Weariness and hope over cheaper iPhones

Some may say it’s still a wishful thinking to assume that a “consumers’ market” is around the corner when smart phones are concerned. True Move’s unexpected price cuts on iPhone 4 and iPhone 4S have generated excitement and speculation about a price war, but optimism so far has been cautious at best. When it comes to hi-tech gadgets, customers have always been chasing shadows, believing one minute that they have struck the best deal, only to pull their hair in total dismay the next.

Will it be different this time? A news web site calls True Move’s discounts a heart-breaking promotion. To a large extent, the decision to slash the prices of iPhone 4 and iPhone 4S will upset many early-adopters of both iPhone versions. Does that sound familiar? Now, those who decided not to buy early have become a subject of envy, but it’s hard to conclude that they are a lucky bunch. Even if they are really lucky now, nobody stays lucky for long in a world where “smart phones” can look stupid in a matter of months.

Sceptics have pointed out at the conditions attached to dramatic discounts that go as high as 50 per cent. Buyers of the iPhones on cheap offers will be bound by obligatory service fees spanning 18 months. This has prompted many to argue that while you can buy iPhone 4 and iPhone 4S on the cheap, you will have to spend a lot of money with True all the same.

Why is True appearing to be very generous all of a sudden? There are a few possible reasons. Telecom giants have been very conscious about customer relations and True Move has kept itself at the front line on this. Yet business factors could be the motives that really matter. In their immediate reaction to the price cuts, market analysts think True Move may have overstocked the two iPhone versions and their sales may not have been as good as projected. 

Sales that are not meeting targets would be enough to motivate a price reduction. To add to that, the smart phone market is dictated by imminent or anticipated arrivals of a new product. In case of iPhones, a major discount naturally leads to speculation about the imminent arrival of a new version, or iPhone 5 to be exact.

Some analysts believe that, apart from sale figures, the stagnation of post-paid subscription as opposed to the growth of pre-paid users may also have encouraged True Move to try to commit its customers to long-term relations. Selling iPhones at expensive prices may mean big, instant profits, but True Move may prefer long-term and stable stream of incomes.

Last but not least, there may be a technical reason behind True Move’s decision. Its current cellular concession is expiring late next year and it may make a good business sense to start shifting customers’ base to the 3G landscape. Cutting iPhone 4 and iPhone 4S prices while binding buyers to long-term subscription may serve that purpose.

Keeping its customers will benefit a company that is trying to make the best out of services that can be converged or are already converging. It is noticeable that one condition for buying cheap iPhone 4 and iPhone 4S is that the buyer must be a subscriber to True Vision or True Online.

To real iPhone admirers , the offers may be hard to resist. Despite the attached conditions, True Move’s iPhones will still be cheaper than those sold by its competitors. This alone may be the deciding factor. Unless, of course, True Move’s rivals decide to turn it into a fierce price war or iPhone 5 comes to town early.

We have come a long way from the times when land-line telephone numbers were as valuable as gold, or when mobile phone users were forced to pay Bt500 in monthly retention fees. Considering the prices of “ancient” cellular phones, what iPhone can do makes it feel like a bargain at around Bt20,000. The only problem for consumers _ and it’s a big problem _ is that someone somewhere is making them keep buying, and there’s nothing they can do about it.