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Old May 20th, 2013, 09:20 AM   #124 (permalink)
BzB
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Join Date: Oct 2009
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Device(s): Galaxy S4
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Quote:
Originally Posted by rushmore View Post
From a gross margin stand point on the their P&L they certainly are making more money. Positioning the 16GB at the current price point means they take less of a hardware hit, which means they make more money
device cost is probably a capex for the carriers. cost is spread out and depreciated over time. not necessarily a hit on their p&l.

so it's more like they're selling it at less of a loss over time than selling for a profit. this is why the contract and services are more important. they incentivize the customer to sign up to get the phone cheaper, and they get their money back (and then some) with what we pay in contract fees. of course, if you're paying outright to keep your grandfathered unlimited data then all of this is moot.
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