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I will NOT be buying an iPhone June 28, 2008

Posted by Raul in geekifying myself, iPhone.
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I took a good chunk of the Friday afternoon off to give myself some time away from the blogosphere. Funny how it goes, Karen Parker and I bumped into Richard Eriksson at the Apple Store where he posed the question of the day – “Will YOU buy an iPhone?“. I have been reading reviews of Rogers iPhone plans all over the place, and a lot of my friends have something to say, in one way or another. Buzz Bishop asked around on Twitter the same question – will we buy an iPhone?

With all the buzz in the blogosphere, I can’t really say that the topic has been exhausted, but it has been covered by my friends John Biehler, Andy, Liam, Tanya, Jordan and a number of other friends mine have been examining the issue in such a thorough way that I really don’t think I have much to add to the discussion. EXCEPT – that I am an enviro-geek learning how to be more of a tech-geek. So if Rogers hadn’t royally made such a big mistake, I would have most likely bought an iPhone.

Since I have tons of geek friends in the blogosphere with iPhones (Rebecca, John Biehler, Duane, Tod, Andy, Tanya – although she got rid of hers recently, Jenn, Nadia, just to name a few) I have had a chance to test-drive the artifact itself. I like it, the functionality is awesome, and there’s a gazilliion things that you can do with it.

Here is where Rogers made a mistake, in micro-economics terms – Rogers had the perception that the geek’s price elasticity of demand of an iPhone would be low. Ok, yes that was economics-geekspeak. In plain English – Rogers gambled on the addictive nature of gadgets for geeks. If you REALLY want a gadget, you’ll pay whatever price is necessary. Thus the price elasticity is low. If there are numerous substitutes, you’ll switch to whatever gadget is cheaper and can get you the same thing for the same price.

My price sensitivity, however, is quite high. I am highly sensitive to pricing changes AND surprising as this may sound, Rogers, SO ARE GEEKS! Living in an expensive city like Vancouver, and having tonnes of other options to switch to, trust me, an iPhone is NOT an item all geeks need. There are dozens of other options they have and they can switch to. Substitutes are available all over the place. Price elasticity is high.

Since I’m sensitive to price changes, and truth be told, I am also quite fine with my cell phone as is, and I don’t need yet another gadget, I will not be buying an iPhone. It would have been nice, for sure. It would have been fun, absolutely. It would make me look even geekier, heck yeah. But I am quite alright, thank you very much. Rogers hasn’t given me much reason to be thrilled with them, and now even less.

For more information, Google “Rogers fail iPhone” and you’ll find dozens of my friends’ reviews of the issue. Have everyone a good weekend.

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Comments»

1. Michael Yurechko - June 28, 2008

I will definitely not be buying one unless Rogers miraculously drops the price of plans and/or ups the bandwidth in each plan. At this point the iPhone is a rip-off on Rogers.

I will be waiting until August/September and getting myself a BlackBerry Bold if nothing happens on the iPhone-front before then.

2. Jeffery Simpson - June 28, 2008

Once again it’s amazing how shockingly little anyone has thought about any of this. The iPhone data plans are significantly cheaper for more data than Rogers’ BlackBerry or Windows Mobile plans were just a month ago. They’re the same price as existing prices for data phones on Rogers and currently cheaper than similiar amounts with Bell or Telus.

People are too busy comparing Rogers to AT&T. I think everyone knows that AT&T is cheaper, the question nobody asks is why and what part Canada as a market has to play in this. It’s simple high school economics, but I suppose it doesn’t make for interesting blog posts when people can just type “iPhone Rogers FAIL!” and get more hits.

3. Raul - June 28, 2008

@ Jeffery – The point of my analysis isn’t whether it is cheaper or more expensive. It’s about whether in the pricing strategy (and packaging strategy) Rogers had considered how prices would affect the demand for the iPhone.

Now, I am actually quite curious about a comparison with data. When you mention “significantly cheaper” what do you mean? There are all sorts of different ways to compare. I’ve seen comparisons of pricing strategies between different countries (which is valid) although I haven’t seen a comparison between different carriers in the same country. Do you have any data on this?

4. Rebecca - June 28, 2008

You know you’re notorious now for your “I’m taking a break” posts followed up with 3 more within a day 😛

5. Raul - June 28, 2008

@ Rebecca – I know! But what else was I supposed to do at 3.30 am when there was nothing on TV? … hehe. But now, yeah, seriously – I’m taking a break! 😀

6. Arjana - June 28, 2008

I wonder if it blends…..

Raul, i think you may be a perfect candidate for iSmoke.

[for those that don’t know. Yes, yes they do blend http://www.youtube.com/watch?v=7F_ZPhf1Bgw%5D

7. Marina - June 30, 2008

I was really keen on getting an iPhone as well but I think I’m going to hold off for a while and see if there are updates to the data plans. Plus, I’m just not sure I’ll be able to get my hands on one for a while. These things are going to be fairly tough commodity to keep in stock.

8. Raul - June 30, 2008

@ Arjana – hehehe I would so 🙂

@ Marina – There’s been a lot of discussion on the pros and cons of iPhone, but frankly, I can’t afford it right now. Unless Rogers gave me a free, 3 yr contract with them (dream on, Raul!)

9. Jodi - July 1, 2008

I am so torn! I really want one. But there is no way I should be paying that kind of money on my current salary which is $0.

10. I actually DO need an iPhone « Random Thoughts of a Student of the Environment - July 26, 2008

[…] all the fuss I’ve made about NOT buying an iPhone and being outraged at the costs, turns out that I actually DO need one. Simply because I need to […]


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