Pages

Monday, June 11, 2012

Pay-as-you-go service with iphone


Recently Sprint announced its plans to sell iphone in its pay-as-you-go business. The users of  pay-as-you-go  plans usually get cheap flip phone or intermediate level smartphones or blackberry devices. This news opens up options for users to buy a high end smartphone device such as apple and still be on a  pay-as-you-go plan.

This move by Sprint and Apple indicates couple of things:-

1. Nearly 40 % of Apple's revenue is from iphone. iphone is the most sought after device on the planet today and Apple knows the potential of the product. But most of the users today already have a smartphone (either Android or iphone or blackberry, or something else). So the only market where iphone could be sold was the  pay-as-you-go segment where, as I mentioned earlier, consumers don't have much choice when it comes to selecting a good phone.

2. Sprint may offer unlimited data plan (with no contract) at about a third of the cost what major players like ATT or Verizon offer. Sprint however may charge the full $649 amount for the 16GB iphone compared to $200 which ATT and Verizon charge. However ATT and Verizon make money through the 2 year contract period by charging more for the data plan usage.

3. There was no hardware change between iphone 4 and iphone 4S. So, Apple trying to sell off its iphone 4/4S inventory indicates that iphone 5 might have a different design than its predecessor and might be released by the end of this year or early next year. 

2 comments:

  1. Hurrah, that’s what I was trying to get for, just what a stuff Presented at this blog!! Thanks admin of the site. 3 contracts

    ReplyDelete