Are you ready for the latest stimulus package news? This time it’s coming from the iPhone, via AT&T. The news is they are preparing to shave ten bucks off the monthly service charge for the iPhone. The news originated with Michael Cote of Cote Collaborative, and was reported by The Street.
The current iPhone monthly subscription costs $69. Under the cost-reduction plan, users would save $240 over the span of the standard two-year subscription plan. Apparently, the monthly subscription price has been a barrier for some—a price that is a scary $1,880 when it’s all said and done. Wal-Mart iPhone sales have suffered, and the iPhone recently lost its place as the leading cell phone. An inexpensive “iPhone Nano” product has not been forthcoming. Now, Blackberry is busting out smart marketing campaigns. The Palm has its own collection of coruscating products that promise to do quite well in the smartphone market. In essence, a massive counteroffensive is challenging iPhone’s supremacy. They are waging war on the iPhone.
And AT&T is not misinformed. This may be their counteroffensive to the smartphone war that is now ramping up. The delicate thing about their move is that it involves raw numbers—straight-up cost. It doesn’t involve new technology, a better network, a smoother operating system, or an improved plan. That data point alone suggests that the iPhone has hit a maturity level—a level beyond which it cannot (or will not) progress. The price cut will probably be announced one month from now during Apple’s World Wide Developer’s Conference, in tandem with the launch of the new iPhone. Little is said about the new iPhone, but nobody seems too terribly excited about it. A failure to advance its technology has forced Apple to reduce its pricing.
In the meantime, there has been little information that denies Apple’s interest in placing their phone on Verizon’s network. This, too, could be a potential boost for the flagging iPhone.
About the Author: