Question about Pricing

Discussion in 'iPhone' started by rscott505, Sep 16, 2013.

  1. rscott505 macrumors member

    Feb 11, 2008
    Sorry if this seems a bit dense, but I'm trying to understand the United States mobile carriers' pricing policy.

    I believe that I saw that both AT&T and Verizon are trying to lower the cost of the subsidy of the iPhone that they incur and will be charging an up front fee, and then a charge every month.

    I certainly understand the business rationale behind this, however, at the Keynote Apple announced pricing for the phones that was consistent with past practices.

    If someone can enlighten me about how this is going to work, I'd appreciate it.
  2. Adelphos33 macrumors 6502a

    Mar 13, 2012
    AT&T and Verizon would like to lower subsidy payments for iPhone but I don't believet hey have extracted those lower costs from Apple yet, so pricing remains the same.
  3. rscott505 thread starter macrumors member

    Feb 11, 2008
    Thanks. I thought I saw that they had switched to the method I mentioned. Hopefully that will not come to pass. If it does, I would hope that they do the same for all phones and not just Apple phones.
  4. Mrbobb, Sep 16, 2013
    Last edited: Sep 16, 2013

    Mrbobb macrumors 601

    Aug 27, 2012
    The new monthly-payment thing is not a replacement for subsidy, it just something on the side something t-mobile started to set themselves apart from the other carriers.

    Because one thing subsidized customers complaint is, they are locked to one carrier for the service. So t-M says OK, you don't have to be locked to us, but you still owe us for the full amount of the phone but we will let you pay it in 24 months.

    Lots of business already do this, has a financing plan where you can pay off you purchase in 6-12 months, no interest charged, as long as you have good credit. So even before t-m came up with this idea, you could have done something similar on your own. Buy an unlocked phone from whomever and ask if they have a non-interest financing plan.

    No matter what, at the end you end up paying, there is no freebie.

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