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Network Operators Fed Up With Apple's Pushy, Money Hungry Agreements
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Network Operators Fed Up With Apple's Pushy, Money Hungry Agreements - April 30, 2012, 01:49 PM

Looks as if they opened a Pandora's bpx with Iphone.

LOL @ them complaining about being financially abused and pushed around by Apple when they freely do it to us, their consumers every chance they get.

-------------------------------------------

Wireless carriers are tiring of having to take a roughly $400 hit on every subsidized iPhone that they sell. Sure, they can make that back on two-year contracts, but it's a far more lucrative deal for carriers with cheaper smartphones. It also seems as if iPhone owners are quick to upgrade after the two-year pacts run out, forcing carriers to repeat the subsidized process.

Apple's demands for subsidies in order for a carrier to sell an iPhone are legendary. U.S. carriers heavily subsidize all smartphone hardware, primarily to entice new customers to buy a two-year service contract that costs more than $1,700 over that period. The iPhone 4S with 16GB sells unlocked from Apple for $649 (useful on many GSM carriers with a separate contract), but Verizon, AT&T and Sprint sell it for $199.99 with a two-year contract.

Apple also gets a cut, or royalty, of the carrier's revenue realized from each new iPhone user. This royalty "is part of the negotiations to put iPhone on a carrier's network," said analyst Jack Gold of J. Gold Associates. "Apple argues it's worth it to the carrier, since their users are loyal and generate more revenues due to the popularity of the iPhone." Other phone makers, such as Samsung and HTC, don't get a similar cut.

Apple collects as much as $600 per iPhone user in royalties from the carriers on top of the hardware profits from the phones, according to several analysts, although Apple and the carriers have never confirmed that amount. Clearly, the carriers would rather not share the iPhone revenues with Apple. "If carriers can get a lot of users on competitors to the iPhone, they can potentially generate more revenues and profits because they don't have to give Apple a cut," Gold said.

Apple's influence over the carriers shows up in other ways, including how the iPhone must be displayed in the carriers' stores or how it is advertised on TV. IDC analyst Ramon Llamas noted that even at the level of the device logos and carrier-branded apps, Apple has stricter standards than other manufacturers.

For example, the iPhone doesn't include a carrier's logo on the exterior, while most Android phones and others will prominently show the carrier's name above the manufacturer's name, Llamas said. Once turned on, an iPhone relegates the carrier's name to a narrow banner at the top of a home screen along with the number of bars of network reception, while many other phones have a carrier's logo splashed on a separate screen during the booting process. Carrier-branded apps prevalent on many smartphones, including the Lumia 900, are buried in iPhones.

AT&T and Verizon Wireless want Windows Phone smartphones to succeed in the U.S., partly to provide leverage against Apple's demands for subsidies and other concessions required for selling the popular iPhone.



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April 30, 2012, 01:51 PM

My give-a-fuck meter is empty.

Fuckers rape the shit out of us, and whine when the maker of the best selling phone on the market do the same to them?

They can go fuck themselves.


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April 30, 2012, 01:52 PM

Quote:
Originally Posted by Fitz View Post
My give-a-fuck meter is empty.

Fuckers rape the shit out of us, and whine when the maker of the best selling phone on the market do the same to them?

They can go fuck themselves.
My sentiments exactly.



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April 30, 2012, 02:26 PM

+1000


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April 30, 2012, 04:38 PM

they bitch even tho verizon and AT&T had record breaking profits.

If AT&T doesn't like it, people will just roll to verizon. The end. Vice Versa.
People like the phone. Why else would we put up with Terrible Service. lol


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April 30, 2012, 05:59 PM

Thread jacking here but:

who here works for a phone store? I've been with the big ugly V for a bunch of years, use it for business, tired of the "fees and surcharges" that only increase every year as my coverage gets smaller/shittier, apps that continue to crash on an ironically quick-to-outdate phone and dealing with a billing cycle that is more confusing than a mortgage written in Mandarin.

Or am I just pretty much fucked regardless which carrier I use?


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April 30, 2012, 06:01 PM

Quote:
Originally Posted by Hollywood
Thread jacking here but:

who here works for a phone store? I've been with the big ugly V for a bunch of years, use it for business, tired of the "fees and surcharges" that only increase every year as my coverage gets smaller/shittier, apps that continue to crash on an ironically quick-to-outdate phone and dealing with a billing cycle that is more confusing than a mortgage written in Mandarin.

Or am I just pretty much fucked regardless which carrier I use?
C spire, fool


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