Now that VZW no longer offers subsidized pricing, why haven't full retail price of phones gone down?

[yourphonemyphone]

I'm confused. Verizon stopped offering subsidized pricing to new customers as of 8/13. So why haven't full retail prices of phones gone down? For example, the Samsung Galaxy Note 5(which happens to be released on the same day) still look to be about the same as the model that it replaced.

Or is the new pricing policy just a way to boost Verizon's profits? With the old subsidized pricing, I could always expect to save about $200 to $300 for every phone that I buy every couple of years.(since I always stayed with Verizon and never switched carriers)

 

[dpham00]

Verizon still offers subsidized pricing for existing customers.

With regards to the new plans, they don't include the subsidy option any more. Before, when you were on contract, you would pay $40 line access charge,and when off contract $15/$25 line access charge. The difference between the two is the subsidy. Now you just pay a straight $20 line access charge.

Don't expect any price drop for full retail. Verizon's full retail pricing on the note 5 is already the lowest of the major carriers.


In fact, the Verizon version should be priced higher than the other carriers because they have to pay qualcomm for licensing proprietary cdma technology,which att and tmobile versions do not require

 

[Aquila]

Also, data rates just went down for a lot of people.

sent via Nexus Assassin Edition. Gonfaloniere.

 

[qbot101]

Also, the number of lower priced phones is increasing. There are 2 phones available now that are $120 MSRP; also, there are a few more that are less than $200.

Sent from my SM-N910V using Tapatalk

 

[UDPGuy]

Verizon doesn't make money off of phones. They basically break even. Samsung is the one who made that the msrp.

Posted via Nexus 6 with unlimited international data via AT&T

 

[Jude526]

I sold wireless and the money is made on contracts. Sometimes special spiffs are offered but the plans are how I was paid

Posted via the Android Central App

 

[yourphonemyphone]

I sold wireless and the money is made on contracts. Sometimes special spiffs are offered but the plans are how I was paid

Posted via the Android Central App

I have no doubt that Verizon Wirelss make the most money on contracts.

However, do they they not make *any* money when people buy phones at full retail prices?

Also, now that they've switched to no-contract pricing for new customers, how do 3rd party dealers make money?

 

[UDPGuy]

I have no doubt that Verizon Wirelss make the most money on contracts.

However, do they they not make *any* money when people buy phones at full retail prices?

Also, now that they've switched to no-contract pricing for new customers, how do 3rd party dealers make money?

The mark up on iPhone us nothing and most other phones is less then $25. But by the time they ship them all and do everything they need to, they don't make nothing off of phones.

Source I work at best buy and can see the numbers.

Posted via Nexus 6 with unlimited international data via AT&T

 

[bigmatt503]

The mark up on iPhone us nothing and most other phones is less then $25. But by the time they ship them all and do everything they need to, they don't make nothing off of phones.

Source I work at best buy and can see the numbers.

Posted via Nexus 6 with unlimited international data via AT&T

Best buy charges around 100 more than some places (full retail prices)
And they usually have decent contract prices.
Do they have the higher retail pricing to avoid selling at full price?

Sent from my Nexus 6 using Tapatalk

 

[UDPGuy]

Best buy charges around 100 more than some places (full retail prices)
And they usually have decent contract prices.
Do they have the higher retail pricing to avoid selling at full price?

Sent from my Nexus 6 using Tapatalk

Nah. It's just the 'recommend' price. They will price match full price phones anyways

Posted via Nexus 6 with unlimited international data via AT&T