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    Why does T-Mobile charge more than retail for a locked device?

    the86d

      In researching my lady's phone I noticed that through T-Mobile she would be paying 427.99 for a LOCKED Nexus 4 phone, OR 349.00 for an UNLOCKED Nexus 4 phone from the Play Store.

       

      It seems that T-Mobile is making us pay full price for a phone +$75 for a lesser functioning device... and I am wondering if their mark-up is really higher than that on other devices, now that they changed their policy to have customers pay full retail for devices?

       

      Is this their ploy to not have customers stay with T-Mobile?  Is this their choice to now have customers get more value out of a service that will not subsidize their phones?  Is this to make customers upgrade less often?  Is this retaliation for not allowing them to be bought out by AT&T?

       

      I cannot really see a benefit for the customer.  If they provide good service in someone's area, yet change their policy to MAKE customers pay full retail +markup for a locked phone, then what is the benefit to the customer, aside from no contract if you can't take your phone with you to another provider anyways (as it is locked)?

       

      Please advise.

        • 1. Re: Why does T-Mobile charge more than retail for a locked device?
          tidbits

          Retail Price for the Nexus 4 is $459.99 and $499.99 respectively.  Google SUBSIDIZES the phones in their Play Store.  Any company that wants to order them will have to pay LG price for the phones.  They do not get them from Google.  Before the release of the Nexus 4 various 3rd party retails refused to stock the Nexus 4 for that very reason.  They simply can't compete with that pricing.  Google makes bank off of Android, and advertising.  They could easily recoup what they don't sell or subsidize.  It's a lossless product to them like gaming consoles.

           

          T-Mobile allows EIP on devices they sell.  That is a benefit for low budget people.  That's the only benefit, but honestly if people can't save $300-350 then they shouldn't have a cell phone.  That's just my opinion as if I couldn't save that much I would drop my cell services.

          • 2. Re: Why does T-Mobile charge more than retail for a locked device?
            rizzies

            You can buy the phone from google it wiill work the same on tmobile

            • 3. Re: Why does T-Mobile charge more than retail for a locked device?
              ttech

              The act like they don't make money on their phones but if you look around you know their are lying.

              Galaxy SII at Walmart $299, T-Mobile $413 unless you get a web discount. Then you have the nexus 4, the LG L9 and any other phone that you can buy cheaper if you don't get it directly through T-Mobile.

              Phone reps and managers have no power these days. They can't give discounts can't help a customer even when they mess something up. That's probably one of the reasons they have been rated last in customer support for the last few years. Upper management cut their service department and got rid of any brains, now all they can do is look at the computer and if it doesn't have an answer they don't know what to do but make something up to get you to hang up.

              Even the loyalty department has less power now that they are contract free.

              I like their plans and prices but if you ever have to deal with sales or support you know why they are cheaper.

              • 4. Re: Why does T-Mobile charge more than retail for a locked device?
                tidbits

                Ttech Walmart and such take their commissions from selling the contract and services and put some of it into the price of the phone.  IF you try and go to those places they do a heavy mark up for no contract pricing and top of retail pricing.   They even make you sign a second terms that you have to abide by for 181 days(this is when they get paid their commissions).  So if you cancel usually it's $250 on top of the carrier ETF you have to pay.

                 

                WalMart uses Let's Talk for cell phone sells and you are under Let's Talks Terms as an example.

                 

                Wireless Plan and Feature Activation Terms and Conditions

                The following Terms and Conditions govern the relationship between you and LetsTalk.com. The LetsTalk.com Terms and Conditions are in addition to and supplement any Service Provider Terms and Conditions (If applicable, they are explained separately below).

                I understand and agree to the following terms & conditions:

                A. If I am activating Wireless Service(s) provided through LetsTalk.com, its subsidiaries or affiliates (who are acting as agents of the Wireless Service(s) Provider with whom I am entering into a Wireless Service(s) contract with), I understand that:

                1. In consideration of the purchase of certain wireless equipment from LetsTalk.com, I will agree to maintain the Wireless Service(s) I selected at the time I purchased the wireless equipment for the time frame specified in the Wireless Service Contract.
                2. I would be liable to LetsTalk.com, or its assignee, for an equipment subsidy recovery fee of $250 per line ("equipment recovery fee") if the Wireless Service(s) is discontinued prior to 180 days of continuous service. The equipment subsidy recovery fee will not be charged if the equipment is returned and accepted by LetsTalk.com within its Guarantee Policy.

                  Please note that the Equipment Subsidy Recovery Fee is not a penalty but is for liquidated damages LetsTalk.com will incur as a result of such cancellation. These damages may include, but are not limited to loss of compensation and administrative costs associated with the cancellation or changes in Wireless Service(s), Market Changes, Changes in Ownership, Number Ports after activation, and general number changes to Carrier Account.
                3. I agree to accept full responsibility and liability for all cellular and wireless equipment purchased by me and all one-time and recurring service charges for the Wireless Service(s) activated.

                B. I further agree that in the event litigation becomes necessary to collect any amounts owed by me hereunder, I will be responsible for reasonable attorney's fees, court costs and collection costs of LetsTalk.com or its assigns.

                C. I understand that any equipment is for personal use only. LetsTalk.com reserves the right to reject orders from resellers or distributors.

                • 5. Re: Why does T-Mobile charge more than retail for a locked device?
                  theartiszan

                  The L9 is a cheap phone

                  Sells for 240$

                  • 8. Re: Why does T-Mobile charge more than retail for a locked device?
                    ttech

                    tibits, these are prepaid phones the require nothing extra to buy, all you have to do is drop in your T-Mobile SIM.

                    The LG L9 has been as low as $170 by third parties (just for the phone no contract) and the GSII has been and $200 and $219 at HSN (both new T_Mobile versions).

                    • 9. Re: Why does T-Mobile charge more than retail for a locked device?
                      rizzies

                      ttech when was the  gs 2 at hsn

                       

                      • 10. Re: Why does T-Mobile charge more than retail for a locked device?
                        ttech

                        It's been off and on this last month, say sold out right now, but I'm still watching to see if they come back.

                        Samsung Galaxy SII No-Contract Android 4.0 Smartphone with 8MP Camera and T-Mob at HSN.com

                        • 12. Re: Why does T-Mobile charge more than retail for a locked device?
                          tidbits

                          The L9 is probably EOL for Let's Talk.  Price reduction could have happened to quickly move things out of stock.  T-Mobile hasn't reflected it.  The SII has been EOL for a long time now.  HSN probably gotten a sweet deal on the SII's from somewhere and decided to move them quickly.

                          ttech wrote:

                           

                          tibits, these are prepaid phones the require nothing extra to buy, all you have to do is drop in your T-Mobile SIM.

                          The LG L9 has been as low as $170 by third parties (just for the phone no contract) and the GSII has been and $200 and $219 at HSN (both new T_Mobile versions).

                          • 13. Re: Why does T-Mobile charge more than retail for a locked device?
                            ttech

                            I don't know why I even have to point this out, if you just use a bit of common sense you can see that your point is in part correct most likely. But this is not a this phone just hit EOL and the price was off for a month or two. The Galaxy SII has been at $299 at Walmart since 9/4/2012 at the same time T-Mobile was selling it for $550. T-Mobile started to slowly lower the price of the GII after that down to $350's I think, but when the new plan came out they raised it to $413 (why would they need to raise the price on a EOL phone???) This has been going on with other phones for some time. I'm not sure why your a trying to reason that they were doing this on some sort of good faith or using the idea that some sort of subsidy explains it either.

                            Do you really think that a pure Goggle Nexus version somehow is better and cheaper for Google to sell then the one T-Mobile sells who also subsidize there own phones with bloat ware but still has all the same Google apps the other has?

                            • 14. Re: Why does T-Mobile charge more than retail for a locked device?
                              tidbits

                              Look it has ALREADY been pointed out.  Retail for the Nexus is set by LG.  End of discussion.  There were so many reports that LG sells them to anyone else for $449.99 and $499.99 respectively.  Just go back to the posts related to this when the Nexus 4 first came out.  You are making the same arguments they made back then.  LG sets the prices and they sell them higher than what Google pays for them.  If you have a problem with the pricing blame LG.  I think T-Mobile should have done what some retailers have done.  Sorry for you being late to the party but it has been discussed around the world for almost a year now.  IF Google pays the same price then they are subsidizing it.  It would make sense for them to do so.  The cheaper the more developers might adopt and code for Android.  Also anyone using Android will help Google make money.  Much like gaming consoles.  Manufacturer takes a "loss" initially, but licensing is where their money is at.

                               

                              http://www.androidcentral.com/outside-google-play-s-reach-nexus-4-pricing-may-not-be-so-sweet

                               

                              http://crave.cnet.co.uk/mobiles/lgs-nexus-4-price-tag-leaves-european-shoppers-fuming-50009689/

                              The above link read the comments.  LG priced their device significantly higher.

                               

                              Yes the SGII has been EOL for a while.  Samsung no longer makes them.  No matter what price you look at they are all below MSRP.

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