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?

Thread beginning with comment 594639
To view parent comment, click here.
To read all comments associated with this story, please click here.
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.

Reply Parent Score: 4

RE[3]: Comment by Nelson
by Bill Shooter of Bul on Thu 21st Aug 2014 22:52 in reply to "RE[2]: Comment by Nelson"
Bill Shooter of Bul Member since:
2006-07-14

Right, that's my point. Its no longer a two year contract at a fixed price, regardless of what phone you buy. It used to be the case where the true price of the phone was hidden from you. $100 a month regardless of the discount they gave you on a new phone when purchased on contract. That's not the case any more. And choosing phones can lower or increase your monthly bill.

Edited 2014-08-21 22:52 UTC

Reply Parent Score: 3

RE[4]: Comment by Nelson
by Nelson on Thu 21st Aug 2014 23:34 in reply to "RE[3]: Comment by Nelson"
Nelson Member since:
2005-11-29

Eh, actually after thinking over it I see what you're saying. I think you're right, there doesn't really seem to be much more of a subsidized model in the United States.

Which makes me wonder what the mix of iPhones to other devices is on the carriers now that its the case. And if iPhone US marketshare will take a measurable hit as a result.

Reply Parent Score: 3

RE[3]: Comment by Nelson
by zima on Mon 25th Aug 2014 21:53 in reply to "RE[2]: Comment by Nelson"
zima Member since:
2005-07-06

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.

Sometimes it can backfire ...when in my country T-mobile did the change, a lot of stupid people came out yelling ~"I thought this phone would cost me only xx when signing the contract, why those thieving bastards from T-mobile are charging me monthly for a phone?!"

Reply Parent Score: 2