An article in Bloomberg: Samsung Doesn't Like It When you Pay Full Price and Keep the Phone Longer “What the new plans do is make the true cost of the device more obvious to the consumers, and this will encourage consumers to make more comparisons,” said Carolina Milanesi, chief of research at Kantar Worldpanel ComTech US Business.
I keep trying to get Dad to upgrade his phone... He's still using my old HTC Inspire. We're still on the old contract style plans so he can get a nice phone for $50. He just doesn't want to spend it.
I don't see that Samsung has much to worry about. In my experience, their phones start failing after about 20 months anyway. Whether I want to upgrade or not, their planned obsolesces makes sure I have no choice. Without exception that has been true for 5 phone upgrades (between me & my wife).
My GS4 is still kicking and will hopefully last me until the new Nexus comes out. Unlike Apple, Google limits software support to two years (was actually 18 months when I got the GS4 two years ago), so it looks like that's going to be my cycle.
I've always thought that many, if not most, people do not know the cost of their device. When someone buys a TV or a laptop, etc. they can easily tell you what it cost. My small sample size survey indicates that is almost never the case for smartphones.
Well, being a numbers guy, even with the cost spread out, I had a fairly good idea how much. I knew the phones were as much as a cheap laptop. Even the "feature phones" were at least $150 to $200 at one time.
It reminds of the exporters complaining when the dollar gets stronger. They complain that a stronger dollar increases the price of their product overseas. So we should all suffer with a weak dollar so the exporters can make their money.