The Lowly 3G iPhone

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    Posted: 23 June 2009 12:09 AM #16

    A couple of thoughts on the subject.

    Initially I thought the price point of $99 would be a big draw.  I ran into 4 different friends who decided to finally get one once the price dropped to $99.  However after reading about the 1 million 3GS iPhones sold in 3 days and only 8 countries, and then seeing the steady stream of people going into the Apple store four days later, and talking to one of the employees, I am starting to think that the 3G phone is about to bite the dust.

    Apparently according to this employee a lot more people are choosing to pony up the extra $100 and get the 3GS.  So it looks like the $99 iPhone may be for those who don’t care about the new features and all they care about is price.  In the Apple ecosphere those folks are a very small minority.  In other words most Apple owners are smart enough to do the math and realize they can get a lot more for their money by getting the latest iPHone. 


    Also the fact that more people are getting the 16Gig iPhones points to the fact that Apple consumer understands value.  I am one of those.  AFter having the 16Gig for one year, I realized that I don’t need that much memory. So it is not worth paying the extra $100 for the 32Gig.

         
  • Posted: 23 June 2009 01:43 AM #17

    Please remember the universe of buyers and potential buyers includes millions of families. The economics of the 3G $99 iPhone works well for families. Across the country and around the world there’s a spot for a $99 iPhone and sales will be brisk especially through AT&T.

    I believe the $99 price point is here to stay though the configurations will change. From a marketing and sales standpoint having a $99 iPhone available makes the product line more approachable for millions of consumers. Whether or not a buyer chooses to upgrade to a more expensive model is a different issue. At $99 the iPhone is more appealing and will no longer be dismissed as “too expensive.” Consider it a marketing price point leader even if the prospective buyer chooses to “upgrade” to the 3GS.

         
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    Posted: 23 June 2009 12:42 PM #18

    I’m already spending $50-$75 for a crummy phone.  I can’t justify $200-$300 for an iPhone 3GS, but I can justify $99 for an iPhone 3G. The features I want for just a few bucks more. That’ll work

    As far as the 3G continuing just to run out the stock of parts, I’m not sure about that. I figured the same thing last fall when Apple redesigned the MacBook but kept one white model. I assumed it would quietly disappear just after Christmas. But Apple’s kept it around and even updated it.

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    Posted: 23 June 2009 01:22 PM #19

    geoduck - 23 June 2009 03:42 PM

    I’m already spending $50-$75 for a crummy phone.  I can’t justify $200-$300 for an iPhone 3GS, but I can justify $99 for an iPhone 3G. The features I want for just a few bucks more. That’ll work

    As far as the 3G continuing just to run out the stock of parts, I’m not sure about that. I figured the same thing last fall when Apple redesigned the MacBook but kept one white model. I assumed it would quietly disappear just after Christmas. But Apple’s kept it around and even updated it.

    I would expect much more likely they would upgrade some of the internals once the existing parts run dry.  Since the internal boards remained very similar it would be easy to slap in a new board.  The price difference for the processor/GPU/RAM combo should drop the more Apple purchases so I wouldn’t doubt the 8G might change to match the speed of the PRE before Christmas.  This will allow the carriers to sell off any inventory which builds the relationship and give the user more bang for the buck.  I think marketing will keep a 8G unit around for a long time as an entry level device.

         
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    Posted: 23 June 2009 02:34 PM #20

    I just went to the Apple site and found a feature comparison of the 3G and 3GS. the only things they list that the 3GS has that the 3G doesn’t are:

    Improved performance. This is nice but I’m replacing a third hand Blackberry that’s several years old (my employer gave me it). Even the 3G will be a lot faster. Also I haven’t sat around waiting for the old BB so I’m not going to really push the performance limits of the iPhone.

    Built-in video camera with editing. Utterly irrelevant to my needs

    Voice Control. Utterly irrelevant to how I use a phone. (In noisy environment like a server room typing is a lot more reliable than shouting a command into the phone.) Anyway, I’ve never been a fan of voice control of computers.

    Compass2. A cool gadget but I doubt I would use it more than a couple of times.

    So I don’t see any reason to spend more for the GS.

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    Courage is not the absence of fear, that’s insanity.
    Courage is knowing the risks and dangers.
    And doing what needs to be done anyway.

         
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    Posted: 23 June 2009 03:10 PM #21

    Haven’t touched the 3GS but two other things worth something better battery life and the new screen coating which reduces smudges and fingerprints.  If someone else is paying the bill then the $199 is well worth the extra speed.  At some point developers will try to tap into the additional power and if and when Apple enables multi-tasking for 3rd party apps the Iphone 3G will probably not get the upgrade because of the fact it only has 128M of RAM vs 256M for the 3Gs.  Personally I bought the first and second but I will hold off probably for the 4th generation.  Just not enough yet to pay the extra two hundred since I’m still stuck with my old two year contract.

         
  • Posted: 24 June 2009 12:56 AM #22

    geoduck - 23 June 2009 05:34 PM

    I just went to the Apple site and found a feature comparison of the 3G and 3GS. the only things they list that the 3GS has that the 3G doesn’t are:

    Improved performance. This is nice but I’m replacing a third hand Blackberry that’s several years old (my employer gave me it). Even the 3G will be a lot faster. Also I haven’t sat around waiting for the old BB so I’m not going to really push the performance limits of the iPhone.

    Built-in video camera with editing. Utterly irrelevant to my needs

    Voice Control. Utterly irrelevant to how I use a phone. (In noisy environment like a server room typing is a lot more reliable than shouting a command into the phone.) Anyway, I’ve never been a fan of voice control of computers.

    Compass2. A cool gadget but I doubt I would use it more than a couple of times.

    So I don’t see any reason to spend more for the GS.

    Another good example as to why a decent market remains for the $99 3G iPhone following release of the 3GS.

         
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    Posted: 24 June 2009 02:59 AM #23

    DawnTreader - 24 June 2009 03:56 AM
    geoduck - 23 June 2009 05:34 PM

    I just went to the Apple site and found a feature comparison of the 3G and 3GS. the only things they list that the 3GS has that the 3G doesn’t are:

    Improved performance. This is nice but I’m replacing a third hand Blackberry that’s several years old (my employer gave me it). Even the 3G will be a lot faster. Also I haven’t sat around waiting for the old BB so I’m not going to really push the performance limits of the iPhone.

    Built-in video camera with editing. Utterly irrelevant to my needs

    Voice Control. Utterly irrelevant to how I use a phone. (In noisy environment like a server room typing is a lot more reliable than shouting a command into the phone.) Anyway, I’ve never been a fan of voice control of computers.

    Compass2. A cool gadget but I doubt I would use it more than a couple of times.

    So I don’t see any reason to spend more for the GS.

    Another good example as to why a decent market remains for the $99 3G iPhone following release of the 3GS.

    He is fossilized.  So won’t incorporate new technology to improve his processes.  He probably don’t need an iPhone.  IMHO, significant improved performance and video camera are sufficient justifications for 3Gs.  Also, 3Gs can run future potential improvements like multi-tasking and new apps.

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    Posted: 24 June 2009 03:00 AM #24

    DawnTreader - 24 June 2009 03:56 AM
    geoduck - 23 June 2009 05:34 PM

    I just went to the Apple site and found a feature comparison of the 3G and 3GS. the only things they list that the 3GS has that the 3G doesn’t are:

    Improved performance. This is nice but I’m replacing a third hand Blackberry that’s several years old (my employer gave me it). Even the 3G will be a lot faster. Also I haven’t sat around waiting for the old BB so I’m not going to really push the performance limits of the iPhone.

    Built-in video camera with editing. Utterly irrelevant to my needs

    Voice Control. Utterly irrelevant to how I use a phone. (In noisy environment like a server room typing is a lot more reliable than shouting a command into the phone.) Anyway, I’ve never been a fan of voice control of computers.

    Compass2. A cool gadget but I doubt I would use it more than a couple of times.

    So I don’t see any reason to spend more for the GS.

    Another good example as to why a decent market remains for the $99 3G iPhone following release of the 3GS.

    As a new 3GS owner upgrading from a 3G, I have to tell you that the phone is amazing.  It is so much faster when starting applications and especially the web.  The edge network feels like 3G, and 3G now feels like broadband.

    Also the video camera is incredible.  It literally looks like HD quality.  The voice control, is perfect for the car.  I use it often, now I just need that TOM TOM feature.

    Never the less, I still think Apple is selling a ton of 3G phones to those who never had one and want to save some money.

         
  • Posted: 24 June 2009 03:27 AM #25

    Mace - 24 June 2009 05:59 AM

    He is fossilized.  So won’t incorporate new technology to improve his processes.  He probably don’t need an iPhone.  IMHO, significant improved performance and video camera are sufficient justifications for 3Gs.  Also, 3Gs can run future potential improvements like multi-tasking and new apps.

    Bottom line: Some people just want a phone that can run some cool apps. For those seeking 3G speeds without a lot of bother, the $99 iPhone fits the bill.