AT&T sees "tremendous demand" for free Apple iPhone 3GS

AT&T sees "tremendous demand" for free Apple iPhone 3GS
If you are curious to know which device AT&T chairman Ralph de la Vega considers responsible for most of the new subscribers that have signed up with the carrier recently, it is the Apple iPhone 3GS. The executive says that AT&T is seeing "tremendous demand" for the phone which is free with a signed two-year contract. The device was originally launched in June 2009 and de la Vega says, "we’re getting more new subscribers coming on to the 3GS on the average than other devices. So we have an inventory sold out on that device."

While the Apple iPhone 3GS is the first of Apple's touchscreen handsets to be offered for free with a 2-year pact, you can also buy an 8GB version of the Apple iPhone 4 for $99 with a signed 2-year contract. As far as the brand new Apple iPhone 4S is concerned, sales are continuing to do very well and de la Vega says he is very optimistic about smartphone growth for AT&T's fourth quarter.

source: MacRumors

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113 Comments

110. Landmarkcm

Posts: 507; Member since: Aug 11, 2009

Im a newbie with my Sprint 4S. Best phone ive owned & ive had alot! Wouldn't want the 3 though not even a camera flash that's become a must for me.

101. gallitoking

Posts: 4721; Member since: May 17, 2011

only fandroids come to an Apple article to troll... at least a few troll in Android articles but the whole idiots fandroids are here... the only one missing is Rory... but he might be kissing his SGSII... right now.. so he gets a free pass... happy trolling geeks... you and I know would be Apple followers it if only made a one or 2 tweaks to the iphone and will be worshiping the iphone,,,,, thats why all the interest in Apple...

106. Sniggly

Posts: 7305; Member since: Dec 05, 2009

"Be nice to nerds. Chances are you'll end up working for one." -Bill Gates Why do Apple articles have to be exclusive Apple Fanboy only clubs? And...no. If Apple changed its OS, its policies, and its business practices, and if Apple fanboys weren't such insufferable assholes, I might buy an iPhone someday. Wrong again, Gallito! You're working hard to surpass Taco in amounts of bulls**t spewed per article!

109. taco50

Posts: 5506; Member since: Oct 08, 2009

So basically if they stopped being Apple.

115. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Reminds me of a convo my friend and I had back when we were kids about what we'd do to make Power Rangers a half decent show instead of the perennial s**t smear that it was/is. We reached the conclusion that we might as well cancel it and start a new show, lol. But no. This isn't like that. Most of the policies and business practices I refer to pertain to the way Apple treats its competitors and business partners, and its policies which lock customers as tightly as possible. And I don't need to see iOS changed completely. Just make it more than what it is.

78. networkdood

Posts: 6330; Member since: Mar 31, 2010

It costs a carrier more than 200.00 per iphone when selling an iphone to a customer. The carrier recoups its loss by selling the data plan. This is more so than any other phone made. Verizon is finding this out and that is why they still push the ANDROIDS....more profit in selling the high end versions of those phones. Look, any phone can have dropped calls, or other issues....about 2-4% of all phones are defective. It happens, and that is why there is a warranty on phones. Just because an iphone 3GS drops calls does not mean that they all have the problem. Same goes for any phone.

83. taco50

Posts: 5506; Member since: Oct 08, 2009

Your numbers are way off. For an iPhone the carrier subsidy is $450. For most other smartphones it's between $200-$300. Apple is able to charge a much higher price to the carriers because the iPhone does something other phones don't. It converts dumb phone users to a smartphone. In the short term they lose money on Apple, but long term it pays off big. Look at the big gap in arpu between AT&T and VZW. AT&T is so far ahead because of the iPhone. That's why VZW wanted it so bad.

86. networkdood

Posts: 6330; Member since: Mar 31, 2010

I did say more than 200.00 and 450.00 is more than 200.00 last I checked. "It converts dumb phone users to a smartphone." That is correct....dumb people are getting a smartphone for the first time. Those people haven't a clue how to use it or itunes, or what apps are, or how data is used, or how to use WiFi. They should get certification before being allowed to use one...lol

87. taco50

Posts: 5506; Member since: Oct 08, 2009

Why should they know if they never used one before? Do you automatically know stuff? Love how you think you're smarter than people because you know something better that you do 8 hours a day.

88. networkdood

Posts: 6330; Member since: Mar 31, 2010

lol, dude, I have experience with this as well as many people who work in stores. Lots of people who still have a flip phone are looking to get a different phone. They buy a smartphone and have no clue how to use. And, instead of doing their research prior to the purchase, people rely on slick sales people to make their decision. That sales person goes through a few of the items on the phone. Sometimes the customer pays attention, but more times than not the customer just wants the phone and leaves, or maybe the sales person is just too fast/smooth talking for that customer. Ask the call center employees who also come on this site.That is just how life works. Yes, I am smarter than the average American in many subjects. And, yet, in other subjects, I am not, but endevour to learn more. If I purchase something, I learn how to use it. I have a computer and I know how to use Google.

89. p0rkguy

Posts: 685; Member since: Nov 23, 2010

Sadly, I bet you didn't know anything about technology before Apple came along.

96. networkdood

Posts: 6330; Member since: Mar 31, 2010

Yeah, a CINGULAR 8125 was not a smartphone before the original APPLE, huh? Or the original PALM TREO. Change your name to d0rkguy, lol. Also, with everyone phone I have own, I learn something about it that I did not previously know.

116. p0rkguy

Posts: 685; Member since: Nov 23, 2010

Guess having a smartphone doesn't make the user smart. Check the post/user I questioned.

72. gallitoking

Posts: 4721; Member since: May 17, 2011

Gadget.. please go cry somewere else.. no one here cares... about your opinion.. even if you place more than once... reality will shut you up... the iphone sells regardless of e version... let me rephrase.... there will always be a demand for the iphone regardless of the version.. ..

74. Sniggly

Posts: 7305; Member since: Dec 05, 2009

There's tremendous demand for Twilight. Does it mean we should worship it as the best book/movie series ever? Or can we look at its successful marketing, fan service, and occasional thing done right and chuckle?

76. networkdood

Posts: 6330; Member since: Mar 31, 2010

lol, that is awesome....comparing TWILIGHT movies with APPLE iphones....they should do a commercial together...same type of people would see the move and buy an iphone....makes great marketing sense.

85. remixfa

Posts: 14605; Member since: Dec 19, 2008

sparkling iphone using vampires? lol makes sense to me

100. gallitoking

Posts: 4721; Member since: May 17, 2011

wow is it isnt troll Sniggly in an Apple articles .... for a person that hates Apple you are in EVERY article...

105. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Battles are won by the guys who go behind enemy lines. Yes, I'm exaggerating and being silly. My question is: do you even deserve serious responses anymore?

63. InspectorGadget80 unregistered

Why the hell would anyone want a iphone 3gs that have more drop calls than any other phone? And if AT&T that desperate to get rid of the 3gsworst they would give it away for FREE WITHOUT CONTRACT. I'm just glad I waited this long to buy a Android phone too stay away from getting a iphone.

38. networkdood

Posts: 6330; Member since: Mar 31, 2010

Phone arena, you need to allow us to edit our comments...even if it just for spelling mistakes....the last few words should read....simpler choice....in an iPHONE.

34. networkdood

Posts: 6330; Member since: Mar 31, 2010

Well, so, the newest iphone will probably outsell Android for many reasons. Again, choice is simple with iphone: 1 phone free - 3GS 8B 1 phone 99.99 - 4 8GB 1 phone 149.99 - 4 - 16 GB 2 phones 199.99 - 4 - 32GB and 4S - 16GB 1 phone 299.99 - 4S - 32GB 1 phone 399.99 - 4S - 64GB Then you add C-SPIRE and Sprint to the list of carriers. Then add 2 colors - black or white On opening day, there were more opportunities for someone to get an iphone in terms of countries and carriers. With Android, you have several manufacturers making it - the BIG 3 are Samsung, HTC and Motorola. You have every carrier with the phone and many releases from manufacturers each year. Not one, so there is less anticipation. In America, when faced the enormous amount of ANDROID phones to choose from, most people haven't a clue how to choose, unless they listen some pushy salesmen, or maybe go online. Too many chooses to easily confuse the average American, and it is not difficult. So, when looking at iphones, the average customer sees a simpler choose...in an iPHONE.

37. networkdood

Posts: 6330; Member since: Mar 31, 2010

To clarify, I meant a particular iphone model will probably always outsell a particular Android model..not saying....yahoo IPHONE....you are awesome....lol

42. ardent1

Posts: 2000; Member since: Apr 16, 2011

It's a very important business point. The Android OEMs are upset that a 2-year-old phone outsells some of the latest and greatest Android devices. Again, from a business perspective, the 2-year-old phone has NO development cost (that was 2 years ago), there very little marketing expense (ATT is probably doing the bulk of the marketing), the production costs are ridiculously low compared to the latest Android. What I am saying is the 3GS is a low cost unit that is costing sales at the Android OEMs expense. Next year, these OEMs will have to face the possibility the iPhone 4 will be free!! And practically everyone knows the iPhone 4 is just so much better than the 3GS. The Android OEMs have not figured out a way to counter Apple's strategy.

48. Sniggly

Posts: 7305; Member since: Dec 05, 2009

The Android OEMs don't need to outsell any Apple phone. They just need to sell enough phones to make a profit themselves. So far the only Android OEM which is really struggling is LG, and considering the pieces of s**t they've been putting out, this isn't surprising. Even Motorola, which is not nearly selling at the level of HTC and Samsung this year, is pulling itself out of its financial hole (and for a company that is technically brand new and which still suffers from echoes of a bad reputation it gained three or four years ago, that's pretty impressive).

52. taco50

Posts: 5506; Member since: Oct 08, 2009

True they don't need to outsell Apple to make a profit and also true that HTC and Samsung are doing very well (Samsungs copycat strategy has been successful) There's enough to go around, but Apple is definitely the heavyweight in a growing market. Owning over 50% of the profits is insane.

56. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Yeah, it is insane. I agree. Apple is doing very well, which is good for Apple. And Apple will continue to benefit. Apple is rocking. Lots of money in Apple's bank accounts. Apple is set. Oh s**t, what about everyone else?

94. ardent1

Posts: 2000; Member since: Apr 16, 2011

sniggley - the movie has alreay been played before. In a couple of years, the second tier android OEMs will eat the Samsung, HTC, Motorola of the world. These second tier OEMs didn't spend anywhere near the RD to produce a similar product.

104. Sniggly

Posts: 7305; Member since: Dec 05, 2009

We'll see about that. If there's anything I've learned from selling cell phones, even cheapskates won't tolerate having a s**tty phone forever. It's something I explained many months ago in a mini rant about why Android is so great as an ecosystem-it's a perfect free market. Anyone's allowed to throw their hat in the ring, from the cheapie guys looking to make a quick buck to the guys who are serious about putting out a great product. Granted, there's a balance between spending a buttload of money to produce something that few people will buy and spending literally nothing on a cheap knockoff that a lot of people will buy, but that balance is ultimately achieved. The ultra high end guys will either cut down on costs somehow or go out of business due to low volume of sales, and the ultra low end guys will step up their game or go out of business because everyone stops buying what they perceive as crappy products. For instance, Huawei and LG might sell some of their cheap/free phones now to those who just pay as little as possible, but they're unlikely to score the same customers in two years when the customers decide they hate the cheap pieces of s**t. Motorola learned the hard way too that they couldn't rest on their laurels forever, and Apple's sales only REALLY took off on the iPhone once they dropped the price to be accessible to much larger demographics. These days I get customers who got crappy low end Android phones a couple of years ago and were ultimately unhappy with them-fortunately, many of them still saw the value in the operating system overall, so I was able to move them up to higher end equipment that wouldn't f**k them over for two years straight. The beautiful part is that not only will the customers not buy what they already have figured out is crap, but many salespeople like me exist who will refuse to sell products we have realized are crap too. For instance, as much as I love Motorola, once I learned that the Rival was a piece of s**t from my friends at warranty department, I stopped selling it. Nowadays, when I'm demoing Android phones to people, I steer clear of LG's offerings. Even when quality isn't an issue, I still try to remain conscious of value. For instance, the Photon 4G is selling for the same price as the original Evo at my store. Granted, I could push the Evo as it's likely to get discontinued soon, but I actually showcase the Photon because for the same price, I feel it offers far more value. Not quite unctuous, am I? Anyway, I digress. The point is, quality will win out as long as the price is accessible. The free market assures this. Your ball.

53. taco50

Posts: 5506; Member since: Oct 08, 2009

Apple's business sense and strategy is amazing.

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