The big difference in terms of iPhone pricing and Android pricing is this:
Manufactuers like Motorola/LG/HTC often times gives big corp. like ATT/Verizon discounts on their cell phones. So while the price of a Droid 2/Droid X/HTC EVO 'retails close to the iPhones" Verizon/ATT get those phones in a big discounts (often times up to 30%). That's why you see those Android phones discounted as buy one/get one free.
However, Apple rarely discounts any of their products, even to retail chains. Look at Best Buy. They won't allow you to use the 10% discounts on apple products. Look at amazon.com, apple products are rarely discounted. The retail chains can't afford to discount because what it cost them to obtain from Apple is close to the retail price.
That being said. If the 16GB costs Verizon close to $600 to acquire. You bet they aren't going to discount the iPhone very much for 1 year contracts. It's going to be close to $400 for a 16GB iPhone 4 on a 1 year contract and $500 for a 32GB iphone 4 on a one year contract.
That falls in line with ATT's "early upgrade" pricing for iPhone users of $399/499 as opposed to the fully subsidized pricing of $199/299.
Watch Verizon's Q2 earnings report in July 2011. Verizon is going to report a massive expediture because of the one time charge to acquire all those iPhones from Apple are close to full price. They hope to make up the difference in mainly 2 year contracts.
If they offer 1 year contracts, I would be shocked they offer it less than $400 for the 16GB model.
Manufactuers like Motorola/LG/HTC often times gives big corp. like ATT/Verizon discounts on their cell phones. So while the price of a Droid 2/Droid X/HTC EVO 'retails close to the iPhones" Verizon/ATT get those phones in a big discounts (often times up to 30%). That's why you see those Android phones discounted as buy one/get one free.
However, Apple rarely discounts any of their products, even to retail chains. Look at Best Buy. They won't allow you to use the 10% discounts on apple products. Look at amazon.com, apple products are rarely discounted. The retail chains can't afford to discount because what it cost them to obtain from Apple is close to the retail price.
That being said. If the 16GB costs Verizon close to $600 to acquire. You bet they aren't going to discount the iPhone very much for 1 year contracts. It's going to be close to $400 for a 16GB iPhone 4 on a 1 year contract and $500 for a 32GB iphone 4 on a one year contract.
That falls in line with ATT's "early upgrade" pricing for iPhone users of $399/499 as opposed to the fully subsidized pricing of $199/299.
Watch Verizon's Q2 earnings report in July 2011. Verizon is going to report a massive expediture because of the one time charge to acquire all those iPhones from Apple are close to full price. They hope to make up the difference in mainly 2 year contracts.
If they offer 1 year contracts, I would be shocked they offer it less than $400 for the 16GB model.
