OT - Cell phone makers fight resales ?

Edwards Finance > Phones

Q. I read almost the entire article and still fail to see any wrongdoing on the part of these bulk buyers. Looks like some cell phone making businesses are greedy beyond reason, as often happens, and cover themselves with completely false terrorism "concerns".

A. Simply another case of a greedy corporations doing whatever they can, to keep all the profits for themselves. I think I'd be more surprised, to find out Michael Jackson was a queer.. About a month ago, there was a news story about Homeland Security's "big bust" of some guy who'd bought a couple of hundred pre-paid cell phones. It seems that they automatically ass/u/me that any such large volume of cell phones *absolutely must* be destined for terrorists' use. I also saw that HLS story...where the Government was claiming a terrorist deterred success....and this seems to be the "rest of the story". So much for success....I guess they saved someone from a cheaper cell phone. For example, a Nokia 1100 - one of the phones referenced in TracFone's lawsuit against Larry's Cell - was being sold in stores for about $20 a phone. However, it probably cost TracFone about $25 per phone wholesale, said Paul Sagawa, an industry analyst with Sanford C. Bernstein & Co. in New York. But wouldn't they be paying out much more for roaming if bulk quantities of phones whose business model is centered around, for instance, Toledo Ohio were distributed in, say, Mexico City? Seems like, in order to offer a certain price for a certain number of minutes they'd have to build some assumptions about anticipated average use into the price.... and to the extent that entrepreneurs do what they're doing, the phone companies would have to up the price or take the devices off the market.

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