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Opinion: The iPhone will Sell but at&t may suffer
Thursday, June 07, 2007

image So will the iPhone sell? Of course it will and although I personally do not think the iPhone is for me, I expect Apple to sell a million iPhones in its first year.

But I am not so sure at&t will do so good. With amp’d Mobile filing for bankruptcy protection last week, because their target audience of young professionals could not or were not willing to pay their phone bill. Makes you wonder if at&t will see the same thing happen with iPhone users? I am not saying at&t will file for bankruptcy protection I am just saying I think they may have a lot of new subscribers become delinquent with-in a few months of signing up.

After all correct me if I am wrong the target audience for the iPhone is the iPod Generation and Young Professionals. People 16 - 35 (a lot of parents are going to an iPhone for their kid). I guesstimate the majority of the 16 - 25 can’t or won’t be willing to pay a monthly bill while the Majority of 26 - 35 won’t have a problem paying it. At least at&t will be able to keep any deposits paid, I have a feeling with in the next 6 to 8 months we will see a lot of people with iPhones without phone service.

So how much will you have to pay a month in service for your iPhone? Well lets say you get the cheapest plan from at&t and the 200 text message plan you’re looking at 45 dollars a month before taxes, after taxes about 53 dollars. If you add the data plan which is rumored to cost 30 dollars a month, you’re looking at 75 dollars before taxes and 90 or so after. Which isn’t bad if you can live with out unlimited nights and weekends, only 450 anytime minutes and 200 text messages. But if you can’t live without unlimited nights and weekends and only 200 text messages expect to pay over 100 dollars a month before taxes.

I personally think they should of given new subscribers a pre-paid option after all that is why the sidekick is so popular.

So again I think the iPhone will sell, but seeing what has happened to amp’d mobile I am not too sure at&t will be happy with the new customer base.

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Posted by Michael


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