Vodafone and iPhone Costs

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Scoob99nz

5 posts

Wannabe Geek

#87649 3-Aug-2011 13:42

Hello Everyone,

I was just checking the latest pricing for iPhone's on the Vodafone Website (03/08/2011) and noted that Vodafone have risen the price for the iPhone plan 3 for the Phone from $499 to $599. Additionally back in April they raised the price from $199 to $499 on the same plan.

When I wrote to Vodafone about this they mentioned that the change in price was due to the special ending on the iPhone Plan 3.

What could possibly explain this latest price hike? I am starting to wonder that Vodafone think they can milk the market. Vodafone use to be really good, but recently have taken a nose dive close to Telecom.

It also currently appears that the Vodafone Website has died.

Cheers

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5 posts

Wannabe Geek

#511871 25-Aug-2011 14:18

I see Vodafone are at it again this time increasing the call plan by $5 and the actual cost of the Phone from $599 to $699... What is Vodafone's excuse this time round. Especially since Apple are talking about to release a low cost Apple iPhone 4 to the market soon.

Are Vodafone afraid of losing money on iPhone? If you are a Vodafone can you please answer why in the past 6 months you have dramatically increased the iPhone cost?

Regards

Andrew

Wade

2225 posts

Uber Geek

#511873 25-Aug-2011 14:25

They haven't, they have reduced the subsidy, and even then most people seem to only remember the $199 Smart 3 promo which was jsut a limited time promo

Same could be said for the SGS2, i bought mine the day they released on smart 2 and recieved a $500 subsidy (Phone $1199 --> $699), a week later the subsidy on the same phone and plan dropped to $400 and now it is $200

Check the competition and $200 in far closer to the competition than $500, i consider myself very lucky to have bought when i did!

SteveON

1916 posts

Uber Geek

#511883 25-Aug-2011 14:48

Scoob99nz: I see Vodafone are at it again this time increasing the call plan by $5 and the actual cost of the Phone from $599 to $699... What is Vodafone's excuse this time round. Especially since Apple are talking about to release a low cost Apple iPhone 4 to the market soon.

Are Vodafone afraid of losing money on iPhone? If you are a Vodafone can you please answer why in the past 6 months you have dramatically increased the iPhone cost?

Regards

Andrew

Just saying... Competition is a good thing.

Hopefully the iPhone will be not be network specific this time round.

Scoob99nz

5 posts

Wannabe Geek

#511885 25-Aug-2011 14:50

I totally agree, hopefully they include other vendors this time round to get the competition going.

SteveON

1916 posts

Uber Geek

#511894 25-Aug-2011 15:07

Scoob99nz: I totally agree, hopefully they include other vendors this time round to get the competition going.

Always forget the AUD is worth more...
Apple AU = AU$ 859 (NZ$ 1082)
Apple NZ = NZ$ 1123

$13 x 24 = AU$ 312 (NZ$ 393)

Still a VERY good discount. I hope Telecom gets hold of the iPhone 4s/5!

codyc1515

1598 posts

Uber Geek
Inactive user

#511918 25-Aug-2011 15:52

SteveON: I hope Telecom gets hold of the iPhone 4s/5!

Doubt it.

Wade

2225 posts

Uber Geek

#511939 25-Aug-2011 16:22

I doubt VFNZ will let go of their iphone stronghold, here's hopng Telecom embraces the Samsungs and promotes them properly as their flagship phone, a bit of stiff and real competition would work wonders I bet

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codyc1515

1598 posts

Uber Geek
Inactive user

#511943 25-Aug-2011 16:32

Wade: I doubt VFNZ will let go of their iphone stronghold, here's hopng Telecom embraces the Samsungs and promotes them properly as their flagship phone, a bit of stiff and real competition would work wonders I bet

I wonder what the implications might be if Apple managed to get all the Android phones in NZ banned, similar (in some regards) to whats happening in the EU?

oxnsox

1923 posts

Uber Geek

#511951 25-Aug-2011 16:45

Scoob99nz: I see Vodafone are at it again this time increasing the call plan by $5 and the actual cost of the Phone from $599 to $699... What is Vodafone's excuse this time round. Especially since Apple are talking about to release a low cost Apple iPhone 4 to the market soon.

Are Vodafone afraid of losing money on iPhone? If you are a Vodafone can you please answer why in the past 6 months you have dramatically increased the iPhone cost?

Regards

Andrew

They have not increased the price at all, they've reduced the subsidy which is a totally different thing.

Previously VF had large subsidies on the device, which has very low margins, and this effectively skewed the price of the actual plan that the rest of us paid as users. (eg: you and I may both be on a $40 smart plan for 2 years but you got a $1000 handset for $499 and I only got $100 discount off my android.)

I'm all for the plans setting the price for the service and the handsets being at a market value. But if you sign up for 2 years I don't have a problem with a $100 (or so) subsidy, as long as it's applied evenly across the range.

codyc1515

1598 posts

Uber Geek
Inactive user

#511952 25-Aug-2011 16:49

oxnsox:
Scoob99nz: I see Vodafone are at it again this time increasing the call plan by $5 and the actual cost of the Phone from $599 to $699... What is Vodafone's excuse this time round. Especially since Apple are talking about to release a low cost Apple iPhone 4 to the market soon.

Are Vodafone afraid of losing money on iPhone? If you are a Vodafone can you please answer why in the past 6 months you have dramatically increased the iPhone cost?

Regards

Andrew

They have not increased the price at all, they've reduced the subsidy which is a totally different thing.

Previously VF had large subsidies on the device, which has very low margins, and this effectively skewed the price of the actual plan that the rest of us paid as users. (eg: you and I may both be on a $40 smart plan for 2 years but you got a $1000 handset for $499 and I only got $100 discount off my android.)

I'm all for the plans setting the price for the service and the handsets being at a market value. But if you sign up for 2 years I don't have a problem with a $100 (or so) subsidy, as long as it's applied evenly across the range.

Personally, as an example, if you go into a Vodafone store and the price of an iPhone 4 was $619 the other day and today it is $999, I would call that a price increase. Although, it is rather unusual because the cause is the subsidy decrease. Anyhow, a $100 discount would not be enough to entice me into signing up for a 24 month contract, although, I do agree that the subsidies should be more consistent.

kiwitrc

4123 posts

Uber Geek
Inactive user

#511961 25-Aug-2011 17:05

codyc1515:
Wade: I doubt VFNZ will let go of their iphone stronghold, here's hopng Telecom embraces the Samsungs and promotes them properly as their flagship phone, a bit of stiff and real competition would work wonders I bet

I wonder what the implications might be if Apple managed to get all the Android phones in NZ banned, similar (in some regards) to whats happening in the EU?

Apple didnt get Android phones banned in Europe.

codyc1515

1598 posts

Uber Geek
Inactive user

#511963 25-Aug-2011 17:07

kiwitrc:
codyc1515:
Wade: I doubt VFNZ will let go of their iphone stronghold, here's hopng Telecom embraces the Samsungs and promotes them properly as their flagship phone, a bit of stiff and real competition would work wonders I bet

I wonder what the implications might be if Apple managed to get all the Android phones in NZ banned, similar (in some regards) to whats happening in the EU?

Apple didnt get Android phones banned in Europe.

I did not say it had happened, although, it may.

sbiddle

30853 posts

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Lifetime subscriber

#511965 25-Aug-2011 17:09

I'm really puzzled why all you guys think Vodafone is ripping you off.

The iPhone discounts are really do different to any other handset subsidies. Sign up on a $100 plan for 24 months and you'll get a $500 subsidy, effectively meaning you're getting a $20 per month discount. Sign up for a $100 plan on XT and you'll get a $500 handset subsidy. Sign up on a $89 plan on 2degrees and you'll get a $220 subsidy that can be used on any products. The subsidies offered by Vodafone and Telecom are similar.

Why should somebody signing up for an iPhone4 get a significantly higher handset subsidy when the plan is the same as somebody buying any other handset?

I'm personally all for reducing heavy handset subsidies - they remove the inbalance created when people out of contract are paying the same monthy prices. You can't expect to great value on included plan bundles and heavy handset subsidies. Pick one or or the other.

codyc1515

1598 posts

Uber Geek
Inactive user

#511969 25-Aug-2011 17:12

I have compiled a comparison of the costs of an iPhone 4 on the Vodafone Smart1 plan here: http://www.codycooper.co.nz/vf-table.html. (External link as you can't embed tables here)

sbiddle: I'm really puzzled why all you guys think Vodafone is ripping you off.

The iPhone discounts are really do different to any other handset subsidies. Sign up on a $100 plan for 24 months and you'll get a $500 subsidy, effectively meaning you're getting a $20 per month discount. Sign up for a $100 plan on XT and you'll get a $500 handset subsidy. Sign up on a $89 plan on 2degrees and you'll get a $220 subsidy that can be used on any products. The subsidies offered by Vodafone and Telecom are similar.

Why should somebody signing up for an iPhone4 get a significantly higher handset subsidy when the plan is the same as somebody buying any other handset?

I'm personally all for reducing heavy handset subsidies - they remove the inbalance created when people out of contract are paying the same monthy prices. You can't expect to great value on included plan bundles and heavy handset subsidies. Pick one or or the other.

Have a look anywhere else in the world and you will what we are getting for our $$$ is less than excellent value.

oxnsox

1923 posts

Uber Geek

#511991 25-Aug-2011 17:45

codyc1515: Have a look anywhere else in the world and you will what we are getting for our $$$ is less than excellent value.

This is a popular arguement, untill you realise that we don't live anywhere else in the world

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