why does off contract cost so much

Irvgotti

Well-known member
Jun 29, 2011
836
39
0
Visit site
2me it doesn't make sense that it cost 500-800 dollars for a cell phone. IMO I don't think it cost half of that to make a cell phone. A tablet at that price is understandable. But not a cell phone. 300-400 is a decent price. But can someone explain this so I feel better about spending all this $$$$ on the DLX
 

geekymcfly

Well-known member
Jan 19, 2012
680
0
16
Visit site
The only answer that I can come up with is that these companies want the money back from their labor, delivery and parts. I'm sure it could be cheaper but it wouldn't make profit. Can you explain to me why gas is so high on one side of the country and way cheaper on the other?

"all animals are created equal but some animals are more equal than others" animal bylaws- animal farm
 

amadkins

Well-known member
Feb 1, 2012
53
5
0
Visit site
2me it doesn't make sense that it cost 500-800 dollars for a cell phone. IMO I don't think it cost half of that to make a cell phone. A tablet at that price is understandable. But not a cell phone. 300-400 is a decent price. But can someone explain this so I feel better about spending all this $$$$ on the DLX

It actually takes quite a bit more engineering to pack all the same functionality into the smaller package of cell phones. Not to mention all the regulatory hurdles that these companies have to jump over with the fcc and the overseas equivalents. Plus they have to maintain an enormous amount of overhead in factories, capital equipment, and employees. Then they have to support advertising and at least two layers of distribution. All that stuff adds up quick.

I'm amazed they can do it at the $700 price point.
 

moosc

Grand Master Moosc
Oct 20, 2009
3,264
162
0
Visit site
Just be lucky it isn't more for a smart phone. I was looking at buying a dumb flip phone of contract it would have been $400 that is crazy. IT cost about $15000 to make truck but with dealer mask ups and such your paying upwards of $50000. Double ouch

Sent from my Galaxy Nexus using Xparent Cyan Tapatalk 2
 

gone down south

Well-known member
Jul 24, 2012
2,040
0
0
Visit site
A smartphone is just as powerful as your laptop, but heavier space and size constraints on all the components.
You'd pay $800 for a laptop, right?
 

Fleury14

Well-known member
Aug 18, 2012
125
0
0
Visit site
It's called the FREE MARKET... Something that seems lost on certain generations in this country. They'll charge what they can to be able to maximize profit.
 

pblakk

Well-known member
Aug 25, 2012
631
1
18
Visit site
It's called the FREE MARKET... Something that seems lost on certain generations in this country. They'll charge what they can to be able to maximize profit.

And they'll keep markups high because people WILL pay.

Sent from my DROID RAZR HD
 

gollum18

Well-known member
Oct 10, 2011
1,485
32
0
Visit site
Because on contract you pay a subsidized price( not full price just the upgrade price ) and the carriers will make their money back because when you get an upgrade you sign up for another two years or however long your contract was. Whereas off contract you don't sign up for a new contract and can get any plan you want BUT you must pay a full retail price for the phone which every carrier marks up above the manufacturers price so they can still make money( this pays off more in the long run as it doesn't lock you into a contract you won't be making monthly payments ).

Sent from my SPH-L710 using Tapatalk 2
 

Irvgotti

Well-known member
Jun 29, 2011
836
39
0
Visit site
Hmm. I just can't see the point in paying 500-800. Google did it right with the price. I just wish others would start.you would still make a profit.. might not be as big. but a small gain is better than a loss
 

cyanogen-man

Well-known member
Feb 1, 2012
1,034
7
0
Visit site
tell that to HTC their slipping bad and no one k rows y I just wish they would put the one x and x plus on all carriers. And most phone if not all are not made in the united states some ship from tiwaan china japan there's shipping cost involved but yes they do have subsidized prices on carriers off contract is always going to be steep I personally think that the carrier branded off contract price is somewhat higher than the international unlocked phones (sometimes) face it carriers are evil dogs and they will get their$$$ anyway they can

INSPIRE AOKP ICE COLD SANDWICH ROM ;)
 

Ry

Moderator Captain
Trusted Member
Nov 16, 2010
17,654
214
0
Visit site
You can't expect these OEMs (who make money on hardware sales) to sell their products at cost. A lot goes into developing these products from start to finish.

Sent from my DROID BIONIC using Android Central Forums
 

Irvgotti

Well-known member
Jun 29, 2011
836
39
0
Visit site
So did Google and Asus take a loss with the nexus 7? Im sure that all of you agree that they are over priced. Maybe one day they will sell them at a cheaper price. Until then $600 DLX here I come
 

EvilMonkey

Well-known member
Jun 4, 2010
1,808
103
0
Visit site
I have access to all of mankind's accumulated knowledge since the dawn of time in the palm of my hand.

Seems like a fair price :)

On second thought I also have access to Internet comments areas.

Everything is amazing and no one is happy.
 

Fleury14

Well-known member
Aug 18, 2012
125
0
0
Visit site
So did Google and Asus take a loss with the nexus 7? Im sure that all of you agree that they are over priced. Maybe one day they will sell them at a cheaper price. Until then $600 DLX here I come

I'm really not sure what you want. It's economics 101. They will sell it for what they can get away with charging. If not that many people buy the product there will be a price drop.
 

Irvgotti

Well-known member
Jun 29, 2011
836
39
0
Visit site
I'm really not sure what you want. It's economics 101. They will sell it for what they can get away with charging. If not that many people buy the product there will be a price drop.

i want a great phone to be priced at a great price. 400-500$. im sure that wouldnt be any loss if they did that. might even boost sales.
 

cyanogen-man

Well-known member
Feb 1, 2012
1,034
7
0
Visit site
The sad truth is the higher the specs the bigger the ram the bigger faster chip sets cost more$$$$ plain and simple the bigger the battery the bigger the screen the higher ppi the higher resolution the more $$$$

INSPIRE AOKP ICE COLD SANDWICH ROM ;)
 

Irvgotti

Well-known member
Jun 29, 2011
836
39
0
Visit site
The sad truth is the higher the specs the bigger the ram the bigger faster chip sets cost more$$$$ plain and simple the bigger the battery the bigger the screen the higher ppi the higher resolution the more $$$$

INSPIRE AOKP ICE COLD SANDWICH ROM ;)

i know :*( 2015 off contract phone 1100 for 8gb
 

Ry

Moderator Captain
Trusted Member
Nov 16, 2010
17,654
214
0
Visit site
Curious.. did you ever notice the full retail price of the "dumb" phones back in the day? :)

Sent from my DROID BIONIC using Android Central Forums
 

Trending Posts

Forum statistics

Threads
943,184
Messages
6,917,689
Members
3,158,867
Latest member
Non