From The Vancouver Sun:
The petition has attracted attention in Canada and abroad, but it won’t have any effect on Rogers unless consumers follow through with the old-fashioned but simple and reliable strategy for pulling down prices.
If you don’t like the price of an iPhone, don’t buy it. If Rogers finds it has priced itself out of the market, it won’t take a petition to ring in lower prices.
Great bit of advice, if you really want serious change in Canada then nothing speaks greater than a good-ol’ stay-at-home.
11 responses so far ↓
Jason // July 8, 2008 at 6:07 pm
But I need 1!!!! Dont deny me of it!
Brad Touesnard // July 8, 2008 at 8:36 pm
I don’t believe boycotting will work, especially in this monopolistic environment. Public opinion puts a lot of pressure on the government and any company associated with Rogers. Any company that values it’s public image will distance itself from Rogers, which is what Apple seems to have done today:
http://www.canada.com/vancouversun/news/story.html?id=93ac7102-19fb-499d-8712-7493cf93c219
Andy // July 8, 2008 at 8:41 pm
@Brad: I’m sure if no one bought an iPhone in the next two weeks, Rogers would go into panic mode and be forced to modify their plans. Demand controls everything in any retail industry.
It also seems that Apple are not selling iPhones at any Apple stores outside the US:: http://www.iphoneatlas.com/2008/07/08/applerogers-spat-overblown-never-any-plans-to-sell-iphone-3g-at-apple-retail/
Darn!
Raul // July 8, 2008 at 9:05 pm
I agree with you, Andy.
Simple, basic economic geography: Rogers is forgetting that while technology usually is a supply-driven commodity chain, in this case an iPhone is a demand-driven commodity. You don’t NEED an iPhone. You may WANT an iPhone, but it’s not necessary.
There are substitutes for iPhones, at all levels. When there is threat of substitution, firms should change their corporate strategy to a cost-differentiation tactic that may help them differentiate themselves from their competitors.
@Brad – That’s precisely why it SHOULD work. Because this is a monopolistic environment. In a monopoly, a firm has pretty much the control of a product, true. But monopolies are highly regulated, and the Canadian government will NOT see Rogers with good eyes if there is a PR nightmare due to their stupid pricing strategies.
And now I’ve left a massive comment on your blog. Sorry Andy
I should’ve just blogged it and trackback. Ooops.
Trent // July 8, 2008 at 9:34 pm
Regardless if Rogers and Telus have monopolies on our communications in Canada, it still falls on Apple who picks one (1) company from each country for a monopoly on the iPhone anyways. I doubt Apple is happy that Rogers wants to charge through the roof for the phone, but don’t fool yourself into thinking they didn’t know the rates before they signed the deal.
I adopt technology fast and waste money on occasion for things I want. This time, I am refusing to buy as it isn’t a good deal. You can use US phones on CAN networks cheaper than CAN phones right now. See a pattern here? Overcharging maybe? I say let them realize this and don’t buy. Good discussion article Andy.
Jeff Ward // July 8, 2008 at 9:48 pm
But remember that gas email that circulates every year? Saying that if nobody buys gas on one day that it will drive gas prices down…
http://www.snopes.com/politics/gasoline/nogas.asp
Andy // July 8, 2008 at 9:53 pm
@Jeff: Touche! But is gas a “need” or a “want”?
Raul // July 8, 2008 at 9:58 pm
@Jeff and @Andy
iPhone is a WANT. Gas is a NEED. Like it or not, gas IS necessary (to transport goods and people, at the very least!)
If you want to force a company that is behaving as a monopoly to change its behavior you can (a) regulate it (not our place, since we’re not in government) or (b) use market mechanisms to bring the company out of the market (which we can do).
More on my post on iPhone and public policy issues (coming tomorrow) as I already feel guilty as is for commenting twice on Andy’s blog. But the public policy aspect of it (government industry relations) is fascinating.
@ Andy – Last one, I promise!
Andrea // July 8, 2008 at 10:39 pm
I think in this case people are petitioning *and* not buying it. I know I have no plans to ever get one, and I find the charges just unreasonable.
I had a regular ol’ phone, nothing fancy, and went through rogers. Almost $40/month, on the lowest plan they had. Seriously, that’s insane.
Andrea // July 8, 2008 at 10:41 pm
Argh, and I should have added that out east, there’s a bit more of a monopoly. If I “want” a cell phone (I do have teenagers, so there’s an arguable need if they go a lot of places, and we want to keep in touch), I get to pick from a grand total of TWO carriers – Rogers or Aliant (which is owned by Bell).
Robert Dall // July 9, 2008 at 2:43 am
Wow I could not agree more with this recent per text message I am not sure I really want a Cell phone anymore. . .