Originally Posted by Hellmark
However very very few people buy their phones unsubsidized. Hell, most carriers in North America, will charge you the same price regardless of if you bought a subsidized phone or not.
That is one reason why the "Phablets" have been selling so well. People always have their phones with them anymore, and if they have a larger screened phone, then they will be more likely to use that than a separate device. For instance, Apple in total has sold 48 million iPod touches since launch, compared to 86 million iPhones and 34 million iPads (which has only been available for 2 years, compared to the Touch's 5 years). People tend to want a bigger more powerful device, or a decent multipurpose device with an always available 'net connection. Once you factor in that most people don't care about subsidization, they'll spend about the same price and get one that will work as their phone as well.
Note true. The Note has sold a lot more in Asia than in the US, and a lot of the sales have been unsubsidized. That is quite common here, there are many levels of contracts with differing rates available, and you get little or nothing off the price for the lower tiers.