Is this the end of contracts?

[Crude]

Why the US is poised for off-contract shift (Smartphones Unlocked) | Smartphones - CNET Reviews

I called it a few years ago, contracts are legal loopholes to unfair business practices. In a month and 7days I will be joining the growing customer base without a contract. I consider it my privilege to have been an educator and advocate for moving off contract. And even though T-Mobile doesn't work for me I appreciate innovation. Isn't that why we use Android: innovation?

 

[Clementine_3]

The next step is making phones that are compatible with all the carriers/bands. Prices need to be fixed too, no contract/subsidy = lesser bill (like TMO), I'm looking at you Verizon.

 

[Codegerm]

I long ago abandoned contract plans. I found the attitude of the carriers to be a main reason. Customer service kinda "went out the window" when they have you stuck in a 2 year contract. I owned my phones out right, even during the analog times. It bothered me that Alltel was wanting me to sign a contract with an early termination fee if I chose to cancel. I was using my own equipment, and they were not subsidizing anything, so there was no investment loss for them.

 

[matt1994]

I don't know what to think about this. On the one hand I like the benefits I get with signing the contract (more free data, cheaper phone...). On the other hand I don't like that they rip you off, if you are trying to buy a new phone just 4 months before the contract expires. I would understand a small price like 40€ or something but I had to pay 100€. I basically bough a phone from china, with the specs of GS4 for 300 dollars. If there is a good offer I will go on contract again.

 

[jhawkkw]

Carrier contracts are one of the few things keeping Apple a float in smartphone marketshare currently. If the subsidized prices vanish, suddenly a lot of people won't be able to afford an Apple product because they charge so much for them. Meanwhile Android manufacturers offer more affordable options for those that can't afford to drop 650 on a flagship for each member of their family.

 

[kate]

If the subsidized prices vanish, suddenly a lot of people won't be able to afford an Apple product because they charge so much for them.

Considering it's estimated that an iPhone only costs around $200 to make, I wouldn't be surprised if Apple dropped the price if/when contracts are no more.

 

[jhawkkw]

Considering it's estimated that an iPhone only costs around $200 to make, I wouldn't be surprised if Apple dropped the price if/when contracts are no more.

While hypothetically possible, I highly doubt they will because they seem to be unwilling to sell it cheaper in markets where they don't have carrier subsidies. If anything, it's more expensive in those locations.

 

[Revenant Ghost]

For far too long postpaid carriers have had a stranglehold on the market by locking their phones in the US.

And of course this results in said parties advocating numerous evil tactics (ex: early termination fees, "security" deposits due to bad or no credit, inflated bills after paying off a phone subsidy, more hidden fees and taxes, etc.).

Even though I've always been a prepaid customer, I still find this as a welcome change in the right direction.

 

[kate]

While hypothetically possible, I highly doubt they will because they seem to be unwilling to sell it cheaper in markets where they don't have carrier subsidies. If anything, it's more expensive in those locations.

Thanks, I didn't know they charge even more for the iPhone in other countries.

My reasoning was that if enough people started ditching non-subsidized $650 iPhones in favor of $250 - $350 Android models Apple might drop the price to keep some customers.

 

[Codegerm]

Thanks, I didn't know they charge even more for the iPhone in other countries.

My reasoning was that if enough people started ditching non-subsidized $650 iPhones in favor of $250 - $350 Android models Apple might drop the price to keep some customers.

But that does not follow Apple logic. All their stuff is pricey..

 

[jhawkkw]

Thanks, I didn't know they charge even more for the iPhone in other countries.

My reasoning was that if enough people started ditching non-subsidized $650 iPhones in favor of $250 - $350 Android models Apple might drop the price to keep some customers.

Yeah, I remember Mikedt saying the new iPhone 5s costs right around $1000 dollars in China for the same model that costs $650 here. Quite crazy if you ask me.

Apple is losing the global marketshare battle badly with android capturing roughly 80% of the market, though in the US apple still has about 47 percent and Android around the same. The carrier subsidies are clearly the difference along with Americans having loyalty to Apple for one reason or another.

 

[Crude]

I remember the whole apple vzw debacle. Once vzw relented prices on everything went up. I've always speculated that apple wants a premium from the carriers for selling their phones. This meant vzw had to offset that cost and everything got more expensive.
Either way, vzw has been the bane of my exiatance for at least the last 4 years. Even if my new carrier has worse coverage,I can't believe the way I was treated by vzw and will not go back. I'm keeping a close eye on vzw shares though, lol.

 

[mikedt]

Yeah, I remember Mikedt saying the new iPhone 5s costs right around $1000 dollars in China for the same model that costs $650 here. Quite crazy if you ask me.

Here you go, you can see for yourselves..
iPhone 5s - Apple China.
32GB 5S is 6088 RMB, which at today's exchange rate is $1000.
Apple China is still selling the iPhone 4 and 4S. Those are not listed on Apple US or UK. Second hand you can still get quite a good price for an original 2007 iPhone.

iPhones are basically luxury products here, along with Gucci and Prada. Apple was banned from advertising them on TV.
China bans TV advertising for luxury products

Having a $1000 cellphone goes well with your $1000 shoes, to convey status and prestige. BTW I'm sure Goldvish and Vertu sell most of their uber-luxury phones in China. We all know that iPhones are made in China, but Apple doesn't exactly go out of their way to publicize that fact here. They just have "Designed by Apple in California" and NO "Assembled in China" on them. I think Gucci makes most of their handbags in China as well, and not Italy. I've asked a few friends and colleagues, where do you think iPhones are made, and some of them have actually said USA.

苹果手机太贵了

Apple is losing the global marketshare battle badly with android capturing roughly 80% of the market, though in the US apple still has about 47 percent and Android around the same. The carrier subsidies are clearly the difference along with Americans having loyalty to Apple for one reason or another.

I know Apple has been losing out to Samsung here. Even flagship Samsungs like the S4 and Note 2 or 3 are significantly less pricy than iPhones. Plus many people also seem to like the larger screens these days.

 

[dan330]

we are moving towards a better system..

but they only carrier that is doing it right is TMobile. they other 3 are using this to make more money off the users.... to upgrade early.
the price of the service is still the same for contract and non-contract customers!!!

Verizon and ATT are the worst!

 

[SiempreTuna]

Carrier contracts are one of the few things keeping Apple a float in smartphone marketshare currently. If the subsidized prices vanish, suddenly a lot of people won't be able to afford an Apple product because they charge so much for them. Meanwhile Android manufacturers offer more affordable options for those that can't afford to drop 650 on a flagship for each member of their family.

TBH, without carrier subsidies, I suspect high end phones would virtually disappear. Most people don't like to pay for phones outright: Belgium didn't allow phone subsidies for the longest time and most people carried museum piece phones. A good friend of mine only replaced her 6230 last year. Another still has hers.

 

[mikedt]

TBH, without carrier subsidies, I suspect high end phones would virtually disappear. Most people don't like to pay for phones outright: Belgium didn't allow phone subsidies for the longest time and most people carried museum piece phones. A good friend of mine only replaced her 6230 last year. Another still has hers.

Oh yes they do, You might get used to the idea. After all you're paying full retail for all your other consumer electronics and just about everything else you buy, like your PCs, your laptops, your tablets, your TVs, your home theatres, your Blu-rays, your washing machines, your cars, your clothes, your food, etc. I'm in a country where phones have never been subsidised, and I do see a lot of high end phones. In fact I've just ordered two more Samsung S4s from Hong Kong for a couple of friends here, at equivalent of about $600 USD each. As I posted earlier an iPhone 5S is a $1000. Apple still sells a lot of iPhones. Most people here are on low cost China Mobile "Easy own" pre-paid tariffs.

I'm originally from the UK, where phones are also heavily subsidised, provided you commit to a two year contract. But even there I've paid full retail for my phones, basically because I wasn't prepared to commit to a mandatory stiff contract, I've always had no-commitment pre-paid.

 

[SiempreTuna]

.. are you calling Belgians tight

 

[jhawkkw]

TBH, without carrier subsidies, I suspect high end phones would virtually disappear. Most people don't like to pay for phones outright: Belgium didn't allow phone subsidies for the longest time and most people carried museum piece phones. A good friend of mine only replaced her 6230 last year. Another still has hers.

I don't think high end devices would disappear, though I do think many people will stick with their devices a lot longer before upgrading.

 

[unnamedny]

I always hated contracts. I never understood how is it legal to charge the same price for service with your own phone or carrier's phone. It's like coming to the repair shop with your own new parts but being charged for labor plus the parts cost.