Quote:
Originally Posted by InvincibleLiving
And why in the world is there such a price difference between Android devices and WinMo's?!!!! You can get a Hero for $180 after upgrade/rebate... but the TP2 is $350 after upgrade/rebate... and $100 more than what any other carrier is offering for the SAME device running the SAME specs?
|
the obvious reason is that Sprint's subsidy for the TP2 is at least $100-150 less than for a Hero and therefore Sprint can afford to let it on a legacy F&C or even SERO. A Hero, Pre etc OTOH is sold at such a low price (high subsidy) to compete with the $200 iPhone, that Sprint MUST recoup that subsidy by forcing the Everything plans with these phones. Verizon can sell the TP2 at $200 because its forced plan rates *are* also higher than SERO/F&C to allow recouping that subsidy (but take note of its outrageous ETF).
These kinds of devices like the TP2 actually cost $600-800. Supposing you do sell them contract for $200. You need to recoup at least $500-600 before you break even. That's $20-25/mo for 2 years. Exactly how can Sprint actually earn any money on $30-20=$10/mo for voice/text/data? That's why a $500-600 subsidy (Pre, Hero, etc) NEEDS to go on a $50-70/mo plan.