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[MSN] Phone companies lose $400 for each iPhone sold - Page 8

post #71 of 89
Quote:
Originally Posted by ZealotKi11er View Post

Smaller is harder to make.

I can make really small things. I could make phone smaller than any iphone too.

It is more about how much we are ready to pay for this, production cost and the fact profits are shared by three bast... lovely entities: manufacturers, retailers and product owner [apple]).

We could get iphone at 300-400 and they would still make profit. Look how they charge you 100+$ if you want to double the memory on the device. Clearly unjustified price... Plus apple is notoriously known to overprice their stuff.
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post #72 of 89
Quote:
Originally Posted by blupupher View Post

And your infinite knowledge of Apple's ethics comes from....? (and what do Apples ethics have to do with this thread?)

My knowledge of their ethics comes from what has been in the news. Many people and companies wouldn't dare do some of the things they have.

This thread topic has everything to do with their ethical decisions.
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post #73 of 89
It's the wireless carriers own dumb fault if they lose money pre-buying iphone handsets and partially subsidizing the cost to their subscribers. I wish the wireless carriers worked on providing wireless coverage, not supplying subsidized handsets. Let the manufacturers sell the handsets, and just make sure your networks support the devices, and lower the overall cost of your plans since you don't need to subsidize hardware.

Is it true that Apple sells the iphone to AT&T (and other providers) for full retail $600?nvm, saw it's $400, not $600.

Well, I don't really feel Apple deserves all of the extreme profits on their iphone handsets when they rely on wireless providers for their devices to become so popular in the first place, but it's the providers' own dumb fault if they lose money supporting the iphone. Clearly it's not a bad enough situation for them to change (yet).
    
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post #74 of 89
There are people who keep their current plan long after the contract has ended while their phone still works. If the iphone is that great.
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post #75 of 89
Apparently the "analyst" has never used a smartphone tongue.gif or even talked to anyone who uses one...
    
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post #76 of 89
I never trust articles that you can fill in one small block quote.

Clearly that writer doesnt understand how phone companies operate or the bargaining power apple has.
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post #77 of 89
Quote:
Originally Posted by MacNcheese View Post

I never trust articles that you can fill in one small block quote.
Clearly that writer doesnt understand how phone companies operate or the bargaining power apple has.

of course he knows Apple's Bargaining power...

that is why he's convinced the cell phone companies lose money because of Apple's bargaining power.
    
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post #78 of 89
Quote:
Originally Posted by 2010rig View Post

To be fair though, the carriers make up for it in locking people down with contracts and expensive data plans.
In Canada for example, the 6GB data plan costs $30 a month, on a 3 year contract, that's an extra $1080 from data alone. The average "smart phone" plan is $60 - $70 a month.

I would've thought that carriers got the iPhone's cheaper though, and had a wholesale agreement? Considering they only cost $200 to produce, and carriers are buying them in the millions, I find it hard to believe that they are paying $600 per phone, and if they are, well, no wonder Apple is laughing all the way to the bank.

Apple is unique in the fact that it can demand any amount it wants to for its products. Every carrier must carry the iphone otherwise they will lose out on a huge chunk of the market. Android phones are unable to demand high prices because the carrier can get a nearly identical unit from another manufacturer. I work at Best Buy and I know that we barely break even on most of the macs and ipads.
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post #79 of 89
Two year contract @ $100 a month = $2400
$15 premium each month for using iPhone (probably to alleviate the hit that the cell phone carrier takes): $360
Total after 2 years: $2760

I think that even if the cell phone carriers were being charged full retail, they're not in such dismal shape that this MICROSOFT NETWORKS article dictates. Look, I'm not a fan of Apple and I think that some of their business practices are downright shameful, but don't jump on the bandwagon. Seriously, jump on Apple for some of the crap that they are pulling in the legal system, not for this.
post #80 of 89
I am a customer service rep for a major US carrier. I take around 70 calls per day.

All carriers take a loss when starting a customer on a new line of service. There is a cost for the phone number, a cost to create the line, and the carrier eats the difference in the upgrade/new service price. The contract and early termination fee is in place to prevent the carrier from taking an even bigger loss. The reasoning behind offering the lower price for a contract is to be able to be affordable for all levels of income. Also, you can purchase a phone at full retail and not be attached to a contract in most cases.

The amount you pay per month goes towards various items. For anything data transport related be it making a call or surfing the web, there is a cost associated with it and more than likely an applicable tax. The taxes and surcharges that are appear on your bill supplement these costs but do not cover them all. Any carrier also has the costs of employee wages, advertising, equipment, cell site construction, and commissions as well as other costs I'm probably forgetting.
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