Apple and Wireless Carriers take it to the next level on cellular profits

[seeric]

Before you jokers turn this into an Apple thing, it's not. It's happening on Android smart phone market now too. Welcome to the pillaging.

Just talked to ATT.

I went to order the new iPhone 6 Plus on ATT. Here's the breakdown:

I haven't had a new phone for 2 years, so I am fully eligible for the upgrade.

There is no subsidization this time around.

The options are:

Get into the financing plan to upgrade your phone every 12 or 18 months, at 35.00 per month for 18 month upgrades or 45.00 per month to be able to upgrade every 12 months.

The iPhone 6 Plus will end up costing me 849.00.

I can buy it today with no contract or no upgrade program fees for 649.00.

My ATT plan would remain the same at 125.00 a month for my phone and my GF phone. Unlimited talk and text, and each with 2GB of data each month, standard plan details.

More free money for the carriers. Everyone still gets paid, and the additional cost is being passed on to the consumer for the luxury of carrying a smart phone.

Now let's see who turns this into an Apple hate thread without even reading that all the new Android phones coming out are going to be doing the same thing on the carriers.


I'm just going to pay for it outright at 649 dollars and not have to get into a new contract. They're offering some cheepers plans if you do it this way too.



.

[Sly]

Exactly why I would never buy an iPhone. Steve Jobs is still ripping people off, from the grave.

[seeric]

This is a carrier thing Sly baby. Those new fancy Android smart phones are going to be sold the same way going forward. ;) This isn't an Apple thing, as mentioned.

[woj]

probably because it's now legal to unlock phones, so there is no point in subsidizing phones anymore... everyone was cheering on how great it is that you are no longer "locked into a carrier", but this is the outcome of it... end of subsidized phones... another great example how when government meddles with free markets it fucks things up...

[slapass]

Yeah I just ran into this. Good luck to the phone stores with selling phones here on out. I will just go to Apple or Amazon for my next phone.

[seeric]

Originally Posted by woj

probably because it's now legal to unlock phones, so there is no point in subsidizing phones anymore... everyone was cheering on how great it is that you are no longer "locked into a carrier", but this the outcome of it... end of subsidized phones...

I thought that was definitely part of the move for sure. The other part is now that all Internet traffic is over 50% and heading rapidly to 75-80% of the Internet, phone and mobile devices are becoming the new "computer and laptop". The carriers and device manufacturers are positioning to take over as the leaders of Internet consumption, not just a supplemental follower.

[Sly]

Originally Posted by seeric

This is a carrier thing Sly baby. Those new fancy Android smart phones are going to be sold the same way going forward. ;) This isn't an Apple thing, as mentioned.

I have a 5S sitting in front of me.

[seeric]

Originally Posted by Sly

I have a 5S sitting in front of me.

Hang on to it. I think the value will increase on used devices previous to this release.

( i'm losing my edge in my old age, I totally skipped right over your play in post #2 )

Now who can we get in here fighting over Apple and Android to keep this thread on page 1?

.

[Jman]

Originally Posted by seeric

This is a carrier thing Sly baby. Those new fancy Android smart phones are going to be sold the same way going forward. ;) This isn't an Apple thing, as mentioned.

Eric is right my carrier Rogers offered me same thing when I got the Galaxy S5 a couple of months ago. Pay a monthly fee and you can upgrade when any new phones comes out once a year.

[Grapesoda]

Originally Posted by seeric

Before you jokers turn this into an Apple thing, it's not. It's happening on Android smart phone market now too. Welcome to the pillaging.

Just talked to ATT.

I went to order the new iPhone 6 Plus on ATT. Here's the breakdown:

I haven't had a new phone for 2 years, so I am fully eligible for the upgrade.

There is no subsidization this time around.

The options are:

Get into the financing plan to upgrade your phone every 12 or 18 months, at 35.00 per month for 18 month upgrades or 45.00 per month to be able to upgrade every 12 months.

The iPhone 6 Plus will end up costing me 849.00.

I can buy it today with no contract or no upgrade program fees for 649.00.

My ATT plan would remain the same at 125.00 a month for my phone and my GF phone. Unlimited talk and text, and each with 2GB of data each month, standard plan details.

More free money for the carriers. Everyone still gets paid, and the additional cost is being passed on to the consumer for the luxury of carrying a smart phone.

Now let's see who turns this into an Apple hate thread without even reading that all the new Android phones coming out are going to be doing the same thing on the carriers.


I'm just going to pay for it outright at 649 dollars and not have to get into a new contract. They're offering some cheepers plans if you do it this way too.



.

don't forget the 17% tax

[Rochard]

I paid $99 for my Galaxy S5 a few months ago. I have a two year plan, but I've been with Verizon for ten years so that's not an issue.

We pay $220 a month for our three phones (Two Galaxy phones and one iPhone), and we have 10 shared gigs of data a month.

No way I'm paying $900 for a phone.

[seeric]

Originally Posted by Rochard

I paid $99 for my Galaxy S5 a few months ago. I have a two year plan, but I've been with Verizon for ten years so that's not an issue.

We pay $220 a month for our three phones (Two Galaxy phones and one iPhone), and we have 10 shared gigs of data a month.

No way I'm paying $900 for a phone.

You got your last phone at 99.00. Hang on to it until it's obsolete. This is now the new business model for carriers and device manufacturers. If you want the nicest stuff on the market, you will now pay for the device at retail or finance them and pay more in the end. That is the bottom line.

[Sly]

Originally Posted by slapass

Yeah I just ran into this. Good luck to the phone stores with selling phones here on out. I will just go to Apple or Amazon for my next phone.

I was thinking that as well. The only reason I'm still with Verizon is because of my contract that I got when I upgraded my phone. If I own my phone, Verizon can suck a peepee.

Frankly I don't know how long this is going to last when people start moving their phones to other carriers more often since they are not locked into that contract.

[seeric]

I just tried to buy the phone outright and no contract. They want 1000.00 to buy the device with no contract commitments. So, there is some hidden subsidization on the buy out option, otherwise they wouldn't make you stay in a contract commitment if that was the true retail value.

[Juicy D. Links]

Hey scrapppppppppppppppyyyyyyyyyyyyyy

[dyna mo]

att has been trying to get me on this plan, the flex plan. fuck that. My 2 year plan is almost up, I can sell my lg optimus g pro for ~$300 on swappa and then buy a lg g3 off contract for $475 new at ebay

[candyflip]

I have Sprint. They offered me $225 for me iPhone 5, which I will trade for the 6. Contract extended for 2 years.

[seeric]

Originally Posted by candyflip

I have Sprint. They offered me $225 for me iPhone 5, which I will trade for the 6. Contract extended for 2 years.

Yeah, what we're talking about here doesn't include 5's.

Once you try to go 6 you're going to run into what we're discussing here.

5 is a great phone I have one of those now. No reason to upgrade for a while if you just got it.

I live on my phone due to business, so I really want the bigger screen on the device manufacturer I prefer, which is iPhone.

[DamianJ]

Originally Posted by Rochard

I paid $99 for my Galaxy S5 a few months ago. I have a two year plan, but I've been with Verizon for ten years so that's not an issue.

We pay $220 a month for our three phones (Two Galaxy phones and one iPhone), and we have 10 shared gigs of data a month.

No way I'm paying $900 for a phone.

I guess you weren't good at math at school?

$220 x 24 = $5280.

Galaxy s5 unlocked = about 700 x 2 = $1400
iPhone unlocked = about $700

total phone cost $2100.

So you're playing $132 a month for that tiny amount of data and your calls.

You're being raped.

And paying way over the odds. Essentially, the carrier is lending you the money to buy the $700 phones and charging you hefty interest.

In the UK, I pay $20 a month for a sim with unlimited data, minutes and texts. I buy my phone unlocked and have no 2 year bullshit contract. When I want a new phone, I sell my current one for a few hundred, and get the new one.

[Sly]

Originally Posted by DamianJ

I guess you weren't good at math at school?

$220 x 24 = $5280.

Galaxy s5 unlocked = about 700 x 2 = $1400
iPhone unlocked = about $700

total phone cost $2100.

So you're playing $132 a month for that tiny amount of data and your calls.

You're being raped.

And paying way over the odds. Essentially, the carrier is lending you the money to buy the $700 phones and charging you hefty interest.

In the UK, I pay $20 a month for a sim with unlimited data, minutes and texts. I buy my phone unlocked and have no 2 year bullshit contract. When I want a new phone, I sell my current one for a few hundred, and get the new one.

I think you guys have better plans than we do. Ours suck really.

I'm now paying $120 a month, $20 of that is for my 5s. I get 2 GB of data, I pay for each text (I don't text much), 300 minutes, and Wi-Fi hotspot.

Which reminds me, does anyone know if it's true that when iOS8 is released I will no longer need to pay for Wi-Fi hotspot?

[candyflip]

Originally Posted by seeric

Yeah, what we're talking about here doesn't include 5's.

Once you try to go 6 you're going to run into what we're discussing here.

5 is a great phone I have one of those now. No reason to upgrade for a while if you just got it.

I live on my phone due to business, so I really want the bigger screen on the device manufacturer I prefer, which is iPhone.

Sprint has the option to lease the phone ($20 per month). But I can still do the same $199 (base model) on a subsidized plan, with two year contract. The 5 is a trade in, towards the cost of the 6.

I wasn't forced to lease the phone or buy it outright.

[CAHEK]

No Money, No Problem: You Can Now Lease An iPhone With Nothing Out Of Pocket

Exclusive for iPhone 6 and iPhone 6 Plus Unlimited Data, Talk and Text for only $50 per month

New iPhone For Life Plan allows consumers to get the iPhone 6 for $20/month, iPhone 6 Plus for $25/month, both for $0 money down and guarantees a new device every two years

http://www.sprint.com/iphone

[dyna mo]

Originally Posted by CAHEK

No Money, No Problem: You Can Now Lease An iPhone With Nothing Out Of Pocket

Exclusive for iPhone 6 and iPhone 6 Plus Unlimited Data, Talk and Text for only $50 per month

New iPhone For Life Plan allows consumers to get the iPhone 6 for $20/month, iPhone 6 Plus for $25/month, both for $0 money down and guarantees a new device every two years

http://www.sprint.com/iphone

so on top of the getting fucked on paying more now without the subsidy, user still have to return the phone when they upgrade. double fucked!

[Mutt]

I don't see how the consumer is being screwed - you can now shop for a cheaper carrier rather than be stuck in a contract tied to a phone you've been subsidized on. So the amount you will pay more for when you buy the phone will be offset by the money you save on a cheaper plan. No?

And shouldn't the iPhones go down in price when there are going to be tons more people looking to buy them separate from a plan from a carrier? If Apple wholesales the iPhone 6 for 600 dollars some retailers will sell it for $1000 and others will sell it for $700. Or can Apple control its retailers and force them to sell for a minimum price?

I always thought that should be illegal, back when SONY was the leading brand of TV's they forced their dealers/retailers to all charge the same price or SONY would cut them off from selling their products. You could not go into a store and get a deal on a SONY TV.

[seeric]

Dubbing this major shift in the space "The Cellular Cockring"

They're squeezing the profits from the ball sack of premium cellular services space.

HAHA.

[candyflip]

They are pushing these programs, but you are not forced into them. The major US carriers are still offering subsidized phones with two year contracts.

The sky is not falling.

http://www.theverge.com/2014/9/11/61...ilers-carriers

[mikesouth]

I have a galaxy s4 I pay 51.50 a month for unlimited everything on sprint Im actually happy

[candyflip]

Originally Posted by Mutt

Or can Apple control its retailers and force them to sell for a minimum price?

They force pricing on retailers for their other products, I don't see why they couldn't and wouldn't here either.

[seeric]

Originally Posted by candyflip

They are pushing these programs, but you are not forced into them. The major US carriers are still offering subsidized phones with two year contracts.

The sky is not falling.

http://www.theverge.com/2014/9/11/61...ilers-carriers

Sorry, I spoke directly to ATT.

The 64 Gig iPhone 6 Plus is 649.00 if you agree to a new 2 year extension up front.
Finance it and it's 849.00 over the course of the new contract.
Bottom line is going forward if you want the best phones on the market its going to cost you up front cash, or 45.00 per month on top of what you are paying now. At least on ATT.

Now, I can leave ATT and pay Verizon 399.00 for the same phone, sign a two year contract, and get less of a plan than I have now for more money, because they are going to get the money they lost on giving me the phone cheaper some way.

You can lease it through Sprint, but no thanks on that shitty service.

Your post does show how much folks don't understand about how it's going to work going forward though (FYI, not bagging on you of course). People have yet to digest how much more expensive cellular is going to be in a few more releases and upgrades as the phone companies "train" people to pay more for telecom services and premium devices.

Wait till people get in the stores next week and start to interact with their carriers. Gonna be a mess.

[mikesouth]

seeric I think thats more true only with apple....look at amazon fire phone its 99 cents...

[seeric]

Originally Posted by mikesouth

seeric I think thats more true only with apple....look at amazon fire phone its 99 cents...

Yah, I really do like that phone. Looks cool. The thing with me is I just like the Apple ecosystem and it always works, and it's easy. I'm just a business guy, so as long as I have web browsers and email and everything is streamlined, I am a happy guy. It's not so much the money to me, it's they are really starting to get aggressive, but I guess that's just part of the telecom game. It's like Ma Bell all over again.

Thanks for the recommendation. It is a nice phone, and cheap too. Amazon wants some marketshare.

[Rochard]

Originally Posted by seeric

You got your last phone at 99.00. Hang on to it until it's obsolete. This is now the new business model for carriers and device manufacturers. If you want the nicest stuff on the market, you will now pay for the device at retail or finance them and pay more in the end. That is the bottom line.

I've noticed there is also a huge market for used phones.... We have a local FB that acts like a local Craigslist, and every day people are hawking phones.

I'm not the kind of guy who needs to upgrade his phone every year. I had my last phone for three years and it was working perfectly fine. The only reason I upgraded is because my wife was having problems and she dragged me into the store with her. (Well, that and the fact the salesperson is smoking hot.)

[seeric]

Originally Posted by Rochard

I've noticed there is also a huge market for used phones.... We have a local FB that acts like a local Craigslist, and every day people are hawking phones.

I'm not the kind of guy who needs to upgrade his phone every year. I had my last phone for three years and it was working perfectly fine. The only reason I upgraded is because my wife was having problems and she dragged me into the store with her. (Well, that and the fact the salesperson is smoking hot.)

Yah, there is also www.swappa.com

My 5S is worth 399 there. I may just sell that one on there. I have a box full of ipHones and iPods at home, I should sell them all. I use one of them for Spotify on our pool deck for parties, and another one to control all of our HUE lights in the house. Such a waste of money using those old devices for just one thing.

HAHA. I am so lazy with that kind of stuff.

.

[DamianJ]

Gazelle.com for selling your old shit

[seeric]

Originally Posted by DamianJ

Gazelle.com for selling your old shit

Ahhh yes, that is the other one. Thanks.

Eric

[Panty Snatcher]

I figure the same thing my slef this am. I was so fucking annoiyed

SO i will go to the apple store and order it there no contract keep all my duscounts

Originally Posted by seeric

Before you jokers turn this into an Apple thing, it's not. It's happening on Android smart phone market now too. Welcome to the pillaging.

Just talked to ATT.

I went to order the new iPhone 6 Plus on ATT. Here's the breakdown:

I haven't had a new phone for 2 years, so I am fully eligible for the upgrade.

There is no subsidization this time around.

The options are:

Get into the financing plan to upgrade your phone every 12 or 18 months, at 35.00 per month for 18 month upgrades or 45.00 per month to be able to upgrade every 12 months.

The iPhone 6 Plus will end up costing me 849.00.

I can buy it today with no contract or no upgrade program fees for 649.00.

My ATT plan would remain the same at 125.00 a month for my phone and my GF phone. Unlimited talk and text, and each with 2GB of data each month, standard plan details.

More free money for the carriers. Everyone still gets paid, and the additional cost is being passed on to the consumer for the luxury of carrying a smart phone.

Now let's see who turns this into an Apple hate thread without even reading that all the new Android phones coming out are going to be doing the same thing on the carriers.


I'm just going to pay for it outright at 649 dollars and not have to get into a new contract. They're offering some cheepers plans if you do it this way too.



.

[2MuchMark]

Why not buy your iPhone, or any phone, and then get your service separately? When you pay for your phone with your monthly service fee you are paying interest on the phone and then some, for nothing. Even full retail can be more expensive than financing.

[candyflip]

Originally Posted by seeric

Sorry, I spoke directly to ATT.

Sorry, you're wrong. Just because you believed the line of shit the salesperson sold you doesn't make me wrong. The only carrier who's switching to this setup completely is TMobile.

And the best phones have always cost you money up front, even when subsidized. Nothing has changed, except for more options.

Originally Posted by DamianJ

Gazelle.com for selling your old shit

Gazelle is shit. They're offering $100 for an iPhone 5 that everyone else is giving $200 - 250 for on trade.

[seeric]

Originally Posted by candyflip

Sorry, you're wrong. Just because you believed the line of shit the salesperson sold you doesn't make me wrong. The only carrier who's switching to this setup completely is TMobile.

And the best phones have always cost you money up front, even when subsidized. Nothing has changed, except for more options.







Gazelle is shit. They're offering $100 for an iPhone 5 that everyone else is giving $200 - 250 for on trade.

Compare apples to apples before you get your panties in a wad.

[Juicy D. Links]

[Paul]

Originally Posted by DamianJ

In the UK, I pay $20 a month for a sim with unlimited data, minutes and texts. I buy my phone unlocked and have no 2 year bullshit contract. When I want a new phone, I sell my current one for a few hundred, and get the new one.

[_Richard_]

makes the canadian mobile cartel come to mind.. plans / new phones etc are really pricey

and they work very hard at killing any foreign companies setting up shop to under cut them

[georgeyw]

In Australia, they have been doing this since day dot - but we have 24month contracts.

I just buy phones instead of having to sign a contract.

[Rochard]

Originally Posted by DamianJ

I guess you weren't good at math at school?

$220 x 24 = $5280.

Galaxy s5 unlocked = about 700 x 2 = $1400
iPhone unlocked = about $700

total phone cost $2100.

So you're playing $132 a month for that tiny amount of data and your calls.

You're being raped.

And paying way over the odds. Essentially, the carrier is lending you the money to buy the $700 phones and charging you hefty interest.

In the UK, I pay $20 a month for a sim with unlimited data, minutes and texts. I buy my phone unlocked and have no 2 year bullshit contract. When I want a new phone, I sell my current one for a few hundred, and get the new one.

It seems it is YOU who is not good at math.

I understand that I am "paying" for my phone. However, if I was to return the phone to them in the morning and go out and buy a used phone for $200.... I would still be paying $220 for the service.