Comments on: “Solution to high iPhone prices is not to buy one”

By: Robert Dall

Robert Dall — Wed, 09 Jul 2008 02:43:22 +0000

Wow I could not agree more with this recent per text message I am not sure I really want a Cell phone anymore. . .

By: Andrea

Andrea — Tue, 08 Jul 2008 22:41:48 +0000

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).

By: Andrea

Andrea — Tue, 08 Jul 2008 22:39:21 +0000

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.

By: Raul

Raul — Tue, 08 Jul 2008 21:58:28 +0000

@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!

By: Andy

Andy — Tue, 08 Jul 2008 21:53:28 +0000

@Jeff: Touche! But is gas a “need” or a “want”?

By: Jeff Ward

Jeff Ward — Tue, 08 Jul 2008 21:48:52 +0000

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

By: Trent

Trent — Tue, 08 Jul 2008 21:34:04 +0000

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.

By: Raul

Raul — Tue, 08 Jul 2008 21:05:33 +0000

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.

By: Andy

Andy — Tue, 08 Jul 2008 20:41:14 +0000

@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!

By: Brad Touesnard

Brad Touesnard — Tue, 08 Jul 2008 20:36:07 +0000

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