Quote:
Originally Posted by ericbsmith
Basic Model Cell Phones, at least in the US, are very often sold very cheaply or even given away by a Cell Company. The catch is that you have to sign an multi-year contract for Cell Service, usually with a big cancellation fee. Phone companies are always offering newer phones to people if they renew their contract.
So the phone itself becomes a loss leader, with the profit being made on the cell phone service itself. Sure you can buy the iPhone, or Galaxy, or whatever other expensive model it is that you want, but then you're not getting the "free" phone anymore.
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That's some weird market you've got there. What do people do if they need 2-3 networks (not simultaneously) but only want one phone? What about people who jump networks due to roaming optimisation while travelling? Why don't people buy the phones they like and combine them with the sims they like? E.g. I went from Welcom to Life when it became more advantageous without buying a new phone, and at other times bought new phones without doing anything silly with my contract (my expiry date simply extends to a fixed period from 'now' each time I add any money to the account).