Before the original iPhone, I have owned four cell phones in my life. Starting when I was 17 years old, I had a Motorola (circa 1997), a Sprint NCP-1000, various versions of the Sanyo 4900, and a Sanyo Katana. It’s safe to say that is the OLD way.
For the original iPhone, 3g, and 3gS, I have shelled out $500, $300, and $300 in the last three years, respectively. Not only that, but I also originally switched from Sprint who I had 7 continuous years of service with. The iPhone has changed how we look at cell phones on many different levels. It’s the shear number of people who feel the same way I do that make this a sea change for mobile devices. When I want to “compute” after work, at home as in Twittering, web browsing, gaming, music, blogging, etc, my fist option is always my iPhone. I can lay in bed or on the couch and get things done or be entertained. Since it’s always in my pocket, it’s easily the first thing I reach for over my home computer, laptop, or even Xbox.
But let’s look at the business potential. Apple sold one million 3gS models in its first weekend. This is the third iteration of the phone in three years. Many existing 3g owners, such as myself, were up in arms the day after WWDC 09 when 3g owners were offered prices ranging from $499 to $699 (for the 32gb model of course). Users like me took it to the “tweets” and signed Twititions, and really vocalized our discontent in this matter. We didn’t care about subsidies or anything else. We just wanted the newest iPhone at a reasonable price. Opposing voices shouted “That’s how it is with all other cell phones and carriers, you cry babies”. Very true. But this isn’t every other cell phone and AT&T realized, albeit a little late, that it was better to give in and figured out a way to please some of these screaming iPhone fans.
I hope this begins a change for how everyone looks at mobile hardware. If Apple updates the iPhone every year I’m going to want it because I know Apple will make it worthwhile based on their track record thus far. So will millions of other people it seems. If AT&T wants to keep me/us as happy, paying customers, they should figure a way to change how cell phones are priced and valued so that people like me, (early adopters), can update whenever Apple comes out with new hardware. We are the ones who rave about the phone. We are the ones who show our last few friends that don’t have them how cool the iPhone is. We are the ones who, by word of mouth, convince those friends to get one. It was surprising to me that AT&T was so caught off guard by this, especially with their famous souring of WWDC 09 due to no MMS or tethering at launch of the 3gS. Did you hear how many times the crowd scoffed and laughed when it was mentioned or hinted that AT&T was dropping the ball?
AT&T benefits from this right now in a huge way because they are the sole carrier of the device in the United States. So even though AT&T could be a better carrier, (and that’s being nice), it generates business and potentially forces them to step up their game. In the press release, they say:
“We are incredibly proud to be the U.S. carrier for the new iPhone 3GS, the fastest, most powerful iPhone yet.”
While offering lower pricing for 3g owners from July, August, and September was a good move, it still does not fully live up to that statement. AT&T has a long way to go before their actions can speak as loud as their words.
AT&T mobile plans, at least for the iPhone are generally overpriced. $20 extra for unlimited texting really should be rolled into the unlimited data. There are rumors that tethering can range anywhere from $30 to $60 in addition to whatever you pay. This would be the wrong move. People already created workarounds to tether now. Somewhere along the line, with the exception of the iPhone, data plans have a cap of 5gb. This just isn’t going to work. It’s not just me who thinks so. Take into consideration the Broadband Fairness Act. It’s really hard to justify caps on monthly data, especially with how expensive it is. As stands, there is no true unlimited data option that includes tethering or wireless data cards for laptops.
So here are some suggestions that, don’t even WOW me, but seem very reasonable.
1. Figure out a way to allow loyal customers to upgrade hardware without the hassles and restrictions of old. These are new times.
2. Reconfigure pricing to be reasonable once ALL features are available. If I fork over $150 a month to AT&T (currently, I fork over $120), I should be getting unlimited EVERYTHING.
3. AT&T should stop playing gatekeeper with banning applications and capping video and audio bitrates in iPhone programs.
4. If AT&T doesn’t step up their game, Apple should open the iPhone to more U.S. carriers. This would force everyone’s hand to lower pricing, offer a better overall experience, and generally be more competitive.
