AT&T Confirms Device Upgrade Fee Rising to $36
Top message: Upgrade fee? at&t is GSM... by hman414
Replying to: Re: Upgrade fee? at&t is GSM... by Globhead
Re: Upgrade fee? at&t is GSM...
Think of it this way....you're getting a phone that is worth somewhere between $500-$700, and you're getting it for at least 75% off and maybe as much as 100% off depending on the make and model and whatever promotions are going on
So when the carrier sells you a phone, they take a big hit, they lose money. Indeed, the carrier loses money even if you buy the phone at the no contract price.
The upgrade fee is simply to re-coup a fraction of that loss....it's like when you buy a discount card at a store, $25 a year gives you a 25% discount on everything in the store....well, the upgrade fee is like that....$36 for a 75%-100% discount....it is not unreasonable.