topic Buying handset outright in Devices

Buying handset outright

Anonymous — Fri, 26 Jan 2024 18:01:54 GMT

Why is it more expensive to buy a new handset outright from Three than it is to buy direct from the manufacturer?

For example the new Samsung Galaxy S24 costs £799 from Samsung, but £822 from Three.

Why?

Re: Buying handset outright

sc1999 — Fri, 26 Jan 2024 19:11:53 GMT

There is no law that says they can't, at least I don't think that there is. It's your choice where you buy it.

Re: Buying handset outright

Anonymous — Fri, 26 Jan 2024 19:17:03 GMT

I'd be interested to hear Three's official line

Re: Buying handset outright

Chris1 — Sat, 27 Jan 2024 14:10:18 GMT

Commercial reasons, most likely. The margins on selling phones sans contract are thin and if they can encourage people to go on a contract instead it also provides them an ongoing revenue stream, as well as boosting their subscriber numbers. There can also be the aspect of the stock (especially with new flagships), if you have a phone that is in demand (and the stock is tight), it makes sense to sell the SKUs you have to contract subscribers, as opposed to selling it on its own.

The price that Samsung offers it at is irrelevant - companies are free to price their stock as they so wish to either be above or below any MSRP.

The above can be applied to any form of consumer good. Why is milk in Tesco Express more expensive than in a larger Tesco style store? Comes from the same cow, right. 😀