What are the Advantages of a No-Contract iPhone 5?

[CoMoMacUser]

The answers probably will vary by country, but in the U.S., where I live, I'm not sure what the advantage is.

Suppose that I pay $649 for an unsubsidized iPhone 5 16 GB. To recoup the $450, I'd need to find a plan that's at least $18.75/month less expensive than what I could get going the traditional subsidy-and-contract route. The forthcoming T-Mobile iPhone plan, for example, will save $20/month, so the savings over two years works out to $30. That's not a huge savings.

So unless I can save a lot more than $30 over two years, what's all the fuss about?

 

[Beeplance]

You need to fork out more cash at one go.

 

[nharrietha]

Higher resale value. That's about all I can think of.

 

[CoMoMacUser]

When Sprint PCS launched, it tried to break the mold by eschewing subsidies. That lasted about 5 minutes, about as long as its GSM network.

 

[forcetactic]

Straight talk is $45 a month and ATT is close to $100 for an individual line. Of course you don't get LTE but the savings is huge

 

[617aircav]

The answers probably will vary by country, but in the U.S., where I live, I'm not sure what the advantage is.

Suppose that I pay $649 for an unsubsidized iPhone 5 16 GB. To recoup the $450, I'd need to find a plan that's at least $18.75/month less expensive than what I could get going the traditional subsidy-and-contract route. The forthcoming T-Mobile iPhone plan, for example, will save $20/month, so the savings over two years works out to $30. That's not a huge savings.

So unless I can save a lot more than $30 over two years, what's all the fuss about?

The fact that you are not stuck in a two year contract is an advantage to some. They can switch carriers as they see fit.

 

[crispytreat]

Straight talk is $45 a month and ATT is close to $100 for an individual line. Of course you don't get LTE but the savings is huge

This is why I switched from AT&T 6 months ago. I started out on a 4 and pick up a 5 a couple weeks ago. I am a happy camper. If T-Mobile gets there network together I may switch to them. These are the 2 factors that I value, a lower monthly bill and the freedom to change carriers when I want.

 

[aziatiklover]

$30 tmobile postpaid plan with unlimited data 3G in my area!

 

[CoMoMacUser]

Shelling out $650 for an iPhone 5 and then signing up for 3G rather than LTE seems odd, like buying Apple TV and then signing up for 1.5 Mbps DSL because it's cheap.

 

[Mrbobb]

Shelling out $650 for an iPhone 5 and then signing up for 3G rather than LTE seems odd, like buying Apple TV and then signing up for 1.5 Mbps DSL because it's cheap.

I got WIFI at home, WIFI at work, I really only need to use my cellular data so *occasionally* hell even edge <gasp!> may suffice 4rme. I can't buy a dumb phone because they don't do data at all, and the "other" smart phones, well, don't work as good, smooth, seamless like the iPhone so that's what I got, but hell why pay the carrier if I don't have to?

Camp1: Heavy cellular data user - indeed it does you no good to pay full price.

Camp2: We know what we do, we know how much we want to pay as the total (2 yrs) cost of ownership.

 

[Mr Hill]

Once T-Mobile gets one it will no longer make sense to buy one out of contract.

The only time it is a good idea is if you plan on using T-Mobile prepaid or an MVNO like Straight Talk or Simple Mobile. You won't have LTE either since the Big 4 will not allow prepaid or MVNOs to use their LTE networks.

 

[GoCubsGo]

Shelling out $650 for an iPhone 5 and then signing up for 3G rather than LTE seems odd, like buying Apple TV and then signing up for 1.5 Mbps DSL because it's cheap.

This girl nailed it! Why bother if you're only going to have 3G?

 

[CoMoMacUser]

I got WIFI at home, WIFI at work, I really only need to use my cellular data so *occasionally* hell even edge <gasp!> may suffice 4rme. I can't buy a dumb phone because they don't do data at all, and the "other" smart phones, well, don't work as good, smooth, seamless like the iPhone so that's what I got, but hell why pay the carrier if I don't have to?

An iPod Touch might be the way to go if you live in a city where there's enough hotspots that you could skip cellular altogether. LTE modems cost at least $125 in the volumes that Apple buys. Add in the markup, and that's a lot of extra money for something used only sparingly and then only on 3G or EDGE.

 

[isephmusic]

2 years on atnt contract = 2.5k + 200 phone
2 years on straight talk unlimited 45$ = 1.08k + 670$ phone

pretty legit savings if you ask me

 

[CoMoMacUser]

2 years on atnt contract = 2.5k + 200 phone
2 years on straight talk unlimited 45$ = 1.08k + 670$ phone

pretty legit savings if you ask me

If you don't need LTE.

 

[XboxMySocks]

Okay then regard this.
I pay $23 a month on Rogers on an iPhone 5. This includes pay-for-use data (LTE) which is used maybe 1-2x a month at $1 per day usage. HUGE. Savings.

 

[Mrbobb]

An iPod Touch might be the way to go if you live in a city where there's enough hotspots that you could skip cellular altogether. LTE modems cost at least $125 in the volumes that Apple buys. Add in the markup, and that's a lot of extra money for something used only sparingly and then only on 3G or EDGE.

Roger that. But even occasional I do need it from time to time and I've been looking forward to merge my iPod and phone into 1 device for a long time.

 

[duneriderltr450]

If you don't need LTE.

Or if you live in an area where AT&T won't update to LTE for another 135 years. 😉

 

[CoMoMacUser]

Roger that. But even occasional I do need it from time to time and I've been looking forward to merge my iPod and phone into 1 device for a long time.

A couple of years ago, Sprint sold a ZTE modem sled for the iPod Touch that basically turned it into an iPhone sans circuit-switched voice. I considered it.