Why does the tab version of Samsung Galaxy S3 cost $400 out right while the prepaid version costs $450?

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  • Updated 5 years ago
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I'm thinking of getting a new phone and was looking at the S3. Is there a reason for the difference in price between the tab version when bought out right and the prepaid version? $400 vs $450?
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Clement Horton II

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Posted 5 years ago

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Sophia, Mobile Master

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Hi Clement,

I guess it is to encourage customers to take a plan, because they are more likely to stay (specially if they buy it on the Tab). Prepaid users are more notorious to switch companies... hence the cheaper initial price of the phone.

Another reason might be that Koodo does not want to sell it outright to people who might not even intend to become a Koodo customer, they sell the prepaid SIM and then just unlock the phone to use on different carriers.
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Chad Burr, Mobile Master

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Opinion: probably prepaid users are less likely to stick around long term. There's no tab pay off penalty holding them into the company. Tab holders will likely be paying for a service plan for the next two years while prepaid users may just be around for a few months. Koodo probably is looking for a higher return on the prepaid sale since they know you could just unlock your phone and be gone. Other factors could be that the prepaid phone may just be used for emergencies and only have minimal plans and boosters (especially since the boosters don't expire). So you could buy 100 minutes once and never use it and just pay 15$ a month for the next year. Not a lot of cash coming in from prepaid.

There are users who stick with and believe in prepaid. Sophia is a big fan and it fits her lifestyle. So she'll stick with it and Koodo will profit from her. I'm not sure how typical her situation is. My step daughter is also.on koodo prepaid and she is just okay with it.

Anyway my 2 cents.
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Everything you just said is exactly what I said to you just a few weeks ago, wow.
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Now now, let's not pick any fights.
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Most people buy the prepaids because they intend to unlock them and use them with another provider.
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My Reason: Phones can be subsidized on a monthly plan with a tab. Phones cannot be on a prepaid service.

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