I'm all in for mobile providers stopping subsidized phones but what does that mean for the iPhone and other high end phones. The average consumer just can't afford to pay 700 dollars up front. If the rest of the US mobile carriers follow Verizon's model I have no doubt we will see a massive decline in high end phones sales. Apple will most likely step in with some sort of leasing program as I can't imagine they would just forgo more than 50% of their mobile business if and when this does happen.
I'm all in for mobile providers stopping subsidized phones but what does that mean for the iPhone and other high end phones. The average consumer just can't afford to pay 700 dollars up front. If the rest of the US mobile carriers follow Verizon's model I have no doubt we will see a massive decline in high end phones sales. Apple will most likely step in with some sort of leasing program as I can't imagine they would just forgo more than 50% of their mobile business if and when this does happen.
Verizon will offer financing so the user can make payments over a period of time. Apple will probably do the same for its stores.
Until all phone subsidies end, we will continue to see overpriced phones. Apple and Samsung and everyone else can keep saying the phones cost $700+, and that is fine as long as most aren't paying that price. Ending subsidies will be the game changer for US consumers.
It should be standard practice to buy your phone outright, like you do anything else, and then shop around amongst carriers for the best rate plan. As long as a vast majority of phones are subsidized and we only have a few major carriers to choose from, they have no reason to REALLY compete and get creative. Verizon and AT&T pretend to innovate, but just find a way to keep offering new plans that are the same as the old ones but structured slightly different. Look anywhere else in the world and you see better rates for comparable service because they have true competition. I don't mind allowing monopolies or oligopolies as long as the companies are giving us a better service. In this case the consumers are getting raked over the coals, and the FCC is enabling them.
Having all customers buy the phone outright would just decrease new phone sales. Apple and others would lose the perk of ridiculously frequent customer upgrades. Financing will replace the subsidies, so the end effect isn't much different than before.
Comments
I'm all in for mobile providers stopping subsidized phones but what does that mean for the iPhone and other high end phones. The average consumer just can't afford to pay 700 dollars up front. If the rest of the US mobile carriers follow Verizon's model I have no doubt we will see a massive decline in high end phones sales. Apple will most likely step in with some sort of leasing program as I can't imagine they would just forgo more than 50% of their mobile business if and when this does happen.
Verizon will offer financing so the user can make payments over a period of time. Apple will probably do the same for its stores.