Linked by Thom Holwerda on Thu 21st Aug 2014 18:15 UTC
PDAs, Cellphones, Wireless

China should end smartphone subsidies to overseas vendors and give more support to local brands, industry insiders said on Tuesday, as telecom carriers pledged to cut operating expenses and Apple Inc gets ready to debut its next-generation iPhone.

Xiang Ligang, a telecom researcher in Beijing, said cutting carriers' subsidies to foreign-made handsets will not only reduce carriers' operating expense but also leave local players with more market demand.

"It will be a one-stone-two-birds move for the Chinese smartphone industry," he said.

I'm all for doing the same here in Europe and overseas in the US - but, of course, only if it applies to all smartphones, regardless of origin. Let people see what they're really paying for their Galaxy S5 and iPhone 5s. Can you imagine if smartphone vendors and carriers can no longer mislead consumers?

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RE[2]: Comment by Nelson
by Nelson on Thu 21st Aug 2014 21:40 UTC in reply to "RE: Comment by Nelson"
Nelson
Member since:
2005-11-29

Subsidies still exist, they're just no longer tied to the service contract. You effectively pay a deposit and a monthly installment. Which they wisely keep enticing you to upgrade your device, having many concurrent installment plans running.

It achieves the same end result that straight up carrier subsidies do. The good thing that TMobile did is make it so that the two (service contract and phone installment plan) aren't intermixed. Which is a win for transparency I suppose.

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