Comments on: The Impact Of The iPhone 3G Price Cut http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/ Consumer Insights, News, Research & Reports Fri, 20 Nov 2009 16:43:48 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Tdub http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-12629 Tdub Wed, 12 Aug 2009 17:52:59 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-12629 "Handset subsidies have to go up while the price to consumers has to go down to maintain a relative value proposition. Carriers will share the pain of lower handset prices with device manufactures whose margins will be further compressed..." Mr. Entner suggests that these handsets will need to be subsidized further by the carrier but there is doubt that could be the case since voice has already been commoditized and there would be little incentive for the carrier to offer further subsidy to these lower end handsets. For US carriers, subscriber growth is flattening and only trading from each other in churn. Future growth is expected to come from data (& services that use data) primarily with a smartphone or other data connected device. The feature phone is dead for the masses but will still serve a niche of users. Connected devices being considered by carriers to add to this new growth may have lower data demand but will require a very low monthly payment to remain attractive to a user who may already be paying $60 to $100 per month for plan with data with his smartphone. That said most consumers are unlikely to be happy paying for 2 or more data plans. The carriers may need to create one data plan that will work for multiple devices. It may look something similar to what is currently being offered from a Japanese WiMax Carrier, UQ, where a base price data plan is offered and connecting an additional device to a plan costs $2. “Handset subsidies have to go up while the price to consumers has to go down to maintain a relative value proposition. Carriers will share the pain of lower handset prices with device manufactures whose margins will be further compressed…” Mr. Entner suggests that these handsets will need to be subsidized further by the carrier but there is doubt that could be the case since voice has already been commoditized and there would be little incentive for the carrier to offer further subsidy to these lower end handsets. For US carriers, subscriber growth is flattening and only trading from each other in churn. Future growth is expected to come from data (& services that use data) primarily with a smartphone or other data connected device. The feature phone is dead for the masses but will still serve a niche of users. Connected devices being considered by carriers to add to this new growth may have lower data demand but will require a very low monthly payment to remain attractive to a user who may already be paying $60 to $100 per month for plan with data with his smartphone. That said most consumers are unlikely to be happy paying for 2 or more data plans. The carriers may need to create one data plan that will work for multiple devices. It may look something similar to what is currently being offered from a Japanese WiMax Carrier, UQ, where a base price data plan is offered and connecting an additional device to a plan costs $2.

]]> By: bodydetox http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-11272 bodydetox Thu, 30 Jul 2009 01:53:12 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-11272 my iPhone was actually a gift from my girlfriend. i really love this phone and i think that this is the best phone that money can buy. i like the features and the design. my iPhone was actually a gift from my girlfriend. i really love this phone and i think that this is the best phone that money can buy. i like the features and the design.

]]> By: Rogers’ $49 iPhone 3G “kneecaps” Mobile Industry « bad robot http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-9706 Rogers’ $49 iPhone 3G “kneecaps” Mobile Industry « bad robot Sun, 21 Jun 2009 16:10:39 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-9706 [...] piece of analysis regarding the iPhone 3G that was published by Nielsen about a week ago. The Impact Of The iPhone 3G Price Cut outlines how Apple’s reduced pricing on its second generation iPhone completely redefines the [...] [...] piece of analysis regarding the iPhone 3G that was published by Nielsen about a week ago. The Impact Of The iPhone 3G Price Cut outlines how Apple’s reduced pricing on its second generation iPhone completely redefines the [...]

]]> By: Is Pharma Ready for the New iPhone (or any iPhone)? | Pharma Marketer http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-9681 Is Pharma Ready for the New iPhone (or any iPhone)? | Pharma Marketer Fri, 19 Jun 2009 15:44:33 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-9681 [...] magical buying points where something starts to look really affordable to people. In fact, in a recent study done by Neilsen prior to the announcement, they noted, “…the second most important factor-noted by 20% [...] [...] magical buying points where something starts to look really affordable to people. In fact, in a recent study done by Neilsen prior to the announcement, they noted, “…the second most important factor-noted by 20% [...]

]]> By: Nielsen: $99 iPhone changes the game - Pocket PC Addict Forums http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-9586 Nielsen: $99 iPhone changes the game - Pocket PC Addict Forums Wed, 17 Jun 2009 00:04:47 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-9586 [...] you guys think this will effect the industry? How will this effect Windows Mobile? Check out the Nielsen Article [Via Electronista] __________________ Be water, [...] [...] you guys think this will effect the industry? How will this effect Windows Mobile? Check out the Nielsen Article [Via Electronista] __________________ Be water, [...]

]]> By: David Funk http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-9580 David Funk Tue, 16 Jun 2009 21:13:54 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-9580 I generally agree. It appears to me that AT&T is using it's 'Apple Engine' to both fund it through the recession and build out it's 3g, 3.5g and coming 4g infrastructure. When they inevitably lose iPhone exclusivity, they will have built a wireless network that will dwarf the capabilities of Verizon. Verizon's network functions well but most of the data use in the US is generated by iPhones - not Blackberrys or Windows Mobile devices. Not even close. If Verizon were to attempt to support high speed access to 20 million iPhones right now their network would probably collapse. I suspect AT&T has their eyes open and see a way to come out of this on top. I generally agree.

It appears to me that AT&T is using it’s ‘Apple Engine’ to both fund it through the recession and build out it’s 3g, 3.5g and coming 4g infrastructure. When they inevitably lose iPhone exclusivity, they will have built a wireless network that will dwarf the capabilities of Verizon. Verizon’s network functions well but most of the data use in the US is generated by iPhones – not Blackberrys or Windows Mobile devices. Not even close. If Verizon were to attempt to support high speed access to 20 million iPhones right now their network would probably collapse.

I suspect AT&T has their eyes open and see a way to come out of this on top.

]]> By: Frank Castle http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-9577 Frank Castle Tue, 16 Jun 2009 18:59:37 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-9577 This assumes much which has not beared out as RIM has had several devices at $99 or lower and even free. There is a large group of people that simpley will not pay the monthly fees for voice and data. Add the fact iPhone is still locked to at&t and you have a smaller group of people due to not being available cross carrier. Now $99 and cheaper data plan options would drive smartphones sales across all devices. Apple is not the delfacto choose of everyone and as NPD sales the last 3 months have shown Blackberry in 3 of the top 5. This assumes much which has not beared out as RIM has had several devices at $99 or lower and even free.

There is a large group of people that simpley will not pay the monthly fees for voice and data. Add the fact iPhone is still locked to at&t and you have a smaller group of people due to not being available cross carrier.

Now $99 and cheaper data plan options would drive smartphones sales across all devices. Apple is not the delfacto choose of everyone and as NPD sales the last 3 months have shown Blackberry in 3 of the top 5.

]]> By: $99 iPhone 3G is gonna kill it « fiftylinkslater http://blog.nielsen.com/nielsenwire/consumer/the-impact-of-the-iphone-3g-price-cut/comment-page-1/#comment-9554 $99 iPhone 3G is gonna kill it « fiftylinkslater Tue, 16 Jun 2009 03:22:58 +0000 http://blog.nielsen.com/nielsenwire/?p=12742#comment-9554 [...] kill it Roger Entner, Head of Nielsen’s Telecom Research and Insights, does a nice job highlighting implications of the $99 iPhone 3G. The new $99 price point for the iPhone 3G completely changes the value proposition of every [...] [...] kill it Roger Entner, Head of Nielsen’s Telecom Research and Insights, does a nice job highlighting implications of the $99 iPhone 3G. The new $99 price point for the iPhone 3G completely changes the value proposition of every [...]

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