As everyone out there knows, the #1 place for Shakespeare combined with Apple Rumors is Apple Recon. Now allow us to go a bit further, quoting the bard:
“Whether ’tis nobler in the mind to suffer the slings and arrows of outrageous fortune”
(in other words, make a whole ton of money and be hated for it)
“Or to take arms against a sea of troubles, and by opposing, end them.”
(or fight the good fight and change the world)
That seems to be an appropriate quote for the situation Apple is in with the iPhone…and their choice…both!
First, Apple will recoup the marketing and R&D costs by selling them for $499 and $599…or actually, and here’s the thing folks, do you seriously think Cingular/AT&T is NOT giving Apple another couple hundred bucks on top of that for each one? Consider that the cell phone companies average $100 in subsidy for each year you buy a phone (in other words, a $200 phone becomes “free” with a two year contract, because Cingular/AT&T buys it from Motorola or Nokia or whoever for you). So, as Apple has always done in the past, and knows better than anyone, for the first few months they’re gonna sell as many as they can make, regardless of the price, to the Apple faithful. Say that Apple is getting $600 and $700 per phone wholesale from Cingular, they are making a steal considering iSuppli estimates they’ll cost around $250-275 for Apple to build. So indeed, they will suffer some slings and arrows of outrageous fortune, as the world (or at least the United States) complains that it is too expensive…but Apple doesn’t care for now, as they will still make lots of money (just like they did on the original iPod, which the world also said was too expensive).
Lots more after the break, keep reading… Read the rest of this entry »
Posted by applerecon
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