Why are cell phones so expensive?

BigToque

Lifer
Oct 10, 1999
11,700
0
76
Most cell phones cost over $500 unless you sign up for 1-3 year contracts where the price drops down to free or almost free.

My last phone (Samsung A920) was $220 when I bought it on a 2 year contract (1 year ago). With no contract it was $870.

Is the technology really that expensive to produce?
 

Tweak155

Lifer
Sep 23, 2003
11,449
264
126
Originally posted by: BigToque
Most cell phones cost over $500 unless you sign up for 1-3 year contracts where the price drops down to free or almost free.

My last phone (Samsung A920) was $220 when I bought it on a 2 year contract (1 year ago). With no contract it was $870.

Is the technology really that expensive to produce?

That phone was not 870$ when it came out. You need to shop somewhere else.
 

Inferno0032

Golden Member
Mar 26, 2007
1,107
0
71
People want it, some will do anything to get it, they will take every dollar they can. If that means jacking up the price normally so this 2 year contract looks like such a good deal, works great for them. Actualy costs for them are probably ~10 dollars, if more, not a lot more.
 

Soundmanred

Lifer
Oct 26, 2006
10,780
6
81
Where are you getting these phones?!
I use a service that you have to buy the phone outright so there's no contract, and I've never paid more than $140 for a great phone...
 

pyonir

Lifer
Dec 18, 2001
40,856
321
126
Because people will sign a contract if it's too expensive, because they always have to have the newest and best (best meaning most expensive).

Market value. They sell them for whatever people will buy them at...and if they won't buy them at that rate, they'll offer discounts and rebates as long as you sign a contract. It's not really that hard to figure out.
 

secretanchitman

Diamond Member
Apr 11, 2001
9,352
23
91
i paid $200 for my treo 700p...although i got REALLY lucky and it was a brand new, clean esn box too. usually we buy our phones outright, but now, since my parents and i have sero, we still have our one phone per line discount, so im saving that up until a really good phone comes out.
 

oiprocs

Diamond Member
Jun 20, 2001
3,780
2
0
I'm considering getting rid of my cellphone. I never call anyone, and I dislike the concept that I'm "on call" every hour.

It's kinda hard to drop it though, since I pay $30 a month for 500 anytime, unlimited texts/nights/weekends/internet, nights starting @6PM. But I have the option as of now since Sprint decided to install some new fees.
 

Jeff7

Lifer
Jan 4, 2001
41,596
20
81
I bought a phone to be used with Virgin Mobile's service, and it's a pay as you go thing, so there was no contract. I got it at Radio Shack for $50.
So that was, $50 for a contract-free phone.

 

Schadenfroh

Elite Member
Mar 8, 2003
38,416
4
0
Originally posted by: Gigantopithecus
Errrrrm, my slvr was 41 cents after a 50 rebate...

My cell phone was given to me for free by tracfone when they switched from analog to digital in my area.
 

T2urtle

Diamond Member
Oct 18, 2004
3,432
3
81
no contract blackberry curve $300.
no contract tmobile WING $250
both brand new.

Look at N-series nokia phones for higher priced phones.




prices depends on carrier and type of phone. GSM are always in high-demand and more common. They are the easiest phones i've delt with and would never go any other way, unless free.
 

DivideBYZero

Lifer
May 18, 2001
24,117
2
0
Because that is the real cost of a new device from a manufacturer. All prices you see are subsidised by carriers.