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Verizon: No Recall on Moto Droid Pro and Droid 2 Global

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Bad Batch?

bobc74

Dec 16, 2010, 1:07 PM
Maybe Best Buy received a bad batch of phones and is recording a high return rate. I've been in the wireless sales industry for several years and have seen this happen a couple of times with different handsets.
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island4prez

Dec 16, 2010, 1:29 PM
No. Verizon said they were selling them for to cheap and pulled them from Best Buy.
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Chaos

Dec 16, 2010, 1:43 PM
I've heard Best Buy selling them for $1 in this area. Killed every pitch I've ever had.
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island4prez

Dec 16, 2010, 1:51 PM
One of my friends said " I sold 5 phones so far today!" There is no "selling" involved, they give them away.
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T Bone

Dec 16, 2010, 3:19 PM
If that is true then it is time for some serious anti-trust action against Verizon, they have no right to bully retailers to force them to sell items at a particular price, that's the kind of crap that got Microsoft into serious trouble, not to mention the 'Ma Bell' monopoly before that.

On those sales Verizon gets the 2 year service agreement, if the contract is fulfilled, Verizon will make back more than 3-4 times the cost of the phone.
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Menno

Dec 16, 2010, 4:35 PM
Actually they DO have the right. It's part of the agreement those stores signed.

And again, they can SELL the phones at whatever price they want. They just can't ADVERTISE them for cheaper.

And the phone subsidy is only a small fraction of that customers cost to the network (for any carrier) it HAS to be, or the company won't stay in business for long.
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Azeron

Dec 16, 2010, 6:30 PM
Calm down! This is all speculation at this point.
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Azeron

Dec 16, 2010, 6:29 PM
I got my Incredible for free from Best Buy. Is Verizon going to pull that device from Best Buy as well?
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Menno

Dec 16, 2010, 7:11 PM
The incredible isn't MAP'd, so I doubt it.
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Menno

Dec 16, 2010, 2:49 PM
I hope this is a sign of Verizon starting to play hardball with these big box stores.
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tubby

Dec 16, 2010, 2:56 PM
Me too, I am tired of these stores selling phones for nothing and not giving support. They send their customers to our stores to get support after they gave them a phone. Same for the Wirefly's of the world.
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Jayshmay

Dec 16, 2010, 3:47 PM
Or people could just *learn* their phone! These things aren't that hard to use.
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Jayshmay

Dec 16, 2010, 3:43 PM
Why?

Let Best Buy run their business, and let Verizon run their business.
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TrappedAtWork

Dec 16, 2010, 4:06 PM
because they broke the rules. They can sell the phone for whatever they want, they just can't advertise it for less that what VZW has it MAPed at.
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Jayshmay

Dec 16, 2010, 4:08 PM
Verizon shouldn't be dictating to other bussinesses how to run their business. Letstalk.com & Wirefly & Amazon ALL sell phones from ALL carriers for a whole lot less.
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Menno

Dec 16, 2010, 4:32 PM
Yeah, and they SHOULDN'T be. They had to sign the agreement as well


again, selling the phones cheaper isn't the issue, advertising them cheaper is.

Those companies are breaking the contract they signed with Verizon to be able to sell their services.
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CellStudent

Dec 16, 2010, 4:39 PM
The problem, Jay, is that the whole cellular phone advertising paradigm is broken.

In a normal product environment, the MANUFACTURER pays (almost) all the advertising costs and the retailers sell the wares for whatever they want.

In cellular, these market dynamics don't apply (apparently...) and the Service Provider, whether it's AT&T, Verizon , Sprint, or whomever takes on the cost of advertising rather than LG or Nokia.

Now, with that in mind, Verizon could be pumping out a bunch of advertising that the Widget375AF is available for only $2,436 and will make your bed every morning, cook a gourmet meal for you every evening and provide the occasionally exotic massage.

Then let's say Walmart starts selling the Wid ...
(continues)
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Menno

Dec 16, 2010, 5:20 PM
I actually think that HTC started the new trend with the "Phone that gets you" campaign (Hero, Inc, Evo, etc)

And Apple of course.. but the iphone was never an ATT phone imo.. it was more like an apple product that happened to run on ATT.

But otherwise you hit the nail on the head with that one.
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TrappedAtWork

Dec 17, 2010, 10:08 AM
that they sold them for too low of a price. The problem was that they ADVERTISED them for less than they were supposed to. As a retailer they can sell them for whatever they want. They just can't advertise them for less than they are MAPed for. Thats why when you go to Amazonwireless,Wirefly, Walmart Wireless or any of the other online retailers you have to add it to your cart to see the price.
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Menno

Dec 16, 2010, 4:10 PM
Because in order to get the phones at launch, they need to abide by advertising rules. They can SELL the phone for whatever they want (even free). But they signed an agreement saying they wouldn't advertise it for lower than a set price in exchange for Verizon allowing them to purchase those phones for their launch.
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Jayshmay

Dec 16, 2010, 4:11 PM
They don't buy the phones from Verizon, they buy them from the *manufacturer*.
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Menno

Dec 16, 2010, 4:22 PM
Not technically. Verizon techically "controls" all branded devices (all carriers do this) a company CANNOT go to Motorola and say "give me 500 DroidX's" unless Verizon tells motorola it's ok to sell the devices to that company.

It's part of the retailer agreement. You play by a carrier's rules or you can't sign people up for their service and there is currently NO profit in selling phones without contracts.
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Jayshmay

Dec 16, 2010, 4:47 PM
Are you saying there is no profit in selling phones at $550 retail prices?
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Menno

Dec 16, 2010, 5:16 PM
No, there is NO profit selling it at that price.

Yes, Samsung, Moto, etc are making a decent amount of money at that price.

But the markup on the store end from what they buy it for is only $20-$50.

So let's take the Droid2. Retail is $550. Let's assume that they are "greedy" and do the full $50 markup. This is just 10% markup.

With that $50 they have to:
-Pay for shipping
-Pay for employees
-Shelf Cost (stocking this item means they can't stock a more profitable items)
-All other store costs. For a company like best buy, they can make up some of this money by selling other HIGHER profit itmes, like DVD's or computer parts.

Phones DO cost almost exactly what you see on the price tag as "retail" Does a DroidX cost ov...
(continues)
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Jayshmay

Dec 16, 2010, 8:34 PM
Have you actually seen a store manifest that says how much they pay for each phone?
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Menno

Dec 16, 2010, 9:35 PM
Yes. I've also ordered phones from Motorola for my store so I know exactly how much is charged
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Jayshmay

Dec 16, 2010, 9:50 PM
Oh, the only thing I order when I'm at work is pizza 🤤
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msgaddict

Dec 17, 2010, 10:29 AM
This is true as far as I know. I buy a lot of phones from Verizon, and most times, obviously at full retail price. I buy most of my phones and accessories through my friend who's a sales rep in my local corporate store. He cringes every time I buy a phone at full retail. He said, as far as sales and commission go, he actually loses money on a full-retail sale. The only way they make their money is with a new contract. That's why they can charge so little for these phones for an upgrade because they make it all back on the contract. Full-retail may help them make a day's sale/money quota but in the big picture it hurts Verizon.
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RockTripod

Dec 19, 2010, 2:09 PM
This applies to all carriers. The general public doesn't understand why phones cost as much as they do. They also assume that carriers make money even at full-value purchases. The markup, as Menno stated, is really not as high as people think. A high-end device like the Droid X or even a Galaxy S phone costs quite a bit to manufacture. That being said, a consumer is obviously going to go where they can get the device for the least amount. I just did it when I purchased the Fascinate. $200 after a rebate versus $50 with no rebate. Hmmmm, tough choice.
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