iPhone's "poisonous bite"

For a high-profile tech toy, the iPhone 3G isn't getting quite the happy welcome Apple may have anticipated. Take, for example, this Canadian Press headline:

Apple's iPhone may have poisonous bite for consumers with its high rate plans

Apple's iPhone may have a poisonous bite for Canadian consumers who want the much-desired touchscreen phone when it finally goes on sale later this month.

Analysts said Wednesday that consumers will have to pay the voice and data rates set by Rogers Communications Inc. (TSX:RCI.B) if they want the high-end device unless early sales are slow.

Rogers is the only Canadian carrier that has a network capable of running the iPhone, which goes on sale on July 11.

"Right now Rogers thinks that the iPhone is such a compelling device that people will essentially pay anything to get one," said PC Magazine's Sascha Segan.

"They they'll sign away their lives for three years, they'll pay higher data rates than are charged on other devices because the iPhone is so incredibly sexy and so incredibly desired."

As I said a couple of days ago, no matter how loud the screaming is from the peanut gallery, unless sales are significantly lower than they expect, Rogers is not likely to do much to make their offerings more consumer-friendly. From their point of view, there's not much reason to do so: the product is so eagerly anticipated that they will probably run out within the first few days of availability. If that doesn't happen, perhaps Rogers will reconsider, but the smart money is betting against it.

Bottom line: if you really want an iPhone 3G, but don't want to pay as much as Rogers wants, you have to restrain yourself from lining up next Friday. That's it. If enough of you do it, so that Rogers is left with lots of unsold iPhones after a few days (or weeks), they'll have to reconsider their situation. I don't expect it will happen: the feeding frenzy will occur exactly on schedule at your local Rogers storefront.

But I'd be delighted to be proven wrong.