Peter Cohen, quoting AT&T Mobility CEO Ralph de la Vega:
I also mentioned in my notes that we have another device that I
think is going to dramatically change those people that are on
smartphones and quick messaging devices, the 3GS, which is free
with a 2-year contract. We’ve seen a tremendous, tremendous
demand for that device even though it’s a generation old. And
actually, we’re getting more new subscribers coming on the 3GS
on the average than other devices.
That’s the power of “free*”, even when the asterisk is a requirement that you sign a two-year contract that costs like $1,500, minimum. Also, worth keeping in mind: the 3GS is an advantage AT&T still has over Verizon and Sprint — there is no CDMA iPhone 3GS.
Update: Interesting point from a DF reader on Twitter:
Wondering how many of those free 3GS’s are the third (teenager!)
phone on a family plan. That can be as low as $25/mo.
I hadn’t really thought about family plans, but that makes sense — “free*” is a lot closer to no-asterisk-just-plain-free in that case.
★ Friday, 21 October 2011