Reduce Price to Improve Revenues and Margins

CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS

CHOICE 2 SEGMENTS: VOLUME PURCHASED SEGMENT / PACKAGE OF SAME PRODUCT

CHOICE 3 COMPONENT: PACKAGE OF RELATED ITEMS – CHARGE BY A UNIT COMPOSED OF SEVERAL ITEMS USUALLY USED TOGETHER

No. SIC Year Notes
1 4812 2008 The cheaper, more mainstream -minded successor to the $499 and $599 iPhones, the $199 and $299 iPhone 3G, will face the challenge of getting people to pay the increased monthly voice and data plans, which raise the cost of ownership over two years to more than the original iPhone. The iPhone 3G will be sold in packages starting at $70 a month for 450 anytime voice minutes and unlimited data with the option to pay another $5 a month for 200 text messages. A similar package for the original iPhone, with its slower data speeds, was $60 a month, including 200 text messages. Over the course of a two-year contract, the least an original iPhone user paid was $1,839 for hardware and monthly fees. The same base package for the 3G is $1,999.

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