At 03 Oct 2012 20:55:39 -0700 stevev wrote:
>
> Do you think they (T-Mobile, MetroPCS) are financially strong enough to
> subsidize enough iPhones, or whatever, to make a difference? I don't
> know exactly how this works, but I am assuming (yeah I know about
> ASSUME) that Apple gets paid 'now', while the service provider has to
> wait for monthly contract revenues.
That's how all subsidized phones work. Samsung gets paid now when a
carrier buys a boatload of Galaxy SIIIs for $400-450 each then sells them
subsidized for $199 plus a two year contract.
The only real difference with the iPhone is that Apple sells them for
nearly full retail to carriers, and demands control of the subsidized
price ($199). Realistically, carriers should be selling iPhones for
about $300 given its cost vs. other "$199" phones, but this arrangement
allows Apple to look competitive instead of overpriced (as usual) to the
consumer, while the carrier takes it in the shorts and eats the "Apple
Tax" instead of the end-user.