Linked by Thom Holwerda on Fri 17th Aug 2012 22:48 UTC
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Member since:
2005-06-29
Well the Hipster to Average Joe ratio in the U.S. is currently somewhere around 6:1, so there is a built in iPhone market right there.
All joking aside, the only time I've seen an iPhone go for $0 on contract is a refurbished "last year's" model. All new iPhones on the four major U.S. carriers have some cash due up front, and always have to my knowledge. In fact, the first generation on AT&T was a whopping $499 for the 8GB model, and when I got mine a couple of months before the launch of the 3G, I still had to pay that $499 and had to sign a contract extension! It was the first and last iPhone I owned, as I found it to be extremely lacking in every regard except as an iPod, which the person I eventually sold it to intended to use it as.
Anyway, I do think there are some major differences behind the scenes when it comes to the Apple/carrier relationships versus the other manufacturer relationships. It's one reason that we see Android phones with far superior hardware compared to the iPhone going for as low as $49 on contract.
Another major factor of course, is what I alluded to in my opening line: Image means a lot to the younger crowd here. Having an iPhone that does half the things a cheaper Android or even WP7 phone does is nothing compared to the status symbol that the great Apple devices provide. Teens and twentysomethings can be quite vocal in their contempt for what they consider a "loser's phone" or "geek's phone". Combine that with the prevalence of Apple products in general among the music and movie industry icons, and you have a bona fide Cult of Apple situation.