Mr Matt
join:2008-01-29
Eustis, FL
kudos:1 Reviews:
 ·CenturyLink
 ·Comcast
·Embarq Now Centu..
 ·Millenicom
| How are unsubsidized phone prices established:  Whenever I hear the term unsubsidized phone prices I cringe. In reality, if the sale of cellular handsets were truly competitive the wireless carriers would not be able to simply to make up a price to inflate the ETF if one is applied and then charge the customer the true cost of the handset as the pre-discounted price. I hope Nexus is successful. But unless Nexus is sold through many sales channels with true competition, I would think this marketing strategy should be called the almost, sort of, similar to, the European marketing model where there is true competition. |
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 tiger72SexaT duorPPremium
join:2001-03-28
Saint Louis, MO
kudos:1
·T-Mobile US
| said by Mr Matt: Whenever I hear the term unsubsidized phone prices I cringe. In reality, if the sale of cellular handsets were truly competitive the wireless carriers would not be able to simply to make up a price to inflate the ETF if one is applied and then charge the customer the true cost of the handset as the pre-discounted price. I hope Nexus is successful. But unless Nexus is sold through many sales channels with true competition, I would think this marketing strategy should be called the almost, sort of, similar to, the European marketing model where there is true competition. The wireless carriers *don't* make up the MSRP. The manufacturer does. HTC and Google set the MSRP at $529. After a $350 phone subsidy, that brings the phone price with contract to $179.
As for competition - the various wireless carriers set their on-contract prices to whatever they can to lure in customers. There is competition there. Also, other smartphones are enough incentive for the manufacturers to keep the pricing down.
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"What makes us omniscient? Have we a record of omniscience? ...If we can't persuade nations with comparable values of the merit of our cause, we'd better reexamine our reasoning."
-United States Secretary of Defense (1961-1968) Robert S. McNamara |
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 coldmoonPremium
join:2002-02-04
Broadway, NC
·Windstream
| One thing to keep in mind here is that the phones themselves are actually more expensive in Europe than they are here, especially when you start calculating the VAT rate.
This does not however negate the model as the service providers have a much tighter market to work in considering the plethora of choices people have there...
JMHO
Mike
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Returnil - 21st Century body armor for your PC |
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