Shopping Discussion

Do Rogers/Bell/Telus make anything off the sale of phones?

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  • Mar 1st, 2022 8:56 pm
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[OP]
Member
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Jan 20, 2013
391 posts
159 upvotes

Do Rogers/Bell/Telus make anything off the sale of phones?

For example, the iPhone 13 (128GB) is priced at $1130 from Rogers/Bell/Telus (or $47.08/month in 24 equal payments... same difference).

Meanwhile, the price is $30 cheaper directly at Apple ($1099 or $45.79/month). Is this $30 mark up the telecom company's profit? Or taking advantage of the convenience of adding it to the same bill?

Or would they be getting these phones in bulk for considerably cheaper, like $800 each? Anyone have an idea?
3 replies
Deal Fanatic
User avatar
Sep 19, 2002
6264 posts
6233 upvotes
Vancouver
The margins are under 5%. That $30 is part of their margins. Generally, you have to wait for carrier discounts otherwise it’s better to finance from Apple.
Deal Expert
Jan 7, 2002
27207 posts
24851 upvotes
Waterloo, ON
onquest wrote: Do Rogers/Bell/Telus make anything off the sale of phones?
Q1. Do they make money on phones? Of course!

A1. They buy at wholesale rates and sell at retail just like everyone else.

Q2. Do they do it to make money on the phones?

A2. Yabbut that's not the primary reason. The primary reason is to lock people into contracts. That assures the telcos a solid revenue stream for the duration of the contract as well as first crack at locking their customers into a subsequent contract.
veni, vidi, Visa
Deal Fanatic
Feb 19, 2017
5302 posts
3769 upvotes
Vancouver
They don’t make much on the phone but the make up for it by locking you in a contract for 2 yrs given how much they make off their plans.

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