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LoL, I've seen this trending on Twitter all day today. I got a little chuckle out of it. I think the mainstream American public, actually thinks the phone costs $200, and are totally clueless that it's a subsidized price based on signing a two year contract and are unaware of the unsubsidized price of $650-$850.

Why do you think cell phone companies advertise "free" phones so much. The mainstream public thinks the phone is literally free. ::sigh::
 
LoL, I've seen this trending on Twitter all day today. I got a little chuckle out of it. I think the mainstream American public, actually thinks the phone costs $200, and are totally clueless that it's a subsidized price based on signing a two year contract and are unaware of the unsubsidized price of $650-$850.

Why do you think cell phone companies advertise "free" phones so much. The mainstream public thinks the phone is literally free. ::sigh::


America is a nation of idiots.
 
That sounds about right, But it'll be about $200 on contract.

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Have people forgotten that the first iPhone was released at $500 and $600 with no subsidized pricing available?

what? When the hell this happened :confused:
In america ALL phones have subsidized pricing.
 
Unless the carriers decide to raise their prices in concert with one another (collusion) then you will see the prices remain the same. Simple reason is Apple's buying power, they are building one device with three capacities unlike other device mfg's which make so many different phones that don't share components thus making their costs higher.

Worse case we see a $50 price bump (Verizon has been doing that with LTE phones).
 
And to think Apple has been duped, having gotten into bed with _both_ Twitter & Facebook...

I never thought they'd be so stupid. Such hypocrisy. That's what greed will do.

Think Different, oh my that didn't last long.
 
And to think Apple has been duped, having gotten into bed with _both_ Twitter & Facebook...

I never thought they'd be so stupid. Such hypocrisy. That's what greed will do.

Think Different, oh my that didn't last long.

What? :confused: You do realise this is completely unsubstantiated rumour.:rolleyes:
 
If the *base* model is $800, that might be noteworthy. I doubt that carriers would be willing to subsidize $600 to bring it down to the $200 price point.
 
If the *base* model is $800, that might be noteworthy. I doubt that carriers would be willing to subsidize $600 to bring it down to the $200 price point.

You know, I have the new Best Buy ad in front of me and Verizon is subsidizing the Galaxy Nexus - 4G LTE to a tune of $800. The advertised price is free with an unactivated price of $799.99

I've seen the claim that carriers are hurting with the high subsidies that they pay out for iPhones. But those subsidies are only $450 per iPhone. I see plenty of these flagship Androids with much higher subsidies.

Are the articles purposely misleading folks?

ft
 
You know, I have the new Best Buy ad in front of me and Verizon is subsidizing the Galaxy Nexus - 4G LTE to a tune of $800. The advertised price is free with an unactivated price of $799.99

That's nowhere near what the manufacturer is charging Verizon. The GSM unlocked version retails $350. Slapping an LTE radio in there doesn't double costs. Not even close.
 
That's nowhere near what the manufacturer is charging Verizon. The GSM unlocked version retails $350. Slapping an LTE radio in there doesn't double costs. Not even close.

actually I have a funny story regarding the nexus through best buy. I bought the unlocked version (GSM through google) to use on ATT, and took it to best buy to get it insured. Since they cannot replace the unlocked version b.c they do not sell it, they gave me insurance as if it were the LTE verizon version. Long story short, they junked out the phone and gave me $799 for the phone....so i paid $350 for an unlocked phone though google and best buy gave me $799 for it...so i made $450
 
actually I have a funny story regarding the nexus through best buy. I bought the unlocked version (GSM through google) to use on ATT, and took it to best buy to get it insured. Since they cannot replace the unlocked version b.c they do not sell it, they gave me insurance as if it were the LTE verizon version. Long story short, they junked out the phone and gave me $799 for the phone....so i paid $350 for an unlocked phone though google and best buy gave me $799 for it...so i made $450

I don't doubt that's the case. An MSRP is one thing, and insurances will often honor MSRP. We are talking about subsidy, more specifically how much each ahndset costs the carrier. Verizon is certainly not forking out $500 per GNex on contract, you can bet on that.
 
I don't doubt that's the case. An MSRP is one thing, and insurances will often honor MSRP. We are talking about subsidy, more specifically how much each ahndset costs the carrier. Verizon is certainly not forking out $500 per GNex on contract, you can bet on that.

i 100% agree. Carriers also probably get it for much less than a place like best buy. I know the s3 is $550 through att and $699 through best buy..both no contract retail prices.
 
That's nowhere near what the manufacturer is charging Verizon. The GSM unlocked version retails $350. Slapping an LTE radio in there doesn't double costs. Not even close.

So what does AT&T/Verizon/Sprint pay for an iPhone? Do they pay the same amount as a regular customer?

I ask since there are many articles out there that state that the carriers suffer more if they sell more iPhones (due to higher subsidies). Many of those articles cite an iPhone subsidy at $450 ($650 - $200).

I just wonder how one would calculate a subsidy on a flagship Android phone.

ft
 
So what does AT&T/Verizon/Sprint pay for an iPhone? Do they pay the same amount as a regular customer?

I wouldn't be surprised if this was close. I base my thoughts not on "reports", but on how Apple treats orders for students/teachers as well as bulk orders for schools. While the discount is ok, it's nowhere near what companies like dell and HP offer. With Apple, you are generally saving 10%. Dell it's upwards of 50%. If you ever wondered why college campuses have a Dell on every corner, now you know. :)

At the end of the day, these companies don't want you to know exact numbers. As soon as you DO know the exact numbers, you are able to calculate just how much they are making off you.
 
Everyone on twitter is going ape **** thinking the new iPhone will be priced at a whopping $800. That's insane... Apple would never do that because they would lose so much business.

Twitter is not full of humanity's best and brightest. The iPhone already breaks the $800 mark today.
 
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