Phone companies make back that subsidized price well before the second year of any contract starts. The second year is just ALL profits.
Not true. Assuming a base service contract with voice, data and 200 messages is $75/month in revenue, that is $1,800 in revenue over 2 years. Now, in total AT&T has a bottom line net income margin of 10% of revenue (per the annual report). Even assuming cellular is double that at 20%, that would work out to $360 in profit over 2 years or $15 per month (and this is assuming the cost of $300+ subsidy is already baked into that margin). We aren't talking obscene profits. Theorectically, their economic profits are zero (after accounting for risk).
Some think the cellular network is already there so there are no costs. But it isn't free to constantly upgrade the U.S. cell network to the next generation of service, or to maintain the lines hauling the traffic to switching centers, or the switching or the transport or maintaining billing systems or staffing customer service centers to take thousands of calls from people asking where there 3GS is.
Yes, it is fun to rip on the evil-doer corporations, but without AT&T, an iPhone is just a Touch. Sure their are other carriers, but don't think they will be any better. Sure someday the U.S. government may take over all the carriers, then it will be free phone service for all with 8G speeds!!
Of course, I am in an angry mood though, I am sitting at work while my new phone is sitting at home...alone, just waiting for me to return.[/QUOTE]
How DARE you bring actual FACTS into what is essentially an emotional argument?All these folks know is what they want.Attempting to use logic with them would only trip their breakers.
