Definitely false. If that was true than your monthly bill would drop at the end of 24 months. It doesn't. You could basically think of the 2 year contract and subsequent month to month as renting your device.
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[Updated] Verizon Plans To Eliminate 'Grandfathered' 3G Unlimited Data Plans
- Thread starter dgstorm
- Start date
Definitely false. If that was true than your monthly bill would drop at the end of 24 months. It doesn't. You could basically think of the 2 year contract and subsequent month to month as renting your device.
cybertec69 said:
That is what is so confusing. You keep saying everyone is false but then continue to say exactly the same thing... just saying it a bit differently.
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Beka27 said:
Shadex was referring to Verizon's current system of buying subsidized phones and how they recoup from selling the phone at a reduced price. When you go month to month after your contract expires, because your plan costs do not go down then that is just more gravy for verizon. In addition, usually their plans have gone up in price by the time your contract expires, otherwise you would be jumping to renew your contract at their new lower rates but that is not the case.
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Ah ok, I missed the month to month after contract expires part somewhere, I think me and Beka were thinking along the same lines..lol
monkey_man
Member
Since it is in English, that is somewhat false. If you got the phones at subsidized price, the full cost of the phone is spread out through your new two year contract agreement. It should be "If you got the phones at subsidized price, Half the cost of the phone is spread out through your new two year contract agreement." Even that statement is pure assumption. I might be wrong, but I remembered from someone here on how Verizon are charging us $15 per month to cover the subsidized price they give out to new contracts ($15 * 24 Months= ~ $360). I'm more leaning toward these two ideas.
1. "If that was true than your monthly bill would drop at the end of 24 months. It doesn't. You could basically think of the 2 year contract and subsequent month to month as renting your device."
2. "Because your plan costs do not go down, then that is just more gravy for verizon. In addition, usually their plans have gone up in price by the time your contract expires, otherwise you would be jumping to renew your contract at their new lower rates but that is not the case." One of the reasons why Verizon are not forcing us to the new plan pronto :biggrin:.
1. "If that was true than your monthly bill would drop at the end of 24 months. It doesn't. You could basically think of the 2 year contract and subsequent month to month as renting your device."
2. "Because your plan costs do not go down, then that is just more gravy for verizon. In addition, usually their plans have gone up in price by the time your contract expires, otherwise you would be jumping to renew your contract at their new lower rates but that is not the case." One of the reasons why Verizon are not forcing us to the new plan pronto :biggrin:.
If you buy a phone at a subsidized price, you are doing so with the agreement that you will keep the contract for 2 more years.
You really think VZW pays anywhere near what the consumer pays for the phone? They make their money by getting you to pay for another 24 months. This is why you see new phones drop in price rather quickly.
They want your service, this is where they make their money.
You really think VZW pays anywhere near what the consumer pays for the phone? They make their money by getting you to pay for another 24 months. This is why you see new phones drop in price rather quickly.
They want your service, this is where they make their money.
monkey_man
Member
I doubt iphones would slash their phone price. I also read news elsewhere that Iphones and Ipad are in trouble entering US due to their Patent Violation with Motorola :rofl2: . I don't know if I can base my judgement with the price on SGS3, but I do believe Verizon just like many of their competitors can slash new release phone subsidized price after Verizon charged costumers who upgrades their phones with $30 Upgrade fee.
You have to wonder what will happen to the phone's actual retail prices when this happens. So many more people will be buying them at full retail. I am sure verizon, motorola, samsung, htc don't lose any money on the subsidized price. I think the actual retail price is jacked up to make it appear that you are getting a huge savings when you get it at subsidized prices. Look at tablets that are not attached to a phone carrier plan. They sell full retail from $200-$350. They are essentially an oversized phone but so much cheaper than a phone.
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monkey_man
Member
Well this is ajar of hope that I have in mind. Verizon way of doing right now is focus on themselves. Focus on being a Phone Carrier and not a mule. This is something that I hope will bother Phone makers (smartphones sector), as they depend their job on engineers making these gadgets for us. They have been booming in the past due to the help of phone carriers whom gave out subsidized price. I am counting my luck here :happy3:, I owned blackberry Storm as my first smartphone in 07-08? and that was on unlimited data... , so basically Verizon had been giving out Unlimited for about 4 years (maybe longer/shorter). On the other hand, tiered data only came out about a year ago. I hope this move should affect higher margin of people who owns smartphones and on Unlimited data. Unless Verizon now changing their agreement to these phone makers by basically paying for them to keep phones at higher price in order to show us huge savings at subsidized prices (I'm screwed basically), then I am in good hands as I've been hearing of so many individual outlets such as Apple Store. There are now Microsoft stores, Samsung stores, even Google Stores, and I am sure Chinese markets will flourish as well. I really hope in order for them to survive, I can see special discounts on holiday events. (I assume if they start selling retail price lower, they would be in trouble staying in touch with phone carriers :biggrin
. Tablets are not sold at subsidized price because they are not using any of Verizon's own services except Unlimited Data (grandfathered ones). Basically, they are not getting any money from people overusing their minutes and texts (penalties). This is why some phone carriers can't make it and was angered at how the court ruled that users can swap sim card just like that without paying additional hotspot fee. Apple were so smart that they placed their Ipad that can use Verizon own network/wifi @ ~ $600-$900 Motorola Xoom was about ~ $500. But those tablets that can only depend on wifi like these Chinese made I know only ranges in ~ $99 - $200. Before this move, phone makers I suspect can maintain these so call retail price at high value as they based on scarcity and human errors. Lost phones, broken phones, people who don't have insurance to cover, etc. Can they do that now? After Verizon are basically telling Millions of customers that basically you can't get the luxury of high end phone at a cheaper price any longer (Unlimited users).
. Tablets are not sold at subsidized price because they are not using any of Verizon's own services except Unlimited Data (grandfathered ones). Basically, they are not getting any money from people overusing their minutes and texts (penalties). This is why some phone carriers can't make it and was angered at how the court ruled that users can swap sim card just like that without paying additional hotspot fee. Apple were so smart that they placed their Ipad that can use Verizon own network/wifi @ ~ $600-$900 Motorola Xoom was about ~ $500. But those tablets that can only depend on wifi like these Chinese made I know only ranges in ~ $99 - $200. Before this move, phone makers I suspect can maintain these so call retail price at high value as they based on scarcity and human errors. Lost phones, broken phones, people who don't have insurance to cover, etc. Can they do that now? After Verizon are basically telling Millions of customers that basically you can't get the luxury of high end phone at a cheaper price any longer (Unlimited users).Lol. I think we've all been reading so many of these threads that we're saying the same things over and over and contradicting each other. The truth is, whatever happens happens. We can call and email and speculate until the cows come home... But vzw is gonna do whatever they want.
Yep.. Que, Sera, Sera ... (Whatever shall be shall be)
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monkey_man
Member
Beka27 said:
It most definitely IS true that the phone companies charge you a little extra each month to make up for the phone subsidy (the money they lose when they buy a phone from the manufacturer for $400 or $500 and then sell it to you for $199).
As I've said before, phone companies LOVE customers that don't upgrade to a new phone after 2 years. Extra profit margin for them (since they don't lower the price after 2 years)
And why is it that Verizon will let you keep your unlimited data if you don't upgrade? Because they're making more money on you when they're not paying to subsidise your phone! This ain't rocket science.
Again, this isn't true unless you switch from a 2 year contract to a month to month plan.