Q: I was wondering why U.S. carriers have not picked up Nokia's N-series phones. Why wouldn't a carrier like AT&T or T-Mobile want such high-end handsets to attract customers?
- Zoheb
A: There are a few answers, Zoheb, but they all boil down to money. More so than in other countries the cell phone market in the United States has long centered on the service rebate. Carriers discount phones to attract customers and their contracts, while customers are trained to expect free or discounted handsets. While this dynamic is beginning to change due to the growing popularity of unlocked phones, service rebates largely rule the day here.
Nokia N96
(Credit: Corinne Schulze/CBS Interactive)Though the rebates have their upside--customers can get $200 knocked off the price of a nice smartphone--they have their downsides as well. And I'm not talking about service contracts. Rather, the widespread use of service rebates has helped to "dumb down" the cell phone selection in the United States. With notable exceptions, carriers tend to keep their phones below $300 to make them as affordable as possible.
The problem with the N-series phones is that they cost well over $500 (the fancy Nokia N96 is $776 unlocked). So even with a service rebate they're going to remain pretty expensive. Sure, there will be customers like yourself who will be willing to buy one, but that's not enough incentive for a carrier to buy a several thousand of them. Instead, they're going to pick handsets that will sell in the biggest numbers.
T-Mobile G1
(Credit: Corinne Schulze/CBS Interactive)We also have to remember that the N-series phones are complicated with a lot of different features. U.S. carriers tend to be in the driver's seat when it comes to choosing phones for their lineups. They have a lot of say in how the phone looks and what features it has. Thanks to the iPhone and the T-Mobile G1 this is also beginning to change, but they still like to exert their control. I'd wager than the N-series phones are simply too complicated for U.S. carriers. There are too many parts and features that the carriers can't control. Also, I'm sure that carriers haven't figured out how to monetize all the services on a handset like the N96. That's yet a another deterrent against picking it up.... Read More
Sony Walkman phones for sale
(Credit: CNET Networks)I returned recently from a trip to Hong Kong and found a cell phone lover's paradise just waiting to be explored. Cell phone shops line almost every street, and no, I'm not talking about stuffy carrier stores with a limited selection of only what they want to sell. Rather, I'm referring to full-fledged gadget shops with an untold selection of manufacturers and models, many of which I'd never seen in the flesh. It goes without saying that the offerings are light years ahead of what we get in the United States, but also the entire cell phone culture is far advanced as well. Read on for my discoveries during my trip and check out my Hong Kong cell-phone slide show.
Unlocked phones are good, carrier control is bad: Unlocked phones are not the exception in Hong Kong; they are the rule. If you want to buy a phone, you need only to pick out the model you want (and be warned, choosing from the huge selection isn't easy), take it to your carrier's store, and pop in a SIM card. It's a nice change from being forced to choose from the phones your carrier wants you to buy. On the downside, you won't get many carrier rebates, but in return you get something novel in the cell phone world--freedom of choice.
Just a small selection of handsets here
(Credit: CNET Networks)Cell phones work everywhere You can get a signal anywhere in Hong Kong. Whether you're on a ferry, hiking a peak on a neighboring island, or shopping in one of the numerous malls, a cell phone signal is not a problem, and dropped calls are almost unheard of. You can even get reception on the subway or in an underwater tunnel traveling between stations. And for some reason, people using their phones on the subway don't feel the need to bellow at the top of their lungs.
High-end phone rule: If you're itching for a Nokia N-series but can't find one in a U.S. retail store, you'd love Hong Kong. High-end phones--such as the N-series--with high-resolution cameras, media players, 3G support, and sleek designs are easy to find. Nokia even has a whole store at the airport for its Vertu line. And I was thrilled to find one of my favorite phones, the Nokia 5300, for sale almost everywhere.
What's a basic phone (and can you read Chinese)? On the flip side, if you want a phone just for making calls and without any fancy features, that can be harder to find. Also, most phones have default menus in Chinese, so if you ever go to Hong Kong and decide to buy something, make sure English menus are available. And don't forget it should have the 850 or 1900 GSM bands to work in the U.S.
Yes, they get it first: Sure the upcoming iPhone will be an exception, but it's no surprise that Asia gets all the cool stuff before it arrives stateside. It's a bit depressing actually.
Prepaid SIM cards are easy to find: I took a trusty Sony Ericsson W600i to Hong Kong and was amazed by how easily I found a prepaid SIM card. I popped into a carrier's shop and forked over about $15 for 300 minutes of service. There was no paperwork, no deposit, and I was up and running instantly for making local calls.
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