- Here on the German Market the iPhone reselling rights are exclusive to T-Mobile

- Within the European Union there countries (such as Italy) where the respective governments have implented laws that prohibit the sale of mobile phones which are exclusively bound to contracts

- The iPhone is a five-band device, meaning IT CAN BE USED ANYWHERE IN ANY NETWORK ON THIS PLANET

- So why lock this great device? I say let the consumer decide which network to use. And that means ANY NETWORK on this planet

- Sure, Apple makes a great deal of money and since they also get a chunk of the money of the contracts it is in their natural interest to stick with the current situation

- However, it us “not-official” resellers, who not only sell the product but also actively promote have a big part in the sucess of the iPhone (as we commonly call it ” iPhone ohne Vertrag “, meaning the iPhone unlocked without a contract

- And when it comes down to it people pay way less when they buy the iPhone from “unoffical”
resellers: no binding contract for years, put in any SIM-card anywhere and it works

Furthermore, for those who think that us resellers are just trying to make a “quick buck”:
we offer warranty for 1 year, same as Apple/telphone companies do.

And we are there if our customers need help with the iPhone, even on weekends…

Greetings from Munich/Germany from Team Buyplanet – http://www.buyplanet.de

In fact, it’s the exact opposite. Without exclusivity contracts between the device manufacturer and the wireless carriers, carriers would be forced to compete on service as well as device subsidies. AT&T might sell the 3G for $99 with a 2-year contract, while T-Mobile would try to lure customers with a $50 price point.

Once again, ending the anti-competitive practice of handset exclusivity sets the competitive forces free, on service quality, and on device subsidies.

You worship the “free market” as if there is such a beast. The reality is that in many markets the players conspire on price and offerings. Examples:

1) cell providers – there is very little differentiation in cost and plans. The iPhone is an aberation on the high-end but looking at the SMS plans, data plans, voice/minutes plans all carriers are offering essentially identically priced plans.

2) airline prices — when an airline wants to raise its ticket prices – it raises them and sees if the competition follows suit. When a route is poorly serviced the airlines jack up the price ( no competition, no “free market” to save the day )

3) Health insurance — this is a race to the bottom when shopping for an individual plan.

4) Credit cards — every card I have offers identically, higher and higher rates.

In all of these cases the “free market” god is supposed to step in and offer me a lower price…. ain’t happening.

Lastly, iPhone issue is also wrapped in the larger issue of “does the consumer actually ‘own’ the phone?” If they cannot do anything they want to the phone, does the consumer really own it. While a phone may be subsidized for a limited duration ( a 2-year contract ), the user should have full access to the phone after the contract expires. This is not happening and should be changed.

You are also making a rookie mistake. The cost of the components does not (and should not) drive pricing. Cost comes into play when you determine margins, but the market sets the price.