Quote:
Originally Posted by Jon Westfall
I had hoped that the move toward feature phones vs. dumb phones would change that - people would understand the value in those features and pay more. However carriers didn't keep the prices high for long - they dropped them and now people expect gold for the price of copper. In the US atleast!
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This is not limited to the phone market. We distribute our products globally except the USA market because you can not make any money due to "stupid" pricing concepts.
US pricing @ retail is typically what other countries wholesle the same product at. No wonder the US is in so much trouble economically.
Carriers can offer susidies because of back end revenue streams. Retailers without trailing income can not (ie Phone shops, Electronic stores) .
What worries me is that this model is not sustainable economically. After a recent trip to the USA for trade show I am very concerned the US market is in a lot more trouble than has been disclosed to date.
This is just making us want to stay away from any USA based business for quiet a while. Sounds like this will mean that high end US phone users will also miss out unless they import from outside the US. BTW...HTC Snap with 3G = "Living the dream" best phone I have ever owned.