Why are Sim Free phones so Expensive?

commadus

Something does not make sense to me.

How can companies still provide cashbacks and remain solvent?

Why are sim free phones more expensive than some decent spec laptops - esp the smartphones.

gaming_guy

because they aren't branded/subsidized or locked to a specific network

vikingaero

Even PAYG phones have a subsidy once the initial top-up is made. So the trick is to buy the PAYG phone with a sim for your network and use that.

Alec_Eiffel_2

commadus wrote: »

Something does not make sense to me.

How can companies still provide cashbacks and remain solvent?

Why are sim free phones more expensive than some decent spec laptops - esp the smartphones.

"How can companies still provide cashbacks and remain solvent?"
Many don't! The ones that do rely on the customer not meeting the strict terms and conditions - ie relying on people sending in a bill late which usually invalidates any future cashback claim for the contract, people sending in bills through the standard mail which are then 'lost' (invalidating any future claim). Cynical? Yes. True? Read the horror stories on here which is why I won't even consider a cashback deal.

"Why are sim free phones more expensive than some decent spec laptops - esp the smartphones"
Sim free phones are unlocked to the network. If you get a phone on contract or PAYG and it's locked, the network is guarenteed your money. Evidently the profit they make from tariffs or PAYG top-ups is sufficient give free phones or heavily subsidised phones.

sjc_2

Not always true O2 Contract phones are generally unlocked to all Networks as are O2 PAYG Phones I have had from CPW & O2 Shop, it's the way I usually get my "SIM Free" phones. I currently use a N95 from my wifes last upgrade on O2 with my T-Mobile SIM Card on Web n Walk Pro.

Alec_Eiffel_2

SJC, you're quite right, that's why I said IF and AND in if you get a contract or PAYG phone it's locked the network is guaranteed your money. Was trying to emphasise the reasons why handsets are often locked. Just my bad wording! My latest O2 direct handset is unlocked which was admittedly a surprise after my previous two locked and heavily branded handsets!!