subsidized

Discussion in 'Droid RAZR' started by bacK_N_87, May 29, 2012.

  1. bacK_N_87

    bacK_N_87 Member

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    Subsidized phones are good because it helps you afford things at a lower monthly price. Here's my deal with it though, shouldn't the monthly bill price go down say after 6 months. I pay roughly $109 a month for 18 months, how many times have I "PAID" for the device? I'm sure I'm not the only one who feels this way.
     
  2. jpcalhoun

    jpcalhoun Senior Member

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    Yeah, we've paid a lot for our devices...but let's not forget about paying for the use of Verizon's network/infrastructure and their investment. I'm not saying that Verizon isn't making a good return on their investment, I'm sure they are. The device is really worthless with out the network and other infrastructure behind it.
     
  3. LoneWolfArcher

    LoneWolfArcher Silver Member

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    Not sure about 6 months, because you agree to a 2 year plan. However, after the 2 years our monthly bill should definitely go down, and it does not.
     
  4. bacK_N_87

    bacK_N_87 Member

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    The whole purpose is to pay for the device in the long run I think. Over 2 years of paying the same premium price to me is robbery. With that amount of money I could've purchased too more devices. With that being said I'm not complaining like I'm cheap or I don't appreciate their services but as a great customer I feel like we get nothing. Can we get a discount to upgrade? Stupid contracts lol. As soon as we sign its over.
     
  5. bacK_N_87

    bacK_N_87 Member

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    *two more....
     
  6. kodiak799

    kodiak799 Gold Member

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    If you need the subsidy to "finance" your phone, then you really can't afford it. Someone mentioned in another thread about the challenge to scrape up $600 for a new phone. I mean, c'mon, you're going to pay $360/yr for data and don't have $600 for a phone? I wouldn't begrudge them the service, but the bottom line is they shouldn't be buying a new phone but getting something cheap on EBAY. I'd guess a fair number of people complaining about losing unlimited data fall into this category and have been using it as an ISP to save money, and losing unlimited means they really can't afford the service if they now have to go pay for home broadband.

    The subsidy is $250-$350. Not sure what they really pay, a bit more to Apple, but I think their early termination fee is $350. And $350 is roughly the difference between retail, but VZW isn't paying retail. So let's call it $250 over 20 months...That means on your $30 data plan they are netting about $17.50/month.

    VZW is still entitled to a profit after you've "paid" for your device. Their price for data isn't just paying your phone. It's not "buy this phone and get free data". But theoretically, yes, after 24 months your data should go down maybe $10 with the subsidy paid back.
     
    #6 kodiak799, May 29, 2012
    Last edited: May 29, 2012
  7. bacK_N_87

    bacK_N_87 Member

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    Can't argue with this at all. I just wish that after a certain amount of time loyal customers should get some incentives. 2 years is way too long, well maybe not for the average consumer. I don't know just seems crazy to me. Someone needs to challenge the powers lol.
     
  8. nonnasmyladie

    nonnasmyladie Member

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    You just explained why subsidized phones are bad.

    Sent from my DROID RAZR using DroidForums
     
  9. kodiak799

    kodiak799 Gold Member

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    I ended-up getting my Rezound for like $70 in early January. There was a special promo for $100, got $30 for my NE2 (both credits toward any phone), and then a few days after I got it they dropped the price to $199 so I got a credit for that, too. That's a pretty darn good deal in my book.

    But really we don't get any value for the subsidy. All the carriers offer it, and you're going to have service somewhere so the locking-in thing is fairly irrelevant. So all the subsidy does is prop-up prices. If you eliminate the subsidies then guess what - the phones are going to retail for $300-$400.

    I'm all for eliminating the subsidies. I just wish VZW would do it all together and if the other carriers followed, the retail prices would drop like a rock. So shame on VZW for only doing this to unlimited plans. Although this may be the first step toward that.
     
    #9 kodiak799, May 29, 2012
    Last edited: May 29, 2012