AT&T initiates $100 trade-in program for smartphones, pushes non-iPhone handsets
AT&T announced on Tuesday that it will begin a trade in program in May, with the initiative targeting existing smartphone users who may be on the fence about moving up to a new model or .
Starting May 1, device owners can take their handset to AT&T to receive a credit of at least $100 to put toward the purchase of "any smartphone AT&T sells."
While the rules of the promotion stipulate the trade in must be less than three years old and in good, working condition. The credit, which may come out to more than $100, can be applied to any AT&T handset, including those priced at $99.
Interestingly, the carrier points out three possible smartphone buys that consumers can take advantage of: the Samsung Galaxy? S 4, BlackBerry's Z10 or the 32GB HTC One. Apple's iPhone is notably absent from the list, but it appears that the handset is included in the promotion.
Although no end-by date has been announced, the company said the offer is available for a "limited time" only.
Starting May 1, device owners can take their handset to AT&T to receive a credit of at least $100 to put toward the purchase of "any smartphone AT&T sells."
While the rules of the promotion stipulate the trade in must be less than three years old and in good, working condition. The credit, which may come out to more than $100, can be applied to any AT&T handset, including those priced at $99.
Interestingly, the carrier points out three possible smartphone buys that consumers can take advantage of: the Samsung Galaxy? S 4, BlackBerry's Z10 or the 32GB HTC One. Apple's iPhone is notably absent from the list, but it appears that the handset is included in the promotion.
Although no end-by date has been announced, the company said the offer is available for a "limited time" only.
Comments
Obviously Samsung is paying for the by-name recommendation.
What about BB and HTC?
Quote:
Originally Posted by dasanman69
What about BB and HTC?
There's a reason for those. HTC makes and provides the best android phone/experience and BB provides a different choice/platform.
Samsung? 0.
They lost phone subscribers this past quarter, what do you expect them to do? How many have fled to another carrier? Who's the back stabbers?
Interestingly even the dollar amount is biased towards android. for up to $100, it would only make sense to sell an android, since any iPhone less than 3 years old you'd never need to sell as a trade-in but instead could sell for (usually much) more on the open market. look at how much the iPhone 4 goes for on eBay, a 2 year and 9 month old phone, vs. ANY used 2 year old android.
Originally Posted by dasanman69
They lost phone subscribers this past quarter, what do you expect them to do?
I dunno, push the phone that sells the best and which people actually want instead of useless crap?
What sort of question is that?
Ummm they have been and they're still number 2 and losing ground. Time to rethink that tactic. Plenty of people buying 'useless crap' over at VZW.
The deal applies only to smartphones. The iPhone is a genius phone...it stands alone.
Originally Posted by dasanman69
Ummm they have been and they're still number 2 and losing ground.
Looks like they're explicitly doing the opposite of what you're saying. But then again, I read the article.
Now they're doing the opposite but I still see plenty of "what's better" AT&T iPhone ads. I remember when many here defended AT&T like they do Apple and now how many have fled to another carrier at first chance?
Originally Posted by dasanman69
Now they're doing the opposite but I still see plenty of "what's better" AT&T iPhone ads.
Oh, the "Only AT&T lets you talk and surf on your iPhone 5" ones? I guess so. But you never see it on their website or pushed in stores.
How many more people are watching TV versus how many visit the AT&T site or stores?
Originally Posted by dasanman69
How many more people are watching TV versus how many visit the AT&T site or stores?
So how do you think they buy the phones, then? They go to an AT&T store and are sold away from the iPhone by the employees.
Seeing as how 80% of smartphones sold on AT&T are iPhones their salespeople either aren't doing that or they're very bad salespeople.
The reason AT&T and other carriers push other phones is simple: they don't cost the carrier nearly as much in subsidies as an iPhone does.
(Sprint said that the iPhone cost them on average 40% more than other smartphones to subsidize.)
Subsidies are a big drag on carrier revenues and cash flow.
This isn't really rocket science. The carriers are going to promote phones that they make money on, not ones that they lose money on.
Both AT&T and Verizon had record losses (multi billions of dollars) last quarter primarily due to iPhone sales.
Apple makes AT&T and Verizon pay them more money for iPhones than they can sell them for.
AT&T and Verizon can survive these losses because they make the money back on the contract.
Contracts cost the same for Android and Apple users.
So if you own a store and your options are:
A) Make a lot of money on your product + Make some money on the 'delivery' product
C) Make a lot of money on your product + lose a lot of money on the 'delivery' product
Which of the above options do you promote?
On a 2 year contract a carrier may make @$2000 on their network service, so they are willing to take that $300+ dollar loss selling you an iPhone if that is the only way they are going to get you on a contract. They would far rather make $2000 for their network AND make another $100 (or break even) selling you another brand.
Its also why AT&T always gets mixed reactions on news and has a much lower p/e than their competitors. They have the highest iPhone percentage. The more phones they sell in a quarter, the higher their losses are relative to the competition.
If Apple structured things so the carriers made more money selling iPhones than Android phones- you betcha the carriers would be marketing the iPhone more prominently than the phones that make them less money.