Sony: We've Learnt From High PS3 Price Point

[Mr Puggsly]

Grimes said:

Mr Puggsly said:

Grimes said:

Mr Puggsly said:

Grimes said:

They don't have the good phones on prepaid. The cheapo android phones they have. The flagship phones, never.

Generally, no. Virgin Mobile which is owned by Sprint.

http://www.virginmobileusa.com/cell-phones/lg-optimus-v-phone.jsp
http://www.virginmobileusa.com/cell-phones/blackberry-curve-8530-phone.jsp

Both those phones are low spec. Defintely not anywhere close to the better phones.

I'm not claiming those are the most powerful phones on the market. But they are definitely much more expensive elsewhere unless you get a contract.

Getting back to my original point. The PSP Phone is marked at a much higher price than its worth. It'll be significantly cheaper with a contract.

The contract for a top end phone racks up over $2000 in service. $200-300 of that $2000 (plus the $200 they get when the customer buys the phone)   goes to pay for the phone. The phone company pays that money to the manufacturer, then makes it back over the life of the contract. The phone company pays the $400-500 to the manufacturer of the phone, so they take a loss on the phone, but they gain $2000 over the life of the contract.

Thank you for explaining the business to me.

But I think you're wrong, they aren't taking a loss on the phone. I'm not under the illusion those phones are actually worth $400-500. A friggin laptop only cost like $300 nowadays. Hence, those phones are likely being sold at a profit even with reduced contract price of $200.