Prepaid iPhone coming to Virgin Mobile USA by July - report

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  • Reply 21 of 22
    tallest skiltallest skil Posts: 43,399member

    Quote:

    Originally Posted by trumptman View Post

    I wonder if the iPhone will continue to do as well when the subsidies that have hidden the price difference between it and android phones is no longer able to be hidden?


     


    Flagship Android phones cost the same as the iPhone without subsidies…

  • Reply 22 of 22
    trumptmantrumptman Posts: 16,464member

    Quote:

    Originally Posted by Tallest Skil View Post




    Quote:

    Originally Posted by trumptman View Post

    I wonder if the iPhone will continue to do as well when the subsidies that have hidden the price difference between it and android phones is no longer able to be hidden?


     


    Flagship Android phones cost the same as the iPhone without subsidies…



     


    You are correct that they do on post-paid carriers that clearly inflate pricing of off-contract phones in order to steer your to their preference of a contract and a subsidy. It is clear from the carrier profits that they are basically using absurd retail pricing to justify very expensive plans whereby you "pay back" the subsidy to them at an even more absurd price via the "subsidy."


     


    The other point is that even when the flagship phones do match the iPhone in price, say the brand new Galaxy S3 as an example, the manufacture has other solutions and likely lower profit margins already that they can use in this multi-front war. If people turn around and do not want to pay $500 for a Galaxy S3 to use on a prepaid service, Samsung will and DOES already build the Galaxy Proclaim as an example that is under $200. The reality is that Apple has not done as well in price sensitive markets. They have one answer. They do it very well and very profitably and it works better than any other solution under the subsidy model. Clearly though prepaid isn't the same.

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