For me, they gained 6 new lines coming from AT&T. Cost of aquiring new customers. Also note that other carriers had deals very similar, and current VZW i'm sure where checking them out. Anything to gain and retain customers.
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I am new to VZW so I was given $0 down and $0 taxes, so I don't have to worry about billing for now!
what am i missing? the plan itself costs money... we don't JUST pay for the phones. This whole exercise is an added cost. What is your plan cost?
you have to realize that before the last few years, WE DIDNT PAY A MONTHLY FEE FOR PHONES AT ALL, we paid 199 bucks. Now, verizon is making us pay MUCH more over the course of just a year. This is a WIN for them...
You can finagle the numbers all you want but if you upgrade after 12 months you are getting a wash at best, they've paid you 325 for your iPhone 6, and you now have to buy a NEW iPhone 8, which will probably be the same deal, where they give you trade in credit. At 12 months you've gotten 325 for your iPhone 6, you have an iPhone 7 that you've paid 325 for because you've lost the second half of your 650 credit. Then, if you trade in your iPhone 7 for an 8 deal, you've given verizon BACK the second half of your equity in the deal. Even if you make another deal, you've only moved verizon's money forward, you didn't gain anything but putting off your paying verizon the rest of what you owe them. The only real way to beat the deal is if you keep upgrading at 12 months until you die of too much cell phone radiation to the brain.
Personally I'm ok with it, but at least i realize I'm not getting any free lunch.
I know its complicated but again, I say, they wouldn't do it if it didn't benefit them.
P.S. How can they give you 0 Taxes? The taxes come from the government, not them, its a federal tax. Are you sure you don't mean they are charging you zero tax ON THE PHONE? Because I've never heard of a cell phone company absorbing the federal taxes, and especially not every month.
