Contract/Lease/Easy Pay/BYOD...Which do you choose?

[clbowens]

I wonder for the BYOD or pay full price upfront guys, how much do they usually pay for their phones?  And what type of phones do they buy?

[WiWavelength]

I wonder for the BYOD or pay full price upfront guys, how much do they usually pay for their phones?  And what type of phones do they buy?

 

Unlocked, third party sold handsets that cost around $400.

 

AJ

[Scott]

Changed my vote from 2-year contract to BYOD/pay in full. I couldn't resist ordering a Moto X Pure Edition from Amazon's deal of the day today. I had $100 in Amazon credit to use so $250 out of pocket for the 32GB model was the right price for me.

[Ascertion]

Changed my vote from 2-year contract to BYOD/pay in full. I couldn't resist ordering a Moto X Pure Edition from Amazon's deal of the day today. I had $100 in Amazon credit to use so $250 out of pocket for the 32GB model was the right price for me.

Seriously, why are phones charging a $700 premium?  If other flagships can still make a profit from $400 sales, then the industry is in need of some serious changes.

[WiWavelength]

Seriously, why are phones charging a $700 premium?  If other flagships can still make a profit from $400 sales, then the industry is in need of some serious changes.

 

The premium is not $700 -- that is the total price.  The premium is more like $300 above and beyond what is reasonable profit.  And that likely is a product of the contract subsidy system and the iPhone.  The contract subsidy system has hidden the profit margins in the monthly plan costs.  And the iPhone has set the inflated price points for modern smartphones.

 

But all of that is changing.  Personally, over the past almost three years now, I have bought several superb handsets right at the time of release at full price -- and have not paid more than $425 per handset.  Nexus 5.  2014 Moto X (Republic Wireless MVNO).  2015 Moto X.  Nexus 5X.

 

AJ

[Ascertion]

The premium is not $700 -- that is the total price.  The premium is more like $300 above and beyond what is reasonable profit.  And that likely is a product of the contract subsidy system and the iPhone.  The contract subsidy system has hidden the profit margins in the monthly plan costs.  And the iPhone has set the inflated price points for modern smartphones.

 

But all of that is changing.  Personally, over the past almost three years now, I have bought several superb handsets right at the time of release at full price -- and have not paid more than $425 per handset.  Nexus 5.  2014 Moto X (Republic Wireless MVNO).  2015 Moto X.  Nexus 5X.

 

AJ

I didn't mean they are making $700 profit per device, I just know they're marked up quite a bit.  I am currently running the Nexus 5x until one of the SD 820s release next year with 3xCA-capable modems.  It'll be glorious!

[spotmeterf64]

Seriously, why are phones charging a $700 premium?  If other flagships can still make a profit from $400 sales, then the industry is in need of some serious changes.

 

 

Moto is not making a profit on the X, or probably any of the other phones they make...I saw a link earlier that broke down each company's ARPU. Lenovo/Moto lost money on each phone sold. Pretty much only Apple and Samsung made a decent profit per phone; Apple obviously much higher than Samsung.

 

I don't pretend to know Moto's business model. They lose money on each phone, but have nothing to upsell customers to. Samsung loses money on the cheap prepaid burners but they make it up on the Note and S series.