“Wireless carrier AT&T is looking to use next month’s launch of iPhone as an important branding opportunity, but now appears unlikely to offer subsidies on the Apple handset, according to comments made during a recent AT&T investor gathering,” Katie Marsal reports for AppleInsider.
“‘There was a major focus on the launch of the iPhone, expected in late June (based on Apple’s latest comments),’ John Hodulik, an analyst with UBS, wrote in a report following the financial meeting. ‘While the company would not answer the vast majority of our questions, we were able to infer a couple of new data points,'” Marsal reports.
Marsal reports, “First off, said Hodulik, AT&T indicated that it plans to use the iPhone launch ‘as a branding event’ and that it will also increase its advertising dollars around the product to cement the ‘AT&T Mobility’ name in the market. The No. 2 U.S. wireless carrier added that it expects Apple to market the product aggressively through its own avenues, as well.”
Marsal reports, “The UBS analyst said comments made by AT&T management led him to believe the carrier will not subsidize the cost of Apple handsets, as has been widely rumored over past few months.”
Full article here.
[Thanks to MacDailyNews Readers “James” and “LinuxGuy and Mac Prodigal Son” for the heads up.]
iPhone certainly does not need to be subsidized.
Without subsidies this will no doubt mean cheaper call plans….
Why are you laughing?
I thought Cingular was the number one U.S. wireless carrier, so why is AT&T now number 2?
hmmmm…. a subsidy would have been nice but it won’t stop me and 10 million others from buying the iPhone
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-L
I’m unlikely to subsidize zunetang.
TL5: ATT has already figured that out. That’s why there’s not going to be a subsidy.
Whatever. They just just get the phone in my hands already…..
I not only don’t care if it’s subsidized, I plan to buy the more expensive model with more memory, on day one.
I’m only concerned if there will be enough in stores so that I don’t end up on a wait list.
The No. 2 U.S. wireless carrier added that it expects Apple to market the product aggressively through its own avenues, as well… starting with [cough] the keynote, where, we hope, Steve will spin his…uh, RD-thingy.
No, the iPhone does not need to be subsidized, at least not until the Zune phone comes out.
(pause for laughter)
What does this have to do with my cousin Sid’s eyesight? Is it becuase he’s stationed on the USS Hawaii? All this talk about Sub Sid’s eyes. It’s not right.
Just goes to show you. AT&T, bigger, and dumber than ever. “If we own everything, then we don’t have to think, they will have to come to us for what ever!”
AT&Ts; game plan, $$$$$ oh, yes and $. Custormer service, what is that, will it make us more money with out costing anything???
en
MDN word subject as in I am being treated like a medevil subject with AT&T!!
Expect Apple to have a surprise at the iPhone announcement, either featurewise or pricewise. My only problem with the iPhone currently is that 8gigs is just not enough for the iPod portion of the iPhone for a combination of songs, TV shows, and movies. It is just not enough! So many people say that they want to only carry around one device, and the iPhone is perfect, except the iPod portion is way too lean spacewise. This also seems to be the device where we all have to get in the habit of charging every single night, even with just basic use, as the demands of battery life will be taxed and more critical because of the phone side of things.
Well that will be fine, as long as AT&T doesn’t require me to purchase _any_ long-term contract. If they do, then screw them!
I’m so siked!! the iPhone will do everything!
“…the carrier will not subsidize the cost of Apple handsets, as has been widely rumored over past few months.”
There have been plenty of people wishing for subsidies, or scoffing at their absence, but I have not seen “wide rumors” that implied that there was even a chance for a subsidy.
As others have said, the iPhone needs no subsidy, but ATT better have a VERY attractive service package or it won’t matter how cool the iPhone is. Especially since their over-air data system is second rate by today’s standards.
In other words, I trust Apple not to screw the pooch with a bad product, but I can easily envision AT&T pissing off its customers.
Cingular/ATT is now #2 because Verizon just surpassed it in April in number of total subscriptions.
All you hafta do is wait a year and the price will drop.
@TwistedMacFreak:
-groan-
: )
“John Hodulik, an analyst with UBS, wrote … we were able to infer a couple of new data points,'”
Do they get special training to talk that kind of shit? WTF is a “data point” in the context of the Q&A?
Rock on Steve!
Zorrin:
iPhone subsidies will appear if/when Apple and AT&T want to stimulate demand. Based on recent articles and posts in this forum, there is plenty of pent-up iPhone demand and, thus, no reason to subsidize at the outset.
My guess is that the production iPhones will have more RAM than advertised in January.
“All you hafta do is wait a year and the price will drop.”
Agreed. This is where the whole “subsidy” thing made me laugh.
Come June, iPhones will be selling like hotcakes. Why would Apple or AT&T want to give those people a price break? That’s just plain silly.
Want an iPhone in June? Expect to pay top dollar and enjoy the exclusivity. Personally, I’ll wait six months or a year…
Twisted Mac Freak what about all this talk of your cousin and his missis……She succeeds!!!! Ha! Ha! Haaaa!!!!!!
Peter said “Personally, I’ll wait six months or a year…”
I will likely wait the rest of my life. I am sure glad I don’t have to have a telephone stuck in my pocket or hanging on my belt.
Gawd I don’t know what happened to our society that everybody got so entwined with one another that they cannot exist for a moment without being ‘in touch’ with everbody they know.
Does siked mean the same as psyched?