way too expensive phones

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  • Updated 5 years ago
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How come the phones are so expensive? Ever since Koodo created larger tabs, they've also raised their phone prices. An iphone for 550 on a tab is really overpriced, LOWER THE PRICES OR ILL LEAVE TO ANOTHER NETWORK!!!!!!!!!!!!
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yehuda levi

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Posted 5 years ago

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Timo Tuokkola, Mobile Master

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Bye!
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Dennis, Mobile Master

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I wanna play poker with Yehuda. Not so much with Timo.... he be stone cold calling out your bluffs
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Zaphod Beeblebrox

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I always smile no matter what my hand is. I like being a poker troll :P
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Timo Tuokkola, Mobile Master

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Hence the fact that Tyler wins a lot of hands, but never wins much money ;-)
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Zaphod Beeblebrox

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When I play my hands, I always win
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Marcus Fenix

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A WINNER IS YOU!

CONGRATURATION!

YOU PLAYED A GREAT GAME.
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Starfox

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Seriously? Making that statement towards your provider and admitting it is a threat?
Let's think about this logically.
Do you think that ANY PROVIDER will do as you suggest when you threaten them?
No provider will do anything given that you are threatening them. Might as well go to a provider that will tolerate that kind of attitude.
Koodo is better than that and will not bow down to your commands.
As Timo stated, it is an empty threat. Do you talk like this to a restaurant? If you do, I bet you get kicked out or banned. Modify the attitude and make a RESPECTFUL request instead of a threatening demand. Things might work out much better.
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Sophia, Mobile Master

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Alllll that said (and now that I'm finished laughing, THANKS for the most hilarious thread in the history for this forum!!): yes, phone prices are too high now. I agree with you, Yehuda!
Lower them orrrrrrrrrrrrrrrrrrrr! I shall beat a dent in my pillow!
Who will join me in this violent protest???

(PS I'm joking but! I do actually agree that the phone prices are too high now)
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Chris Petersens

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I guess the masses out there have little understanding who sets the prices for cellphones. There is a bit of myth that it is the cellphone companies. Almost all phones (except maybe the unlocked ones) in Canada are subsidized. That means that carriers are selling them for less than what they are buying it for. So it's really the manufacturers we should go after if we want change. :-) They seem to be reaping most of the profits.

Here is a cheap phone (only $20) from Nokia that just came out. The interesting thing is that they still make a 30% margin on it. Do you think Apple's margin on an iphone is higher than 30%??

http://money.cnn.com/2013/07/01/techn...
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Jonathan I, Mobile Master

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Apple's margin is like 500%... the cost to make those phones is around the $140 mark but they sell them for $700 (iPhone 5) for the 16GB and I know for a fact that the 32GB ones don't cost an additional $100, because hard drives are some of the cheapest things to upgrade.

Of course it's a ridculous markup, but the other thing to consider is the carriers make the money back in the rate plans... the manufacturer won't see a penny of the end consumer's money, so they have to make all the money upfront.
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Dennis, Mobile Master

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Here are some figures for the cost for the iPhone 5:
http://www.isuppli.com/Teardowns/News...

And for the Galaxy S4:
http://www.isuppli.com/Teardowns/News...
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Paul Deschamps, Mobile Master

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Keep in mind you have to factor in alot more than just the parts and labour to build the phone. Theres the research and development costs of the designers and programmers and QA & more to create the phone, then there's the shipping/warehouse workers, the support teams the sales ppl in their own shops like the apple store, the advertising which is a massive cost compared to what I believe it needs to be. Theres more but thats some of the costs ppl don't ever factor in to the costs of a phone I do agree that the cost is too high for flagship devices but I think Apples patenting & suing companies has made sure that costs stay up where they are because now companies aren't just working with each others technologies & tweaking & "one uping" the competition, they have to fight to gain these technologies by buying or licensing patents and buying out companies to stay ahead of the curve. Apples actions I believe have alot more to them then meets the eye at keeping cellphone prices where they want them.
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Dennis, Mobile Master

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aka overhead. It can suck up a lot of money in any organization and it has to be passed onto the customer
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Paul Deschamps, Mobile Master

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Exactly
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rikkster, Mobile Master

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I really can't see the big three paying top retail dollar for these devices, considering that they buy in volume and likely get a discount. Even if that's not the case, I'm more inclined to believe that the manufacturer would have already made their money selling their product to the carrier and it's now up to the carrier to devise a plan to recoup their investments without plunging their valued customers into a state of monetary disarray.

On the same token, mobile service providers want to reduce the amount of money they spend to subsidize smart phones for their customers. The problem is that the subsidies raise operating costs, thus diminishing profit and cash flow. The attractive subsidies that used to stimulate sales are becoming a major drag on earnings, therefore change is inevitable.

Carriers appear to be incensed over the CRTC's recent decision* to have both fixed-term and indeterminate contracts cleared after a twenty-four month term. The general consensus amongst the big three is their apparent inability to recover the entire device subsidy from consumers due to the shorter twenty-four month term. This may spell the beginning of the end of subsidized devices.

*The CRTC's Wireless Code doesn't come into effect until December 2, 2013.

There are obvious aspects of overhead that I agree with wholeheartedly, but they still don't account for an iPhone5, for example, costing what it does. Things like patent infringement cases, quibbling over technologies and patent rights, hostile takeovers, advertising, quality assurance, research and development; in my opinion, these are costs that the manufacturer should be absorbing, not the consumer.

http://www.forbes.com/sites/ericsavit...

http://www.forbes.com/sites/johngaudi...
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Some random Mobile Master, Mobile Master

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"This may spell the beginning of the end of subsidized devices."

And I can't wait until this happens! Carriers will finally have to compete on plans instead of subsidies! I say, bring it!
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rikkster, Mobile Master

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Precisely!

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