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In the US the phone price is subsidized by the carrier when you sign up with a contract. Even without a contract the US user does not get discount off the contract. Thus most people upgrade phones about every two years. Usually the only reason to jail break a phone in the US is to have the ability to use on another carrier. If we go back in time 30ish years ago, nearly any phone could be programmed to be used on any carrier in the US. It wasn't until the last decade when the programming function was taken away and SIMs came into use in order to make phones carrier specific. Another thing to keep in mind is that on each contract signed the selling store gets a $200ish fee from the carrier and then you as a user get to pay hidden in your monthly fee a monthly charge for the purchase of the phone that the carrier has to pay to the manufacturer (hence the high termination fees).
Outside the the US the carriers don't discount the phone nor subsidize it, so the phone may sell for as high as $1800ish.
(multiply NIS by .25 to approximate the conversion to dollars)
Oh man I do not think so. Carriers here used not to provide any subsidize, however they began to offer iPhone with contracts these two or three years. You can even buy an iPhone 5 without paying anything, but you need a 2 or 3 year contract with a monthly fee at least $46. It's not much in the states, but here people make 1/10 what you guys earn monthly.
As to the iPhone without contract, it can sometimes cost as high as $1600 here, do you believe it? However generally iPhone 16GB costs some $854.
It's quite obvious that Apple's pricing differ from country to country and you guys in US always get the lowest price, it definitely has nothing to do with carrier subsidize.
I used to travel to Shenzhen, in case you have no idea about it, it's near Hong Kong. It's where Foxconn is located. If you own an iPhone, you should know it cos it's highly likely your handset is made by Foxconn.
These days iPhone 5 arrives in Shenzhen, and you can get a 32GB version from the local carrier China Unicom at 6899 RMB with a two year contract. That price equals 1112 in US dollars (with some $12 returned each month as your balance which amounts to about $290 in total). Yes, $1112, I cant be mistaken. If you deduct 290 from 1112 you get 822. That is, you pay 822 for iPhone 5 32GB version.
How about the price without a contract? Well the price is still $1112.
Do you believe it? Foxconn workers generally get some $300 each month. If you want a higher pay, working overtime!! So generally it takes those who make iPhone 5 about four months' pay to buy an iPhone 5.
a few months back before they went public in china they were selling for US$1500-2000. selling to reseller in a nearby country for US$1000-1100 in sept/oct, and im assuming they were making big profit off it even at that high price when they smuggled them into china.
absolutely amazes me that ppl will pay so much for a phone. i wouldnt pay more than US$50 myself lol
It's quite obvious that Apple's pricing differ from country to country and you guys in US always get the lowest price, it definitely has nothing to do with carrier subsidize.
ya prices vary a lot by country. apple is starting to get govts to crack down on grey market phones, it's annoying.
Actually, I didn't. But yes, I'd say it's very possible. The Samsung Galaxy Nexus sells off-contract for $370, probably costs about $200 to make. No shortage of R&D or healthy margins from either Google or Samsung, both are very profitable companies. Frequent updates on my phone. Perhaps they could market more? Both brands appear to do a fair amount of marketing. Support is fine. All on $170. Could Apple do all that on less than $600 ($850 less $250 manufacturing cost)? Sure. Why would they? Companies are in the business of making the most profit possible, not a "healthy" or "reasonable" profit.
The list price on the Samsung Galaxy Nexus is $599 and that's the price they were going for until the new one was released. The iPhone 5 list price starts at $649; $600 wholesale (not $850). They're approx the same ballpark. The Samsung Galaxy Nexus uses off-the-shelf software and processors that allow the r&d to be spread more thinly over several different products. Apple designs its software and processor in-house.
I don't think there's any doubt that Apple could do less than $600. But there's no way that they could have a healthy profit at $300.
I think it's crazy to pay that kind of money for a phone, but I don't care what you do with your money. It's your money. Why anyone CARES that people spend this kind of money on a phone is beyond me.
I don't know many, if any, people with a phone more then 2 years old 3 at the very most. 5 years? Come on Best.
Although if you pay $500+ for a phone, that is a huge incentive to keep it longer I suppose.
Apple can certainly afford to sell phones much cheaper as it makes most of it's money on iTunes.
Although I totally have no clue why we are picking on just Apple.
A no-contract unlocked Samsung Galaxy 3 is $550.
I was just giving a large range. My guess is that most iPhone users upgrade every 1-2 years.
Oh man I do not think so. Carriers here used not to provide any subsidize, however they began to offer iPhone with contracts these two or three years. You can even buy an iPhone 5 without paying anything, but you need a 2 or 3 year contract with a monthly fee at least $46. It's not much in the states, but here people make 1/10 what you guys earn monthly.
As to the iPhone without contract, it can sometimes cost as high as $1600 here, do you believe it? However generally iPhone 16GB costs some $854.
It's quite obvious that Apple's pricing differ from country to country and you guys in US always get the lowest price, it definitely has nothing to do with carrier subsidize.
Wait a moment: I say it costs around $1800 outside of the US, and you say I'm wrong. Then you state its around $1600. Did you read the post at all? Both are expensive numbers.
Also FYI you need to quantify where "but here people make 1/10 what you guys earn monthly" is.
In the US, the phones are subsidized as we pay less than $200 for it with a two year contract for a iPhone 5 and pay $100 for a iPhone 4s ($0 for a iPhone 4).
Wait a moment: I say it costs around $1800 outside of the US, and you say I'm wrong. Then you state its around $1600. Did you read the post at all? Both are expensive numbers.
Also FYI you need to quantify where "but here people make 1/10 what you guys earn monthly" is.
In the US, the phones are subsidized as we pay less than $200 for it with a two year contract for a iPhone 5 and pay $100 for a iPhone 4s ($0 for a iPhone 4).
...and then we pay $90 a month for the data/voice plans. In most countries outside of the U.S., they at least get to shop around for the best data/voice rates after they buy the phone.
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