RSSA new recession hallmark: the pay-as-you-go iPhone
By Tim Conneally | Published March 20, 2009, 10:48 AM
Next week, AT&T is expected to begin selling Apple's iPhone in the US without the required two-year contract.
A company spokesman told the Associated Press that the devices will cost $599 and $699 for the 8 GB and 16 GB models respectively, which normally cost $199 and $299 with the two-year contract. These iPhones will reportedly not be unlocked, and will still require an AT&T iPhone account to operate.
So what's the benefit of a no-contract iPhone if it's not unlocked? You can pay for it month-to-month without worry for the $175 early termination fee if you suddenly become unable to pay (or if you're an habitual early adopter of new phones).
The New Millennium Research Council released a survey yesterday indicating that prepaid cell phones are going to make a stronger appearance in the mobile device market if economic conditions persist. The group found that nearly 40% of those surveyed said they are now more inclined to cut back on cell phone expenditures by switching from a contract service to prepaid.
However, just as consumers are likely to opt for a prepaid service, they're just as likely to opt out of data and messaging plans.
"Thanks to the recession, the US cell phone marketplace is undergoing fundamental changes that will just get bigger as the economic downturn deepens," said Allen Hepner of the New Millennium Research Council. "What we see in these survey findings is clear evidence that most consumers will keep a cell phone during this recession, but only after shifting to less expensive cell phone plans, such as prepaid, and also by scaling back on cell phone extras including Internet connectivity and texting."
I have used contract phones for as long as I can remember. Recently, a friend recommended that I buy a prepaid phone in oder to reduce my expenses. I bought one on a trial basis, and to my surprise...love it! I can text, make long distance phone calls, go online, and even take pictures. The best part is that I only pay for the minutes that I used and am saving over 40 dollars a month on my cell phone bill! I would highly recommend switching to prepaid to anyone who thinks they are paying too much on cell phone usage!
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|I think it's better and cheaper to be on prepaid than contract, the fine print is not worth giving two years out of your pocket for and what if you loose your job before the two years are finished - you keep paying. Personally I don't need a fancy iPhone, I don't have anything to prove but I do have friends that would like to have an iPhone and a prepaid together, it's just a pity that Net10 hasn't brought out an iPhone yet because I think AT&T sucks, they don't have good coverage and they are more expensive but I'm sure that all the prepaid company's will have iPhones available soon.
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|We've had pay-as-you-go iPhone's in Europe for over half a year at this point... about time the US caught up with the EU ;)
E.g. http://www.o2online.ie/w...es/iPhone+3G/Speak+easy/
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|...or you can just get a cheaper plan with Tmobile. The network has few more dead spots than ATT but who cares, its a lot cheaper.
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|companies like att have no compassion and no need for special deals during these tough economic times.
what ever deals people believe they are getting can rest assured there is fine print written in microscopic fonts that ensures att gets every last cent you have in your pockets.
no need to complain to your state regulatory commissions or to the fcc, because they are wrapped around att's gold and diamond encrusted fingers.
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|Uh...$299, plus the $175 ETF is only $474....then you can take your iPhone, Yellowsn0w it and run it on the carrier of your choice. Also, the ETF goes down $5 per contract month, so $474 plus the activation fee is the maximum exposure. I'm unsure why anyone would pay $699, unless their credit score is too low to establish a new AT&T postpaid contract. My understanding is that AT&T isn't going to just let you plunk down $699 and bolt, so you're still paying an activation fee and canceling AT&T service either way.
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|All the carriers should make a deal with their phone suppliers in which they standardize on 18-month contracts and the phone makers cut their prices by 25%. This would allow customers to upgrade phones more frequently, which would allow the manufacturers to lower their prices. This in turn means less subsidizing by the carriers, which makes the shorter contract viable. Furthermore, if you buy a new phone from your current carrier, you should get a month's free service as a "retention bonus". THAT'S economic stimulus (as opposed to robbing the treasury on behalf of your crooked friends on Wall Street).
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|Let me get this right... Ill pay $700.00 for a 16gb phone with no service, pay as you go.. OR I can pay $300.00 for the same phone, keep $400.00 to put use for the monthly service. If you can pay $700.00 for a phone, im sure you wont have a problem paying a monthly cellphone bill to begin with.
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|And if a better iPhone comes out, you won't have any trouble paying for that, either..except you won't be stuck on contract with the old one, which you can probably Ebay for $50-100 easy.
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|It's just like all of Apples' products, psycros, basically disposable.. A few years back I won an iPod Video when it would have cost $500. Now I couldn't give it away.
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