iPhone pricing detail

I was chatting with my neighborhood iPhone (Cingular/AT&T) dealer and learned this interesting detail (which all you hard code iPhone fanatics out there I am sure know all about.)

The price of an iPhone ($500 and $700) is the same whether you are activating a new service with Cingular or want to use the phone on an existing contract.

This is sharply different from any other cell phone where you get a huge discount when activating new service.

What's the customer impact of this choice? The strategic impact?

On the one hand, I happen to be an existing Cingular customer, and so for me the policy is kind of a backwards plus: I don't feel like I would have to pay 'extra' to get an iPhone compared to someone who is signing up anew with Cingular.

On the other hand someone signing up anew with Cingular doesn't have a special incentive to do so based on the price.

Anyway, no, I am not getting an iPhone. I am so far sticking with my opinion that it's too precious and too delicate. I will wait for version 2 or 3.

By the way there are rumors that the iPhone's price is going to drop sharply sooner rather than later.
Posted on July 14, 2007 and filed under Life, Technology.