Do cell phone companies really need to charge so much to make a decent profit?
December 24th, 2009 | by AJS |
dillydadally asked:
I was wondering if cell companies charge so much and have so many fees and such long contracts because they have to to make a fair profit and stay in business, or are they making tons of money off the high demand of cell phones. If they do need to charge so much, is it because of poor business practices or why is it?
I was wondering if cell companies charge so much and have so many fees and such long contracts because they have to to make a fair profit and stay in business, or are they making tons of money off the high demand of cell phones. If they do need to charge so much, is it because of poor business practices or why is it?
If anyone has studied this or worked close enough with cell phone companies to give an educated answer, I’d sure like to know. Please provide sources and facts (not opinions please). Thanks.
I guess I should say I understand that they will charge what the market will bear and as long as we keep paying, they’ll keep charging high rates.
My question is, at their current spot, does anyone know if they are making large profits because they are taking advantage of the market, or if the “invisible hand” of the market has driven their charges as low as they currently can go with today’s technology and still stay in business?
Kristofer
3 Responses to “Do cell phone companies really need to charge so much to make a decent profit?”
By sosezshe on Dec 26, 2009 | Reply
I’m quite certain that your idea of a decent profit & the cell phones companys’ idea are vastly different. So long as the consumers are buying the services, the rates will continue to climb. It’s all about supply and demand my friend.
By kaffegeek on Dec 28, 2009 | Reply
actually the cell companies like other large utilities charge what the market will bear. and keeping in line with their competitors.
cell phones and their capabilities are very very very cheap now compared to when the were first invented.
we are lucky to have them
By masta blasta on Dec 31, 2009 | Reply
It’s the greed of corporate America to ***** consumers as much as possible. But then again, a cell phone needs to have internet, texting ability, mp3 player, movies on demand, tv on demand, be a mini transformer, and other things people really don’t need on a phone. So as long as people feed into the materialism of being first to have the latest in technology(i.e. the I-phone) which will be obsolete in 6 months anyway, phone companies will continue to **** consumers. Basic economics - supply and demand.