Linked by Thom Holwerda on Sun 16th Dec 2012 16:25 UTC
Apple "Starting today, Walmart has dropped prices on both the iPhone 5 and iPhone 4S, with the 16 GB iPhone 5 now on sale for just $127 and the iPhone 4S coming in at $47." I'm sure a 33% price cut right ahead of the holidays is totally normal for a product of which demand outstrips supply. Right?
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RE: Comment by miscz
by chithanh on Sun 16th Dec 2012 20:24 UTC in reply to "Comment by miscz"
chithanh
Member since:
2006-06-18

Yes, people often have trouble grasping the "subsidised price" thing.

I'll quote respected mobile expert Tomi T. Ahonen on this:

Your iPhone 5 that you 'buy for 179 dollars' in reality costs 650 dollars, you are just paying a forced 24 month intallment payment plan on the remaining 471 dollars that AT&T collects for Apple on your behalf - plus interest, of course. The real cost of the iPhone 5 is 650 dollars.

http://communities-dominate.blogs.com/brands/2012/12/brief-notes-fr...

Reply Parent Score: 3

RE[2]: Comment by miscz
by 4nntt on Mon 17th Dec 2012 02:00 in reply to "RE: Comment by miscz"
4nntt Member since:
2009-02-12

That might be true if after your contract, the price of your monthly service went down. If you are paying the same amount per month regardless of your contract, then that price doesn't really factor into the equipment cost from a customer point of view.

Reply Parent Score: 1

RE[2]: Comment by miscz
by th3rmite on Mon 17th Dec 2012 06:09 in reply to "RE: Comment by miscz"
th3rmite Member since:
2006-01-08

That's why I bought my wife's iPhone from Virgin Mobile. Sure I had to pay the full retail price, but their cheapest plan with unlimited data is $30/month and works on all Sprint networks. The price per month makes the price difference totally worth it in the long run.

Reply Parent Score: 2