planoman
Well-known member
Samsung and HTC get their money (whatever that is) for each phone. It is the carrier or in this case ATT that determines the subsidized price. That is why in quarters where big sellers hit like the iphone or S3 it reflects negatively on the carriers balance sheet and drags their earnings down. Because they pay more for the phones than they sell them for to get a 2 year contract signed so in the short term they lose money. This is a reason T mobile changed up their sales model. They were losing too much money subsidizing phones. Their contract sales were declining and the only customer segment that was growing was prepaid. So they went with the flow. No subsidy and no contract. They allow payments on phones because if they did not, their business would collapse.
If the S4 stays at 249 on a 2 year contract it is because that is what ATT decided. They could always lower it quickly if sales are not at target. That price tells me that they expect it to be a big seller and do not want to kill their sales quarter with lower revenue per phone.
If the S4 stays at 249 on a 2 year contract it is because that is what ATT decided. They could always lower it quickly if sales are not at target. That price tells me that they expect it to be a big seller and do not want to kill their sales quarter with lower revenue per phone.
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