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Old 08-28-2016, 10:31 PM   #1
sbiz
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iPhone 7 & Samsung Galaxy 7: are They Worth $450 More?

The Apple Loop blog in Forbes magazine said the Apple fall presentation for the iPhone 7 and other Apple products will be September 7. Orders will be taken on September 9 and deliveries will begin September 16. Passionate aficionados will undoubtably dive in, but a major question among market analysts is "how many consumers will bite now that the US telcos no longer discount the price by $450?"

Instead the telcos now want to rent the iPhone or Samsung Galaxy 7 to you over 24 months in a 2 year agreement for approximately the same price for which you could have purchased it outright.

The only advantage their plans now provide is an upgrade to the latest models each year so long as you keep extending the 2 year agreement and paying the monthly rental fee. The disadvantage, of course, is that you pay $450 more than in the past and that you don't own your phone so you can keep it, sell it or give it away at contract expiration.

Basically, telcos built a large consumer base of smartphone users by offering substantial discounts and they now feel they can charge far more for the latest models of high end smartphones.

Will high end smartphones be worth $450 more to consumers than in the past? The next six weeks should tell. My guess is that many will migrate to less expensive smartphones like the Alcatel Idol 4 rather than add $18.75 to their monthly phone costs ($450/24).
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Last edited by sbiz; 08-28-2016 at 10:37 PM.
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