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The thing to remember about subsidies is that it's the consumer that pays them, not the carrier. Its just diluted into the monthly plan, Verizon would do the sa
by angstrom 16y ago
The thing to remember about subsidies is that it's the consumer that pays them, not the carrier. Its just diluted into the monthly plan, Verizon would do the same. Switching carriers takes more effort than switching phones for many if not most people. I think the biggest concern for android is if the iphone crosses that bridge it becomes a head-on comparison of the two. At this stage My opininon is that the iphone would squeeze them out due to momentum.
- pavlov 16y agoThe consumer pays the subsidy in the end, but the carrier decides which device gets the subsidy and how large it is. For example, you can't buy a Samsung Android phone full-price, then bring it to AT&T asking them to give you a $300 discount because you'll be using this device on their network for the next two years. That's essentially how subsidies work in other countries. This gives the American carriers tremendous negotiation power over device manufacturers, who have no choice but to abide because there's no alternative avenue for selling their products. (Nokia has tried for years to market unlocked phones in the US, with a resounding lack of success.)