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LightS
Premium
join:2005-12-17
Greenville, TX
reply to nitros22

Re: Verizon post-paid price drop?

said by nitros22:

This is in no way true for high end smart phones. Plus it also depends how far into their contract they are in.

I don't follow? Unless I misread?

nitros22

join:2004-11-03
Chicago, IL

In Example. You buy an iPhone 5 16GB for $199.00 You sign a new contract. You keep the service for 6 month's then pay the ETF at about 300.00 that's the reduced price of the ETF. Verizon still loses out a maybe 1 to 200 bucks as the phone is sold to Verizon at full price unlike the android phones that are purchased in bulk at discounted rates but only for possibly 50.00 to 100.00 per handset. The ETF does not always recoup the cost of the phone. Now if the person was 4 months away from the end of the contract then in that case the ETF would recoup the remaining cost. its all about what phone and how far into the contract the person decides to bail.



LightS
Premium
join:2005-12-17
Greenville, TX

Ahhhh, okay, I misread your statement. That makes sense & I have realized that.


itguy05

join:2005-06-17
Carlisle, PA
reply to nitros22

said by nitros22:

In Example. You buy an iPhone 5 16GB for $199.00 You sign a new contract. You keep the service for 6 month's then pay the ETF at about 300.00 that's the reduced price of the ETF. Verizon still loses out a maybe 1 to 200 bucks as the phone is sold to Verizon at full price unlike the android phones that are purchased in bulk at discounted rates but only for possibly 50.00 to 100.00 per handset.

Interesting assertion. Got a link that shows Verizon pays full price for iPhones and $100 for, say Galaxy S3's? Cause it's not in their financials.