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The Days of Cheap, Subsidized Phones May Be Numbered

Posted by timothy on from the installment-plans-are-not-for-your-benefit dept.

In the U.S., subsidized phones are the norm: for post-paid, long-term contract use, getting a low up-front price on a phone is one of the few upsides. New submitter Apptopia writes "After T Mobile mostly did away with subsidized phone plans, the other major carriers (Verizon, AT&T, Sprint) are paying attention. Carriers lose money with phone subsidies for high-end smartphones (particularly Apple's iPhone). If they do away with the subsidy, you will have to pay full retail price for phones, but your monthly bill will be lower." If people had a better idea what they were paying for, though, manufacturers might fight harder on price. There are lots of well-reviewed, multi-band, unlocked phones on Amazon and DealExtreme from lesser-known companies, and Nokia's new Asha 501 (though limited in many ways, including availability, having just launched in India) shows that the "smartphone" label can apply even to a sub- $100 phone.

7 of 329 comments (clear)

  1. confused by Anonymous Coward · · Score: 5, Informative

    It's always been cheaper to buy a phone outright and not have a contract

    1. Re:confused by Garybaldy · · Score: 4, Informative

      You did not grasp what I posted.

      Some carriers do not offer an unsubsidized monthly service price. As in you pay the same amount if you buy a phone outright from anywhere you want. You just don't grasp how fucked up the carriers in the US are.

  2. High end phones have always been $650 by alen · · Score: 2, Informative

    As long as I can remember from the late 90's living in Europe

    1. Re:High end phones have always been $650 by EEPROMS · · Score: 2, Informative

      Only idiots with to much money and no internet skills pay more than $400 for a so called high end phone. One of the guys at work recently purchased a 5.7" quad core IPS screen mobile from china for a little over $300 (Model# N7300, google it). I was thinking, naaw it will be a heap of crap, well it arrived and worked and not only that "it was pre-rooted". It played 720p mkv movies with no issues and has a dual sim and a SDCARD slot.

  3. Re:Cute Theory by Anonymous Coward · · Score: 2, Informative

    I paid full price for my S3 and pay only $30 a month with T-mobile while my mom is paying like $300 a month for 3 phones on Verizon. Only difference is I get unlimited data (throttled after 5gb) and 100 minutes. Yes, you can pay less on your bill.

  4. Re: an interesting perspective... by mspohr · · Score: 2, Informative

    I just bought a Nexus 4 for US$ 299.
    Great phone. Big screen. No subsidy. Free to use any carrier.

    --
    I don't read your sig. Why are you reading mine?
  5. Re:Not numbered. More declining. by forand · · Score: 3, Informative

    Well if you are on Verizon or AT&T in the US it doesn't make ANY sense to buy an unlocked phone. You get zero benefit. You don't pay less. You don't get a better plan. Nothing. Only now with T-Mobile does one get a small discount on the monthly rate. I would be happy to pay full price for an unlocked phone to use anywhere I choose and pay a reasonable price for service via pay as you go. That is not offered in the US. Until it is I am already going to be paying the phone subsidy price regardless of where I got my phone so it makes sense to get a new phone every time I am eligible and sign up for a new two year contract. I am going to be paying for it anyway. All this keeping in mind that T-mobile doesn't offer great service where I live.