Page 1 of 2 12 LastLast
Results 1 to 10 of 14
  1. #1
    Retired old codger kenj's Avatar
    Join Date
    Nov 2006
    Location
    Nhapier
    Posts
    5,311

    Default Mobile phone ripoff to change

    http://www.stuff.co.nz/4591136a28.html

    If the proposed new plans are not loss making, would it be logical to state that the current plan profits are obscene?

    Ken
    Corgi Ben Kenobi.......Related by Corgi to the Queen

  2. #2
    Awaiting Enlightenment R2x1's Avatar
    Join Date
    Dec 2004
    Location
    North Shore.
    Posts
    13,950

    Default Re: Mobile phone ripoff to change

    It's all to do with "best practise". . . . .

    Better late than never I suppose ?
    Entropy is not what
    it used to be.



  3. #3
    Banned
    Join Date
    Feb 2008
    Posts
    1,218

    Default Re: Mobile phone ripoff to change

    That was already mentioned last week. I think pctek posted it and before that Paul Brislen announced it on my "Vodafone bringing the iPhone to NZ" thread.

    The problem with the current plans is that although they may have a good profit margin worked into them - the exorbitant price that Vodafone is trying to charge the customer puts people off using the plan which therefore negates any benefit that Vodafone "might" have gotten from the service. With the newer plan starting to get more reasonable more people will be inclined to use it and Vodafone will actually do much better on volume sales - much like a low price supermarket will put more people and revenue though than a high price dairy even though the dairy may have a higher margin on its products.

  4. #4
    Awaiting Enlightenment R2x1's Avatar
    Join Date
    Dec 2004
    Location
    North Shore.
    Posts
    13,950

    Default Re: Mobile phone ripoff to change

    So Apple prices fall just where in this system of logic?

    iNflated?
    Entropy is not what
    it used to be.



  5. #5
    Banned
    Join Date
    Feb 2008
    Posts
    1,218

    Default Re: Mobile phone ripoff to change

    The iPhone agreement with Apple is the reason the mobile data prices are being forced down. Apple also gets MAJOR subsidies from the likes of Vodafone to sell the iPhone at its price of $265 or so.
    AT&T is paying Apple a $325 subsidy on each new iPhone 3G sold in the US in addition to offering the electronics maker a hefty bounty for each subscriber addition it gains from sales of the handset at Apple retail stores, according to a new report.

    Oppenheimer equity research analyst Yair Reiner told clients in a research report that the subsidy is more than 50 percent higher than most other smart phones, which are typically subsidized by about $200.
    As for Apple computers
    A: they don't have to compete against Windows PCs on price and
    B: they don't have a problem selling in increasing numbers each quarter so that justifies their price - well it does to Apple although with the current parity in NZ US dollar ours could be a bit cheaper still. I know the Aussie media was complaining about it to Ron Johnson who is head of Apple retail when he opened the Apple Store in Sydney on Thursday night.

    By my calculations the US $1099 MacBook should work out to around $1443.00 NZ + GST although they currently sell for $1799 + GST so even with Govt import tariffs and the like they still have room to move.
    Last edited by vitalstatistix; 23-06-2008 at 01:28 PM.

  6. #6
    Junior Member
    Join Date
    Dec 2004
    Posts
    19

    Default Re: Mobile phone ripoff to change

    AT&T has an exclusive contract with Apple for the US market and is able to buy the iPhone from Apple at a much cheaper rate. Vodafone does not have such a deal and is not able to buy the iPhone at the price quoted. Vodafone isn't alone in that - anywhere that's just announced it's getting the iPhone that doesn't include the word "exclusive" will be paying more for the product.

  7. #7
    Banned
    Join Date
    Feb 2008
    Posts
    1,218

    Default Re: Mobile phone ripoff to change

    Quote Originally Posted by Audent View Post
    AT&T has an exclusive contract with Apple for the US market and is able to buy the iPhone from Apple at a much cheaper rate. Vodafone does not have such a deal and is not able to buy the iPhone at the price quoted. Vodafone isn't alone in that - anywhere that's just announced it's getting the iPhone that doesn't include the word "exclusive" will be paying more for the product.
    Thanks for the clarfication there Paul.
    I think your outgoing Vodafone UK CEO Arun Sarin was a weee bit slow to see the benefits of the iPhone when Steve first approached him - hence why O2 got in there first. Probably also why Vodafone didn't get such a good deal from Apple.
    Last edited by vitalstatistix; 23-06-2008 at 02:06 PM.

  8. #8
    Junior Member
    Join Date
    Dec 2004
    Posts
    19

    Default Re: Mobile phone ripoff to change

    It was more to do with the revenue sharing and the lack of 3G than disliking the device. Still no iPhone for Vodafone UK.

  9. #9
    Banned
    Join Date
    Feb 2008
    Posts
    1,218

    Default Re: Mobile phone ripoff to change

    Quote Originally Posted by Audent View Post
    It was more to do with the revenue sharing and the lack of 3G than disliking the device. Still no iPhone for Vodafone UK.
    The revenue sharing and lack of 3G didn't stop O2 grabbing the limelight and addtional market share. Just because the first iPhone didn't do 3G didn't stop users from using wifi in shopping malls and the 2.5G even though it was frustratingly slow.

  10. #10
    Junior Member
    Join Date
    Dec 2004
    Posts
    19

    Default Re: Mobile phone ripoff to change

    No, that's right... but you said Sarin was slow at seeing the benefits of the iPhone. I disagree - I think he was right to say 3G would be a killer app for most of the world's markets. Apple's decision to dump the exclusive/revenue share model is evidence of that. They've signed up far more telcos to a straightforward model (including VodNZ) that doesn't include revenue sharing.
    O2 was in the position of needing to stand out from a crowded market with a unique offer. The iPhone fitted that bill nicely, and O2 was happy to pay the price. Most telcos aren't in that market and aren't in that position.

Similar Threads

  1. Mobile Phone
    By EviLClouD in forum PC World Chat
    Replies: 10
    Last Post: 10-02-2008, 02:18 PM
  2. Phone Accessories RipOff
    By dolby digital in forum PC World Chat
    Replies: 16
    Last Post: 05-11-2006, 02:59 PM
  3. Do you have a mobile phone?
    By stu161204 in forum PC World Chat
    Replies: 29
    Last Post: 28-02-2006, 08:07 PM
  4. Replies: 4
    Last Post: 25-01-2006, 01:15 PM
  5. Which Mobile Phone?
    By Graham Petrie in forum PressF1
    Replies: 16
    Last Post: 04-10-2004, 09:08 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •