Comment by Marsymars | Hacker News Reader

Comment by Marsymars | Hacker News Reader

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> Carrier deals aren't comparable as they're subsidized by inflated phone plans.

I don't have any insight into what deals the carriers have on the backend, but in my region, the price delta between like-for-like BYOD plans and plans with subsidized iPhones are effectively nil.

Either the carriers are getting discounts from Apple, or everyone with BYOD plans are subsidizing phones for people who get them through carriers.

e.g. I'm currently seeing a carrier plan where the total plan + device cost over 24 months is ~$1,600 and you come out of it free and clear with a 512gb iPhone Air that's $1,749 retail. I don't see how that's possible for the carrier to offer if they're not getting discounts from Apple.

My point is that Apple doesn't want to look like they're giving discounts on their store, so they engineer any discounts to go through third parties.

I work at a carrier in Switzerland, if I take the phone we push at the top of our inventory, the iPhone 17 Pro 256 GB:

Phone: 1099 (Apple's MSRP). 24-month phone plan, 50/month the first year, then 81/month: 1572. Discount: -300

Now BYOD:

Phone: 1067 at the biggest and most reputable online retailer. Near identical phone plan sold through our discount/virtual brand: 30/month i.e. 720 over 24 months (but you can leave anytime).

So even assuming you buy it on day 1 with zero discount from Apple's MSRP, that 300 gift costs you 852 CHF really.

Now if I look at our most agressive competitor, you get the phone for free if you spend at least 1752 on a 24-month phone plan.

They have a better phone plan at 15/month i.e. 360 over 2 years. BYOD is still way cheaper.

Okay, so maybe your carriers aren't getting good discounts. The existence of plans without good discounts doesn't really show anything. Of course some carriers will have some plans without good discounts.

Like I said, for one of my local carriers, I'm seeing a plan that costs $1,600 that includes both two years of service and a $1,749 MSRP phone.

There's no possible way for a BYOD plan to be cheaper after accounting for the phone MSRP, they'd have to pay you $150 for the SIM card and two years of service.

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