China's second-largest carrier may end contract sales of Apple's iPhone

2»

Comments

  • Reply 21 of 27
    sockrolidsockrolid Posts: 2,789member

    Quote:

    Originally Posted by AppleInsider View Post



    ... a need for continued investment in infrastructure to support surging growth and data consumption by iPhone users ...


     


    Cell carriers just hate spending money on their infrastructure, because building out their infrastructure for the future affects their bottom line today.


     


    Just ask Verizon.  If rumors that Verizon is / was hyping Android phones are true, then Verizon must be trying to curb data use to ease the load on their infrastructure.  Android users consume far less data than iPhone users.  Do the math.

  • Reply 22 of 27
    <div class="quote-container">
    <span>Quote:</span>
    <div class="quote-block">
    Originally Posted by <strong>Synergi</strong> <a href="/t/151976/chinas-second-largest-carrier-may-end-contract-sales-of-apples-iphone#post_2170220"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" /></a><br />
    <br />
    <p style="text-align: -webkit-auto;">
    Someone help me out with this.. I get the US carriers subsidize<font color="#181818" face="lucida grande, verdana, helvetica, sans-serif"><span style="line-height: normal;"> the phones and thats the reason for the high cost of a two year contract. What I don't get is why don't the costs go down once the two years are up and the phone is paid for? Or why is it the same cost per month to bring your own off contract phone? Seems your paying the same if you have a subsidize phone or not, minus any contract or ETF fees since you can drop service at anytime.</span></font></p>
    <p style="text-align: -webkit-auto;">
     </p>
    <p style="text-align: -webkit-auto;">
     </p>
    </div>
    </div>
    <p>
    Because most US cell phone plans are a complete rip-off. The exception, of course, is T-Mobile's Value plans, where the plan is $20 less per month and you can then either just buy the phone at full retail price or finance it so that your plan costs the same as a subsidized plan until the phone is paid off, at which point it gets $20/mo cheaper. And it doesn't even usually take 2 full years — usually the plan price drops after 20 months or so. And when T-Mobile gets the iPhone next year, you'll be able to use this plan with an iPhone. Heck, you can take advantage of it right now if you buy an unlocked iPhone, assuming you live in one of the areas where T-Mobile has refarmed their 1900 MHz spectrum to WCDMA.</p>
    <p>
     </p>
    <p>
    Of course, the plan hasn't been as popular as it should be, due to customers who apparently failed 6th grade math and can't figure out that $200 up front + $20 extra for 20 months is a better deal than $200 up front and $20 extra forever, so this might be a "get it while it lasts!" sort of situation. :-\</p>
  • Reply 23 of 27
    drblankdrblank Posts: 3,385member


    First off they have less than 30% market share.  China Mobile has 70%.  Now, obviously, these cell phone carriers are STILL trying to figure out how much data smartphone users actually use, since they keep adding features, and people are still trying to figure how to use them, how much to charge, etc.


     


    I think that either this company is using this as a means to re-negeotiate their contract or just not be in a position to actually figure out how to compete.




    They spent a LOT of money upgrading their system and they are competing against China Mobile which is HUGE.


     


    We'll see what happens.

  • Reply 24 of 27
    <div class="quote-container">
    <span>Quote:</span>
    <div class="quote-block">
    Originally Posted by <strong>Synergi</strong> <a href="/t/151976/chinas-second-largest-carrier-may-end-contract-sales-of-apples-iphone#post_2170220"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" /></a><br />
    <br />
    <p style="text-align: -webkit-auto;">
    Someone help me out with this.. I get the US carriers subsidize<font color="#181818" face="lucida grande, verdana, helvetica, sans-serif"><span style="line-height: normal;"> the phones and thats the reason for the high cost of a two year contract. What I don't get is why don't the costs go down once the two years are up and the phone is paid for? Or why is it the same cost per month to bring your own off contract phone? Seems your paying the same if you have a subsidize phone or not, minus any contract or ETF fees since you can drop service at anytime.</span></font></p>
    <p style="text-align: -webkit-auto;">
     </p>
    <p style="text-align: -webkit-auto;">
     </p>
    </div>
    </div>
    <p>
    Simply because that is what you signed up for. your choices at this point would be to just carry on, move to another carrier, or re-up on another contract and get the newest phone. Either way the carrier is there to milk you. To think otherwise is wishful.</p>
    <p>
     </p>
    <div class="quote-container">
    <span>Quote:</span>
    <div class="quote-block">
    Originally Posted by <strong>jj.yuan</strong> <a href="/t/151976/chinas-second-largest-carrier-may-end-contract-sales-of-apples-iphone#post_2170231"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" /></a><br />
    <br />
    <p>
    I see a cultural difference here.</p>
    <p>
     </p>
    <p>
    Do they sell other phones by subsidy in China? I suspect that they don't. Why? If Chinese consumers prefer owning the device out right, subsidy sale might become a nuisance because the data plan would be viewed as a plot to cheat them by the carrier.</p>
    <p>
     </p>
    <p>
    American consumers are used to being cheated by carriers, IMHO. After the 2 year contract, carriers continue charging you the same price for the data plan. It's a rip-off. But, if you try to sell the device out right (any cell phone), you probably get very bad result  :(</p>
    </div>
    </div>
    <p>
    I am sure they do. Especially smart phones. And its called maximising profits.</p>
    <p>
     </p>
    <div class="quote-container">
    <span>Quote:</span>
    <div class="quote-block">
    Originally Posted by <strong>aaarrrgggh</strong> <a href="/t/151976/chinas-second-largest-carrier-may-end-contract-sales-of-apples-iphone#post_2170246"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" /></a><br />
    <br />
    <br />
    Completely agree. American consumers (myself included) are idiots for agreeing to the terms we do, and I am ashamed at myself for being out of contract on my iPhone 4 but not wanting to get a new phone until the 5 comes out...<br />
    Interesting economics lesson though:<br />
    If you bought a subsidized iPhone 4 in July 2010 for $200, and invested $250 in one share of AAPL, and spent $180 taking your girlfriend out for a nice dinner, today you would have a phone worth $300 on Craigslist, $643 worth of AAPL stock, and maybe something memorable with the girlfriend. If you instead bought the phone at the unsubsidized $630 price on a credit card at 18% interest, made the $10 monthly minimum payment, you would be $300 in the hole after selling the phone.</div>
    </div>
    <p>
    Very interesting indeed. It also brings out a point, there is a disconnect in the consumers' mind regarding costs.  On the one hand I spend less up front by getting a subsidized phone and data plan. On the other hand I will pay more up front if I get the phone and plan separately.  You cal tell them they will pay less if they go unsubsidized but they'll probably reply that they pay less now though if they do subsidized.  Ultimately most people only see that it is cheaper now. Who cares about overall.</p>
    <p>
     </p>
    <div class="quote-container">
    <span>Quote:</span>
    <div class="quote-block">
    Originally Posted by <strong>Durandal1707</strong> <a href="/t/151976/chinas-second-largest-carrier-may-end-contract-sales-of-apples-iphone#post_2170382"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" /></a><br />
    <br />
    <p>
    Because most US cell phone plans are a complete rip-off. The exception, of course, is T-Mobile's Value plans, where the plan is $20 less per month and you can then either just buy the phone at full retail price or finance it so that your plan costs the same as a subsidized plan until the phone is paid off, at which point it gets $20/mo cheaper. And it doesn't even usually take 2 full years — usually the plan price drops after 20 months or so. And when T-Mobile gets the iPhone next year, you'll be able to use this plan with an iPhone. Heck, you can take advantage of it right now if you buy an unlocked iPhone, assuming you live in one of the areas where T-Mobile has refarmed their 1900 MHz spectrum to WCDMA.</p>
    <p>
     </p>
    <p>
    Of course, the plan hasn't been as popular as it should be, due to customers who apparently failed 6th grade math and can't figure out that $200 up front + $20 extra for 20 months is a better deal than $200 up front and $20 extra forever, so this might be a "get it while it lasts!" sort of situation. :-\</p>
    </div>
    </div>
    <p>
    Most people don't like math.  For the record, where I am we ALL pay full price for mobile phones and get plans unsubsidized. Meaning, there are NO subsidies, at all, whatsoever. And prepaid is very popular.</p>
  • Reply 25 of 27
    jragostajragosta Posts: 10,473member
    Because most US cell phone plans are a complete rip-off. The exception, of course, is T-Mobile's Value plans, where the plan is $20 less per month and you can then either just buy the phone at full retail price or finance it so that your plan costs the same as a subsidized plan until the phone is paid off, at which point it gets $20/mo cheaper. And it doesn't even usually take 2 full years — usually the plan price drops after 20 months or so. And when T-Mobile gets the iPhone next year, you'll be able to use this plan with an iPhone. Heck, you can take advantage of it right now if you buy an unlocked iPhone, assuming you live in one of the areas where T-Mobile has refarmed their 1900 MHz spectrum to WCDMA.

    Of course, the plan hasn't been as popular as it should be, due to customers who apparently failed 6th grade math and can't figure out that $200 up front + $20 extra for 20 months is a better deal than $200 up front and $20 extra forever, so this might be a "get it while it lasts!" sort of situation. :-\

    I would change the bolded to "most US cell phone plans with the majors are a complete ripoff". The T-mobile plan you mention is OK, but performance is marginal. Straight Talk uses the AT&T network, but has $45 per month unlimited everything (or $30-35 per month if you don't mind limits). There are also a number of regional MVNOs that have decent plans.
  • Reply 26 of 27
    freerangefreerange Posts: 1,597member
    red oak wrote: »
    Why would they reduce the cost to $0 if demand is high AND they have trouble supporting the network data requirements?   

    The 4S is going to get a $100-$150 cost reduction (to the carriers) in the next 3 weeks.   That alone is enough to generate an ADDITIONAL 20-25% profit margin to the China Unicom.  That alone should be enough to solve this issue.  Plus, make it a $49 price point (vs. free),  and Unicom should be making a healthy profit 

    I honestly don't understand their position.  There is a good chance they are simply trying to use this as leverage with Apple.  Which has about a zero chance of working

    And if they decide to pull the subsidaries, go ahead and let them  

    No one ever accused these Chinese companies of being well managed. In fact, as basically state owned enterprises, the opposite is true. As an expat living in China, I purchased my iPhone at full price in Hong Kong and only pay $15 USD a month for my voice and data plan on China Unicom.
  • Reply 27 of 27
    freerangefreerange Posts: 1,597member
    drblank wrote: »
    First off they have less than 30% market share.  China Mobile has 70%.  Now, obviously, these cell phone carriers are STILL trying to figure out how much data smartphone users actually use, since they keep adding features, and people are still trying to figure how to use them, how much to charge, etc.

    I think that either this company is using this as a means to re-negeotiate their contract or just not be in a position to actually figure out how to compete.


    They spent a LOT of money upgrading their system and they are competing against China Mobile which is HUGE.

    We'll see what happens.

    I think you are right, it's a negotiation ploy. As an expat living in China, smartphones are prolific in the major cities, and not just iPhones. So smartphones of all makes and types are putting demands on cellular data. Having said that, many consumers do tend to seek out wifi locations, which are plentiful, for their data use and are constantly using data on their phones when out and about with friends and family. It is quite common for a group of people to be at a bar, even with a live band, and they are all sitting their playing on their phones at the same time instead of actually socializing.
Sign In or Register to comment.