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Verizon battling Cingular with phone price war

Discussion in 'Wireless News' started by Fire14, Jan 18, 2007.

  1. Fire14

    Fire14 Easy,Cheap & Sleazy
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    Now why couldn't they do this with calling & data plans instead of phones?


    Verizon Wireless undercuts Cingular with cheaper phones


    The heated battle between rivals Verizon Wireless and Cingular Wireless L.L.C. edged up a notch as Verizon Wireless cut its prices on several handsets recently introduced by Cingular.

    Just days after Cingular introduced the Palm Inc. Treo 750 for $400, Verizon Wireless lowered its prices on several of its Treo models. At Verizon, the Treo 700p with or without a camera is selling at $300, down from $400 the previous week. The Treo 700w plummeted to $250 from $400.

    According to Current Analysis, the Treo 750 helps Cingular fill out its wireless broadband smartphone portfolio and it may appeal to business users looking for a Windows Mobile Pocket PC edition smartphone. But the analyst firm suggested that the $400 price may not be competitive. Verizon may well be hoping to capitalize on that point by dropping the prices on its own Treos.

    And just days after Cingular introduced Motorola Inc.’s Krzr for $200, Verizon Wireless halved its Krzr price to $100 from $200. Verizon Wireless also dropped the price for its Moto Q to $100 from $200, a price drop that comes shortly after Sprint Nextel Corp.’s introduction of the Q. Sprint Nextel is currently selling the Q for $200.

    Interestingly, Motorola is announcing its fourth quarter 2006 earnings tomorrow and is expected to report a high volume of units shipped last year, but with weaker than anticipated profits.

    Financial analyst Albert Lin, with American Technology Research, said yesterday that the ongoing popularity and low prices on the Motorola Razr may have produced “internal competition” to the Krzr, designed as a high-priced successor, perhaps leading to price cuts on the Krzr.


    http://www.rcrnews.com/apps/pbcs.dll/article?AID=/20070118/FREE/70118003/1001/FREE
     
    #1 Fire14, Jan 18, 2007
  2. bobolito

    bobolito Diamond Senior Member
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    ...or, you can get them cheaper than that by waiting a few weeks and getting them from Wirefly!
     
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    #2 bobolito, Jan 18, 2007
  3. Matt

    Matt Twin girls!
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    TMO is supposed to release the KRZR in late March - wonder if it will be $99 or less by then...
     
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    #3 Matt, Jan 20, 2007
  4. walkguru

    walkguru Wireless Guru
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    bring on those price wars, :browani:
     
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    #4 walkguru, Jan 20, 2007
  5. Etorres777

    Etorres777 Life is good for now..
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    LOL, finally something to help US out.
     
    #5 Etorres777, Jan 20, 2007
  6. hf1khal

    hf1khal Who am I to judge
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    yes, one has to be out of contract so the other can steel the the customer. But, right now I would say it is better to do a abttle with teh price plans than cell phones as we all know the rpice does drop afet a few weeks from intro date.
     
    #6 hf1khal, Jan 20, 2007
  7. dmapr

    dmapr Silver Senior Member
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    Because when they do with phone prices they probably make $50-$100 less tops on new activations and upgrades, if they do it with plans they lock themselves into less revenue from all subscribers who can take advantage of the price decrease.
     
    #7 dmapr, Jan 20, 2007
  8. Fire14

    Fire14 Easy,Cheap & Sleazy
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    Yeah I know, but I like to wish big. ;)

    Hopefully as the market gets saturated, we have a 1/2 a chance of seeing some better plans and the old "Take care of your current customers vs new customers since it's cheaper" will kick into play. But again, it's wishful thinking.
     
    #8 Fire14, Jan 20, 2007
  9. hf1khal

    hf1khal Who am I to judge
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    Well I always had the theory that it is cheaper to lure in current customers and keep them with in the netwrok. As we all many of the new accounts cause payment of commisions for up to 6 months to the retailer or sales person so if a customer gets the deal the cost is only the discount of the phone and the saving will be on the commision side instead of having to pay on both ends.
     
    #9 hf1khal, Jan 21, 2007
  10. Fire14

    Fire14 Easy,Cheap & Sleazy
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    I agree & there have been studies showing that it's cheaper for the carriers to work with current customers, but they all seem to ignore that small but very important fact & keep wondering how to lower chrun. Easy, take care of the current customer & they will be happy & not leave for another carrier.
     
    #10 Fire14, Jan 21, 2007
  11. hf1khal

    hf1khal Who am I to judge
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    it could be the reason why they opted to give me a deal on my Pearl without having to touch my contract or even disqualify me from the next upgrade. I am still good for the next release of teh new BB (but I might pass on that one till much later untill the one I realy want comes out).
     
    #11 hf1khal, Jan 21, 2007
  12. dmapr

    dmapr Silver Senior Member
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    As long as you bundle the wishes with a healthy dose of reality, there's no harm in wishing ;) It's unfortunate that their way of talking care of customers is usually reduced to only worrying about having them locked into a contract :( I know they treat hf1khal well, but they must like his bill very much to give him the preferential treatment :)
     
    #12 dmapr, Jan 21, 2007
  13. hf1khal

    hf1khal Who am I to judge
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    Well that plus the customer referals that they get from me where the store can vouch for that.:p
     
    #13 hf1khal, Jan 21, 2007
  14. dmapr

    dmapr Silver Senior Member
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    Yes, we know you're special... they know you're special... they aren't going to treat everyone the way they treat you :)
     
    #14 dmapr, Jan 21, 2007
  15. blsemp

    blsemp Senior Member
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    I just want discounts with no strings attached.

    :D :D
     
    #15 blsemp, Jan 21, 2007
  16. hf1khal

    hf1khal Who am I to judge
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    Nah I am not special, there is always a way to get to them to do some thing like that. One of them is to become friends with one at teh store. Plus many of the people I deal with have been the slaes people that I dealt with from a long time ago durring the Blue days and since have moved up the ranks to the level Managers or assistant managers. One thing is that i can not abuse them or else teh Audit department could go wild on them.
     
    #16 hf1khal, Jan 21, 2007
  17. dmapr

    dmapr Silver Senior Member
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    Very smart of you to think that far in advance, I don't think I've been to any store twice since when they carried the Cellular One label :)
     
    #17 dmapr, Jan 22, 2007
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