[PLUG-TALK] Android, Chapter 2, Happy, Happy

Russell Johnson russ at dimstar.net
Thu Mar 17 09:50:27 PDT 2011


On Mar 17, 2011, at 9:28 AM, Denis Heidtmann wrote:

> On Wed, Mar 16, 2011 at 9:50 PM, Russell Johnson <russ at dimstar.net> wrote:
> You do realize the reason for this, do you not?
> 
> Sent from my iPhone
> 
> _______________________________________________
> 
> Let me guess.  Because they can.

No. It's because they heavily subsidize the cost of the phone, and lock in assures that most of the people they buy phones for will remain on their network long enough for them to recoup their costs. 

My iPhone, for instance, cost me $149. A similarly sized iPod Touch is $299. Leaving out the fact that the iPhone has more capability than the iPod, at half price, AT&T paid for part of the phone. Yes, I paid for part as well, but the fact remains that they did subsidize the phone for me.


Russell Johnson
russ at dimstar.net



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