$200 iPhone 6

[VFN]

My father got an Iphone 6 this past September on sale at Target for $200. Being that an iPhone 6 is about $500 or so everywhere I look now, how was Target selling it for that enormous reduction? Also, am I right to think that Apple will sell an iPhone 6 alone, without a coverage package?

Thanks

Apologies if this is in the wrong forum.

 

[itsray]

My father got an Iphone 6 this past September on sale at Target for $200. Being that an iPhone 6 is about $500 or so everywhere I look now, how was Target selling it for that enormous reduction? Also, am I right to think that Apple will sell an iPhone 6 alone, without a coverage package?

Thanks

Apologies if this is in the wrong forum.

contract/subsidized pricing.

 

[VFN]

contract/subsidized pricing.

What does that mean/how does that work? And if by contract you mean a deal with a provider for coverage is that $200 still unusually low?

Thanks.

 

[T5BRICK]

What does that mean/how does that work?

You sign a contract with the carrier for 24 months, and typically you pay an extra $15-25 per month until that time passes. If that's what your dad did, the $200 iPhone 6 potentially cost about $800.

And if by contract you mean a deal with a provider for coverage is that $200 still unusually low?

No.

 

[eyoungren]

What does that mean/how does that work? And if by contract you mean a deal with a provider for coverage is that $200 still unusually low?

Thanks.

It means he put $200 down and is making monthly payments on the phone which are included in his bill.

If it's a lease then he'll have to pay the buyout option at the end (if he wants to keep the phone) or turn it in. If it's just a contract then once the terms are up he owns the phone.

I paid $200 for my iPhone 6s+ 128GB. The phone is NOT $200. That was my down payment and I'm in a lease where I have to pay my carrier a payment each month.

 

[VFN]

So to say an iPhone was on sale for only $200 at one time in any fashion would be wrong. What's the general price for an iPhone now (two sizes/models are there?) and is it true that you can't get one without a carrier involved in the transaction?

Thanks

 

[ardchoille50]

So to say an iPhone was on sale for only $200 at one time in any fashion would be wrong.

Yes, that would be wrong.. and potentially false advertising. You're paying $200 down and the balance is paid on time (included in the carrier bill). Carriers in the USA have been doing subsidies for years - that's how I got my 4s a week after it was released.

What's the general price for an iPhone now (two sizes/models are there?) and is it true that you can't get one without a carrier involved in the transaction?

You can buy a sim-free iPhone 6s directly from Apple, I just checked, but you have to pay the total for the phone - which is around $650.00 - because there is no carrier subsidy in place.

 

[VFN]

You can buy a sim-free iPhone 6s directly from Apple, I just checked, but you have to pay the total for the phone - which is around $650.00 - because there is no carrier subsidy in place.

So a carrier subsidizes some of the iPhone's cost as a business model, a way to gain customers?

Thanks.

EDIT

Found a recode article from Dec. 30, 2015 which says that:

"...consumers in the U.S. have generally bought [cellphones] in the same way. They pay a fraction of the true cost of the phone, with carriers subsidizing the difference and making it back on the monthly service fees they charge....carriers have been gradually shifting away from that approach, separating out the cost of the device and making consumers pay for it upfront or in monthly installments...While the shift changes the way consumers buy their phones and cellphone service, overall pricing has remained roughly similar."

So this would suggest that carriers were charging a higher fee with contracts to recoup their so-called subsidy, no?

Thanks for all the instructive replies. Really appreciate it.