The decrease in phone charge to the consumer is trivial compared to the monthly charge--where AT&T is quite high and the important point about this announcement is we see no decrease in these monthly charges:
"The company calculated the monthly bills for the Palm Pre (Sprint), iPhone 3G (AT&T), the Android-powered G1 (T-Mobile) and the BlackBerry Storm (Verizon).
"Of the four, the Palm Pre incurred the lowest monthly cost. Assuming the handsets were operating under two-year contracts with unlimited data and voice plans, the Palm Pre cost just $100 each month. The G1 trailed the Pre with a monthly usage bill of $135 a month. The BlackBerry Storm and iPhone were the biggest drains on the bank account, with each plan costing $150 a month. "
Will Cheaper iPhone Derail Palm’s Pre, Dent RIM? [View article]
The cost of the iphone or pre is quite trivial compared to the total cost for subscribing to a carrier. See this article for example:
"The company calculated the monthly bills for the Palm Pre (Sprint), iPhone 3G (AT&T), the Android-powered G1 (T-Mobile) and the BlackBerry Storm (Verizon).
Of the four, the Palm Pre incurred the lowest monthly cost. Assuming the handsets were operating under two-year contracts with unlimited data and voice plans, the Palm Pre cost just $100 each month. The G1 trailed the Pre with a monthly usage bill of $135 a month. The BlackBerry Storm and iPhone were the biggest drains on the bank account, with each plan costing $150 a month. "
Smart1: Actually computers are going everywhere: but they are becoming smaller, cheaper and more specialized. The big trend right now is the netbook. The netbook (a small portable computer mostly doing browsing and email) is not running the massive MS Vista operating system (Linux instead). While Intel may sell a lot of chips for these the profit is so low that they won't make much money. Another big trend coming is a set-top box for a TV to provide TV from the internet. Again these are really specialized computers--but Intel and Microsoft are not going to be making much money from them.
Online Sales: Poking Holes in the Long Tail Theory [View article]
I think Jeff Bezos (CEO of Amazon) has pointed out a number of times that Amazon is making a large chunk of its sales in long tail products (such as the millions of titles of books it offers).
Is the Digital Magazine Coming of Age? [View article]
AT&T Reaffirms Wireless Margin, $99 iPhone Availability [View article]
"The company calculated the monthly bills for the Palm Pre (Sprint), iPhone 3G (AT&T), the Android-powered G1 (T-Mobile) and the BlackBerry Storm (Verizon).
"Of the four, the Palm Pre incurred the lowest monthly cost. Assuming the handsets were operating under two-year contracts with unlimited data and voice plans, the Palm Pre cost just $100 each month. The G1 trailed the Pre with a monthly usage bill of $135 a month. The BlackBerry Storm and iPhone were the biggest drains on the bank account, with each plan costing $150 a month. "
gadgetwise.blogs.nytim.../
Will Cheaper iPhone Derail Palm’s Pre, Dent RIM? [View article]
"The company calculated the monthly bills for the Palm Pre (Sprint), iPhone 3G (AT&T), the Android-powered G1 (T-Mobile) and the BlackBerry Storm (Verizon).
Of the four, the Palm Pre incurred the lowest monthly cost. Assuming the handsets were operating under two-year contracts with unlimited data and voice plans, the Palm Pre cost just $100 each month. The G1 trailed the Pre with a monthly usage bill of $135 a month. The BlackBerry Storm and iPhone were the biggest drains on the bank account, with each plan costing $150 a month. "
gadgetwise.blogs.nytim.../
Apple: A Verizon Deal Could Double iPhone Sales [View article]
www.usatoday.com/tech/...
Twitter Acquisition Mania: Google Rebuffed, Is Apple Trying Now? [View article]
iPhone 3.0: Five Key Takeaway Items [View article]
Tech Bellwethers Looking Cheap? [View article]
Online Sales: Poking Holes in the Long Tail Theory [View article]