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20

AT&T offering BOGO for Windows Phone 7 starting November 26th

In case you've been missing out on all of those deals of late, just in time for "Black Friday" comes a great offer from AT&T: buy any Windows Phone 7 device and get a second one for free.

Of course the usual fine print applies: $15 minimum data plan, $36 activation (which you can usually get waived), 2 year agreement, etc. But hey, for the family or couple who need new phones, seems like a great deal to us. Anyone else get the impression that Microsoft is doing the "Xbox strategy" by eating the cost of sales in an attempt to gain market share?

Source: Microsoft

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Comments

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nulldev2010 says:

"Anyone else get the impression that Microsoft is doing the "Xbox strategy" by eating the cost of sales in an attempt to gain market share?"

No. These phones are cheaper to make these days. They shouldn't be selling at $200 a pop in the first place. Online shops do this kind of deal (or even better) all the time for just about every phone soon after the launch. The only phone able to get away with high price is iphone due to Apple's mind-controlling marketing prowess.

OGCF says:

Actually smartphones ARE worth quite a bit of money, but retailers here in the States tend to stomach the cost of the handset because they get more money from AT&T for the number of activations.

If you live abroad, you will realize just how expensive even the most basic of phones cost.

ninjaap says:

I honestly doubt they stomach the costs as much as they woould like us to think. Like if a phone was being subsidized at $200 for 2 years and the same phone can be bought for unsubsidized at $600. At a monthly rate of around $60, it would take about 5 months to get the cost of the phone back and 6 months to turn the profit. 6 months seems awfuly long to wait, especially if you have so much overhead costs. I think that most smarthphones really do costs around $200 and they just jack the prices up when we choose to buy them w/o a contract.

ninjaap says:

The way I understand it is that MS has already sold the phones to AT&T at a set cost. So if AT&T chooses to do a BOGO, they eat the costs, not MS.

GP07 says:

AT&T can get the money back quick, they want to get you on a 2 year contract, they don't care about the price of the phone at sale. MS gets it's licensing money from the OEM, i doubt MS gets paid from AT&T, but I dunno, maybe some sorta marketing deal going on? Anyways, MS hopes it can make money from the marketplace and Zune more than off of OS licensing.

ninjaap says:

You are correct! I completely jumped over the OEM, and I realized that right after I typed my reply. But yeah, my point is that MS is not the one eating the costs of the phones.

LCyberFox says:

I was excited for a minute but then realized this isn't really that fantastic of a deal because you require a new contract on both phones so it's basically the same as a $99 phone under contract --- you could already get it for this price using the holiday100 coupon or you can get it for $49 on amazon or free at walmart.. granted they are both backordered :)

Light Speed1 says:

is the walmart deal actually free? im talking shopping in person, not online....

or you pay 100 for the phone, then get the gift card?

is the price the same as what they show online? $100 in person too, or is the walmar thing online only?

Some people, in store, have been able to get the cost of the gift card instantly applied, meaning free. But that seems to be a case by case basis and you'll just have to try in person.

scdkad says:

Let me guess-new customers only? How about some deals for long time customers? And could this be because they are not selling as well as they though would?

I don't think it has to do with sales, per se. But it's never hurt sales to have competitive pricing. The Focus for sure seems to be doing well, not sure about the others though. I think if they kept the price at $200 across the board, no deals anywhere, people would complain that MS "Just doesn't get it" and opine that they don't know how to compete. Damned if they do, damned if they don't :-/

nulldev2010 says:

HD7 seems to be doing pretty good also. It's #1 selling for T-mobile and sold out at Amazon.

scdkad,
This kind of deal happens all the time with smartphones. Nothing new here.

scdkad says:

It's good to see ATT dropping the price a little even if it's for one day. Guess I gotta wait til Friday to see if upgraders can get this price.
Don't want to go too far off topic but wondering how sales have been so far.
Also on Monday 1 cent smart phones every 3 hours-can't wait to see what shows up there..

Hey Daniel (or someone else) - how do you get the activation fee waived?!

Call CS the next day and complain ;-)

ninjaap says:

I usually just ask the retailer (corp store or authorized) if they can wave the activation fee. I just tell them that the store down the street or an online store is waving the fee, which are true. Or if you buy through phone, the CS reps have the power to wave the fee. I don't think that sales reps gets commission off activation fees anyway. So they are more than happy to accommodate a sale.

GP07 says:

The demand for these phones must be real if AT&T will go to this level to sell them. Some might think that, "oh they're not selling so they're knocking the price to get rid of them!" That's not how it works in this case, if a carrier sees high demand for a device that they know they can get people to sign up for they'll do these sorta low price deals because the draw of the phones is what sells contracts in the end.

All this WP7 deals are a good sign imo.

mvierling says:

I don't know why anyone buys from AT&T anymore. Even at buy one get one free, they are overpriced. You can get two free from Walmart.com (through letstalk.com) even less than free when you throw in the $25 coupon code.

mvierling says:

For the people commenting on how this is Microsoft's doing...Microsoft has nothing to do with this. Microsoft does not sell or make any phones. Samsung, LG, HTC makes the phones. Microsoft is not allowed to make phones or else anti-trust lawsuits would be brought upon them. FYI, Microsoft is not allow to make computers either for the same reason. Only Apple is able to get away with making both the hardware and software.

izzypizzy says:

I got two Focus' last week for my wife and I, then I read this and went to my ATT store today. The manager was funny and wouldn't directly admit to the deal, but he said that "if there were to be a deal like this *wink wink*, call me on Saturday (he said he'd be busy on friday) and I would refund you the $200"

So thank you for this info!