xjman349
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Can someone explain something to me? I saw a story the other day and it makes me wonder how they can get away with raising the ETF on these "advance devices", especially the Droid, to $350. The logic they use is "we subsidize these phones so customers dont have to pay $500-600+ for them so we have to raise the ETF or else we could lose money."
The story I referred to was the teardown price of the parts for the Droid. Parts total just under $180. I bet most of us paid $200 or more for the Droid (I bought 2 at $200) so how is it we are getting a subsidized device again??? Maybe there is an angle to this Im not understanding. But if the device only cost $180 to manufacture and we are paying $200 or more to buy it, how can they use the above argument about raising the EFT?
Motorola Droid Parts Worth More Than iPhone 3GS or Nexus One's, At $179.11 - Motorola droid teardown - Gizmodo
Because motorola has to make money too. They are selling the phones to Verizon a lot higher than it costs to make them. Thats how motorola makes money. So Verizon wants to make sure they get some return on the devices hence raising the ETF.