Support Our Site
Get Better Gear!
- Notability For iPad: Much More Than A Note Taking App from Ginger Labs, Inc, US$0.99
- Scosche’s RH656m Headphones With Microphone Are Wonderful from Scosche, US$129.99
- IPEVO’s Typi Folio Case & Keyboard for iPad is First-rate from IPEVO, US$79.99
- Scosche’s boomSTREAM BT Speaker: Features & Compromises from Scosche, US$99.95
- FX Photo Studio HD: iPad Painting of Effects Made Easy from MacPhun LLC, US1.99
Top 5 Free Apps
iTunes New Music Releases
Top 5 Paid Apps
Discover New Music
- Depeche Mode
Oddly enough, Playing The Angel is a return to form for Depeche Mode, even though it may well be argued that they never truly deviated from their roots in their more recent offerings. In the
- Tegan and Sara
So Jealous is the third album from these sisters, and easily the one to single out for an introduction to their music. Some people may not get on board with their vocal styles, which are slightly
- Bumblebeez 81
Part white rap, part alternative, part pop, and part rock, the Bumblebeez grabbed a hold of me with "Pony Ride," and didn't let go.
This group does a marvelous job of moving seamlessly be
- Revolting Cocks
It's hard to believe it's been more than a decade since Ministry founder and front man Al Jourgensen's side project Revolting Cocks released any new material. 2006 brings us Cocked and Loaded
- Jeff Wayne
- With the new movie adaptation of H.G Wells' classic Sci Fi invasion tale, War of the Worlds, currently on theater screens everywhere, there's new interest in Jeff Wayne's rock opera version, and it is
Reader Specials
Visit Deals On The Web for the best deals on all consumer electronics, iPods, and more!
News
Bernstein Research: AT&T iPhone Subsidy Could Double Sales
Wednesday, April 30th, 2008 at 4:00 PM - by John Martellaro
Analyst Toni Sacconaghi with Bernstein Research said in a research note on Thursday morning that a $200 subsidy by AT&T for the iPhone could double sales. History has shown that price elasticity for mobile phones is high, he said.
Mr. Sacconaghi cited the previous experience with Motorola. "Motorola�s experience with the RAZR in 2005 suggests that price elasticity in the mobile handset market is very high," he wrote. "We have long held that the iPhone�s high price has been the biggest limiting factor on its sales." He noted that when Motorola reduced the price of the RAZR from US$500 to $150, sales doubled. When the price dropped to $100, the sales doubled again.
As a result, the analyst thinks that Apple and AT&T could see a doubling of demand. Moreover, the average revenue for month per iPhone is in the US$90+ range compared to $60 for the average AT&T user. That an extra $720 over two years would easily cover the subsidy.
He also noted that AT&T has some room to increase the data plan cost since RIM charges quite a bit more, and iPhone users are known for intensive use of the data component. That would increase revenues. One downside to the subsidy would be the cannibalization of iPod touch sales [which Apple has been depending on to carry the iPod flag into the future as a MID.] Even so, the iPhone is more profitable, according to Mr. Sacconaghi, and that would make up the difference.
Finally, Mr. Sacconaghi noted that offering subsidies would pave the way for unlocked phones, and said, "the availability of factory-unlocked iPhones would further stimulate overall iPhone sales."
However, iPO notes that Apples contract with AT&T might need to be amended to allow that. In any case, the opportunities for Apple to increase iPhone sales appear to be coming in waves. Recently, the Commercial Times in China estimated that the iPhone 3G could sell 25 million units in its lifetime - - which may not be that long considering the pace of technology.
Recent Headlines
- Reading, Writing, & Saving the World
- Free Retro Gaming for iOS - Activision’s Kaboom!
- Apple Adds Chomp Bits to iOS 6 App Store Discovery
- Notability For iPad: Much More Than A Note Taking App
- Scosche’s RH656m Headphones With Microphone Are Wonderful
- Tim Cook & Larry Page Reportedly Discuss Patents
- Analysis: Amazon Kindle Fire Sold Out, Kindle Fire 2 Pic Leaked
Post Your Comments