Are phones too expensive?

[Feech]

I have been thinking about this for years and even more recently but what do you guys think of the price of phones that are off contract? Are they too expensive compared to what goes into them.

[nophix]

Not at all. Consider the technology in them, and they're actually pretty reasonable.

 

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[S4GRU]

Not at all. Consider the technology in them, and they're actually pretty reasonable.

 

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Yea, one year ago, I used to think the same thing. However, tablet prices are less expensive than smartphones now. But smart phones are not really dropping in price. And the reason has to be subsidies in my mind. Carrier subsidies are squashing true price competition for smartphones.

 

Robert via Nexus 7 with Tapatalk HD

[WiWavelength]

Not at all. Consider the technology in them, and they're actually pretty reasonable.

 

If you think that consumers are literally paying $200 for on contract smartphones, then, no, they are not too expensive. However, if you understand that consumers are actually paying roughly $600 for on contract smartphones because of subsidies, then, yes, they are significantly overpriced.

 

AJ

[themuffinman]

10 years ago high end devices off contract where going for about 550 to 650, 5 years ago high end devices where going for 550 to 650 and today high end devices are going for 550 to 650. How many other products have we bought 5 or 10 years ago still cost the same today? Considering the amount of tech that goes into these devices, I don't think that they are too expensive at all. To add though, I kinda wish phone subsidies would totally go away, I would rather pay more for the phone and have a lower cost monthly plan.

[BenChase7]

....I would rather pay more for the phone and have a lower cost monthly plan.

 

Me too!

[WiWavelength]

10 years ago high end devices off contract where going for about 550 to 650, 5 years ago high end devices where going for 550 to 650 and today high end devices are going for 550 to 650. How many other products have we bought 5 or 10 years ago still cost the same today?

 

Not flat panel TVs or BD players. They generally cost *less* than they did 5-10 years ago.

 

 

AJ

[khammondnm]

There is no incentive for major phone makers to make phones cheaper with the subsidy system. The phone maker can charge their $700 a phone to the carrier and they know they will pay it because customers will go where the best phones are (in general). If carriers were out of the loop with phone subsidies, true competition would ensue and drive prices down. For now, if you were a phone maker, why in the would you stop taking the enormous profits that carriers are forced to pay you.

 

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[nophix]

 

If you think that consumers are literally paying $200 for on contract smartphones, then, no, they are not too expensive. However, if you understand that consumers are actually paying roughly $600 for on contract smartphones because of subsidies, then, yes, they are significantly overpriced.

 

AJ

 

The cheap tablets would be equivalent to the prepaid android devices. Not high end, but functional.

 

Price a 3G ipad once. That would be the equivalent device to compare to a high end Android or the iPhone. There are much cheaper units available.

 

So, given the specs, I don't think $650 or so is a bad price for something like a current iPhone or Galaxy S.

[WiWavelength]

Price a 3G ipad once. That would be the equivalent device to compare to a high end Android or the iPhone. There are much cheaper units available.

 

So, given the specs, I don't think $650 or so is a bad price for something like a current iPhone or Galaxy S.

 

iOS devices are not a good frame of reference, as the "Apple tax" greatly inflates their prices and adds to Apple's outlandish war chest.

 

AJ

[pyroscott]

 

The cheap tablets would be equivalent to the prepaid android devices. Not high end, but functional.

 

Price a 3G ipad once. That would be the equivalent device to compare to a high end Android or the iPhone. There are much cheaper units available.

 

So, given the specs, I don't think $650 or so is a bad price for something like a current iPhone or Galaxy S.

 

You apparently are not aware that apple is gouging customers with at least a 40% profit margin before it even ships to retailers.

[MacinJosh]

If there were no device subsidies, I would not be able to afford a phone ever. So I like the subsidy model.

[WiWavelength]

If there were no device subsidies, I would not be able to afford a phone ever. So I like the subsidy model.

 

Sure you could, Josh. But you might have to stick to lower end or used handsets. Or you could save up for a year to buy a high end handset. And that is how it should be. Not everyone can afford or is entitled to a high end smartphone.

 

AJ

[Feech]

I'm not sure why they are not cheaper. When you see that Google is offering a high end handset for less than $400 it makes me wonder. I'm talking off contract prices of course and not with the subsidy. Even without subsidies it seems like they are trying to gouge us. I look at my 10.1 tablet and think at the time I spent close to $600 for it, is my phone that much more expensive?

[Feech]

If there were no device subsidies, I would not be able to afford a phone ever. So I like the subsidy model.

 

I think you would. You may have to wait a little longer but within 6 months you would.

[MacinJosh]

Sure you could, Josh. But you might have to stick to lower end or used handsets. Or you could save up for a year to buy a high end handset. And that is how it should be. Not everyone can afford or is entitled to a high end smartphone.

 

AJ

 

I'm addicted to smartphones. I must have my smartphone!

[Feech]

My other thought was eventually Android phones would be cheaper. It has happened but that was because of hardware compromises. The Android OS was free. There was no licence fee to tag on to every handset as opposed to the Window phone model. It never equated though to lower prices. A handset susidized is $200, 5 years ago it was $200, 10 years ago it was $200. i don't get it.

[khammondnm]

If there were no device subsidies, I would not be able to afford a phone ever. So I like the subsidy model.

Of course you could. Look at whatT-Mobile is startig to move towards. They do not subsidize, but they are going to offer financing. Meaning you just pay a payment on your phone every month. Basically this allows people with cash up front to buy the phone or others to pay an extra $20 on their bill, which should be similar to now when the fees mobile providers are passing on to us because of subsidies go away.

[digiblur]

If you look at a nice real tablet such as a Nexus 7 what real differences are in the tablet compared to a phone that is smaller. There sure isn't $300 difference.

The people who buy those ipads are nuts to pay that gouged price and end up with a very crippled device.

 

-- "Sensorly or it didn't happen!"

 

 

[SGT516]

If there were no device subsidies, I would not be able to afford a phone ever. So I like the subsidy model.

 

Sure you could.

 

There are some pretty decent phones on Boost Mobile under 200.00

 

Is it an Optimus G or Galaxy S3? No, but if the carriers all moved to a non subsidy model (which they won't) the handset manufactures would have to adjust pricing. That even includes Apple.

[nophix]

 

You apparently are not aware that apple is gouging customers with at least a 40% profit margin before it even ships to retailers.

 

Ok, let's try this again. Right now, the only device in the tablet market pushing the screen, processor, and build quality of the current crop of high end smartphones is Apple. All the cheaper stuff compromises something to drop the cost.

 

That said, even the Nexus 10 is up there.

 

I couldn't care less who makes it, but and yes, they are in it to make money. A business will sell a product for as much as the market will support. Don't like the price, don't buy it. If it sits on shelves, prices come down.

 

Either way, if you think making these devices is cheap, I challenge you to find some investors and build one.

 

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[Feech]

Ok, let's try this again. Right now, the only device in the tablet market pushing the screen, processor, and build quality of the current crop of high end smartphones is Apple. All the cheaper stuff compromises something to drop the cost.

 

Either way, if you think making these devices is cheap, I challenge you to find some investors and build one.

 

Sent from my EVO using Tapatalk 2

 

Nexus 7 Specs

7" 1280x800 HD display (216 ppi)

Back-lit IPS display

Scratch-resistant Corning® glass

NVIDIA® Tegra® 3 quad-core processor

16 GB internal storage

$200

 

EVO LTE

720 x 1280 pixels 312 ppi

Dual core, 1500 MHz

16 GB

$549

 

I don't see that much of a hardware difference to justify a $350 dollar difference. Nobody said it was cheap to build a device at the same time at some point making a device should become cheaper over time.

[Hugo]

. . . Right now, the only device in the tablet market pushing the screen, processor, and build quality of the current crop of high end smartphones is Apple . . .

 

Really?

 

[digiblur]

Ok, let's try this again. Right now, the only device in the tablet market pushing the screen, processor, and build quality of the current crop of high end smartphones is Apple. All the cheaper stuff compromises something to drop the cost.

 

That said, even the Nexus 10 is up there.

 

I couldn't care less who makes it, but and yes, they are in it to make money. A business will sell a product for as much as the market will support. Don't like the price, don't buy it. If it sits on shelves, prices come down.

 

Either way, if you think making these devices is cheap, I challenge you to find some investors and build one.

 

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EDIT: On second thought... removed my message and stepping out of the apple koolaid threads.

 

-- "Sensorly or it didn't happen!"

[pyroscott]

No more apple battles as it really is pointless and this isn't what the thread is about.

 

I agree. Let's keep the OS wars out and stay on topic.