Most of our readers are from the United States or Canada where mobile operators usually ask for about $200 for new smartphones alongside a two-year contract. Even if you get unlimited plan that includes mobile data, you’ll still have to pay separately for the phone. Sure, it’s not the full price, but again it’s few hundred bucks for a high-end smartphone.
In comparison, in the UK you get a comparable phone for free if you sign a two-year contract worth about 30 GBP per month. Once it was released, the Samsung Galaxy S II was available for free on a 36 GBP (about $58) per month plan. Now you could easily end-up paying that money every month with some superphone in the U.S., but you’ll still have to cash out the initial $100-$300, depending on the phone you’re buying. And let me make this clear – iPhone is NOT an exception in Europe, you can also get it for free on a contract.
Why this is the case is beyond me. To be fair, third-party retailers like Walmart, RadioShack, Best Buy and Amazon will offer better deals on popular devices, but that’s still far from what British are paying. The UK mobile market is pretty competitive with 5 major operators, including Vodafone, Orange, T-Mobile, O2 and Three; but there are “enough” (i.e. the market is pretty competitive) carriers in the U.S. as well.
So I’m asking everyone – why can’t you get the new Samsung Galaxy S II in the U.S. for free on a $50-$60 monthly plan? The plan you choose should impact the phone’s price – that’s the way it works all around the world, but it doesn’t in the U.S. What gives? Any ideas?