Subsidized pricing.

[pool_shark]

I mentioned some time ago that U.S. carriers would eventually end subsidized pricing, it's starting.

T-Mobile Ending Phone Subsidies: A Victory For Transparency

Instead of having the cost of phones subsidized over the course of a two-year contract, T-Mobile is shifting to an unsubsidized "Value package " system. Under this plan, you can either pay full price for the device up front, pay for it in installments that are explicitly spelled out on your bill, or bring in your own unlocked device.

T-Mobile Ending Phone Subsidies: A Victory For Transparency - Personal-tech - Smart Phones - BYTE

 

[Jude526]

Oh my

sent from either my HTC Rezound or my Samsung Galaxy 10.1 tablet

 

[MobileMadness002]

About time if you ask me. Let the carriers keep their minds on providing service and not hardware.

 

[clarker07]

Thanks

Sent from my Nexus 10 using Tapatalk 2

 

[taylorz_412]

I could care less about the hardware pricing the data plan pricing in the us Is completely out of control

Sent from my SCH-I535 using Tapatalk 2

 

[Raymond Tan]

That's how it is at every U.S. carrier already, with the exception of the payment plan, and it's been like that for god knows how long. You can already go to Verizon, Sprint, and so on, buy the phone out of contract. You then can just leave with no plan or get a month to month or contract.. You can also bring in an unlocked phone and have it activated. Most people don't go that route because they don't want to for fork out $600 to $800 for an unsubsidized phone, and they don't with a month to month because it's more expensive in the long run. No matter where you go, a pay as you go plan will always be more expensive. Unless you change your phone every year, which some people do, it's better to just get a 2yr. plan. Also most people buying a phone that's expensive are probably charging it their credit card away so it's not much different than a payment plan.

Just a couple of weeks ago I went to Verizon to see how much they were selling the Galaxy Tab 2. It was $500 with contract and something like $700 out of contract.

 

[pool_shark]

That's how it is at every U.S. carrier already, with the exception of the payment plan, and it's been like that for god knows how long. You can already go to Verizon, Sprint, and so on, buy the phone out of contract. You then can just leave with no plan or get a month to month or contract.. You can also bring in an unlocked phone and have it activated. Most people don't go that route because they don't want to for fork out $600 to $800 for an unsubsidized phone, and they don't with a month to month because it's more expensive in the long run. No matter where you go, a pay as you go plan will always be more expensive. Unless you change your phone every year, which some people do, it's better to just get a 2yr. plan. Also most people buying a phone that's expensive are probably charging it their credit card away so it's not much different than a payment plan.

Just a couple of weeks ago I went to Verizon to see how much they were selling the Galaxy Tab 2. It was $500 with contract and something like $700 out of contract.

I think you missed the point.
Of course you can buy at full price now.
The point is that they are doing away with allowing you to buy a new $700 device for $300.

 

[Raymond Tan]

Your not paying $300. You make a down payment of let's say $300. They just charge you the remaining amount over a 20 month period. In the end the phone will still cost you $700 in total, almost the same as if I bought the phone at $700 with my credit card, and paid the monthly bill to pay off the phone. I guess it would help people with no credit, but then again those people shouldn't be buying a $700 phone.

As far as the current plans being confusing, I never found any of them hard to understand. What sucks is when they decide to change the way the plan works, and force you into the new plan when you upgrade to a new phone unless you get it out of contract. Even under T-Mobile's planned strategy you would still have to buy a $700 phone to keep your current plan, they would just charge you the full amount for the phone over 20 months, so it's not much different.

I wish it was the way you described. The phones themselves don't cost much to make. I remember reading an article that the Iphone 5 costs around $200 to make(besides R&D). Yet they sell it for $800+. Same with all the other smartphones.

Here's an article on T-Mobile's plan What T-Mobile's unsubsidized iPhone means for you - The Week

 

[pool_shark]

It is different.
Currently t-mobile is the only 1 of the 4 major U.S. carriers that charge you less for the plan if you pay full price for the device.

Paying $300 for a phone on Verizon does not cost you $700 for the phone over the term of the contract.

The note 2 is the 2nd phone I have paid retail price for, my monthly plan payments are exactly the same.
If what you're saying was true, that you pay the full amount for the device over the term of the contract, then my payments should drop.

Europe started doing away with subsidized pricing and the U.S. is following the model.
Eventually you will no longer be able to walk into a store, give them $300 and walk out with a $700 phone with a new 2 year agreement.

 

[Raymond Tan]

Hopefully the difference in the monthly plans is significant. Unfortunately it ultimately comes down to what the customers are willing to pay for, and it seems at least in the U.S., a lot of people are still willing to buy phones at $800 to get the latest and greatest. They are willing to switch carriers and pay early term. fees just to get the lastest phone. T-Moblie's phone line up doesn't compare to the other major carriers. Hopefully the merger with MetroPCS can get them more leverage with the phone manufacturers.
By the way hows the Note 2? It's one of the phones I was looking into. Did you pay full retail to keep your unlimited plan?

- - - Updated - - -

Hopefully the difference in the monthly plans is significant. Unfortunately it ultimately comes down to what the customers are willing to pay for, and it seems at least in the U.S., a lot of people are still willing to buy phones at $800 to get the latest and greatest. They are willing to switch carriers and pay early term. fees just to get the lastest phone. T-Moblie's phone line up doesn't compare to the other major carriers. Hopefully the merger with MetroPCS can get them more leverage with the phone manufacturers.
By the way hows the Note 2? It's one of the phones I was looking into. Did you pay full retail to keep your unlimited plan?

 

[pool_shark]

Hopefully the difference in the monthly plans is significant. Unfortunately it ultimately comes down to what the customers are willing to pay for, and it seems at least in the U.S., a lot of people are still willing to buy phones at $800 to get the latest and greatest. They are willing to switch carriers and pay early term. fees just to get the lastest phone. T-Moblie's phone line up doesn't compare to the other major carriers. Hopefully the merger with MetroPCS can get them more leverage with the phone manufacturers.
By the way hows the Note 2? It's one of the phones I was looking into. Did you pay full retail to keep your unlimited plan?

I paid retail because my contract isn't up until August and I don't want a contract anymore. I want to be able to switch carriers whenever I want.
I wanted to buy it from AT&T but that would've costs me $700+ and another $210 for the Verizon ETF.

I'm really liking the Note 2. Some people said it took them a bit to get used to the screen size, I took to it immediately.
The s-pen is cool but I don't use it much, didn't plan to either, that wasn't a selling point for me.
I wanted the larger screen, the 4 cores, and the multi-view that really needs the 4 cores to run so efficiently.

I wasn't sure I was going to keep it until it was rooted last weekend, and now that we can add apps to multi-view I'm very happy with it.

 

[Raymond Tan]

You can add any app after root? That's a major plus. Any issues with lag when running your own apps in multi view

 

[pool_shark]

Root isn't needed to install the modified apps and no, there is no lag at all.

There is also a modified stock ROM that has a feature that allows the addition of any app into multi-view.

 

[byrds8]

Sad thing is too that even if Verizon ended subsidizing the phones, I do not believe they would lower the cost of the plans. They would look at it as another way to milk us for more cash. Crappy data plans, full price phones = more profit. We all know Verizon does us no favors.

 

[taylorz_412]

Sad thing is too that even if Verizon ended subsidizing the phones, I do not believe they would lower the cost of the plans. They would look at it as another way to milk us for more cash. Crappy data plans, full price phones = more profit. We all know Verizon does us no favors.

That is why I have moved on

Sent from my Nexus 4 using Tapatalk 2

 

[nj1266]

I bought my iPhone 5 at full retail price before my contract was up with Verizon. I did the math and my unlimited data plan was 20$ cheaper per month than the shared data plan that Verizon wanted me to use. Over a two year contract I will end up paying 50$ more had I paid $200 for a subsidized phone. So I paid $750 retail for 32 gig iPhone 5. My only worry is that Verizon will ultimately force me into a shared plan.


Sent from my iPhone 7

 

[pblakk]

My only worry is that Verizon will ultimately force me into a shared plan.


Sent from my iPhone 7

Shared or tiered, as in 2Gb for $30, or 5gb for $50. It's only a matter of time.

Sent from my DROID RAZR HD

 

[MittenSportsFan]

Why do those of us on Verizon pay more with more restrictions?
Best network and to a less extent exclusive phones.
It will be interesting to see if Big Red can keep the network advantage once all other carriers are on full LTE. I know VZW is trying to develop the next evolution in cellular network (and they will continue to advertise to keep perception of best), but what happens when all networks are pretty much the same like land lines.
Will Verizon/AT&T prices come down, or will T-Mobile/Sprint prices go up?
I think they will come down, as they did with land lines, if there are no further mergers with big 4 cell companies.

Sent from my ADR6400L using Android Central Forums

 

[anon(94115)]

My question is when I buy the phone, is the carrier bloat still there and locked? If they are going to be hands off, it had better be all the way

Sent from my X-Band Modem... TY Genesis