HTC’s challenge: what price a Hero?

David Flynn
19 November 2009, 11:22 AM


Will HTC’s decision to sidestep the subsidised handset plans of mobile phone carriers and sell the Hero and Tattoo outright help or hinder its new Android smartphones?


Yesterday’s launch of the Hero and Tattoo revealed an unexpected turn of events, with HTC choosing to offer its newest smartphones only for outright sale through mass market retailer Harvey Norman rather than through any one mobile phone carrier.

This is the first time in Australia that HTC has trodden the retail-only path. All of its previous smartphones offered through at least one carrier and have often been exclusive to a single telco, including the first-gen HTC Dream (available only through Optus).

HTC’s retail-only play allows almost anyone to buy the unlocked Hero for use on their network of choice, provided that network isn’t Next G – the Hero supports only 2100MHz and 900MHz as 3G HSDPA bands, not Telstra’s 850MHz service.

However, sidestepping the carriers also means losing the subsidised contract-based plans which make the high-priced handsets – $799 rrp, in the case of the Hero – more affordable through monthly repayments.

Carrier plans can also provide buyers with a wide range of voice+data bundles at various price points – a scenario that’s especially useful for mainstream shoppers who may be new to the world of smartphones.

(Indeed, this is doubly important for ensuring that less tech-savvy buyers are aware they need to pay extra to upgrade their current voice-only phone plan to include a suitable monthly data component).

On the Whirlpool community forums, APC found that Aussie Android fans who’ve been holding out for the Hero had mixed feelings about HTC’s decision to kick off with retail-only sales.

Some welcomed freedom of choice rather than mandatory network lock-in, while others considered the Hero’s high outright cost and lack of subsidised plans would deter buyers.

“I think it’s great that the Hero isn’t locked to any particular network” said Whirlpool member Ragnar. “I haven’t gotten a phone through a phone carrier in many years. I’ve always sourced unlocked phones and bought them outright. I really hope this is that start of a revolution in phone sales in Australia, where people can go into a retail shop, check out a bunch of phones and then buy one, simple as that!”

Jazacoop saw the news as more of “a bittersweet outcome”. “Whilst it gives us the freedom to buy it unlocked and outright, and use it with whatever carrier we'd like, we also miss the opportunity get a subsidised handset on a contract (which is probably what many of us were after).”

“Carrier exclusive deals are bad” observed TwistedD, “but at least you usually get a choice of plans. A retail exclusive of a handset is a horrible idea in my opinion. I am not opposed to the idea of handsets being available unlocked from retail outlets, but an ‘exclusive’ means if want an Australian Hero, we pay $800. It is a lot easier for people for justify $100 a month for their mobile service than paying $800 in one hit just before Christmas.”

All the same, you won’t need to pay full price for the Hero – online stores already have slashed the smartphone’s sticker by over $100.

Local online store MobileCiti lists the mocha-black Hero at $689 unlocked, with stock due to arrive “on Monday 23 November, 2009” according to its Web site.

MobiCity has the unlocked Hero in both mocha-black and pink for $709, while Melbourne’s OrganiserWorld lists the Hero for $749.

There’s also the option of buying overseas, although HTC is quick to warn of the associated risks – ranging from lack of local warranty support (the phone would have to be returned to the store for any warranty repairs) to a possible inability to call 000 under certain circumstances such as when there’s no SIM card in the phone.

UK store HandTec has the Hero in white, mocha-black and pink, all unlocked, for $549 (£304 ex-VAT) plus an additional $63 (£35) for FedEx delivery to Australia, totalling $612.


Post your comment



Comments

RSS feed Email alert

Tin (User):

It'll come to telcos soon. They just take longer than retailers because they have to check with the accountants and lawyers before releasing a package. And no doubt they want to customise the OS.

Besides, if you really want it with a monthly payment instead, ask Hardley Normal about finance options. They usually have some kind of 12 month no-interest deal, right?

19 November 2009, 12:29 PM (3 years ago)report abuse Send to a friend reply

petert (Advanced Forumologist):

Telstra is the only carrier that works where I live. I really wanted to support Android by buying one of these phones, but because they won't fully work on the Telstra network, I am unable to do so. I bought an iPhone 3GS instead. It's a very good phone and I've no complaints, but it is a little disappointing that I could not instead have the HTC phone - and won't be able to do so for two years when the Telstra contract expires.

19 November 2009, 1:44 PM (3 years ago)report abuse Send to a friend reply

Aubrey (New user):

I've never really seen the value of the "subsidy" for carrier lock-in. Its mostly smoke and mirrors as far as I can tell and value for money really depends on having foreseeable and consistent use patterns. My kids both have contract smartphones and seem to be forever being hit with extra charges anyway. And the Whirlpool user who would prefer $100 per month over 24 months to $800 up-front and pay-per-use either has enormous phone usage or didn't finish high school maths.

19 November 2009, 3:04 PM (3 years ago)report abuse Send to a friend reply

MatW (New user):

You failed to mention that using an imported phone is illegal. All phones used in Australia must have an A-Tick symbol:

http://www.acma.gov.au/WEB/STANDARD/pc=PC_1728

24 November 2009, 7:01 AM (3 years ago)report abuse Send to a friend reply

Raindog (New user):

Quoting MatW:
All phones used in Australia must have an A-Tick symbol:

Which is somewhat of a nonsense when you actually trie to present equipment for test approval and certification to find that there are no Australian labs equipped or qualified to test for A-tick compliance. For your money you can get an open letter saying looks alright from a cursory glance, but all responsibility is yours.

"Beaurocracy taking Australia to where it's headed, for you"

24 November 2009, 8:38 AM (3 years ago)report abuse Send to a friend reply

Tin (User):

Ummm, yeah... Cause sane manufactures will only print the approvals for the destination country.

Take a look at the nearest phone to where you are right now. Find the approval symbols. You'll notice it has all kinds, from Europe, Australia, Asia and the Americas. They want to maximise sales, not red tape.

24 November 2009, 9:05 AM (3 years ago)report abuse Send to a friend reply

anonymous user Anonymous user