Amazon Droid Blowout: How and Why?

[PGHammer]

For some reason, Amazon is blowing out original Motorola Droid cell phones for $19.99USD (two year contract, naturally with VZW). Now, I have nothing against VZW (they are, in fact, my wireless provider of choice); however, that is a *massive* undercut (not merely vs. VZW's own online store, but the same online store's price on the LG Ally, their cheapest Android phone). Did Amazon make some sort of buyout deal with VZW for unsold Droid phones?

 

[YourMobileGuru]

For some reason, Amazon is blowing out original Motorola Droid cell phones for $19.99USD (two year contract, naturally with VZW). Now, I have nothing against VZW (they are, in fact, my wireless provider of choice); however, that is a *massive* undercut (not merely vs. VZW's own online store, but the same online store's price on the LG Ally, their cheapest Android phone). Did Amazon make some sort of buyout deal with VZW for unsold Droid phones?

Why is this any different than them selling the various Samsung Galaxy phones for a penny? It doesn't matter, Verizon/Moto still get paid, Amazon/Wirefly are just taking a loss now and making it up over the next two years on thir commission on the plan and data plan. Trust me they are all doing just fine.

 

[takeshi]

For some reason, Amazon is blowing out original Motorola Droid cell phones for $19.99USD (two year contract, naturally with VZW). Now, I have nothing against VZW (they are, in fact, my wireless provider of choice); however, that is a *massive* undercut (not merely vs. VZW's own online store, but the same online store's price on the LG Ally, their cheapest Android phone). Did Amazon make some sort of buyout deal with VZW for unsold Droid phones?

Resellers frequently undercut the carriers on handset pricing. This isn't the first time the Droid has been available for that price. The pricing doesn't mean that Amazon has any sort of special buyout deal with VZW.