IPhone pricing doesn't seem that bad, really

Forums › One NZ (including Farmside) › IPhone pricing doesn't seem that bad, really

timestyles

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#23828 9-Jul-2008 19:54

Looking objectively at the pricing that Vodafone give us, I don't really have a problem with what they have. Here's why:

Iphone 250:

120 minutes at .50 cents a minute if you were to carry two phones (and were on prepay) = $60
600 texts on Telecom's $10 text = $10 (actually you exceed the 500 text requirement but who sents 600 texts?)
200MB at $30 with Telecom = $30
paying back the subsidy over 24 months $500/24 = $18 approx

total: $118 but you pay only $80

Iphone 500

250 minutes at .50 cents a minute if you were to carry two phones and on prepay as before = $125
600 texts on Telecom's $10 text = $10 (actually more but who sents 600 texts?)
500MB at telecom = $40 * 500/400 = $50
paying back subsidy over 24 months $400/24 = $16 approx

Total: $201 but you pay only $130

IPhone 1GB

600 minutes at .50 cents a minute as before = $300, but lets give a discount because you use a lot of minutes, say 40 cents a minute = $240

600 texts as before $10
1GB with Telecom $50
paying back subsidy $800/24 = $33

Total $333 but you pay only $250.

I may have made mistakes here, but as you see, total costs are about 2/3 what you pay in components. That's not bad, 33% discount.

pebbles

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#145682 9-Jul-2008 20:06

So are you comparing a VF plan to a telecom prepaid here? As wouldn't it be better to compare plan VS plan really?

freitasm

BDFL - Memuneh
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#145683 9-Jul-2008 20:10

You shouldn't compare with the Telecom prices at all. You should compare with other Vodafone prices. For example use the Choose 600 plus 1 GB mobile broadband plan and you will see Vodafone is giving a discount.

And I am moving this to the Vodafone forum.

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JoeBloggs

355 posts

Ultimate Geek

#145708 9-Jul-2008 20:36

At the very least remove the "pay back the subsidy at x per month". I know Telecom doesn't require users to pay back the original subsidy, only the cost of the phone, but what baring does that have on the price of the plan? If you were to compare this with a Vodafone prepay it would look pretty bad too.

jpollock

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#145984 10-Jul-2008 10:26

Here's the issue.

I have an iPhone 1.0.

I spend at most NZ$20/month on prepaid, including some casual data (wifi at home and work). Amazingly, that's triple what I used to spend on my RAZR.

That means my iPhone, over 2 years costs me NZ$1300.

Compare that to the minimum plan:

NZ$50/mo + NZ$979 = NZ$2179

That's an additional NZ$800. It is also important to remember that having the freedom to change carriers at any time has value to the customer (a rather substantial one).

So, if you are already spending that much money on a plan, it's a good deal. If you aren't, then there is no reason whatsoever to buy that phone, and no way to get it without the plan.

It's a conflict between wanting the device, and justifying the plan. It's too big a jump over what a lot of people already spend.

What would it take?

How about NZ$50/month and a NZ$199 phone?

NZ$1399.

That probably would have convinced me, if I could keep my number.

They have a conflict between the people that Apple markets to, and the people who can afford the plan. Apple markets to teenagers and students. They are the people who can't afford an NZ$80/month plan!

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http://blog.jason.pollock.ca