Comment by general_failure | Hacker News Reader

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Comment by general_failure | Hacker News Reader

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general_failure·

> Tesla is a rich person's toy only made affordable by heavy tax credits.

Apple is also a rich person's toy only made affordable by heavy carrier subsidy. Carrier subsidy is the primary reason why iphone sales are so high. Nobody would otherwise pay 600-700 USD. As opposed to android devices which are like 400 USD for no subsidy (nexus 4).

I suspect carrier subsidy has artificially inflated the iPhone's MSRP though.

Carrier subsidy and tax credit are two completely different animals.

at the end of the day they're exactly the same to the end-user.

Except for being locked into a 2 year contract with a steep cancellation fee.

If most people bought phones without carrier subsidy, Apple would price the iPhone differently.

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