VM's New iPhone Plan - Will It Work?

[Marty913]

Coverage area issues aside, I wonder if customers will spend $550 upfront to save $700 - $800 over two years. I know it doesn't impact BYOD (yet) but look at the plan itself. Unlimited data and text plus 300 voice minutes for $30 a month. Wow - I do like that emphasis on text + data.

http://www.pcmag.com/article2/0,2817,2405431,00.asp

[SBdunks]

I think there will be a demand, but I don't see massive groups of people moving over from VZW or AT&T. $550 is ridiculous for an almost 2-year-old iPhone 4. Not counting the $30 VM plan, there are better alternatives. Would rather buy a used iPhone off of CL and put it on Page Plus or Straight Talk with better cover and better data speeds.

[ncatron]

I don't think you can say, "Coverage area issues aside..." because anyone I know would be VERY upset if they spent that much $$ on an iPhone, activated it on VM and then got 100 kbps. It won't work. Even for those in "good" coverage areas, iPhones are simply too expensive at retail cost.

[Volaris]

I still remember paying $500+ for the original iPhone on contract - was so tough to find in stock anywhere!

That being said, I don't think people will go in masses to Virgin, but it's nice to have a new option without contract, and being rewarded (by saving $800 over two years) in the process. It's success will also depend on how quickly Sprint can complete its network overhaul.

if market prices drive used Virgin iPhone prices down on eBay/CL/Amazon, that $30 plan will be a nice choice for those who don't talk much, considering used iPhone 4S prices will likely be around $300 once the new iPhone is out.

Hopefully Page Plus will come out with a similar plan to compete.

[sjv]

I don't think you can say, "Coverage area issues aside..." because anyone I know would be VERY upset if they spent that much $$ on an iPhone, activated it on VM and then got 100 kbps. It won't work. Even for those in "good" coverage areas, iPhones are simply too expensive at retail cost.

While I agree that iPhones are overpriced (all Apple products are but many swear by them), the article does a nice job of breaking down the arithmetic which is what us folks in prepaid land can appreciate. Here's a snippet:

"Never mind the fact that both phones cost practically the same over the span of two years, once the monthly fees are factored in—$2,019 for the iPhone 4 on Sprint, and $2,119 for the iPhone 4S, on that base 450-minute voice plan. The Virgin Mobile iPhone 4, in comparison, costs $1,269 over the same two-year period."

The gist of that article really is that apart from research geeks like us, most consumers don't accept the high up front cost of unsubsidized phones no matter what the savings are over 2 years.

[Marty913]

I don't think you can say, "Coverage area issues aside..." because anyone I know would be VERY upset if they spent that much $$ on an iPhone, activated it on VM and then got 100 kbps. It won't work. Even for those in "good" coverage areas, iPhones are simply too expensive at retail cost.

My point was that IF you have good Sprint coverage in your area, VM's new offering is an aggressive offering and possibly a "future" game changer for all of us. Even VM's regular $35 plan offers 300/unlimited/unlimited and doesn't require an iPhone purchase (but unfortunately requires a VM-branded phone).

No, people won't flock to Sprint but people with good local Sprint coverage now have a nice option - which may bode well for all cell phone users in the future. No doubt PP keeps up with VM, Straight Talk, T-Mobile offerings and will have to introduce competitive plans or give up (or write-off) those potential users.