Unlocked iPhones in US For $649

Endoflow2010 writes "Apple on Tuesday started selling an unlocked version of its iPhone 4, starting at $649. A 16GB unlocked iPhone 4 will set you back $649, while a 32GB version is selling for $749. Both are available in black or white; the black will ship within one to three business days, while the white is available in three to five days, according to the Apple Web site. The benefit of an unlocked phone is that you are not locked into a two-year contract with a particular provider. But it also means that you don't get the subsidized pricing provided by someone like AT&T or Verizon. The same phones with a contract cost $199 and $299."

Comments

Re:What the market will bear.

[imric]

No.

"For many self-employed people some sort of cell phone is necessary. It wasn't true some time ago, but nowadays you often need to be able to answer the phone no matter where you are. It doesn't have to be an iPhone, but it does have to be signed up with a cell phone carrier. "

Yes, perhaps - but if necessary, it can be written off. And you don't need to get a cell phone with a contract, and it doesn't have to be an iPhone, so I don't think that line of reasoning applies.

"This means that, as a practical necessity, many people need to sign a contract"

No. Contract-free phones are available and cheap. This thread was about unlocked phones having little effect on what is paid for access, while increasing what is paid for the phone. Even further, I do believe there are contract-free Android smartphones.

"This means that the free market doesn't work"

What most free marketeers call a 'free market' is more like an unfettered market. They take an extremist's view. That is NOT my view, however. From what I have seen, the free market works best when there are limits and regulations. Let businesses duke it out, sure - but keep them in the ring. Keep them from using knives and guns or other items that may harm the audience. Keep the audience from doing the same and harming the competition.

The free market works. Unfettered markets don't.

For an unfettered market to work,all things must be luxuries (consumers must be free not to buy), all transactions must be perfectly reversible (poisoning the water the land or air for a quick buck - or killing workers - must be 'fixable' for the same price or less as the profit made), and all markets must be infinite (labor must always be free to go get another job, for example). Having no regulation means that businesses in the course of maximizing profit will minimize competition. And when competition is marginalized or eliminated, there will be no motivation to improve or keep a lid on price, ultimately leading to economic disaster.