The iPhone is both unsubsidized and locked. It provides none of the trade-off for consumers you refer to, and thus reveals the intentions of some combination of Apple and/or AT&T. Further, there is no compensatory savings on monthly rates; my phone bill actually went up $20/month for the same service which had included unlimited data, because AT&T withdrew the corporate discount from accounts which added the iPhone.
Yes, the iPhone is a notable exception to the subsidization rule, and there are several lawsuits now pending attacking that very issue. Note that this is T-Mobile we're talking about, though -- and regardless of carrier, all currently offer heavy subsidies on a wide range of devices.
Reader Comments (Page 1 of 1)
Economist @ Oct 17th 2007 1:46AM
The iPhone is both unsubsidized and locked. It provides none of the trade-off for consumers you refer to, and thus reveals the intentions of some combination of Apple and/or AT&T. Further, there is no compensatory savings on monthly rates; my phone bill actually went up $20/month for the same service which had included unlimited data, because AT&T withdrew the corporate discount from accounts which added the iPhone.
Chris Ziegler @ Oct 17th 2007 10:33AM
Yes, the iPhone is a notable exception to the subsidization rule, and there are several lawsuits now pending attacking that very issue. Note that this is T-Mobile we're talking about, though -- and regardless of carrier, all currently offer heavy subsidies on a wide range of devices.
Chris