Sorry if this should be in the designated iphone thread, except I suspect it has been taken down due to 3G iPhone anouncement. Anyway, I have read many news stories on many australian news websites discussing the price of the 3G iPhone. Many of the sites are assuming it will be around the $210-$300 mark (currency conversions), due to the american pricing being $199. How can this be? due to the iPod Classic being $320 and the iPod Touch being $399. Even the 8GB Nano is $249 and the 160GB Classic being $449! Obviously im guessing they would have to lower the price of the other iPods dramatically otherwise the iPhone would have to be around the $500-$800 (unconfirmed sources?) mark. I just can't see Apple selling the iPhone for less than most iPods! And that whole WWDC thing about halving the price, obviously wont happen for Australia? unless they lower the iPod range pricing.

Really makes you wonder. Like how can Nokia sell hundreds of different phones for $0???

Its called the carriers are subsidizing the phone for locking you into a contract over which they will make the money back of you. They will pay Apple more for the Phone than they charge you upfront.

That thread still exists, but it's no longer sticky and has been renamed:
[Mega-merged] 3G iPhone - What do you think?

Also the cheap price is only on a 24 month contract which demands you pay around $1500 to $2000 over 24 months, although this includes your calls/data etc. iPods aren't on a contract and many people won't want to/can't go on a contract so will still buy iPods.

The iPhone is free in the same way the n95 is 'Free', in that it isn't, you just don't pay the full price straight away.

There are two prices.

(a) Subsidised price on contract
(b) Outright purchasing price

If you go on a contract for 2 years, you pay a small amount for the handset and pay it off over the contract length with high monthly caps/fees for data and voice charges. You are locked in (unless you cancel/terminate and that is more fees and charges).

If you choose to buy it outright, and we don't know the price yet, it will be higher because there is effectively no subsidy on the iPhone and you must pay the carrier up front/right away for the convenience of being able to 'own' the iPhone right there and then. You don't sign any contracts or get locked into any deals.

The reason it is 'half price' is because the carrier bears the risk. Apple sells the iPhones at full cost to the carrier. They then sell it at the reduced rate to you, locking you in so that they are covered for their costs.

The outright purchasing price pays the premium back to the carrier.

If any of this is wrong, correct me.

EDIT
What gaehl said.

Have you read anything on this forum at all?
The $199 and $299 price points are what you pay, up front, when locked into a contract. (Which runs between 18months and 24months elsewhere in the world)

This is making me cry.

iPhones are subsidised, iPods are not. iPhones are on contracts, iPods are not.

But the iPhone is an iPod!

I jest.

ok sorry, im a bit of a newb to this mobile crap (seriously) i cant understand all of this no pay until later, i assumed that there was a pay now iphone fee, etc....
Im guessing this whole thread sounded stupid and dumb....

NeoRicen, sorry i searched and couldn't find it. (the thread)

But still paying over a matter of months, whether it be the full price of the phone, would be less than an iPod Touch!!

no
eg n95 is 599 outright
on a plan u pay around 899 with calls

Negative.

You pay a monthly commitment of say $79 a month. For 24 months.

That's almost $2000 there. Disregarding the price of the iPhone handset that you must pay to begin with.

So you must really use the voice/data to take advantage of this "free" iPhone (it's not free or even cheap at all all things considered, compared to the original iPhone cost/s).

The $199 is up front PLUS the monthly payments.

Say you want an iPhone and Optus is offering it upfront for $300, you pay your $300 but now you're signed up to a contract that says you have to give Optus $80 a month for 24 months, in return they let you use the phone on their network to make a certain amount of calls and use a certain amount of data. over 24 months you've paid $1920 PLUS the Up front cost of $300, meaning to get the iPhone you spent $2220. Of course you got to make lots of calls, browse the web etc. but it did not cost Optus $1920 to let you do that, the profit they make off you spending that much money goes in their pockets as profit and pays off the rest of the phone which would otherwise cost $1000. Carriers give away their phones for free, but they make up for it by overcharging you for calls, or for adding a monthly repayment for the phone to your bill. Letting the customers pay off the phone over 24 months instead of taking $1000 straight away attracts a lot more customers, so they choose to spread out their earnings over periods of 24 months, because if they didn't then their total earnings would be less as not enough customers are joining their networks.

^ MacRobbo? I assume you're talking about him in the original post.

The title says "please don't flame me..." so he shouldn't be flamed!