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Discussion in 'iPhone' started by AustinIllini, Apr 17, 2013.
A bunch of BS excuses from Verizon why they have to charge you a fee on top of locking you into a 2 year contract.
So Verizon's answer: you need to subsidize the cost of other new members' "free" training?
Funny response, but in all seriousness the fees are still bull.
For those who actually don't use that free training, that is extra money in Verizon's pockets.
Verizon takes the other party in the divorce to the cleaners every time! All during the two year marriage, and even more so if you want out early.
What financial loss is Verizon talking about? The companys total profit last year, was $4.3 billion, a 19.3% increase, with a revenue increase of 18.5% on the mobile side. I wonder how much of that $30 charge is adding to those profits.
The only way to end all the bs charges is to go the route of T-mobile. Keep the phone and service seperate. You should be able to buy a phone whenever you want and it not affect the cost of your monthly charges for service. also if everyone starts seeing this model, the cost of phones will start to drop. There is no way an iphone should start at $650 and a celluar data equiped ipad at much less.
Very little profit is made on the iPhone by the wireless providers. Apple is asking that price or close to it. I would bet the wireless carriers are paying Apple close to $600 for that phone.
Honestly, there are other choices. If you don't like Verizon's policies then go for another carrier.
I thought that the response was hilarious. Sure not everyone needs training to use their phone. But VZW isn't the only carrier that charges for upgrade fees.
How do you know very little profit is made on the device by the carriers?
And no way they are paying that much for it.
I'm buying one device for $649 and the carrier makes a multi billion dollar commitment to purchase iPhones and gets a $49 discount
Yeah the carriers are paying way less than $600 per iPhone. Apple doesn't have THAT much power. $500 might be more realistic. Tmobile is selling them outright for $579 so I'm sure all if the carriers must be getting them for less than that.
if the contract model is tossed out, the carriers really have nothing to do with the sale of a phone. Their focus should be only to provide cell service and pricing on that service.
If everyone buys the device outright, apple can't get away with selling the phone for $650. It will be more inline with what a celluar ipad costs. I'm sure many people can afford paying $450 for a phone up front (if not, offer financing) and most will benefit from cheaper monthly payments. Thats the model everything needs to move towards, otherwise the prices won't be coming down anytime soon. A contract allows companies to hide many expenses and fees.
Uhh carriers don't get much, if any discount on phones like the iPhone. Carriers make money on service, the phones are vehicles to get you to use their service. They eat the difference on the phones cuz they know over a 2 year agreement they'll get it back and then some. I've talked to my reps, sprint/Verizon/tmobile etc. it's why apple is so rich as a company and sprint was leveraged so much when they went all in with the iPhone. Carriers pay just as much for the iPhone as customers.
The carriers are paying between $600 and $650 on average for the iPhone 5. Of course, under contract, you pay $199, so they only foot $400 to $450 of that bill.
There is nothing ^%#@ funny about cell carriers. In the U.S., you really have 2 big guys (duopoly) taking the chunk of the marketplace. There is really near-zero competition, unless u willing to buckle down and change your usage pattern for one of the MVNO.
Exactly. Carriers are not getting discounts on iPhones. If it costs apple around 200 to make an iPhone, best believe nobody is getting a deal, not Verizon/AT&T, sprint, etc.
you are right.....carriers are not getting a discount on phones. They pay the full retail that we consumers would pay for the phone. But then they charge more for their services to make up for the cost of the phone. But when does that cost of the phone you got for $199 end? Is that when the contract is up? So if you still have the same phone bill and phone after your contract is up then you are paying too much......you have already paid the cost of the phone in your bill for the length of the contract.
Sadly not everyone has the option of another carrier, some people verizon is the only one which gives them good service. Hopefully tmo can expand and cover more people, i would love to switch to them
I don't buy those bs articles you linked to one bit.
If you had some common sense and logic you wouldn't either if you think AT&T, Verizon and all other partner carriers that sign multibillion dollar multi year agreements with Apple pay anywhere near 600-650
And Tmobile sells it for $580 and still makes a profit? And finances it for free over 24 months without making a penny right?
I got a bridge for sale too, half price for you
If you can prove otherwise, then do it. Talk is cheap for fools with no money.
I can certainly say that resellers don't make much on Apple hardware (this is everything Apple makes, not limited to phones); the numbers are generally under 10%. Nobody really knows how much these units are purchased for, so it's all speculation. TMobile is essentially selling you the phone for $580, so I would suspect they are getting the phone that less than or equal to that number. In any case, pretty much all carriers push every other device known to man, and NEVER the iPhone, based on personal experiences, and other's experiences that I have read here.
At the end of the day, Verizon isn't losing out. But it's one of those questions of, how much money is enough? We vilify these carriers for making money. Then we have the company that makes the iPhone, Apple, that seems to get far less scrutiny. Their profit margins are pretty darn huge too, right? So what is it about Apple that makes it "more ok" for them to make a boatload of money off of the consumer, but a lesser boatload shouldn't be enjoyed by the carrier? After all, without the carrier(s) the iPhone would be, well, nothing.
I don't know the right answer to any of this. but I think it is easier to hate a carrier for the service you are paying for. It is not a tangible good. Once the month is over and you have sent them your check, you have nothing to show for it. With the iPhone (or any other) hardware, you have something to show for that small handful of Benjamins you had to let go to acquire it.
As I mentioned in a previous reply, I don't claim to know numbers. But TMobile taking this "hit" is actually quite believable. Think about it. They are literally the last of the carriers in the US to get this phone. The pay as you go guys got the dang thing before they did! They want to get people onto their network in droves, as is evidence by the structuring of their plans. Again, I don't know their business model, but it is not uncommon for a company to run near or lower than cost in order to broaden the big picture for years down the road.
Do I believe TMO isn't making a dime on the handset, or even that they are losing money on them? I wouldn't be shocked either way. But I do know that the money they make on every other handset far exceeds the money they make on the iPhone.
Its all speculation cause obviously none of us were around for example when Sprint signed a $15 Billion dollar iPhone deal with Apple.
You say that they pay Apple $600 per base model iphone I tell you that doesn't make any sense. You have to be really gullible to buy the bs that carriers say about they are losing money and that they need to pass on the $36 upgrade fee and other nonsense. You are their wet dream of a customer
You keep talking but you have nothing to back it up. Or as Foghorn Legorn would say "Your tongue is flapping but no noise is coming out of your big mouth"
Neither do you, but my flapping makes a lot more sense than yours
I forgot, you are the expert in everything, so you don't need do back up anything you say. You must be a politician.