iPhone Owners Spend More for Service Costs Than Other Smartphone Owners
Are iPhone owners paying more than everyone else for service from their carriers? A new report from CIRP suggests that they do. Above is a table comparing a small amount of iPhone owners to the competition, including Windows Phone, Android, Blackberry, and others.
According to the report, via AllThingsD
, 0% of iPhone owners included in the study pay under $25 per month for service, 6% of iPhone owners pay between $25 -50 per month for service, 36% of iPhone owners pay $51-100 per month for service, 49% of iPhone owners pay between $101-200 per month for service, and 10% of iPhone owners pay more than $200 per month for service.
Since carriers are required to pay higher subsidies for the iPhone than most other smartphones, carriers have to compensate by making customers pay more per month to have and use the iPhone's services. Otherwise, carriers would be making less money on the iPhone than they do with other smartphones.
With some Android phones being offered as pre-paid phones, notes Michael Levin, co-founder of CIRP, this could have some impact on the costs for Android being as low as they are. iPhone owners are usually hooked into data plans, which cost significantly more than pre-paid plans.
Are we paying too much for iPhone service? Or is the price just right for the premium smartphone? You decide.
CIRP via AllThingsD