I don't understand

Discussion in 'HTC Rezound' started by Bluesman2008, Dec 13, 2012.

  1. Bluesman2008
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    Bluesman2008 Member

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    the rational behind making people wait two years to upgreade into a new phone. It makes absolutely no sense to me. Wouldn't these carriers be making much more money from people who want the latest and greatest now instead of having to wait? I'm sure there are good reasons for it but I sure don't get it.
  2. vatothe0
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    vatothe0 New Member

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    You can upgrade at any time. Carriers only $300+ discounts every two years.

    But a compatible phone at market price and activate it any time you want.
  3. Bluesman2008
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    Bluesman2008 Member

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    Some of the new phones are over $600. Why would I pay that?
  4. acejavelin
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    acejavelin Member

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    This is Business Economics 101 (OK, maybe 121)... the money Verizon (and other carriers) make is NOT on handsets, they don't make a thing and actually LOSE money when you buy that $49 Razr or $149 SGS3, they see that as an investment to keep you in a contract, their real money maker is the recurring monthly revenue... handsets are subsidized (ie. they pay for some or all of the retail cost) because you renew your contract and agree to pay them for additional two years of service. Basically they are saying "yeah, we will throw you a $300 bone, but you can pay us $100/month ($2400) for the next two years for it." Good for them because they get guaranteed recurring monthly revenue, good for you because you don't have to shell out $400 to $600 for a device all at once. If they did it every 6 months, then it just wouldn't be worth it. Some carriers used to do one year contracts, but the price you paid for the devices were double to triple the two year price, and few people took that route and most carriers dropped it as an option.

    Verizon and other carrier will gladly let you upgrade at anytime, as long as YOU will pay the full retail price of the device.

    Although another way of looking at is your monthly service only really costs $50 or $60 a month for everything, the rest is paying back VZW for the device plus interest... Want the same thing without subsidizes already? Go Prepaid with a high-end unlocked GSM phone, just pop in a SIM for the carrier of your choice and pay the monthly fee. Same thing, but which do you prefer? Verizon, AT&T, and T-Mobile prefer to lock you in to a contract... simple as that.

    How would carriers make more money this way? Knowing now what I just said... Seriously, If you have an good idea, please let me know, I will talk to my investors immediately!!! :)
    Last edited: Dec 13, 2012
  5. vatothe0
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    vatothe0 New Member

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    So you can have the latest and greatest now, instead of having to wait.
  6. HowardZ
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    HowardZ New Member

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    The way I see it, half of your cell phone bill is paying for your discounted phone ever two years.

    I'd prefer Verizon to cut my bill in half and not subsidize phone prices.

    I'd like it even better if Verizon will completely get out of the phone selling business and android update business. I'd prefer to buy my phones directly from the manufacturer and get android updates directly from the manufacturer.

    If I want a new phone ever year, I'll pay for it. If I want a phone ever six years, then I'll pay for it. It will be up to me.
  7. Abe21599
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    Abe21599 DF Super Moderator Rescue Squad

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    Tmobile does this. lower monthly but no discounts on phones.
  8. TWC42
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    TWC42 New Member

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    And I hope they are successful. Not that I would ever consider T-Mo, but it may force others to follow suit. And if folks had to buy phones outright, it may actually lower the retail price of the phones. More people would hang on to their current phones a bit longer, lower demand, lower prices. And the carriers wouldn't have to recover the subsidy in their plan prices.
  9. MrSmith317
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    MrSmith317 Moderator Premium Member

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    T-Mo has been doing this for years. Verizon and AT&T don't care about their customers. They care about the $$$$. Why else would they acknowledge that tethering is using your data your way on non-unlimited data plans? Why else would they have done away with 1 year contracts and 1 year upgrades? Why else would they have done away with new every 2? I've personally just said screw it. I'll stick with Big Red until they steal my unlimited. Once they do, I'm gone.
  10. mountainbikermark
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    mountainbikermark DF Super Moderator Staff Member Premium Member

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    Not taking their sides but all that coverage vs all those dead spots with tmob comes to mind. Cells don't just fall from the sky and aren't maintained by pixy dust.
    Personally I'd rather see stores that look like a flea market than Taj Mahal and have coverage. I'd love to see Verizon and ATT save some dough there and pass it on to the customer and cut out some of their advertising budget and pass it along as well. Who, seriously, gives a rip that Verizon is the official carrier of the nfl?

    Support Our Troops!!!
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    A Rezound phone was used for this Tapatalk post
    Last edited: Dec 18, 2012
  11. mikeinctown
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    mikeinctown New Member

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    Same here. Once they get rid of unlimited then I'm gone as well. Carriers used to have limits then they said unlimited then they said we need to have limits again. it's all about the $$ and if enough people start to complain and drop the service then they will get the hint. I'm locked in for one more year then I go month to month. What upsets me is that Google can sell unlocked GSM phones for $300 with no contract and yet VZW tells me the same phone is $659? WTF?!?!?! the VZW chip that runs on their network costs $300? yeah right...

    If T Mobile or one of the other companies that does unlimited internet for $ and not $$$ actually had great 4g coverage like VZW has, everyone would be switching.
  12. Jmoore1701
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    Jmoore1701 Member

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    OK, here's what I don't understand, and I'm sure this has come up before:
    My $200 SGS3 was a subsidized price: Verizon paid the bulk of the retail price to lock me into a 2 year contract. I get that, and I have no problem with it. I'll need phone service for those two years, and it will be with Verizon anyway, so whatever.
    BUT...if I had bought the phone at retail for $600 (or whatever), I'd STILL have to pay the same amount per month, right? Same plan, same cost. So, technically, I'm not paying VZW back on a monthly basis for the phone, because people who buy unsubsidized phones DON'T pay $30 less for the same plan, right? The only difference is that they can cancel their plan at any time without penalty and switch carriers. That's not worth an extra $300-$400 to me. But I completely understand that it is for some folk. I'm not judging or mocking.
    I'm just saying that IF I'm going to stay with VZW anyway, and IF there's no monthly payment difference between subsidized and unsubsidized, THEN it's better to buy subsidized. Also, Verizon never gets that subsidize money back from me, right?
    For the record, I have no plans to change carriers, I like VZW's coverage, call quality, and phone selection.
  13. LoudRam
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    LoudRam Well-Known Member

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    I can see what your saying and I agree to a point. For some of us it's about keeping unlimited data more than a subsidized phone. I really never minded being locked into a contract until this share bs started. I too have a year left and I'm curious what this next year will bring. I still don't have 4g at home. So between that and losing unlimited data it doesn't look good for Verizon when it comes to my family. We'll just have to wait and see what unfolds. Dec 2013 is the magic month.

    Sent from my HTC Rezound using Droid Forums
  14. Bluesman2008
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    Bluesman2008 Member

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    I don't see corporations, any corporations, passing anything along to the consumers but grief. It's all about the bottom line. It's all about greed.:frown:
  15. Jmoore1701
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    Jmoore1701 Member

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    I sympathize... in fact, in June, when the deadline loomed for the end of unlimited data, I was forced into a choice: buy the SGS3 and keep unlimited for 2 more years, or give up unlimited and wait for the Razr Maxx HD, which wouldn't be out for months? I decided to get the SGS3 and keep UD. I love the SGS3, so I'm glad I got to keep unlimited data AND get a great phone.