected to be released around the middle of June, possibly at the company's similarly-timed Worldwide Developer Conference." (link)
The situation is reminiscent of spring 2008, when Apple began gearing up to produce the iPhone 3G. By April 1, there were spot shortages of first generation iPhones in Apple and AT&T stores across the country. Piper Jaffray's Gene Munster called 20 Apple stores that week and found no iPhones for sale at any of them. See Where did all the iPhones go?
Selling iPhones for more than double their usual price is an interesting way to clear inventory — and may be preferable to unloading them for, say, $99 each. It's not clear how many customers will be interested, however. The phones are still locked to AT&T, and would have to be unlocked to work with any other carrier's service. The demand for unlocked iPhones was fierce before Apple began signing contracts with overseas carriers, but may not be as strong today.
These transitions are tricky for Apple. After selling 2.32 million iPhones in its first fiscal quarter of 2008 and 1.7 million the second, it sold fewer than 720,000 in the quarter that ended in June 2008. Sales took off with the release of the iPhone 3G, however. In fiscal Q4 2008, Apple sold 6.89 million iPhones.
See also:
I read about the price drops on http://newapple3gs.blogspot.com/
Very upset that I paid so much before =/
They are ripping us off! They want only $199 from new customers, but existing customers must pay $499… Even with a 2 year extension. It's right on their website: "For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB)."
We have to rise up and stop this. Apple has listened before. We have to make them listen again.
Express your view at http://www.iPhone3GS.org let your voice be heard.
They are ripping us off! They want only $199 from new customers, but existing customers must pay $499… Even with a 2 year extension. It's right on their website: "For non-qualified customers, including existing AT&T customers who want to upgrade from another phone or replace an iPhone 3G, the price with a new two-year agreement is $499 (8GB), $599 (16GB), or $699 (32GB)."
We have to rise up and stop this. Apple has listened before. We have to make them listen again.
Express your view at http://www.iPhone3GS.org let your voice be heard.
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This is a great article about the new 3g iphone for a personal review of the new addition to the iphone series visit my blog at http://apple3greview.blogspot.com/
For the best Iphone apps of 2008 visit http://apple3greview.blogspot.com/
anybody know about those phones that are all over ebay when one searches for iphones there? They look just like them but seem to be Chinese knockoffs. And what is a "jailbroken" phone?
anybody know about those phones that are all over ebay when one searches for iphones there? They look just like them but seem to be Chinese knockoffs. And what is a "jailbroken" phone?
I can't confirm it, but I have heard Apple's cost to make an iPhone is $175 to $185 each. If they are able to sell them without a contract for $599 and $699, I want to get a list of the people buying them so I can sell them something for three times what its worth.
I can't confirm it, but I have heard Apple's cost to make an iPhone is $175 to $185 each. If they are able to sell them without a contract for $599 and $699, I want to get a list of the people buying them so I can sell them something for three times what its worth.
As I understand if you unlock an iphone to use with a carrier other than at&t and want to update it with itunes to a new ver. of the software it will relock it.
As I understand if you unlock an iphone to use with a carrier other than at&t and want to update it with itunes to a new ver. of the software it will relock it.
There is evidence that Apple is clearing out their inventory. In the last iPhone 2.2.1 firmware update, developers pointed out there were strings in the firmware that indicate new models of iPhone devices. With 2.2 firmware, one can download software off the net that can unlock the device. This can only benefit Apple since they can unload their inventory and not lose revenue on a highly sought after item.
There is evidence that Apple is clearing out their inventory. In the last iPhone 2.2.1 firmware update, developers pointed out there were strings in the firmware that indicate new models of iPhone devices. With 2.2 firmware, one can download software off the net that can unlock the device. This can only benefit Apple since they can unload their inventory and not lose revenue on a highly sought after item.
*In fiscal Q4 2008, it Apple sold 6.89 million iPhones.*
-Should be *In fiscal Q4 2008, Apple sold 6.89 million iPhones.*
ex ped: Thanks, Jim. Fixed.
*In fiscal Q4 2008, it Apple sold 6.89 million iPhones.*
-Should be *In fiscal Q4 2008, Apple sold 6.89 million iPhones.*
ex ped: Thanks, Jim. Fixed.
I keep hearing about Apple "clearing inventory", but Apple only maintains a 3-5 day supply of inventory in the pipeline anyway, so it is not like they have thousands of waiting boxes sitting around in warehouses that they have to get rid of…
I keep hearing about Apple "clearing inventory", but Apple only maintains a 3-5 day supply of inventory in the pipeline anyway, so it is not like they have thousands of waiting boxes sitting around in warehouses that they have to get rid of…
I was also wondering,like Shifter, if you would be able to use the unlocked iphone with an at&t gophone plan.
I was also wondering,like Shifter, if you would be able to use the unlocked iphone with an at&t gophone plan.
Honestly, this sound more like implementing the policy promised long ago, that phones would be available for sale without a contract. Timing means there's plenty of supply–but I think it's a stretch to conclude they're clearing old models.
OTOH, I just bought 2 iPhone 3Gs last week (with contracts). Now that IS evidence a new model is around the corner!
Honestly, this sound more like implementing the policy promised long ago, that phones would be available for sale without a contract. Timing means there's plenty of supply–but I think it's a stretch to conclude they're clearing old models.
OTOH, I just bought 2 iPhone 3Gs last week (with contracts). Now that IS evidence a new model is around the corner!
Without a contract you can use the phones over (fast) WIFI where available, and I believe pay monthly to AT&T if you want their 3G connection.
Without a contract you can use the phones over (fast) WIFI where available, and I believe pay monthly to AT&T if you want their 3G connection.
To John (A few posts back)
If you purchased an iPhone today even without a contract, you will not likely be able to use it on T-Mo.
That is because the recent baseband update by Apple removed the ability of the software unlock (yellosn0w) to work.
Fortuneately, I have an older iPhone with the new software-thanks iPhone dev team! I can use T-Mo (though I don't) and Rogers PPD (which I do frequently when in Canada).
To John (A few posts back)
If you purchased an iPhone today even without a contract, you will not likely be able to use it on T-Mo.
That is because the recent baseband update by Apple removed the ability of the software unlock (yellosn0w) to work.
Fortuneately, I have an older iPhone with the new software-thanks iPhone dev team! I can use T-Mo (though I don't) and Rogers PPD (which I do frequently when in Canada).
Nick – do you often find yourself telling kids to get off your lawn?
There are all kinds of people with all kinds of needs. Including people who want a phone and an iPod in one – without the data plan. I'm not one of them, but they certainly exist.
Nick – do you often find yourself telling kids to get off your lawn?
There are all kinds of people with all kinds of needs. Including people who want a phone and an iPod in one – without the data plan. I'm not one of them, but they certainly exist.
Perhaps this will be more profitable for Apple, but as I understand, Apple gets a lot more than just the $99 that the customer pays.In addition to that $99, AT&T has been heavily subsidizing the phone, no?
Perhaps this will be more profitable for Apple, but as I understand, Apple gets a lot more than just the $99 that the customer pays.In addition to that $99, AT&T has been heavily subsidizing the phone, no?
Could this be related to the impending deal to sell iPhones in China? I thought the reason they limited sales like this in the past was because they were showing up unlocked in China.
Could this be related to the impending deal to sell iPhones in China? I thought the reason they limited sales like this in the past was because they were showing up unlocked in China.
Those are some fairly steep prices considering nearly everyone considers this a very poor economy and people wanting to hold on to their money. I'm not questioning what Apple is doing, I'm just pointing out the obvious.
The next model iPhone might even be slightly less expensive considering how Apple products in the computer line-up have had their prices lowered. But even if the price remains the same, buying the older version doesn't make that much sense since you'd be missing out on the newest features. Maybe Apple is counting on that many people don't follow advance product news and they'll just buy regardless. Otherwise I don't see the lure.
I honestly don't think that consumers are going to be buying them up without Apple offering some sort of sale price. I hope I'm proved wrong in the coming weeks. Possibly, there isn't that much inventory to get rid of.
Those are some fairly steep prices considering nearly everyone considers this a very poor economy and people wanting to hold on to their money. I'm not questioning what Apple is doing, I'm just pointing out the obvious.
The next model iPhone might even be slightly less expensive considering how Apple products in the computer line-up have had their prices lowered. But even if the price remains the same, buying the older version doesn't make that much sense since you'd be missing out on the newest features. Maybe Apple is counting on that many people don't follow advance product news and they'll just buy regardless. Otherwise I don't see the lure.
I honestly don't think that consumers are going to be buying them up without Apple offering some sort of sale price. I hope I'm proved wrong in the coming weeks. Possibly, there isn't that much inventory to get rid of.
facts police:
philip has some little problems with facts again. apple sold 717.000 in the quarter before the iphone 3g was launched, alas in the quarter that ended in JUNE 2008 (not march). of course apple will sell fewer iphones the next quarter (but probably more than last year – that is all that counts by the way). but sales will skyrocket in q3 this year with the iphone 3.0 simultaniously avaialble in 90 countries worldwide. we all know that one year cycle already, no news here.
ex ped: Thanks for the catch. Fixed.
facts police:
philip has some little problems with facts again. apple sold 717.000 in the quarter before the iphone 3g was launched, alas in the quarter that ended in JUNE 2008 (not march). of course apple will sell fewer iphones the next quarter (but probably more than last year – that is all that counts by the way). but sales will skyrocket in q3 this year with the iphone 3.0 simultaniously avaialble in 90 countries worldwide. we all know that one year cycle already, no news here.
ex ped: Thanks for the catch. Fixed.
Hmm. It seems people are willing to pay the price over time and/or when the cost is "hidden" within the ATT plan, but less willing to plunk it down when it's not.
Maybe Apple needs to sell them over a two year contract, which works out to $30/month.
Hmm. It seems people are willing to pay the price over time and/or when the cost is "hidden" within the ATT plan, but less willing to plunk it down when it's not.
Maybe Apple needs to sell them over a two year contract, which works out to $30/month.
"Selling iPhones for more that double their usual price"
- should be "Selling iPhones for more THAN double their usual price"
ex ped: Thanks. Fixed.
"Selling iPhones for more that double their usual price"
- should be "Selling iPhones for more THAN double their usual price"
ex ped: Thanks. Fixed.
Iphones that are 'lightly used' with 'just a few scratches' sell for over $600 on Craigslist that 'may be' unlocked and work for longer than a week
It is a 'must have' for anyone under 30 living in NYC. No one can walk down the street without looking at their hand.
You think they would have put in a scroll wheel or something so you don't have to constantly touch the screen??
Iphones that are 'lightly used' with 'just a few scratches' sell for over $600 on Craigslist that 'may be' unlocked and work for longer than a week
It is a 'must have' for anyone under 30 living in NYC. No one can walk down the street without looking at their hand.
You think they would have put in a scroll wheel or something so you don't have to constantly touch the screen??
Apple is not clearing inventory for the simple reason Apple doesn't maintain more than 8 to 10 days of inventory at any one time.
They are simply allowing people that want to be on TMobile access to a great phone.
$599 seems about right with no contract, the previous commenters forgot it's also the same as the iPod Touch, so the phone portion is really $299 so Apple will sell a ton of them at $599.
Apple is not clearing inventory for the simple reason Apple doesn't maintain more than 8 to 10 days of inventory at any one time.
They are simply allowing people that want to be on TMobile access to a great phone.
$599 seems about right with no contract, the previous commenters forgot it's also the same as the iPod Touch, so the phone portion is really $299 so Apple will sell a ton of them at $599.
Wow, $599 is really expensive. Currently, if you've damaged your iPhone and need to purchase a replacement (which we have needed to do twice) its only $399 and doesn't extend your contract.
Wow, $599 is really expensive. Currently, if you've damaged your iPhone and need to purchase a replacement (which we have needed to do twice) its only $399 and doesn't extend your contract.
$699 for a 3G iphone 'contract free'. I thought the price of $575 for a 'lightly used' iphone with 'just a few scratches' on craigslist was high priced.
If this is contract free is it unlocked & jailbroken??
There are other phones at the same price that are better like the Omnia, Nokia N97 & Palm Pre which will be out soon.
This phone targets two groups:
1) EURO tourists in NYC
2) Kids on trust fund & trend who**s who must have this phone to 'be seen'
$699 for a 3G iphone 'contract free'. I thought the price of $575 for a 'lightly used' iphone with 'just a few scratches' on craigslist was high priced.
If this is contract free is it unlocked & jailbroken??
There are other phones at the same price that are better like the Omnia, Nokia N97 & Palm Pre which will be out soon.
This phone targets two groups:
1) EURO tourists in NYC
2) Kids on trust fund & trend who**s who must have this phone to 'be seen'
If Apple is clearing iPhone 3G inventory, then it's also clear that this iPhone 3G model will not continue as a cheaper model. So, if there is to be a cheaper model at $149 or $99, it will be something else.
If Apple is clearing iPhone 3G inventory, then it's also clear that this iPhone 3G model will not continue as a cheaper model. So, if there is to be a cheaper model at $149 or $99, it will be something else.
I read about the price drops on http://newapple3gs.blogspot.com/
Very upset that I paid so much before =/