Apple’s iPhone 7 and iPhone 7 Plus launch appears to be more popular than expected, despite not having a brand-new design and 3.5mm headphone jack. The company stated before last week’s launch iPhone 7 Plus and Jet Black inventory was pretty much limited or sold out (some Apple Stores don’t even have Jet Black on display yet).
The lack of iPhone 7 launch stock has again affected our ‘Big 3’ wireless carriers, namely Rogers, TELUS and Bell. Customers who braved the reservations systems of these companies took a gamble and based on your comments, there has been a real lack of inventory and updates.
Barclays Capital Inc. analyst Phillip Huang released a note yesterday (via The Financial Post), to explain the lack of iPhone 7 inventory could result in lower margins for the ‘Big 3’, mainly through the added costs of retaining customers:
“Despite limited supply of the new iPhones, the carriers are capitalizing on the increased traffic to their stores with deeply discounted older iPhone models to ensure customers do not walk out empty-handed.”
Huang says as Rogers, TELUS and Bell spend more on hardware and absorb discounts offered to customers, it will affect growth in earnings EBITDA (earnings before interest, tax, depreciation and amortization).
Carriers have discounted older models such as the iPhone 6s, and these previous generation models are believed to drive most sales next quarter, explains the analyst, since consumers can’t get their hands on the latest iPhone 7.
“We believe very limited pre-order supply was allocated to the Canadian carriers this year, partly due to the strong demand in the U.S.,” said Huang.
Carriers such as TELUS and Bell are offering the 16GB iPhone 6s for $0 on a two-year term, if customers opt for a $90 per month plan. Rogers has the entry 32GB iPhone 6s for $69 on contract, depending on your monthly plan.
If you’re still waiting for your iPhone 7 from the ‘Big 3’, your best bet is to try Apple’s Reserve & Pick Up system, if you have an Apple Store in your area. You’ll get a phone much faster this way and Apple Stores can help you setup your contract with your carrier.
Discussion links:
Did you pre-order an iPhone 7 or iPhone 7 Plus from Rogers, TELUS or Bell? Did you get it yet?
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OMG LOWER MARGINS!! POOR THEM!!!
I think we all know that if this happens, they will just increase their prices.
….but they didn’t. It’s still the same price as last year. And the year before. And the one before that too.
Or you’re talking about the Big 3?
“Rogers has the entry 32GB iPhone 6s for $69 on contract, depending on your monthly plan.” – I think you mean $269.00, correct?
Check out their iPhone comparison page
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Preorder with telus no news no update. they can’t provide delivery time 1-3-5 weeks…
they seems out of words and offer various discount to retaining customers.
Another big 3 failure
I was at the Apple Store in Richmond Center (BC) last Saturday (the next day of launch) with my buddy who’s looking to get an iPhone 7. There were no Plus models as expected, but there’s plenty of iPhone 7 in stock. In fact, the employees there told us, there’s stock on every color (except Jet Black of course) with every memory capacity. There were also no line-ups whatsoever (we were there around 3:00pm). My friend bought a gold 128GB that day and is a happy camper.
I don’t see the change. The big 3 have pretty much ALWAYS offered the previous model for $0 on a 2 year contract. And, as has been said, you mean $269 (not $69) for the 32GB. Which, again, I think is on par with the previous year’s model’s pricing. I don’t see any extra effort in price cutting here.
Got my 7 jet black 128GB yesterday ????
That high gloss though!
Actually might have it sold for $1500, that’s why I haven’t opened it yet ????
You should apply for a job at Bell. You’d fit right in. lol
🙂
😀
From what carrier? Where were you in the queue?
Bought directly from ? unlocked, I use Public Mobile and love it.
It’s all a con to get you on a contract.
Pre-ordered on the first day from Rogers to pick up in store since there was a glitch with the pay right away page. Currently in first position for the 256 gb gold. Status is open meaning nothing has even been shipped from their warehouse. There isn’t even an estimate wait time.