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Re: How many people really buy unsubsidized phones? Posted by Justin VanAbrahams [Email] (#32) [Profile/Gallery] (more from Justin VanAbrahams) on Fri, 13 Jul 2012 13:26:09 In Reply to: How many people really buy unsubsidized phones?, Noel, Fri, 13 Jul 2012 12:59:03 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Apple reports that average selling price of an iPhone is $660, but there is no data on how much of that is absorbed by carrier subsidies and how much is direct to the consumer. I have never seen any data showing the exact breakdown.
In the US, I don't think anyone sets out to buy a phone at retail, but if you are still in contract and have broken or lost your phone, what choice do you have? Some people just like the latest and greatest and buy a new phone every year.
All the big carriers will extend a discount to you if you are approaching your renewal. In my experience that number can range anywhere from 2 months remaining to 12 months remaining. The size of the discount is also variable - from just a few points off to a full contract-renewal discount. What you ultimately pay for an in-contract account is quite variable, and influenced by the phone you want and the size of your account. I can swing pretty big discounts at AT&T with a $15,000 monthly cell phone bill, but our Verizon bill is only a grand and they're a little more stingy. Even at AT&T I end up paying retail sometimes - an $861 receipt (in-contract 64gb iPhone 4S) hurts, lemme tell ya, even when it's not my money! :)
Personally, I don't like being in a contract, and tend to buy my phones outright. I've been in the tech business long enough to know that no job is going to be around forever, and I am perpetually scared of ending up facing a $100/mo luxury cell phone bill with no income. The carriers don't care if you're out of work. They will happily stick you with a $350 (prorated in California) early termination fee. I will be paying one to Verizon next week, as a matter of fact!
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