Expensive Cell Phone Service

[Gary_C]

Here's why.      US Cellular: We turned down iPhone
 

Consumers pay $200 for the base model of the iPhone 4S, but Apple charges carriers about $600 for it. Carriers count on making their money back in service fees over the life of the contract.

Carriers see the ability to sell the iPhone as a crucial competitive advantage, though its high price means it's not an easy path to profits. Sprint started selling the phone last month and has said it will take two years for it to pay off.



So everyone with a cell phone pays for these smartphones.

[DanG]

Recovering a third of the investment up front is excellent for them!  That $600 isn't a drop in the bucket compared to the network it requires to make it work.  The ordinary cell-phone users do help pay for it, but the Iphone users also help pay for the network(same one) that we use.

[Ianab]

To get that subsidised Iphone you have to sign up for a contract, $50/month for 18 months or similar. So the phone Co. going to get the $200+ $900.

Most places you are free to buy the phone, and then pay for a cheaper connection as you go, with no contract.

It's just marketing, it easier to a lot of potential customers to front up $200, and pay later  If they had to front up with the whole $600, many would decide their existing phone works just fine. Then the phone company can't sell them that expensive data plan.

The companies always subsidised cell phones as well. Back in the day we used to sell the early Motorola "1/2 brick" phones for $10, as long as you signed up for a contract.

Ian

[Bandmill Bandit]

Not sure if you can do this in the USA but here in Canada The Iphone is available unlocked. yes it is $600 plus but i would much rather pay for my phone out right and then be able to use it as I choose on the network that I choose any where on the planet that choose to.

Isn't Freedom all about choice? Doesn't freedom have a price? Don't both of our countries have way too many young men and women putting the ultimate currency on the line every day right now?

Our community is burying one of it's Sons on Monday.  26 year old Master Cpl. Byron Greff,
http://www.edmontonsun.com/2011/11/01/lacombe-mourns-fallen-soldier. His parents live less than a block from our home. Our church is the only one in town big enough that will seat the immediate family and about a third of the of soliders that will be attending the service. The church seats around a 1000 people.

Freedom Costs and yet it pays too.

Freedom to comunicate is only one small way it pays. If you can go buy an unlocked phone do and be proud and happy that you can do so. If you cant buy one because it is not available as a result of corporate greed then you need join the battle to eliminate the ability to sell locked phones! PERIOD!

Freedom of speech is a right not a choice. A locked phone impinges that right.

[florida]

Consumers pay less than costs for virtually all cell phones. That's why they sell you a two year contract. They expect to make up the difference in small increments each month. That's also why they have cancellation clauses that require you to make a $200.00 to $300.00 payment if you cancel early. They also pay retailers, like Radio Shack or Best Buy about $300.00 to sign you up and that money also has to be earned back from your monthly fees. And finally, smartphone uses pay about 50% more for their service than non-smart phone users.

[scsmith42]

Most cell phones cost the carriers at least $200.00, even the ones that they sell you for $49.00.  This has been the way of the industry for years.

[jim king]

I have a flip open Samsung simple phone that I paid about $35 for three or four years ago.  I pay $6 a month for unlimited calls to the 10 numbers I choose for my most called list and 100 minetes of calls to other numbers.

It does other things also but I have no idea how to text or what ever.  We do have the last generation phones available here but I would need a week to learn how to use them.

[clearcut]

If you buy a contract smartphone, not only are you locked in for typically 2 years, you are locked in with a voice plan and a data plan. The minimum data plan on AT&T for example is 200 MB at $15 /month. Overage is $15 per 200 MB - That's about 10 photos. The lease expensive voice plan is 450 Minutes at $40 per month.

Bargains can be found. I use a pay as you go plan (T-Mobile) that costs $0.16 per minute, minutes expire after a year but roll over whenever you add more. Texts are $0.10 each. Data is optional and costs $1.50 per 24 hours $2-$3 per day (recent change).

My smartphone (Android 2.2) was $100 refurbished with a $30 calling credit. This phone can route calls over WiFi when available for free.

I'm not a heavy cell phone user so this set up costs about $5/month. So it looks like the folks with the contract smartphones are subsidizing me. Thank you.

[easymoney]

i do not understand people that think they have to have those fancy phones. you can get a trac phone at walmart for $50.00 or less that gives you unlimited calling, internet access, texting and voice mail. so why pay more?

[Ianab]

Those new smartphones are way more than just a phone now.

Satnav, media player, still and video cameras, internet terminal, all in your pocket.

I've been setting up Ipad tablet computers for business customers over the last month, for their staff (sales reps) to use in the field. These are basically a big smart phone, without the actual phone parts. But they can basically do everything that they did at their office desk from an Ipad, from anywhere. Email, enter and check orders in the accounting system, check suppliers web sites etc.  They are actually a valuable business tool for them.

Now personally I have a cheap Samsung phone. It makes calls, texts etc. That's all I need personally, but I can see the usefulness of the smartphones and tablets.

Ian

[Bandmill Bandit]

I have an Iphone.

My plan is unlimited every thing as follows; voice, text NA + 300sms to Europe, 3Gigs data, long distance NA + 200 min europe, VM, no air time charge no roaming charge for $95 a month plus tax.

No Contract

[Dave Shepard]

I never thought I'd have a smartphone, but I do now. I use it all the time for emailing and text messages for work related stuff.

[Bandmill Bandit]

Now if we could just get that red tool box as an app or a set of apps for the Iphone/ smart phones!
 

[Al_Smith]

i do not understand people that think they have to have those fancy phones. you can get a trac phone at walmart for $50.00 or less that gives you unlimited calling, internet access, texting and voice mail. so why pay more?

I can tell you all about those lovely things .First of all if you get outside of the local area they go into roam if you can get them there .If you can't it takes about a half hour on a land line talking to someone who can't speak English to get it working .You can't take the text off of it which costs double per minute so you get gibberish from teen aged girls you don't want .With the card you end up paying about a quarter per minute ,been there .

Fact I still have the thing which is a pre global postioning model they quit supporting and wouldn't offer a repair .They thought I should buy another .Perhaps when the sun rises in the west ,if then .

Verizon has a monthly deal with my discount which is 32 bucks a month 450 minutes .None of that teenybooper texting unless you want it .You can buy a flip phone off e-bay for 10-20 bucks .Just a plane old simple phone not a mini wireless computer toy you pay a fortune for .You get all that call waiting ,voice mail etc .

You want a picture .Just take it and download it to your computer and send it e-mail

[mometal77]

I still think my dog is smarter than any phone and cheaper.  Here you can use those smart phones to unlock your house see who is on your property if hooked up to your home pc.   I am with you Jim mine is about 50 a month and was about 100 bucks.  To call canada i use a pay as you go card for canada when calling cousins and family 30 min for a buck not too shaby. Here i see friends with 250 a month cell phone bills fast speed internet and new truck payments along with the house and living pay check to paycheck.  I am saving up for a house and my internet is 6 bucks a month.  If i want to watch a video i go to a free wifi at starbucks and bring my own coffee sit in the truck and log into the net. 

[SwampDonkey]

Have a cell phone, it has sat in a drawer for over a year now. No good away from the settlement anyway. Everyone working uses CB in the bush.

One local fellow had his first bill for cell arrive, several $100's. Was promptly cancelled.

[Al_Smith]

I guess some get a charge out of those actual mini computers but they have to pay for that toy and pay dearly  .Can't afford to pay the rent but wouldn't give up those gizmos for love nor money .Good grief I've paid less for automobiles that ran than some for those things . Geeze 5-600 bucks then 200 a month for two years just to be cool .Stupid is more accurate .

[SwampDonkey]

Sat. phone is even more ridiculous. It was $0.75 a minute from the logging camp, using a BC-Tel phone.

Anyone ever see that bio about Steve Jobs, him and his buddy made a device for fooling the phone computers by using tones to get the call through, even long distance for free. Cost a few bucks from radio shack parts. There were a couple Hawaii 5-0 episodes using the same principle over telefax to intercept messages.

[pineywoods]

Even the most basic cell phone service can be expensive. I pay nearly $80 mo for 2 lines, no text, no pics, no internet stuff. I wouldn't be without it. It stretches the leash I'm on from "how far can you yell for help" to How quickly I can get back to the house..
I don't go out of the house without it on my belt...

[Patty]

I got a smart phone a few years back....I went into the deal kicking and screaming because I thought I would never use it. Boy was I ever wrong!  All my emails come through on the phone now, and I can reply immediately, whereas before some did not get read nor answered for several days. I love the camera, it is so handy, and always right there when needed.

Blackberries have a chat that you can use with other Blackberry users. It is great to send quick messages to Norm when I am on the road and have a quick question, or when he is in the tractor.

Don't know what I would do without one now!   I would love to have the iPhone 4S with the voice app....how handy is that!!