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  1.    #1  
    Okay, here's the deal - I've always been into the latest high tech devices .. with an engineering degree and a little extra money to be able to afford to - it's been somewhat of a hobby of mine to have the latest and greatest electronic toys.

    It's been only a few months and I'm ready for the Treo700w .. but for the first time - I think the high tech industries are getting ahead of themselves (collectively) and I think their bubble is going to burst within 2 years. Here's why.. let me outline the cost of my monthly bills to put things in perspective:

    1. cell phone - $60/month (treo 600, unlimited bandwidth)
    2. cable television - $45/month
    3. broadband internet at home - $49/month
    4. hi definition tv - $10/month
    5. XM radio - $15/month
    6. Home phone - $50/month
    7. netflix - $15/month
    8. personal email - $10/month

    You probably see where I'm going here ... maybe not just yet. Many of you have all of the above and some even more - I'm paying the minimum on each - there are many features that you can pay alot more money for on each item. That's $255/month for the basics - nothing out of the ordinary (although XM radio just isnt' worth it).

    How can Treo/Verizon bump up their prices every time they come out with a new product? I mean - I'm paying $10 for unlimited bandwidth for my Treo600 today - so what if the 700w is higher speed - no matter what - theres no way your going to use the 700w more than you would your 600 if you have one. How can they charge $45 for internet access now???

    Anyway - sorry for stearing off the topic there for a second.. my point of this article being - I make very good money 6+ figures - and I'm starting to struggle with monthly payments for all my gadgets (which I wouldn't say is an excessive amount of toys) ... Is the high tech bubble going to pop? I mean - even today - it's only those people that make very good money who can afford a $600 cell phone + $85/month... Regardless if the prices come down in the future (I highly doubt it) - how much more can any of the high tech companies grow? it seems like they're all branching out and doing their own thing - prices rising (probably because they don't have enough customers to turn a profit) .. are they on a crash and burn course? or am I just another frustrated customer?

    Can't one company offer all the services that I'm paying for at 1 reasonable rate? I'd pay $150/month to the phone company or cable company (whoever offers it first) if they provided my home phone, cell phone, internet access (home & cell), cable tv, movies, xm radio and hi def tv -- at the moment they must be losing $BILLIONS from those who simply can't afford the high rates.

    I hope you found this interesting .. I'm interested in others opinions.
    http://buildacom.com
    Last edited by bfitzpat; 01/21/2006 at 09:40 AM. Reason: typos
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  2. #2  
    I think your criticisms of the various comanies raising their prices all the time is valid, but I don't think it will lead to a "bursting of the bubble" with gadgets. There is only one thing these companies look at: sales. The research they do on sales analysis is staggering, and they have a pretty good feel for not only conditions now, but looking ahead for the next 6 months or so. Much beyond 6 months gets a bit speculative, but in some cases is still accurate. Before Palm launched the Treo 700w they determined how strong demand would be. Surveys, polling the supply chanel, and probably even reading message boards.

    Step 1) Leak some info on the new product. Deny your part in the leak, threaten lawsuits, etc.

    Step 2) Create a buzz about the new product, primarily via info leaked in Step 1.

    Step 3) Advertising blitz.

    Step 4) Control the supply of new gadget to keep demand at a fevered pitch.

    Step 5) Carefully timed price cuts on older products as sales start to slip.

    If Optimum Voice sales don't pick up, or start to slip after selling well, they'll start with price cuts. If Verizon DSL (fiberoptic) cuts into broadband sales for Optimum, they'll add services or cut prices. Maybe throw in Optimum Vioce for free depending on sales numbers. And they're always offering special deals on packages for cable tv. They have their eyes glued to sales numbers and projections. The only thing that will break the cycle is the "next great thing" that can displace them, or make them irrelevant. Some new service to combine all these services - cell phone, cable tv, broadband internet, etc.- into one neat package and do it cheaper and with better quallity.
  3. NRG
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    #3  
    I didn't even read the post, and I am going to say no.
  4. #4  
    the wireless companies can charge what they are charging because the consumer continues to consume. it's almost as simple as that. the different providers provide different levels and types of services, all at different price points. if one wants great coverage and evdo speeds they are forced to go with Verizon. if one wants to pay less for data and perhaps sacrifice coverage, they go to Sprint (these are examples only).

    as of right now cellular America continues to grow and i'd say that we're quite a long way from any kind of cellular device demise. why do the companies continue to sell out of the latest and greatest?

    regards
  5. #5  
    How can Treo/Verizon bump up their prices every time they come out with a new product? I mean - I'm paying $10 for unlimited bandwidth for my Treo600 today - so what if the 700w is higher speed - no matter what - theres no way your going to use the 700w more than you would your 600 if you have one. How can they charge $45 for internet access now???
    I think if you compared those prices to what folks paid, say 20-30 years ago, for similar services, you'd be surprised at how little all of this really costs. Of course, some of that wasn't available, so you'd have to do some creative comparisons (netflix vs 4 movies a month, cellular phone vs long distance charges)

    Can't one company offer all the services that I'm paying for at 1 reasonable rate? I'd pay $150/month to the phone company or cable company (whoever offers it first) if they provided my home phone, cell phone, internet access (home & cell), cable tv, movies, xm radio and hi def tv -- at the moment they must be losing $BILLIONS from those who simply can't afford the high rates.
    Please please no. Competition is the only thing that keeps prices down, and all these new things coming as quickly and innovatively as they do. I remember back in the early 70's, when there was one phone company. They pretended to be "innovative" when they came out with 2-3 new phones a year (same technology, new body designs). We DON'T want all of this under one umbrella.

    For instance, the $45 charge you're speaking of from Verizon for data, I pay less, much less. Granted, it's going to go up when/if (I've got it on pretty good authority that it's "when") the faster speed and devices come out, it's going to go up. But even then, it's going to be much less than $45 a month. THAT's what competition gives us.
    Last edited by hparsons; 01/21/2006 at 03:50 PM.
  6. livspop's Avatar
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    #6  
    I don't make anywhere near six figures plus in salary and I have all those things you list plus a few more. Sure, I don't have a savings account and my kids are eating Kraft Mac N Cheese, but you can't take it with you, right? Anyway, if someone like me can have all that stuff and stay off welfare and as long as Citibank and their friends continue to pass out credit cards like candy, the status quo will roll on.

    I do have one major quibble with your post, however. XM is worth $13 a month, hands down, at least for me. I work in an office all day and couldn't live without Opie and Anthony and Ron and Fez on 202. If I didn't have them to listen to, I'd probably drown myself in white out...
  7. #7  
    Well first point is sometimes they sell out of products because of inaccurate predictions, they don't want to be stuck with a warehouse of devices.

    Second point directed to OP is that it's a Verizon thing more then anything. I also disagree with companies branching out, it's actually the opposite companies are merging these days, (EX. ATT&T ,Cingular, Sprint, Nextel). and when that happens that's when prices go up, less competition.

    I personally don't mind prices going up but companies, corporations and mom and pops want more and more cut backs. A good example is Sprint cutting off the pension plans to there employees, or maybe even the NYC transit situation where they want them to pay a % of health costs.

    Raises now a days don't coincide with the rising cost of living, real estate alone is totally out of control.

    I hate to go here but people from other poor countries are willing to come to america and live in a more humble lifestyle and work for cheaper wages. (No XM radio for them)

    I trully believe America is getting to a saturation point where there just isn't enough resources to go around. If anyone is wondering why health costs are threw the roof which companies are drastically cutting back on you need look no further then the millions of people without health insurance. Medicaid will only pay a part of those costs, the rest falls on the hospitals, doctors, nurses and so on. So in turn the hospitals raise prices and kick it back to the companies and consumers to absorb.

    But the real problem is us Americas are spoiled.
  8. #8  
    Downfall of the Treo? I don't think it would be due to pricing of data. If anything, it will be due to Palm not upgrading it's product enough to justify the cost of the Treo, IMO. There seem to be a lot of people paying $45 without questioning Verizon as to why it's so high, just because EVDO is the latest greatest thing. Like P.T. Barnum said, there's one born every minute. Blame the customers, not Verizon. They only get away with what the customer has let them.
    Last edited by The Phone Diva; 01/21/2006 at 01:59 PM.
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  9. #9  
    bfitzpat,

    The problem isn't the "corporations" or "impending burst of the bubble" or the "cost of the the gadgets".

    The problem is: You.

    - You make over $100K a year, but feel the pinch from all your tech costs. I think you have a little problem managing your finances and budgeting.

    (Considering you spell "steering" incorrectly, it's not surprising; it is suprising you make over $100K, but that it a sad statement about compensation and education.)

    No one forces you to have this stuff. You choose to do this.

    I'd like to get freaky with every top call girl in Las Vegas, but I can't afford it. It's called reality.

    There is a lot of "free" and low cost stuff out there.

    You want more discretionary income? Get super basic cable (15-25 bucks). Drop the phone and get basic VOIP (15 bucks). Drop Netflix and borrow dvds from friends or go to the library.
    Dump the Treo (I know, heresey), and get a Day Planner.

    It's no different if you eat out every night...you choose to. But you save more if you make your own food.

    (But keep the XM - O&A and Ron and Fez are worth it :-))

    Seriously, get your budget and finances in order. There are going to be many more gadgets to tempt ya over the next 5 years (sorry, it's going to grow like crazy, not burst.)
  10. #10  
    Quote Originally Posted by livspop
    I don't make anywhere near six figures plus in salary and I have all those things you list plus a few more. Sure, I don't have a savings account and my kids are eating Kraft Mac N Cheese, but you can't take it with you, right? Anyway, if someone like me can have all that stuff and stay off welfare and as long as Citibank and their friends continue to pass out credit cards like candy, the status quo will roll on.
    Now this, my friends, is a true American patriot!
    Now THIS is the future of smartphones.
  11. #11  
    Quote Originally Posted by Lady Treo
    Downfall of the Treo? I don't think it would be due to pricing of data. If anything, it will be due to Palm not upgrading it's product enough to justify the cost of the Treo, IMO. There seem to be a lot of people paying $45 without questioning Verizon as to why it's so high, just because EVDO is the latest greatest thing. Like P.T. Barnum said, there's one born every minute. Blame the customers, not Verizon. They only get away with what the customer has let them.
    have you ever asked those with Verizon why they're on Verizon? It's probably because they offer the greatest coverage across the nation. I can safely say that a good portion of corporate America has their plans on Verizon as well (hence, those employees are forced to use Verizon). then there are those who simply can't stand Sprint or the other guy because of their lack of coverage in the area they live in (i for one had difficulty getting a good signal in my own home as well as at my place of work....14th hole at the local golf course? forget about it). then there are those who have had plans with Verizon for many years along with all of their friends and family members further increasing cost effectiveness. then there are those brand loyalists and the like. i personally hate Sprint and have had nothing but bad experiences with them. their customer service? i won't even go there. maybe you're the one that was born a minute ago, lighten up for crying out loud.

    it's just not the Lady Treo way, there are many ways, enjoy yours and let the others enjoy theirs.

    have a nice day.
  12. #12  
    I never had any problems with Verizon. I used to be with Verizon, but couldn't use them anymore because they are CDMA. I was only commenting on how they get away with high data rates the OP was complaining about. If no one says anything and continues to pay, well you can't blame Verizon all the time.

    Oh yeah, and I hate Sprint too. They don't give a damn about customers much of the time. I had them too and dumped them.
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  13. #13  
    Quote Originally Posted by Lady Treo
    I never had any problems with Verizon. I used to be with Verizon, but couldn't use them anymore because they are CDMA. I was only commenting on how they get away with high data rates the OP was complaining about. If no one says anything and continues to pay, well you can't blame Verizon.
    i really don't understand you. they don't get away with anything, some individuals prefer them over the other wireless company and willingly and knowingly pay the marginal cost for the service that they provide. that's why they're the biggest and the best, it's because they have a superior product, they have a market-share advantage. if Sprint, T-Mobile or Cingular had a superior product or a market advantage then it would be they who would be #1, but they're not. what in the world do you expect someone to say? it's a free market society that we live in, I don't see people revolting up and down Times Square chanting "down with Verizon." even you never had any problems with Verizon, you say so yourself.
  14. #14  
    [QUOTE=oalvarez I can safely say that a good portion of corporate America has their plans on Verizon as well (hence, those employees are forced to use Verizon).

    Actually 95 percent of all fortune 1000 companies do business with Sprint. They know a good deal when they see one. Verizon may have better coverage but not 30 dollars more a month better, more like 5 dollars.
  15. #15  
    Don't they have the highest data rates?
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  16. #16  
    [QUOTE=vikingjunior][QUOTE=oalvarez I can safely say that a good portion of corporate America has their plans on Verizon as well (hence, those employees are forced to use Verizon).

    Actually 95 percent of all fortune 1000 companies do business with Sprint. They know a good deal when they see one. Verizon may have better coverage but not 30 dollars more a month better, more like 5 dollars.[/QUOTE]

    i work for a fortune 500 company, i suppose we're in the minority. maybe we'll switch over to sprint! wait, my wife's company is fortune 500 and they're with Cingular. again, they're probably in the minority. i will say that both of our companies demand the best and neither one is with Sprint (both companies have offices Globally). additionally, i did say "a good portion of corporate america", i did not qualify it by limiting it to the top 1000 capitalized corporations in the country. i will say this: Sprint does offer a good deal, it simply doesn't work for me. i demand more than not being able to place a successful call out of my own home or place of work. $5 or $30 more for better coverage? actually phone rates are probably very similar, lets not confuse this with data. hec, i'm happy paying Verizon whatever it is they want until some other company is able to provide the same coverage I currently have. it seems like many other people are willing to do the same.

    as for the corporate america/verizon argument, you win.
    Last edited by oalvarez; 01/21/2006 at 07:45 PM.
  17. #17  
    Quote Originally Posted by Lady Treo
    Don't they have the highest data rates?
    who, Verizon? sure they do. they also have customer service who can speak and understand the english language.

    does Sprint have EVDO? Cingular has EDGE...what do they charge for EDGE?

    again, i really could care less what the charge is. i'm fortunate that way.
  18. #18  
    English speakers? So does Sprint, they're just jerks though.

    Cingular & T-Mobile also.

    You must be thinking of Dell.

    Anyway, to get back on the thread topic. The OP asked why Verizon can charge $45 for internet. The answer, because they can. Lots of people just pay it and never question the rate, so Verizon might not be lowering anything any time soon.
    Last edited by The Phone Diva; 01/21/2006 at 10:44 PM.
    HP has officially ruined it's own platform and kicked webOS loyalists and early TouchPad adopters to the curb. You think after you drop it like a hot potato and mention it made no money and is costing you money, anyone else wants it??? Way to go HP!!

    And some people are fools to keep believing their hype. HP has shown they will throw webOS under the bus and people are still having faith in them??? News flash: if it's own company won't stand behind it, it's finished!
  19. #19  
    Quote Originally Posted by Lady Treo
    English speakers? So does Sprint, they're just jerks though.

    Cingular & T-Mobile also.

    You must be thinking of Dell.

    Anyway, to get back on the thread topic. The OP asked why Verizon can charge $45 for internet. The answer, because they can. Lots of people are sheep and just pay it, so Verizon might not be lowering anything any time soon.
    why is that you constantly have to berate? why do they have to be sheep? are you better than they? maybe those sheep make tons of money and can afford to. have you ever asked yourself that? maybe they just want to and that's ok. would you think of it kindly if some Verizon user referred to you as being a "sheep" for making the choices that you have?

    if it makes you feel any better, i'm a sheep, a very happy sheep, and one who can afford to be one. i like my Treo 700 with Verizon and am with verizon for all of the reasons that i stipulated above that obviously make no sense to you. Lady Treo? shi te...funny username now that I come to think about it. you make me laugh.
  20. #20  
    Remember folks, he lives in New York City. I'd love to earn 6 figures myself, but in NYC, where studio apartments start at $1500 per month, the bigger paycheck goes away very quickley............
    Somebody....anybody........................Don't let Dr. Doom spill his Kool-Aid on his brand new "perrywinkle" sweater vest!!!
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