Despite an MSRP by BlackBerry of $249 due to its "premium" appeal for enterprise users, Verizon and AT&T have announced they have priced the Q10 smartphone at $199 with contract.
The price is in-line with the Galaxy S4 and the iPhone 5, and it's clear the carriers did not believe it would sell for more than the two most popular phones on the planet.
When asked about the prices, Kristian ... [ read the full article ]
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OK, so I wasn't aware that the device makers were setting MSRP based on 2-year contract pricing. I thought the device manufacturers set the MSRP based purely on the No Contract price and then let the carriers decided the rest based on what they can milk from customers over the 2-year period. Interesting. So I suppose the carriers don't actually pay the device makers up-front for handsets either?
I really fail to understand why this is a news item. MSRP literally means "Maximum Suggested Retail Price".
In the early seventies companies like Pioneer set the price and it could not be sold at even a penny less than so called MSRP. The dealers very easily circumvented this by offering such items as Shure V-15 type 3 pickups and Altec-Lansing speakers for free if you bought Pioneer components.
Originally posted by pmshah: I really fail to understand why this is a news item. MSRP literally means "Maximum Suggested Retail Price".
In the early seventies companies like Pioneer set the price and it could not be sold at even a penny less than so called MSRP. The dealers very easily circumvented this by offering such items as Shure V-15 type 3 pickups and Altec-Lansing speakers for free if you bought Pioneer components.
MSRP literally means "Manufacturer Suggested Retail Price", not "Maximum". Manufacturers are able to set a price and tell their retailers that they may not sell below that, but that has nothing to do with "MSRP".
The reason this was news is that it is a clear signal from the carriers, like Verizon, that they don't think they can sell the phone at the price Blackberry thinks they can. In other words, the carriers do not have the confidence in the phone's appeal, at least not as much as Blackberry is claiming.
Originally posted by KillerBug: No, they don't pay the device makers up-front...that is how they can afford to offer guaranteed flops like the facebook phone.
Haha. An informative an humorous answer. Thanks for confirming what I had suspected.
Bozobub: Take note of how a normal person responds to a helpful post.
