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We've also seen the shift away from 2-year contracts here in the USA. People are now aware that phones actually cost $600+ and are either paying full price, or
by JoshGlazebrook 10y ago
We've also seen the shift away from 2-year contracts here in the USA. People are now aware that phones actually cost $600+ and are either paying full price, or monthly installments to pay off the $600 phone they bought.
- Touche 10y agoYeah, that's an interesting observation. I've long thought that Apple benefited from the 2-year contract model more than any other manufacturer. The 2-year contract hides the actual cost of the phone, so an iPhone sells for $199 just like an LG. Who buys a Honda when a Mercedes costs the same? Buying a phone for its real price puts the cost/benefit front and center to the consumer. Maybe an iPhone isn't worth an extra $200 after all? This puts Apple in a bind as they either have to drop the phones price or provide greater value for their price point.