On Wed, Jan 19, 2011 at 10:47 AM, Moandji Ezana <[email protected]> wrote:

>
>
> Karsten Silz:
>
>> Carriers subsidize phones because they make more money on the contracts
>> than what they spend on subsidies.
>
>
> Sure, but retaining existing customers is cheaper than acquiring new ones,
> especially if they don't upgrade their phones, but only their OS. Maybe the
> carriers agree with Cédric ♔ that this is not a selling point.
>
> Moandji
>

Selling a new phone to an existing customer means that you lock the customer
in to a new contract.  If you just update his phone, his annual contract
will eventually expire and he will go month-to-month.   They still make the
money each month, but they don't have the lock-in.

Chris

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