This really bothers me. Years of carrier subsidies have convinced people that devices are cheap and mobile plans are expensive. The price of smartphones has gone through the roof because carriers have found a way to hide the true cost of phones and convince people it is a good idea to essentially borrow money to buy very expensive consumer electronics.
People think iPhones cost ~£150. Either that or they're aware they cost considerably more but it's ok to borrow money to buy one because 'that's what you do with phones'. I think T-Mobile said similar when they first announced their Un-carrier plans. People don't truly value these expensive devices. You see it all around, not only are people buying devices which are way overspecced for their needs (I need to send a few texts, check Facebook.. when is this Galaxy SIV coming out??) but more importantly, are way out of their budgets. If you're on a very modest income, in what world is a £600 smartphone falling into your budget? People treat devices like their sticker price too. The amount of highend (usually very tatty) smartphones I see kicking around the floor at my gym is obscene. Most people I know like this don't have any sort of insurance either, can barely afford the device in the first place and sure as hell can't afford to replace it should the worst happen.
To top it all off, people are now complaining they have to wait 2 years to get an upgrade!
I wonder if these new plans which separate out the plan from the hardware will make people realise they are indeed taking out finance to buy electronics and re-evaluate their needs/budget.
I shouldn't really care how people spend their money and obviously this topic is a little different when looking at markets where you essentially don't have a choice but to take a subsidy.
People think iPhones cost ~£150. Either that or they're aware they cost considerably more but it's ok to borrow money to buy one because 'that's what you do with phones'. I think T-Mobile said similar when they first announced their Un-carrier plans. People don't truly value these expensive devices. You see it all around, not only are people buying devices which are way overspecced for their needs (I need to send a few texts, check Facebook.. when is this Galaxy SIV coming out??) but more importantly, are way out of their budgets. If you're on a very modest income, in what world is a £600 smartphone falling into your budget? People treat devices like their sticker price too. The amount of highend (usually very tatty) smartphones I see kicking around the floor at my gym is obscene. Most people I know like this don't have any sort of insurance either, can barely afford the device in the first place and sure as hell can't afford to replace it should the worst happen.
To top it all off, people are now complaining they have to wait 2 years to get an upgrade!
I wonder if these new plans which separate out the plan from the hardware will make people realise they are indeed taking out finance to buy electronics and re-evaluate their needs/budget.
I shouldn't really care how people spend their money and obviously this topic is a little different when looking at markets where you essentially don't have a choice but to take a subsidy.
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(Yeah Yeah, second one costs that but first cost $3 billion or whatever).
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