“Cheaper” iPhone Prompts Deceptive Pricing War
ADOTAS – The new “cheaper” iPhone is forcing competitors (like Samsung) to slash their prices too – on the surface at least.
But how much cheaper is Apple’s new iPhone? Sure, the initial cost for the 3G is $199 (down from $399), but U.S. consumers have to sign on to a two-year deal with AT&T. So what’s the catch? AT&T has increased prices for its iPhone service plans.
Over two years, with monthly fees and service, the new phone will cost about $1,975 — about $160 more expensive than the old phone and plan.
Competitors Samsung Electronics and Sprint Nextel are wasting no time in the pricing war. Today, Samsung’s latest phone, Instinct is scheduled to hit Sprint’s shelves, well before iPhone’s new release on July 11. The Instinct boasts many iPhone-like services like speedy Internet access, streaming TV, an online music store, GPS and a sexy design. The Instinct is also longer, lighter and narrower than the newest iPhone.
The Instinct will sell for a wallet-friendly $129.99 – but its service plan is pricey ($99 a month) – totaling $2,505.99 over two years. So again – while it looks cheaper at first glance, the Instinct is actually pricier than the new (also pricier) iPhone.
Reader Comments.
Re: Instinct Pricing
The only thing deceptive is your article.
Instinct monthly plan pricing starts at $69.99 month. That includes 450 minutes, unlimited data, and unlimited text messaging. It also includes unlimited television viewing, a feature not included on the iPhone. iPhone plans start at the same $69.99 for 450 minutes, but only include 200 text message. To go unlimited like on the Instict, you are talking $89.99 month.
The $99.99 plan is for unlimited everything – minutes included. The comparable unlimited everything plan on the iPhone is $199.99 a month.
Sprint overcharged my small (US) company for over $50,000.00. We caught them doing it and now they refuse to refund the over-payments. You can read the full story at http://www.sprint-really-sucks.com
I also wrote an open letter to Dan Hesse the Chairman and CEO of Sprint Nextel. It is a good read so please consider reading the letter.
http://www.sprint-really-sucks.com/open-letter-dan-hesse.aspx
service for the instinct required the simply everthing plan starting at $69.99 per month -it does not require the $99 plan; that is optional. it depends on the number of voice mintues you want.
Why on earth has this article not been edited? The article is WRONG. Sprint should sue you for libel.
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