dynodbPremium,VIP
join:2004-04-21
Minneapolis, MN | reply to ptrowski
Re: Lame said by ptrowski:VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not. The non-subsidized price for the droid is $600 but they're selling for $200 after rebate and subsidy. If the $200 price + the old $175 ETF didn't cover the wholesale cost of the phone, they'd be losing money to people selling them on e-bay to make money.
With a $375 ETF plus the $200 price, they're coming in close to the retail price of the phone. Can't really blame them- why should they subsidize profits for people just out to sell the phone? |
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 ptrowskiGot Helix?Premium
join:2005-03-14
Putnam, CT
kudos:4
 ·VOIPo
| said by dynodb:said by ptrowski:VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not. The non-subsidized price for the droid is $600 but they're selling for $200 after rebate and subsidy. If the $200 price + the old $175 ETF didn't cover the wholesale cost of the phone, they'd be losing money to people selling them on e-bay to make money. With a $375 ETF plus the $200 price, they're coming in close to the retail price of the phone. Can't really blame them- why should they subsidize profits for people just out to sell the phone? So that is the price VZ is getting them for? Doubtful.
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"So, Lone Starr, now you see that evil will always triumph because good is dumb."
Have you been touched by his noodly appendage? »www.venganza.org |
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dynodbPremium,VIP
join:2004-04-21
Minneapolis, MN | said by ptrowski:So that is the price VZ is getting them for? Doubtful. I don't know what they're paying for them, but it's no doubt less than $600. It's not at all hard to believe that they might be paying more than $375 though. |
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ptrowskiGot Helix?Premium
join:2005-03-14
Putnam, CT
kudos:4 Reviews:
·VOIPo
| said by dynodb:said by ptrowski:So that is the price VZ is getting them for? Doubtful. I don't know what they're paying for them, but it's no doubt less than $600. It's not at all hard to believe that they might be paying more than $375 though. I would be extremely surprised if it was. My guess, and it is only a guess, is that they get them at a much lower price than $375.
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"So, Lone Starr, now you see that evil will always triumph because good is dumb."
Have you been touched by his noodly appendage? »www.venganza.org |
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| It doesn't matter what they pay wholesale for the phone. What matters is their expected revenue over the contract period. If ebay flippers are substantially decreasing that then there's the rationale behind the increased ETF. |
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 RARPSL
join:1999-12-08
Suffern, NY | reply to dynodb
said by dynodb:said by ptrowski:VZ gets their initial fees, and they get an ETF. I don't see they really "hurting" in that situation, subsidized phone or not. The non-subsidized price for the droid is $600 but they're selling for $200 after rebate and subsidy. If the $200 price + the old $175 ETF didn't cover the wholesale cost of the phone, they'd be losing money to people selling them on e-bay to make money. With a $375 ETF plus the $200 price, they're coming in close to the retail price of the phone. Can't really blame them- why should they subsidize profits for people just out to sell the phone? If the non-subsidized cost is $600 and the subsidized and rebated cost is $200 (with a 2 year contract) with a $375 EFT, the monthly reduction should be $15.65 not just $10 (ie: It should go down based on how long you have paid under the contract so the EFT is fully paid off at the end of the contract - At $10 a month, you still owe $145 after 23 months). The supposed reason for an EFT is to pay back the unearned subsidized discount you got by not buying at the full price. |
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