pricing

the American phone subsidy model is a RAZR way of thinking in an iPhone world

Source: http://www.engadget.com/2010/02/23/editorial-the-american-phone-subsidy-model-is-a-razr-way-of-thi/

The concept is simple enough — pay more, get more. So it has gone (historically, anyway) with phone subsidies in this part of the world, a system that has served us admirably for well over a decade. It made sense, and although it was never spelled out at the customer service counter quite as clearly as any of us would’ve liked, it was fairly straightforward to understand: you bought a phone on a multi-dimensional sliding scale of attractiveness, functionality, and novelty. By and large, there was a pricing scale that matched up with it one-to-one. You understood that if you wanted a color external display, a megapixel camera, or MP3 playback, you’d pay a few more dollars, and you also understood that you could knock a couple hundred dollars off of that number by signing up to a two-year contract. In exchange for a guaranteed revenue stream, your carrier’s willing to throw you a few bucks off a handset — a square deal, all things considered. So why’s the FCC in a tizzy, and how can we make it better?

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Editorial: the American phone subsidy model is a RAZR way of thinking in an iPhone world originally appeared on Engadget on Tue, 23 Feb 2010 20:00:00 EST. Please see our terms for use of feeds.

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