Unsubsidized iPhone prices
Stories about cell phone unlocking and resales have hit the news recently. TracFone sued numerous resellers who (legally) bought inexpensive subsidized units, unlocked them and sold them overseas. In the iPhone world, the story differs. Rather than leveraging subsidized prices, the way the TracFone defendants did, iPhone resellers added value on top of the unsubsidized units. They bought the phones, unlocked them and sold them for a profit.
The story gets more interesting with the current generation "no commitment" iPhones. The latest 3G "no commitment" iPhone pricing appears to include an extra $200 profit margin on top of the $200 subsidy.
TUAW reader Adam Jenkins offers proof. In Massachusetts, purchasers pay tax on the full unsubsidized phone price, regardless of carrier subsidies. The 5% sales tax for his new 16GB 3G iPhone came to $24.95. Clearly, Apple and the State of Massachusetts believe the unsubsidized 16GB price is $499, not the $699 "no commitment" price. That extra $200 offers a nice cushion on top of the unsubsidized sale, providing pure profit.
What's the opposite story of resellers taking advantage of cell phone subsidies? Seems to be the 3G iPhone.
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Stories about cell phone unlocking and resales have hit the news recently. TracFone sued numerous resellers who (legally) bought...
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That's better than the unsubsidized price here in Austria. buying an 8Gb 3G iphone with a 2 year contract from t-mobile cost 99 euros. WITHOUT the contract, the price of the phone is 1499 euros. yes, one thousand, four hundred and ninety-nine euros. check it out for yourself at t-mobile.at.
that's $%^@# insane.
Summary : Apple is ripping us off, and so does AT&T, and I hate them both. Love, Erica.
I really wish she would start writing for Zune fan sites again... It'd be so much more appropriate.
I think this post made perfect sense---I don't understand what it is that's confusing people.
Now, AT&T's pricing, especially for long time customers who are "upgrade ineligible"---confusing at best, but I'm going with evil.
iPhone detection by websites in Safari on the iPhone is denying us the REAL INTERNET!
Apple promised me the REAL INTERNET in Safari on the iPhone. Websites are taking that away from us with these stupid sites that detect the iPhone and redirect away from what I'm trying to do online. It is EXCEEDINGLY AGGRAVATING. There needs to be some way to keep them from doing that.
For example, if I want to go to Jirbo.com's regular site on my iPhone in Safari, I should have that choice. The site should surface a dialog asking "iPhone or Regular Web?" But no, no go. Go to that site yourself in iPhone and try, I dare you, try to click the Contact link to get to the contact form. It redirects. And there's no equivalent given for the iPhone.
PLEASE, Apple, hear us, do something right away about this before it gets out of control! I'm at a cafe and I have to go HOME to browse a site because of this? Terrible!
Currently, you can't get the 3G iPhone without contract in Mexico. You can renew your current plan or get a new plan with a new number. The unsubsidized price with a plan renewal, no matter how old is your current contract, is about 1,200 USD. yep that's right 1,200 USD. for the 8 GB model with a 24 months contract at 50 bucks per month. Telcel MX Sux.
July 14 2008 at 5:38 PM Report abuse Permalink rate up rate down Replyopps... correction to my earlier post...
No Contract:
$499 + $200(at&t profit) + tax (5% of $699 is 34.95) = $733.95
cheers...
Vodafone NZ sell the iPhone 3G without a contract - and unlocked, too. It will cost you USD$888.98 for the 16GB models though :(
July 14 2008 at 4:54 PM Report abuse Permalink rate up rate down ReplyCOMMONWEALTH of Massachusetts.
July 14 2008 at 4:37 PM Report abuse Permalink rate up rate down ReplyThis can't be right. After re-reading this article, it's implying that MA is only collecting taxes on the actual retail price of the iPhone. Surely states don't collect taxes on MSRP, but on the actual sale price of the product at time of purchase.
If I buy a pair of $70 shoes that is on sale for 50% off, I still have to pay tax on the $70, and not the $35 sale price? Is crazy.
If the author of this post actually re-read it after clicking on "POST", I am sure that she had to scratch her head hard trying to figure out what was it that she meant...
This post doesn't make any sense to me, and from a quick look at some other comments, I am (somewhat) relieved to see it's not just my comprehension that's lacking here.
@Imperial
I agree completely, this is why women shouldn't be allowed on the internet. I mean your using a Mac. Get ya head right shawtie. Go cook something, while your at it.
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