Top message: Verizon Price Increase RIPOFF!! by Mduke222
Replying to: Re: Verizon Price Increase RIPOFF!! by imwy2cool
But what people donâ€™t seem to understand is that this is a way for the companies to recoup some of the costs of subsidizing the phones. The cell phone companies sell service. Not phones! That means the phone manufacturers can set any price they want to build a premium device that works on any particular network! They aren't free. They usually pay per device at least 75% of the MSRP price that is listed. Hence contracts and ETF's.
If Moto (purely an example, I do not know price points) sells Big Red the Droid for $400 per unit and lets say the MSRP is listed at $475. And with a contract and after rebates (instant and mail-in), you get that device for $175, they will still have to recoup thru services, $225 before they turn a profit on you.
I'm not here to defend, just justify the justifiable! The service is what they sell! And if you want a device that costs them more to have available because it has all the bells and whistles, then expect to pay for it! Thatâ€™s what the device is meant for! If you are a basic user, get yourself a device that fits your needs! if you WANT more, then you just may have to pay more!