Why Are iPhone Contracts So Expensive?

[Certinfy]

I'm from the UK so I doubt I can complain much considering many other countries pay a lot more for their contracts. But anyway I mean with other phones on the market which retail for the same sim free price the contract price for them is a lot less. For example at the iPhone 4 launch the cheapest contract over the 24 months I could have gotten would of equalled over £800 while now at the Samsung Galaxy S2 the cheapest contract over that amount of time from what I've seen is around £600. And both phones retail at £500 sim free.

So yeah, just out of interest I'm wondering why iPhone contracts are a whole lot more? Seems the iPhone is the only phone it's worth buying sim free and then getting a contract sim to go with it.

 

[unlimitedx]

because it's the iPhone... the most popular phone

 

[iRach]

I was pondering price earlier so I worked out on an 18 month contract if I divided what I pay per month in half, half of it would pay for the cost of the phone, including initial purchase price, and the rest would pay for my usage, which I consider ok

 

[Tom G.]

iRach is correct. You're subsidizing the iPhone. Same with any smartphone. Basically your are buying it on time. Other wise few people could afford it.

 

[RebeccaL]

I am in the US and the contract price for the iPhon is the same as for other phones.

 

[TheOriginalKi]

My iPhone cost me £69 plus £35 a month for two years. Total of £909

If I bought it sim free at the time it would have been £499 plus £25 a month for the same contract sim-only. Total of £1099

Doesn't seem too bad to me!

 

[Hermes Monster]

iRach is correct. You're subsidizing the iPhone. Same with any smartphone. Basically your are buying it on time. Other wise few people could afford it.

I think you're missing the op point - the issue isn't why it's so expensive, but why it's not comparatively as expensive as other phones which have the same sim free price.

I dont know the answer, but it's likely because they can. What I do know is..that after a year of having an iPhone I can sell it for much more than I can sell any other handset, so I guess it evens out

 

[old-wiz]

IIRC, Apple gets a cut of the monthly charge.

 

[From A Buick 8]

because it's the iPhone... the most popular phone

The price represents what the market will bear.

 

[kevink2]

IIRC, Apple gets a cut of the monthly charge.

Only for the original iPhone, which was sold unsubsidized in the US.

 

[ikaveh]

the real price of iphone is around 700$. when you buy it from a career they sell it to you for less but have to pay around extra 300-400 to Apple. so you can guess where they can get this money from. contract!