Apple Turning Cell Phone Market Upside Down?

joek writes "This MacRumors analysis puts some of the iPhone/Cingular pieces together and suggests that Apple may be turning the the cell phone market upside down. Everyone assumed that Apple's $499/$599 prices for the iPhone was subsidized by Cingular. But, it appears that Apple is not allowing mobile carriers to subsidize the iPhone. Why? Because when Apple comes out with the Touch iPod, they don't want it compared in price to a discounted/subsidized iPhone. Add to that rumors that Cingular may heavily discount service (but according to a Cingular rep, they will not be giving away service, as previously suggested) to attract Verizon customers. Without kicking in $100-$200 against the price of the phone, Cingular can discount the service as an incentive. Other cell phone manufacturers will certainly be interested in the outcome of this new model."

Comments

They won't sell well

[szembek]

The iPhone is doomed to be a failure at that price. Sure, they'll sell some to the high tech crowd, and the "have to have it all" crowd. But everybody I know gets the cell phone that's free (or at least $100) with a 2 year agreement. You can get a razr for free every two years, or a comparable phone.

wow

[JustNiz]

$600 for a DRM-riddled phone? ...no thanks.