“In a 36-page report to clients issued Monday, a Credit Suisse team led by Kulbinder Garcha took a close look at the iPhone’s price elasticity — Econ 101 jargon for the question: ‘If I lower the price of my widget, how many more will I sell?'” Phillip Elmer-Dewitt reports for Fortune.
“Garcha et al.’s focus is the iPhone 3GS, which Apple last month began offering to its partners for an ASP (average selling price) of $325, allowing the likes of AT&T, Vodafone and Rogers to give it to customers at subsidized prices ranging from $0.99 to $0.00.,” P.E.D. reports. “How does this change the competitive landscape?”
P.E.D. reports, “HTC and Samsung are the most exposed, with a 22% and 20% share, respectively, of the $250-$400 market. The impact, according to this report, could be most severe on Research in Motion ‘given ongoing concerns around its product portfolio.'”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Dan K.” and “Brawndo Drinker” for the heads up.]
Related articles:
The top two best-selling U.S. mobile phones in Q311: Apple iPhone 4 and Apple iPhone 3GS – November 14, 2011
Apple’s free iPhone 3GS a big weapon against Android phones with up to 20% of iPhone sales this quarter – November 4, 2011
AT&T: iPhone 3GS sees sellouts, more new customers than any non-iPhone device – October 20, 2011
People still buy the 3GS?
It’s still kicking the arse outta all the iPhone wannabes
They say it doesn’t spontaneously reboot like most current Android smartphones. Tried and tested tech can be just as good to average consumers as flaky new tech.
Yes. Before the introduction of the 4S, it was the 2nd best selling smart phone behind the 4. Now, it’s in 3rd.
Please see “Related articles” above.
Of course people don’t “buy” the 3GS, they’re given it for “free” with a 2-year contract.
If you take into account the price of overall ownership (monthly fees X 2 years), the difference in price between the 3GS and 4S becomes negligible.
If you weren’t planning to accrue monthly fees, i.e. if you weren’t going to use it, then buy a 3GS. God bless! But if you actually plan on using it, buy a 4S.
It’s funny that so many people tend to view the expense as an insular moment in time. But actually, with every additional month towards the two year mark, the price reduces across EGG / FRY vectors (+-PBAJ) towards BUN.
But tell us truly, if you FRY an EGG, can it properly be served on a BUN?
No, the bun is for the Peanut Butter and Jelly
ROTFL
Duh! My mistake. In the foregoing example, “vectors” surely must be “vendors.” Bartender, bring me another one.
Most people don’t seem to understand your reasoning, squiggles. If I am going to pay for the data plan, then I want to be able to leverage it to the fullest (4S).
Yes, in fact I sold my white 3GS which was in perfect condition to some guy from Jamaica down here in Florida last Sun. for $180.00. which my husband posted on Craigslist. It was only listed for one hour.
I have sold eight iPhones for friends and family in recent weeks. Everyone upgraded to the 4S. I sold a white 3GS 16gb for $220 last week, and a black 3GS the week before for $215. A black 3G — NOT 3Gs — fetched $155. All on Craigslist, and all were really nice with boxes and accessories. The first rule of iPhone ownership: SAVE THE BOX. It is worth $30 at resale time.
Absolutely right – Last week I sold a 32GB 3GS in perfect condition with all accessories & box on Ebay for $250. Basically, I upgraded to the 4S for $50. If I had been selling a 4, I would have made money on the upgrade. BTW, this works for all Apple products. I upgrade everything every two years, and I usually only have to come up with about 1/3 of retail to buy brand new stuff.
yep 50,000/wk
And AT&T is currently showing the iPhone 3GS as out of stock (though you can still by a refurb). Wow.
A local AT&T store quoted me a price of $550 (!) for a non-contract 3GS 8 gb — the only model they sell that way. Amazing.
People purchasing the 3GS do pay a price… “accessories”.
It is much more difficult to get accessories for the 3GS than the 4. Case manufacturers made 3GS cases many moons ago. People are often disappointed to find out that they are almost forced to shop online for 3GS cases because very few can be found in retail locations.
The only reason I upgraded from an iPhone 3GS to an iPhone 4s is the 64 GB available for music.
Yes my iPod 4S has a phone and all those other features.
When will my iPod Classic get them?
I can’t imagine why anyone would “save” $200 to buy a $2000 subscription, but hey, whatever floats your boat.
And it is funny to see all the pretty-boy, steroid enhanced Android phones getting beat up by the 95 lb, octogenarian 3GS.