iPhone 4 'Full Retail Price"

[andersenl]

Why is it that Verizon claims the iPhone 4's full retail price at $649 and $749 and the "discounted" prices at $199 and $299? The standard retail price for an iPhone 4 is $199 and $299. I can walk into any Apple store and pick up a 32gb iPhone 4 for $299 right now. So, why is this considered a "discounted" price by Verizon when, in actuality, I'm not getting any discount on it at all?

[droid-geek · Accepted solution]

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andersenl wrote:

Why is it that Verizon claims the iPhone 4's full retail price at $649 and $749 and the "discounted" prices at $199 and $299? The standard retail price for an iPhone 4 is $199 and $299. I can walk into any Apple store and pick up a 32gb iPhone 4 for $299 right now. So, why is this considered a "discounted" price by Verizon when, in actuality, I'm not getting any discount on it at all?

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I'd like to see you go into ANY official Apple store and purchase an iPhone 4 OFF contract for the $199/$299 price.  You "may" want to read a little closer when you are viewing those prices.

Feel free to go to http://store.apple.com/us/browse/home/shop_iphone/family/iphone and look at the little numbers beside the prices.  You should see a "2", and when you scroll DOWN the page, you will then see this:

2. Requires new two-year wireless service contract, sold separately to qualified customers; credit check required; must be 18 or older. The iPhone model you purchase is configured to work only with the network technology of either AT&T or Verizon Wireless, as specified, but not both. Customers who want to upgrade from another phone or replace an iPhone 3G or iPhone 3GS should check with their service provider for pricing options or visit www.apple.com/iphone/buy. For those who are not qualified customers, are not eligible for an early upgrade, or wish to buy iPhone as a gift, the prices are $449 (8GB), $649 (16GB), or $749 (32GB). In CA, MA, and RI, sales tax is collected on the unbundled price of iPhone. Service may not be available in all areas or at the signal strength, rates, speeds, or bandwidth as demonstrated. Wi-Fi Internet access required for some features; broadband recommended; fees may apply. Some applications, features, and services are not available in all areas. Check with your service provider about network coverage in your area and international roaming options. Features vary by carrier. Warranty information available at www.apple.com/legal/warranty/iphone. When available, transferring your mobile number to a different service provider will terminate your service with your existing provider; termination fees and other charges may apply. Some features may require added fees. Contact your service provider for more details. Use constitutes acceptance of Apple’s software license agreement and third-party terms located in the iPhone box. Unauthorized modification of your iPhone software violates the software license agreement. Inability to use an iPhone due to unauthorized modifications is not covered under your warranty.

Pay special attention to the prices I've highlighted in red.  Looks like their prices ARE correct.... and you are in(correct).

[Tidbits]

I wish I could give you more than 1 kudos

[24c]

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Tidbits wrote:

I wish I could give you more than 1 kudos

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I added one for you. ALWAYS read the fine print.

[Missy_Bell]

Unless I am missing something, I seem to agree with the original poster in that the price does not seem to be discounted at all.

Excuse my ignorance but if you are agreeing to another two year contract (whether getting a new line or upgrading), isn't that considered NEW?  

[kaebfly]

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Missy_Bell wrote:

Unless I am missing something, I seem to agree with the original poster in that the price does not seem to be discounted at all.

Excuse my ignorance but if you are agreeing to another two year contract (whether getting a new line or upgrading), isn't that considered NEW?  

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No. You are not eligible for a new upgrade and contract extension if you are still in the current contract (with the exception of being allowed to upgrade a little earlier than contract expiration at 20 months instead of 24). The price listed at new 2 year agreement is for new customers or current customers that have met their current contract obligations. Hence, that is the "discounted" price. If you are NOT eligible to upgrade then you are required to pay full retail if you're not willing to wait until you are eligible. Anyone that is a current customer should be well aware of this since none of this is new....you have had to be eligible for upgrade to qualify for the advertised pricing for many years now...you were provided this info when originally signing up for service and are provided this info each time you upgrade along with other info such as your ETF fee for canceling service. For the life of me, I can not understand why so many people claim to be confused or unaware of this when it is not new. I can understand complaining because you don't like the practice (I'm sure all of us would love to be able to pay discounted pricing whenever we are ready to updgrade to a new device), but acting like you are just now being made aware that such a policy exists....I can't see how anyone doesn't know UNLESS they were never responsible for or actually opened an account of their own (and were only phone owners under someone else's account...and even then, unless you're a minor it would seem like at some point you would know about it).

[droid-geek]

Actually, I would rather that they start referring it to subsidized price instead of "discounted".  Discount does infer that it is cheaper than other places - and as we know, it is not.

[Tidbits]

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droid-geek wrote:

Actually, I would rather that they start referring it to subsidized price instead of "discounted".  Discount does infer that it is cheaper than other places - and as we know, it is not.

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how many people understand what subsidization is?

I know a lot of people I've talked to about subsidization whether political or commercial and they always asked what that "word" meant.

Yes it is cheaper...  As you can see buying it without a contract yields a higher price...  With contract it's "cheaper".

[basshunter]

$199 and $299 is for a new person two year contract.. or adding a new line

prices $649 and $749 if you want to buy the phone out right

[galadali]

All I know is I got mine in white when negotiating my contract at an amazingly low price. Kudos to Verizon on this one..

[Squallfyr]

Oh its $199 full retail? I thought they meant $1.99 o.0