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2133 posts

Uber Geek

codyc1515: 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)

I'm not quite sure what your table is showing..

Taking your example though and assuming a time frame of 24months

1 month contract \$45 x 24 + \$1099 for handset = \$2179 or effectively \$90.79/mth
12 month contract \$40 x 24 + \$1099 for handset = \$2059 or effectively \$85.79/mth
24 month contract \$45 x 24 + \$999 for handset = \$2079 or effectively \$86.63/mth

So the best option is to lock into the 12mth contract and buy the handset outright, logic prevailing the \$40/mth cost should carry on for life of plan so it becomes the most economic option

Take the Smart \$85 option though

1 month contract \$85 x 24 + \$1099 for handset = \$3139 or effectively \$130.79/mth
12 month contract \$70 x 24 + \$1099 for handset = \$2779 or effectively \$115.79/mth
24 month contract \$85 x 24 + \$699 for handset = \$2739 or effectively \$114.13/mth

Crunch the numbers and you can save 5% by locking in on Smart\$45 and 10% on Smart\$85

The handset subsidy only plays part of the value proposition

## codyc1515

1598 posts

Uber Geek
Inactive user

codyc1515: 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)

I'm not quite sure what your table is showing..

Taking your example though and assuming a time frame of 24months

1 month contract \$45 x 24 + \$1099 for handset = \$2179 or effectively \$90.79/mth
12 month contract \$40 x 24 + \$1099 for handset = \$2059 or effectively \$85.79/mth
24 month contract \$45 x 24 + \$999 for handset = \$2079 or effectively \$86.63/mth

So the best option is to lock into the 12mth contract and buy the handset outright, logic prevailing the \$40/mth cost should carry on for life of plan so it becomes the most economic option

Take the Smart \$85 option though

1 month contract \$85 x 24 + \$1099 for handset = \$3139 or effectively \$130.79/mth
12 month contract \$70 x 24 + \$1099 for handset = \$2779 or effectively \$115.79/mth
24 month contract \$85 x 24 + \$999 for handset = \$2739 or effectively \$114.13/mth

Crunch the numbers and you can save 5% by locking in on Smart\$45 and 10% on Smart\$85

The handset subsidy only plays part of the value proposition

My comparison was only to show an example of the current prices.

## codyc1515

1598 posts

Uber Geek
Inactive user

oxnsox:
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

I realize that we don't live anywhere else in the world, however, places where prices are cheaper are where true competition exists, aka. not NZ.

## sbiddle

25943 posts

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Biddle Corp

codyc1515:
oxnsox:
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

I realize that we don't live anywhere else in the world, however, places where prices are cheaper are where true competition exists, aka. not NZ.

Do you consider Aussis to be far better than NZ? Dirt cheap pricing that's resulted in exceptionally poor performing networks while they pump money into networks and have no ROI? Do you consider the USA great value where virtually every network charges for tethering?

Value is a perception thing. I think beer is expensive in NZ.

I'm sure the bean counters at Telecom trying to work out how they're actually going to fully pay off the \$800 million + cost of XT would laugh at you if you were to try and convince them that that "true compeition" doesn't existing in the NZ marketplace. Maybe you could explain exactly what "true competition" really is.

## kiwitrc

4123 posts

Uber Geek
Inactive user

I think the point is being missed here, Apple set the price of the iPhone and pick who can sell it.

## Scoob99nz

5 posts

Wannabe Geek

Good Evening All,

With the release of the iPhone 4 8GB and the iPhone 4S i expected the cost of the iPhone would drop in price. Especially the iPhone 4 8GB.

Since the iPhone is \$99USD i would have thought that the price in NZ would be \$199 at the most on the \$85 plan.

But no, it is 5 times the price at \$499.

I then went to a vodafone store and the person there said that Apple dictate the price not Vodafone. Which i find very hard to believe. I wonder if Telecom will release them soon...

Vodafone keep putting their prices up on the iPhone plans and the cost of the phone.

I am very tempted to buy one outright.

Very disappointed

## codyc1515

1598 posts

Uber Geek
Inactive user

Scoob99nz: Good Evening All,

With the release of the iPhone 4 8GB and the iPhone 4S i expected the cost of the iPhone would drop in price. Especially the iPhone 4 8GB.

Since the iPhone is \$99USD i would have thought that the price in NZ would be \$199 at the most on the \$85 plan.

But no, it is 5 times the price at \$499.

I then went to a vodafone store and the person there said that Apple dictate the price not Vodafone. Which i find very hard to believe. I wonder if Telecom will release them soon...

Vodafone keep putting their prices up on the iPhone plans and the cost of the phone.

I am very tempted to buy one outright.

Very disappointed

I suspect the price increase is the very reason that to date we have not got the iPhone 4S officially.

## johnr

19282 posts

Uber Geek
Inactive user

codyc1515:
Scoob99nz: Good Evening All,

With the release of the iPhone 4 8GB and the iPhone 4S i expected the cost of the iPhone would drop in price. Especially the iPhone 4 8GB.

Since the iPhone is \$99USD i would have thought that the price in NZ would be \$199 at the most on the \$85 plan.

But no, it is 5 times the price at \$499.

I then went to a vodafone store and the person there said that Apple dictate the price not Vodafone. Which i find very hard to believe. I wonder if Telecom will release them soon...

Vodafone keep putting their prices up on the iPhone plans and the cost of the phone.

I am very tempted to buy one outright.

Very disappointed

I suspect the price increase is the very reason that to date we have not got the iPhone 4S officially.

How did you come to that conclusion?

## codyc1515

1598 posts

Uber Geek
Inactive user

johnr:
codyc1515:
Scoob99nz: Good Evening All,

With the release of the iPhone 4 8GB and the iPhone 4S i expected the cost of the iPhone would drop in price. Especially the iPhone 4 8GB.

Since the iPhone is \$99USD i would have thought that the price in NZ would be \$199 at the most on the \$85 plan.

But no, it is 5 times the price at \$499.

I then went to a vodafone store and the person there said that Apple dictate the price not Vodafone. Which i find very hard to believe. I wonder if Telecom will release them soon...

Vodafone keep putting their prices up on the iPhone plans and the cost of the phone.

I am very tempted to buy one outright.

Very disappointed

I suspect the price increase is the very reason that to date we have not got the iPhone 4S officially.

How did you come to that conclusion?

I think you are the one most knowledgeable on the subject, why don't you tell us?

## sbiddle

25943 posts

Uber Geek

Moderator
Trusted
Biddle Corp

So presumably using your very same logic Vodafone NZ's reduction is handset rebates I(there was NO price increase) is the reason plenty of other countries also have to wait until December?

## codyc1515

1598 posts

Uber Geek
Inactive user

sbiddle: So presumably using your very same logic Vodafone NZ's reduction is handset rebates I(there was NO price increase) is the reason plenty of other countries also have to wait until December?

Go back a few posts and you will see that they did, in fact, go up by a rather significant amount (e.g. Smart1 \$699, then later \$999). It could also be just that Apple did not have the stock, or did not see it as a relevant country to launch in.

## sbiddle

25943 posts

Uber Geek

Moderator
Trusted
Biddle Corp

codyc1515:
sbiddle: So presumably using your very same logic Vodafone NZ's reduction is handset rebates I(there was NO price increase) is the reason plenty of other countries also have to wait until December?

Go back a few posts and you will see that they did, in fact, go up by a rather significant amount (e.g. Smart1 \$699, then later \$999). It could also be just that Apple did not have the stock, or did not see it as a relevant country to launch in.

As I explained, handset subsidies were merely reduced. The price of an iPhone hasn't charged, and Apple still charge significantly more for a device in NZ than what they do in many other countries. This has nothing to do with Vodafone.

## PlatinuM195

74 posts

Master Geek

I got my iPhone 4 on the iPhone \$40 24 month contract last year on release day for \$619. If Telecom can even come close to matching that then I'll consider them for once my contract ends.

The subsidy was on release day so it can't have been a special.

## codyc1515

1598 posts

Uber Geek
Inactive user

sbiddle:
codyc1515:
sbiddle: So presumably using your very same logic Vodafone NZ's reduction is handset rebates I(there was NO price increase) is the reason plenty of other countries also have to wait until December?

Go back a few posts and you will see that they did, in fact, go up by a rather significant amount (e.g. Smart1 \$699, then later \$999). It could also be just that Apple did not have the stock, or did not see it as a relevant country to launch in.

As I explained, handset subsidies were merely reduced. The price of an iPhone hasn't charged, and Apple still charge significantly more for a device in NZ than what they do in many other countries. This has nothing to do with Vodafone.

Yes, the subsidies were reduced (thats what I meant to say). Who makes the subsidies? Vodafone. Was the price of the iPhone in NZ changed by Apple? No (not publicly). In this case I would make the inference that it is Vodafone that has decreased the subsidy and in turn increased the cost of getting an iPhone on-contract.

## johnr

19282 posts

Uber Geek
Inactive user

If Vodafone NZ sell an iPhone handset at retail cost the margin of profit is very very small

John

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