post #41 of 41
Quote:
Originally Posted by PhilBoogie View Post


Well, Europe is vastly different. From the US, too. They don't use Credit/Debit Cards much - that's one reason. 2nd is that the US makes up for half of Apples' profit, so that's also something to keep in mind. On the subsidies, I guess you could take a spin around the 'European Telco Internet', but it's mostly / all in their local language. Don't know if you speak / read so many, so perhaps just check out the ones in the UK.
http://www.vodafone.co.uk/iphone/
http://www.virginmobile.com/vm/home.do
http://phone-shop.tesco.com/tesco-mobile/
https://www.o2.co.uk/browsing/phones/apple/iphone-5-16gb-black/
As for my statement, I'm just someone with an opinion on the internet. If I'm asked for (telco) evidence I'm usually out like the wolves, as there is no truth. Only your own interpretation of what these telcos are trying to make you believe. The truth is often to be found in the disclaimers, small print and your incontrovertible invoice.

 

Thanks for the links.  You had me a little stunned... if an Android phone or Apple phone cost the same amount why would Apples market share be so low?  The answer is they don't cost the same.  Here in the US I think consumers would go ballistic if you told them the same 2gb/5000 text data plan that costs $30/month on an SIII would cost them $45/month if they used an iPhone- but that appears to be the deal in Europe.  So its not that they are outright subsidizing the phone, they are simply financing it and distributing the cost to the user over the 24 month contract period.  The iPhone costs the carriers more, so they pass that on to the consumer.

 

The iPhone 5 does look to take about 150% out of a consumers pocket as the SIII in the Euro market and explains the difference in market share between the US.  If the two were priced the same and market share was that low that would have been very scary data for Apple.  T-mobile actually looks to be doing something similar with the iPhone in the US- where you pay a higher rate during your first two years (effectively paying off the phone) after which your rate drops substantially.