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Old 11-22-2011, 12:12 PM   #1
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Launch: Bezos Gone Wild! Amazon Selling Every Non-iPhone Smartphone for One Penny

http://www.launch.is/blog/bezos-gone...rtphone-f.html

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Smartphones on sale for $0.01 include the Motorola Droid Razr, which Verizon sells for $299 with a two-year contract, the Samsung Galaxy S II, Epic 4G Touch, which Spring sells for $199 with a two-year contract, and the BlackBerry Torch 4G, which AT&T sells for $99 with a two-year contract.

Amazon seems to be going directly after Apple to try to sell more smartphones this holiday season by offering them at unbeatable prices. Bezos had a similar strategy with the Kindle Fire, which sells for $199 -- compared to $499 for the iPad 2 -- and analysts expect will hit 5M in sales in Q4.
Every phone, except the iPhone, for a penny.
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Old 11-22-2011, 12:24 PM   #2
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Too bad they require an expensive data plan.
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Old 11-22-2011, 12:25 PM   #3
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Too bad they require an expensive data plan.
I wonder what Apple's response to this will be.
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Old 11-22-2011, 12:27 PM   #4
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Too bad they require an expensive data plan.
I rather suspect that's the point. On most smartphone sales, the profit is made through the contract.
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Old 11-22-2011, 12:28 PM   #5
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I wonder what Apple's response to this will be.
To laugh all the way to the bank, I suspect; they are selling every iPhone that they can make. I was in my local Apple Store a few days ago, and they had a notice up saying that the iPhone 4S was completely sold out.
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Old 11-22-2011, 12:38 PM   #6
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Amazon does this pretty regularly. In past occasions, you even get cash back on the cheaper phones.
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Old 11-22-2011, 12:58 PM   #7
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Quote:
Originally Posted by HarryT View Post
I rather suspect that's the point. On most smartphone sales, the profit is made through the contract.
Yep; it's the data plan that's the killer.

I don't mind the 2-year contract and the usage plan. It's what I have on my old school flip phone and would remain the same if I converted to a smartphone. What I strongly object to is the forced data plan I don't need. $30/ month x 24 months = $720. That means a penny phone would actually cost me $720.01. Not my idea of a bargain.
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Old 11-22-2011, 01:36 PM   #8
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Originally Posted by tubemonkey View Post
Yep; it's the data plan that's the killer.

I don't mind the 2-year contract and the usage plan. It's what I have on my old school flip phone and would remain the same if I converted to a smartphone. What I strongly object to is the forced data plan I don't need. $30/ month x 24 months = $720. That means a penny phone would actually cost me $720.01. Not my idea of a bargain.
Minimum for AT&T is $15/month (200MB) so at least that's just $360 additional for the life of the contract.
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Old 11-22-2011, 01:38 PM   #9
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Quote:
Originally Posted by tubemonkey View Post
Yep; it's the data plan that's the killer.

I don't mind the 2-year contract and the usage plan. It's what I have on my old school flip phone and would remain the same if I converted to a smartphone. What I strongly object to is the forced data plan I don't need. $30/ month x 24 months = $720. That means a penny phone would actually cost me $720.01. Not my idea of a bargain.
You can get $15/month for 24 months if you don't use a lot of data. I'm not sure if that's a "bargain," but it's a good deal for a lot of people.
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Old 11-22-2011, 01:43 PM   #10
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You can get $15/month for 24 months if you don't use a lot of data. I'm not sure if that's a "bargain," but it's a good deal for a lot of people.
Not at Verizon. I'm on a family plan and Verizon provides the best coverage.

Even $15 is too much for me. I don't need 3G/4G internet, so why should I have to pay for something I don't need?
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Old 11-22-2011, 01:46 PM   #11
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You can get $15/month for 24 months if you don't use a lot of data. I'm not sure if that's a "bargain," but it's a good deal for a lot of people.
If you want a high end phone, then it's a bargain. Try finding a Samsung Galaxy S II for $360.01.
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Old 11-22-2011, 01:47 PM   #12
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Originally Posted by tubemonkey View Post
Yep; it's the data plan that's the killer.

I don't mind the 2-year contract and the usage plan. It's what I have on my old school flip phone and would remain the same if I converted to a smartphone. What I strongly object to is the forced data plan I don't need. $30/ month x 24 months = $720. That means a penny phone would actually cost me $720.01. Not my idea of a bargain.
Yep I remember the good ol days when a person had the option to pay per MB usage or pay for a data plan. If you didn't want to pay for a data plan you could switch to MB usage and not use any data. But the cell companies decided it was much more profitable to force you to pay.
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Old 11-22-2011, 01:50 PM   #13
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To laugh all the way to the bank.
Right because Samsung, HTC, Moto, etc... are all giving away their phones for a penny

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Old 11-22-2011, 01:53 PM   #14
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I wonder what Apple's response to this will be.
Amazon has been selling phones (Android, Windows, etc..) for a penny for some time. And this has been cutting into their sales. Apples response was to sell their older phones for less. You can get a 3G for free with some carriers.

For people that just want an Apple product and couldn't afford to pay premium it's a great deal. For those that want the best phone for the money is a rip-off
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Old 11-22-2011, 02:11 PM   #15
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Right because Samsung, HTC, Moto, etc... are all giving away their phones for a penny
Even if they're not giving away their phones, Apple still enjoys bigger subsidies than the other manufacturers are getting. That's not even counting the extra money they get for in-store or Apple.com new/upgrade contract activations. Apple's also given far more concessions compared to other manufacturers. It'll be interesting to see how long that state will continue.
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