Unlocked phone and high cost

[fdalbor]

Not to sound STUPID or anything but I was wondering if anyone knows the reason that unlocked phones cost so much more than a carrier locked phone. It would seem a unlocked phone would cost less as the carrier (or distributor) has to do something to the phone to make it locked. I bought three AT&T 520 Go phones (that can be used on the prepaid network or the post paid AT&T network) for the price one unlocked 520 would cost. As I am on AT&T it did not matter; but I am considering changing to T-Mobile. They would not unlock my 820 until my plan was over, but would unlock the 520's after three months. ?????????????????

 

[Markham Ranja]

When you buy a locked phone, the carrier expects that they will make some money at least off you using it on their network (therefore paying them for service). With an unlocked unit, it's sold for its actual cost.

 

[Kebero]

Carriers subsidize the cost of a device in exchange for the guaranteed revenue of the contract. Compare the on and off contract prices of a device from any carrier.