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by montzark 1880 days ago
So you'd prefer a phone without a warranty if it would be cheaper?
1 comments

I think the reaction is distrust that the manufacturers will play nice. If it costs them $20/phone average to warranty them for another 12 months, they may charge $50 more per sale.

A similar thing happened in Canada. A few years ago, a law was passed that barred 3-year phone contracts (with a new max of 2 years). In retaliation, nearly all phone subsidies from carriers have stopped. Ie, there’s no such thing as “$0 phone on 3 year term” in Canada anymore.

> nearly all phone subsidies from carriers have stopped.

I find this great. The ability to differentiate on "free" phones was a barrier to competition on the service costs that allowed telecoms to avoid competitive pricing for decades.

My concern with the Spanish law is that it seems to ensure a functional, repairable phone physically but there is not a realistic way to ensure essential security updates across all the software involved.

Not sure what region of Canada you are from, but as far as I can tell they just shifted from a contract model to a balance model where you amortize the cost of your phone using your monthly payments.

In the end what changes if how transparent they are with pricing, before it was 60$/month with a brand new phone and 55$ if you brought your own device, now it's. 55$/month and you can bundle a phone for 5$ more.

This is in Quebec.

> In retaliation, nearly all phone subsidies from carriers have stopped. Ie, there’s no such thing as “$0 phone on 3 year term” in Canada anymore.

It's not a 'subsidy'. It's just a payment plan. Why get your loan from your phone company? I don't get why people wanted this in the first place.

>there’s no such thing as “$0 phone on 3 year term” in Canada anymore.

Why is that a bad thing?

When carriers subsidize phones the price is inevitably higher overall. It's little different to those $1100 now or "$100 per month for 12 months" ads.

Of course it is, they are financing your phone which costs money. You are paying extra for the risk, inflation and interest.
Except it doesn't cost that much. It's mostly profit margin. You're paying extra for the illusion of free.
My Pixel 2 was actually cheaper through EE in the UK than it was to buy it SIM free.

It's never happened before or since.

When I worked in the travel industry some luxury hotels would agree to do deals where heavily discounted hotels would be bundled with flights.

They wanted to sell at < £X without the appearance of having sold a premium product so cheaply. Bundling with the flight hid the cost.

It's possible this happens occasionally for phones but I doubt it's common.

Why is that a bad thing?