AT&T Seeing ‘Tremendous, Tremendous Demand’ for iPhone 3GS

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