I Think US Phone Carriers Are Unfair

[mamamia88]

Iphone 5 with 2 year contract $650 Iphone 5 with 2 year contract $200. Ipod touch basically same thing starting at $300 no contract. Smartphone contract starting at $70 a month. Basically same contract with straighttalk using exact same towers $45 a month. 2 year savings = $1200-price difference $450= $750 savings by buying unlocked. As you can see you see either way you are getting fucked. Either you sign a contract and throw $750 out the window or you drastically overpay for a phone. How is this even legal? Seems like the phone industry is the new medical industry. I refuse to give any more money to these assholes until the industry is reformed. Galaxy s3 looks awesome but not $600 awesome.

[CrowdAds]

[Marvin the Martian]

None of this is anything new, you know....

[The DarkSide]

Originally Posted by Marvin the Martian

None of this is anything new, you know....

Yup!!! We've covered this before, so just use common sense. If an expensive contract with a cell phone carrier isn't your thing do what you think is best for you.

Me, I have 4 smartphones on my carrier, its what's best for my household. YMMV,...

[Syndrome]

I use straight talk, its the cheapest for me. But that means I've giving money to old carlos slim, he is a crook I do admit.

[Marvin the Martian]

Originally Posted by Syndrome

I use straight talk, its the cheapest for me. But that means I've giving money to old carlos slim, he is a crook I do admit.

Straight Talk is what, 3G for $45 unlimited? I'm thinking about switching....

[Syndrome]

Here in utah it comes out to 50 after taxes and all of that. But yeah its 3g verizon(with specific phones) for unlimited everything. If GSM works in your area you can purchase a sim card for 15$ and put it in any phone you want.

[JK98]

Originally Posted by mamamia88

Iphone 5 with 2 year contract $650 Iphone 5 with 2 year contract $200. Ipod touch basically same thing starting at $300 no contract. Smartphone contract starting at $70 a month. Basically same contract with straighttalk using exact same towers $45 a month. 2 year savings = $1200-price difference $450= $750 savings by buying unlocked. As you can see you see either way you are getting fucked. Either you sign a contract and throw $750 out the window or you drastically overpay for a phone. How is this even legal? Seems like the phone industry is the new medical industry. I refuse to give any more money to these assholes until the industry is reformed. Galaxy s3 looks awesome but not $600 awesome.

Why are the carriers to blame for Apple and Samsung pricing their best phones at high prices? It seems like Apple may be charging the carriers around $650 for an iphone 5. If they sell it at $200, they need to charge around $25 extra each month on their 2 year contract to make up for the subsidy on the phone. I don't quite follow your math. ($70-$45)*24=$600. I guess they need to bill this extra $600 to make up for around the $450 subsidy up front plus billing charges, charges they can't collect(cancelled credit cards, etc.)

[mamamia88]

Originally Posted by JK98

Why are the carriers to blame for Apple and Samsung pricing their best phones at high prices? It seems like Apple may be charging the carriers around $650 for an iphone 5. If they sell it at $200, they need to charge around $25 extra each month on their 2 year contract to make up for the subsidy on the phone. I don't quite follow your math. ($70-$45)*24=$600. I guess they need to bill this extra $600 to make up for around the $450 subsidy up front plus billing charges, charges they can't collect(cancelled credit cards, etc.)

There is no way apple is charging the carriers themselves $600. And my math is this ($70-45)*48months-$450 price in phone difference. That will give you the total amount difference between subsidy and prepaid straight talk with att.

[Marvin the Martian]

Originally Posted by mamamia88

There is no way apple is charging the carriers themselves $600.

And you know this how?

[JK98]

Originally Posted by mamamia88

There is no way apple is charging the carriers themselves $600. And my math is this ($70-45)*48months-$450 price in phone difference. That will give you the total amount difference between subsidy and prepaid straight talk with att.

Isn't the iphone contract for 2 years? Two years is 24 months. Where are you getting the 48 month figure from?

[mamamia88]

Originally Posted by JK98

Isn't the iphone contract for 2 years? Two years is 24 months. Where are you getting the 48 month figure from?

wow i feel like a moron now

[El C]

Situation is largely the same up here.

[nathan]

As you did the math before, if you sign up for a contract, you're still paying the same (probably more) for the phone but over time like paying monthly payments for a car. It's hard to know the true coast of a Galaxy s III or a One X to justify the cost or not but if you don't want to pay $600 for a phone you could pick up a unlocked midrange like a galaxy s 2 which one of the unlock Canadian carers is charging $300 no contract.There's also a lot of people selling used smart phones which are less than a year old to upgraded to the latest and greatest thing which could be another viable option.

Although, if you don't like the way the cellphone market is, contact your countries equivalence of the better business bureau. What cell carriers are doing is borderline criminal how they are artificially increasing/keeping high the price of plans and phones. At the very least the carriers should have to state the full cost at the end of the contract so people will think a little more than just "ou, shiny object, take my money".

[saratoga]

Originally Posted by nathan

As you did the math before, if you sign up for a contract, you're still paying the same (probably more) for the phone but over time like paying monthly payments for a car. It's hard to know the true coast of a Galaxy s III or a One X to justify the cost or not but if you don't want to pay $600 for a phone you could pick up a unlocked midrange like a galaxy s 2 which one of the unlock Canadian carers is charging $300 no contract.There's also a lot of people selling used smart phones which are less than a year old to upgraded to the latest and greatest thing which could be another viable option.

Apple and Samsung actually gave their total sales and total revenue per month for their phones in their recent lawsuit. The Galaxy S2 sold for about 500 to most carriers while the iPhones averaged about $625, but that includes the more expensive large capacity models for which the owner has to pay a lot more more, so they're probably getting something like 500-575 for the lowest cost model. Most premium phones are probably in that range.

So basically, on a 2 year contract, you pay 200 up front for a phone that costs about 500. The carrier kicks in the extra 300. On Verizon you get an upgrade after 21 months, so its about $14.25 per month of device subsidy.

[mamamia88]

Originally Posted by saratoga

Apple and Samsung actually gave their total sales and total revenue per month for their phones in their recent lawsuit. The Galaxy S2 sold for about 500 to most carriers while the iPhones averaged about $625, but that includes the more expensive large capacity models for which the owner has to pay a lot more more, so they're probably getting something like 500-575 for the lowest cost model. Most premium phones are probably in that range.

So basically, on a 2 year contract, you pay 200 up front for a phone that costs about 500. The carrier kicks in the extra 300. On Verizon you get an upgrade after 21 months, so its about $14.25 per month of device subsidy.

well we all know that is probably bs. i'd be very surprised if the carrier paid anywhere near $500 per phone. and if they did then they are getting ripped off. maybe it's like the medical industry where they give you an inflated bill because they know the end consumer won't be fitting the bill and the insurance company will cover it? i'm just saying that all these other companies are able to put out similar products without the cell chip in them for considerably lower than $600 and yet they must be making money or otherwise they wouldn't continue making them.

[The DarkSide]

Apple started the trend of overpaying for a phone. The carriers DO pay $500 or better,...

[Jeven]

Many people in Europe don't bother with contracts and carriers, you can just buy the phone you want unlocked and go with whatever sim card you want.

Giff-gaff is popular with unlimited data, unlimited texts, 250 minutes for £10 a month.

[saratoga]

Originally Posted by mamamia88

well we all know that is probably bs.

No, the numbers are absolutely correct. Lying in court filing is an insanely bad idea that can land you in jail. There is no way they submitted cooked numbers during trial. They would have been caught and then completely screwed almost immediately.

Originally Posted by mamamia88

and if they did then they are getting ripped off. maybe it's like the medical industry where they give you an inflated bill because they know the end consumer won't be fitting the bill and the insurance company will cover it? i'm just saying that all these other companies are able to put out similar products without the cell chip in them for considerably lower than $600 and yet they must be making money or otherwise they wouldn't continue making them.

Apple (and Samsung too) are insanely profitable because they sell their phones for tremendously more than it costs to make them. So yes, the carriers are not getting a great deal, but from their point of view the system makes sense because they can just pass the cost on to their customers.

[Syndrome]

Originally Posted by Jeven

Giff-gaff is popular with unlimited data, unlimited texts, 250 minutes for £10 a month.

Wow I wish I had prices that low. the 250 minutes a month would work just fine for me too.

[Marvin the Martian]

Originally Posted by Syndrome

Wow I wish I had prices that low. the 250 minutes a month would work just fine for me too.

I wonder if their prices are that low because they spend like $9 a gallon for gas....