Hi guys,
Just a thought that came to my mind, but with some of the contracts out there, it seems like they’re bound to make a loss. In this example, I’ll go with a Google Pixel 7. A 128GB of that would cost £599. With the airtime with it, let’s go with a guess of £10 a month, thus £240 for a 2 year contract. So in total, that’s £839.
Here’s the kicker, the contract is priced at £25 for 24 months. Even accounting for let’s say a 13.9% hike each February that would add up to £679. So… I can’t quite wrap my head around where they are making the money!
In: 1
You’re right sometimes the carrier takes a loss if they sell it at a subsidized price to users.
However, the carriers make their profit from the contracts and services it sells along with the phone. That’s why iPhones sold through carriers are usually locked to that carrier unless certain financial obligations are met (contract term, full device payment, etc).
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