4 ms·

It will probably create a gap in phone prices. The under $100 phones, for people who pay the full price up-front and don't need anything too fancy. And the $4

by smackfu 11y ago

It will probably create a gap in phone prices. The under $100 phones, for people who pay the full price up-front and don't need anything too fancy. And the $450+ phones, for people who pay $20 a month for a phone installment purchase plan on something like AT&T Next. IMO, a $300 phone doesn't really fit well in that world. Too pricey for an upfront purchase. And once you go monthly, most people aren't too price concious when comparing $15 per month vs $20 per month.

soylentcola 11y ago
At the same time, when I'm buying a new phone (unlocked and up front) I don't go for the $100 phones but I do take price into account. Not that it does much for OEMs selling at those lower margins but it's a large part of why I buy $350-450 phones like the Nexus 5 or Moto X instead of the $650+ iPhone. I think you nailed it on the installment plans though. Splitting up the cost and spreading it out makes a few hundred dollars less obvious (psychologically at least).
mkozlows 11y ago
People are more price-conscious than you'd think. I mean, even Apple -- the brand that cater the most to the price-insensitive -- has always sold a decent number of its $550 and $450 phones. The more people see real prices, even if they finance them, the more they're going to reconsider the definition of "splurging."
- smackfu 11y ago
  The $450 phone was $0 upfront, and the $550 phone was $100 upfront, but they all cost the same per month after that. Scrounging up $200 for a flagship $650 phone is tough for some people, even if they can pay the monthly cell phone bill. Now, with financing, all the phones are $0 upfront. The $450 one is $19 per month, the $550 one is $23, and the $650 one is $27. So I'd wager they sell more of those flagships to people.
  - mod 11y ago
    More than difficult, it just hurts to pay $650 for a phone. I bought a moto g (~$160), I think it's a good balance for me. I want to be able to use the web, basically, and voice commands. But I don't need to play any games or use it for more than communication + entertainment when bored and away from home. I also want it to be reliable, which is primarily battery life--which the Moto G is, clocking a 2+ days with my typical use.

by smackfu 11y ago

soylentcola 11y ago

At the same time, when I'm buying a new phone (unlocked and up front) I don't go for the $100 phones but I do take price into account. Not that it does much for OEMs selling at those lower margins but it's a large part of why I buy $350-450 phones like the Nexus 5 or Moto X instead of the $650+ iPhone. I think you nailed it on the installment plans though. Splitting up the cost and spreading it out makes a few hundred dollars less obvious (psychologically at least).

mkozlows 11y ago

People are more price-conscious than you'd think. I mean, even Apple -- the brand that cater the most to the price-insensitive -- has always sold a decent number of its $550 and $450 phones. The more people see real prices, even if they finance them, the more they're going to reconsider the definition of "splurging."

smackfu 11y ago
The $450 phone was $0 upfront, and the $550 phone was $100 upfront, but they all cost the same per month after that. Scrounging up $200 for a flagship $650 phone is tough for some people, even if they can pay the monthly cell phone bill. Now, with financing, all the phones are $0 upfront. The $450 one is $19 per month, the $550 one is $23, and the $650 one is $27. So I'd wager they sell more of those flagships to people.
- mod 11y ago
  More than difficult, it just hurts to pay $650 for a phone. I bought a moto g (~$160), I think it's a good balance for me. I want to be able to use the web, basically, and voice commands. But I don't need to play any games or use it for more than communication + entertainment when bored and away from home. I also want it to be reliable, which is primarily battery life--which the Moto G is, clocking a 2+ days with my typical use.