So, what do you know? The subsidization model works and consumers could care less if the phone costs them more in the long-run (the long run in this case being a two-year contract) or if the power management challenges .of a 3G network compromised sealed battery life.
Apple sold one million (must… resist… Dr. Evil… impression) Macintosh 2.0’s, I mean, Phone 3Gs opening weekend, noting that it took them more than two months to move that many of the original iPhones. The media attention around the iPhone 3G, while tremendous, may have been at less of a fever pitch than it was for the original iPhone, because it was more of a known quantity and the new features were more of the “fill in the gaps” quantity, but Apple is clearly accurate in saying that price was the biggest inhibitor among those who wanted but didn’t purchase the original iPhone..
By the way, after swinging by the Apple Store on 59h and Fifth, aka “the cube”, late Friday afternoon in the amazing weather, I popped into the Nokia New York flagship store just a few blocks a way on 57th, just east of Fifth Avenue. There was a lot of excitement on the building’s facade as the store was decked out in promotion for The Dark Knight,, but on the first floor of the narrow three-story edifice there were only four consumers.