The new low-end plan was $15 and this included 200 megabytes of streamed data for more price-sensitive customers. Apple also revamped their data plan to capture some Hermes-level customers by introducing a revamped data plan.
The iPhone models entered in at what we view as Atlas levels of $199 and $299. Apple has recently introduced new iPhones at substantially reduced prices than their earlier launches. Under the new pricing structure, customers with deep pockets and less sensitive willingness-to-pay functions would readily pay $25 for 2 gigabytes of streaming and $10 for each additional gigabyte. The original data plan was $30 with no restrictions on the amount of data streamed. One objective of the service differentiation plans was to reduce network traffic, but it also gave Apple and AT&T the ability to extract more revenue from their existing customer base and to attract new more price-sensitive customers. The success of the iPhone resulted in extreme demands on the AT&T network and this led to the introduction of a pay-for-level-of-use program in the middle of 2010 when the Apple iPhone 4 was introduced.
\)īecause Apple had such a strong brand and was very successful, they were able to secure part of the ongoing revenue stream that AT&T received as a wireless carrier.
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