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"From $99 to 99 cents" sounds like a comically drastic fire sale only if you know nothing about the mobile industry in the US and the basics of how handset subs
by mortenjorck 14y ago
"From $99 to 99 cents" sounds like a comically drastic fire sale only if you know nothing about the mobile industry in the US and the basics of how handset subsidies work. If the retail price of the phone is $500 and the carrier normally shifts $400 of that into your monthly bill over two years, selling the phone for $100 less is a 20% off sale.
I don't know whether the writer is intentionally being obtuse to write a hit piece or genuinely doesn't understand the market, but a 20% discount sounds like the First isn't quite hitting sales forecasts, which is a considerably less interesting headline.
- shock-value 14y agoAs I understand it, the phone buyer is going to have to sign up for the same two year contract, regardless of what phone is chosen. So essentially this indicates that consumers are basically assigning zero value to Facebook Home as a feature (or perhaps negative value compared to other phones). Seems like a significant story.