Toggle sidebar Toggle sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

Can someone please explain the benefits of buying a phone at full retail

bpeeps said:
Why doesn't anyone in this thread understand that buying unsubsidized in the US is just not worth it!
Click to expand...

What does one do if they want a new iPhone model every launch which is every year?

Ok I bought iPhone 4S as subsidized price @ $199 on a 2 year contract. What happens when the iPhone 5 comes out in a year?
 
jlmitnick said:
Yeah, the thing is you can buy it subsidized and then just cancel and pay your ETF and it's actually cheaper. $200 for the phone, and ATT ETF is $325, so $525, which is cheaper than the no contract price. I really don't get it.

Now, if it were factory unlocked, that would be different. Since the "unlock" adds a ton of value since it allows someone to pop a SIM in from any carrier.
Click to expand...

There's the problem. Even with the ETF, they will not unlock your phone. So you're still stuck. Doesn't matter much in the US, since AT&T is your only choice anyway, but makes a big difference in Canada, Europe, Australia/NZ, Asia, etc.
 
sulpfiction said:
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_3_5 like Mac OS X; en-us) AppleWebKit/533.17.9 (KHTML, like Gecko) Version/5.0.2 Mobile/8L1 Safari/6533.18.5)



Tick me off?? My post has nothing to do with who can afford what. I could care less that u bought 2 phones at full retail. I'm just wondering what the advantage would be to do that in the US. And the answer is, other then not being tied to a carrier for a period of time, there is no benefit. Ive been with AT&T for a long, long time and I'm quite happy. I've also been able to get a new iPhone every year, since 07 at the full subsidized rate. I have unlimited data and my bill stays the same every month. So for me, paying full price for the phone wouldnt make any sense.

I think u missed the entire point of the thread. Or maybe u just wanted to tell everyone that u can afford 2 iPhones at full price. Whatever the reason, your post makes no sense.
Click to expand...

No I did not miss the point of your post and I am glad you do not miss my point when I responded!😛
 
vitzr said:
It all depends on ones circumstances and what works for you.

I've found that the carriers are actually quite accommodating when approached in a friendly fashion. There's a concept called "lifetime value". My ongoing loyalty to the carrier has a very high lifetime value. Once I've called that to the attention of a decision maker, I find they're quite receptive.

Along with a track record of always paying my bill on time, not being a difficult customer, I find they're quite easy to deal with. I get two upgrades per year, one for each of my lines. I'm given unlock codes for free because I travel internationally & have negotiated that as a part of my contract. I've never had a reason to complain because we work together. It's all in the approach.

I've consistently, year after year, enjoyed two new smartphones of my choice, five years in a row. For me it's a terrific arrangement. AT&T likes it too.
Click to expand...
With whom you negotiated the contract?
So it includes your free unlocked codes?
Are you a lawyer? Or have a very god one?
If you don't mind sharing a little more info, how much is for monthly expenditure with AT&T?

For as much as I tried, maybe not enough, I am not successful, even for iPhones out of the contract: Original, 3G and 3GS.

My monthly payments go around 200 to 450 USD, as I travel a lot to Europe and Mexico, and use the line for work stuff, my employer reimburse me the work related part of the bill (most of it are roaming charges).
 
Unlimited is a misnomer and deceptive selling point. Most power users never go over a 2 or 3 gig limit monthly. Unlimited data was a great way to get customers in but over 95% of all customers never come close to their data caps even using things like Skype or Internet TV.
 
I'm buying unlocked. Here's why: I travel a lot.
I use ATT. I like ATT, but I travel a lot. Sometimes for months at a time. I can't pay hundreds in roaming fees, and because of work, I can't be without a phone. An unlocked iPhone just makes sense in my case.

If you're happy with ATT and don't leave the U.S. a lot, then don't buy unlocked.
 
My perspective on this as someone living in the UK:

Advantages
  • No contract hanging over your head!
  • Can sign up to month-to-month plans that offer more value at a lower price
  • Not tied to a specific network should you choose to jump ship
  • Able to use the phone on foreign networks when traveling to avoid roaming fees
  • Resale value for unlocked devices is considerably higher than locked ones
  • Did I mention the awesome feeling of not being in a contract?

Disadvantages
  • Higher up-front cost, not everyone is comfortable with dropping £500 on a phone
  • Can't haggle deals with operators (although this is balanced out with the fact that month-to-month plans are high value anyway)
 
Xenc said:
My perspective on this as someone living in the UK:

Advantages
  • No contract hanging over your head!
  • Can sign up to month-to-month plans that offer more value at a lower price
  • Not tied to a specific network should you choose to jump ship
  • Able to use the phone on foreign networks when traveling to avoid roaming fees
  • Resale value for unlocked devices is considerably higher than locked ones
  • Did I mention the awesome feeling of not being in a contract?

Disadvantages
  • Higher up-front cost, not everyone is comfortable with dropping £500 on a phone
  • Can't haggle deals with operators (although this is balanced out with the fact that month-to-month plans are high value anyway)
Click to expand...
The resale value is much better. You're right there.
I'm planning to order every other phone unlocked.
 
For me, i just got fed up of paying the £40 per month. Im happier paying it all in one at the start to get an unlocked phone.

Here is the costs for me, starting from now upgrading my my IP4 to IP4S, and then to IP5, this assumes IP5 costs the same as 4S.

18 Month contract option:
Pay for "early upgrade": -£50 (Total: -£50)
Sell IP4 = +£300 (Total: +£250)
Buy IP4S 16gb on 900 Minute (£41/mo), 18mo contract= -£50 (Total: +£200)
Pay for first 12months contract till IP5= -£492 (Total: -£292)
Pay early upgrade fee 6 months early (6x 41)= -£246 (Total: -£538)
Buy IP5 16gb on 900 Minute (£41/mo), 18mo contract:=-£50 (Total: -£588)
Sell o2 Locked IP4S = +£300 (Total: -£288)

So after paying for everything to the point of starting a new contract on my next iPhone 5, it will cost me £288.

Unlocked IP4S option:
Pay off remaining contract: -£70 according to o2 (Total: -£70)
Sell IP4 = +£300 (Total: +£270)
Buy IP4S 16gb Unlocked from Apple = -£499 (Total: -£229)
Buy 1month rolling contract on carrier 3 (£15x12) = -£180 (Total: -£409)
Sell IP4S 16gb Unlocked SIM Free= +£350 (Total: -£59)
Buy IP5 unlocked sim fee = £499 (Total: -£440)

So yes, to buy it Unlocked and upgrade through an unlocked phone every year is more expensive.

However it is worth noting a few things:

1) If i decide i don't like 3, or don't need to use my phone as much, i can easily switch to GiffGaff costing as little as £5 a month. Or i can use a pay as you go sim and just top up whatever i need.
2) Technically, i could never pay for a rolling contract throughout the year or a payasyougo sim if i wanted to save money. I could live off iMessage and eMail (Seeing as i always text, this is probably easier than i imagine).
3) If i decided not to upgrade next year, it would only of cost me £59
4) It's easier if i go abroad

So if you use it in a set way just like a contract phone, it is more expensive.
If you want to do any of the above, it can be significantly cheaper with many advantages.

For me i just like the fact that i don't have to worry about getting that £41 a month. I can just pay for the phone now, and never have to worry again - as technically i do not need to pay for anything else.

edit:

Just noticed that £41/mo doesn't get me my 1gb of data ! So it is only fair i add on an extra (£10x18months) = £180
Bringing the contract route option total too: -£468
 
AT&T has a new upgrade rule. If you don't mind keeping an iPhone for at least 20 months then subsidized pricing is your best option. There isn't going to be 12 month FULL upgrades anymore. When you get an iPhone at subsidized pricing you signed a 2 year contract. You will be upgradeable in 20 months. There will be a 'partial upgrade' prior to 20 months at $250 + subsidized 2 year contract price.

So for those that got the iPhone 4S you can get a full upgrade in 20 months 5/2013.

What are you going to do October 2012 when iPhone 5 comes out? You will be eligible for partial upgrade at a TOTAL of $450. Sell your 4S for $300 and an iPhone 5 will cost you $150 out of pocket...

That's IF you can be even eligible for a partial $250 + $199 upgrade.
 
McGiord said:
AS already mentioned, it only make sense out of the US, or if you get a unlocked one.
If it is unlocked, I believe that:
1- you can use a pay as you go AT&T SIM and you could manage your phone cost as you want.
2- If it is not unlocked AT&T will add the data plan as soon as they identify the iPhone when it connects to the network.
Not 100% sure about these 2 points, but it has been my understanding.
Can someone, who actually knows ow this works with factory unlock iPhones used in the AT&T network, provide confirmation or the correct infomration?
Click to expand...
Whether it's locked or not is irrelevant. It's whether or not the system can identify your device based on the IMEI that determines whether a data plan is automatically added or not.

sapporobaby said:
Doesn't matter where the OP lives. There is no such thing as a 300 dollar iPhone. All those prices are subsidized. They are not real. The operators are bearing the initial cost of the iPhone and then loaning the iPhone to the user at a higher cost. The loan is over in 2 years.
Click to expand...
A subsidy is not a loan. People need to stop thinking of them as interchangeable.

As pointed out above countless times, the only benefit in the US is not being under contract. Whether that's worthwhile or not depends on the specific person deciding on the 2 options. It's not a one-size-fits-all matter.
 
Last edited:
mpossoff said:
What does one do if they want a new iPhone model every launch which is every year?

Ok I bought iPhone 4S as subsidized price @ $199 on a 2 year contract. What happens when the iPhone 5 comes out in a year?
Click to expand...

Yup. Thats the reason i have had to do it.
 
Stealthipad said:
I bought two iPhone 4s at full price.

You must realize that $600 or even more is not a lot of money to some. It is all relative. This will tick many off but before you get mad a me, it ticks me off to hear many are buying their new iPhone before th😡ey buy food or pay rent!

Everyone has a right to spend their money as they wish!
Click to expand...

I'm with you on this one. Take advantage where you can, but also pay where you need to.

Say you use your iPhone 25 times a day (Calls, e-mail, games, movies, etc). That's 9,125 device contacts over a one year period. That works out to about 7 cents an interaction - not that big of a deal at all.
 
racer1441 said:
I'm with you on this one. Take advantage where you can, but also pay where you need to.

Say you use your iPhone 25 times a day (Calls, e-mail, games, movies, etc). That's 9,125 device contacts over a one year period. That works out to about 7 cents an interaction - not that big of a deal at all.
Click to expand...

It is a big deal when that's your rent money, which is what Stealthipad was alluding too.
 
In my cases since I leave abroad I need a unlocked phone so I can plug my SIM card whenever I return home, plus my company pays my cell phone charges and data plan, so I just put the card in the iP4
 
Geckotek said:
Once again, OP is in the US. This does not apply. In the US we do not get the choice of a cheaper rate plan because we purchased our phones w/o a subsidy.


Try to stay on topic.
Click to expand...

*Sigh*

It does apply. I've been using a T-Mobile prepaid plan with data, for $30/month, with my unlocked iPhone in the states. You can now buy an unlocked phone directly from Apple's US website, right?

T-Mobile prepaid SIM + unlocked iPhone. It's pretty simple really.

http://prepaid-phones.t-mobile.com/prepaid-plans

Edit: It's not really clear on T-Mobile's website, but when you buy the prepaid SIM, you can upgrade the plan to the $30 month "4G" plan, or any other plan you want, whenever you want through their website. I'm not a T-Mobile shill, this is just the carrier I have experience with.
 
Last edited:
Ping Guo said:
*Sigh*

It does apply. I've been using a T-Mobile prepaid plan with data, for $40/month, with my unlocked iPhone in the states. You can now buy an unlocked phone directly from Apple's US website, right?

T-Mobile prepaid SIM + unlocked iPhone. It's pretty simple really.

http://prepaid-phones.t-mobile.com/prepaid-plans
Click to expand...

Uh...exactly how is that a benefit? Does it cost you less? My plan is $40 so I'm not seeing any benefit here.

And paying full retail isn't what allowed you to do that. Either buying an unlocked phone or unlocking your own phone got you that ability.
 
Geckotek said:
Uh...exactly how is that a benefit? Does it cost you less? My plan is $40 so I'm not seeing any benefit here.

And paying full retail isn't what allowed you to do that. Either buying an unlocked phone or unlocking your own phone got you that ability.
Click to expand...

Isn't buying an unlocked phone paying full retail? 😛

I was under the impression that the non-contract price plans offer more minutes.
 
Xenc said:
Isn't buying an unlocked phone paying full retail? 😛

I was under the impression that the non-contract price plans offer more minutes.
Click to expand...

No, no extra minutes.

thewitt said:
You pay full retail when you buy a locked, contract phone. You just pay over time...
Click to expand...

Depends on how you look at it, yes the carrier factors in the subsidy into the price of your rate/contract. But you pay that rate if you take the subsidy or not, so it's better to take the subsidy. There is no rate change in any way when you pay full retail.
 
serega said:
You can be on prepaid plan when you pay full price for your phone, which seems to me a little cheaper and will save you money in the long run.
Click to expand...

/\/\/\
This is exactly why. I can get unlimited talk and text and enough data for $55 a month. And there is no tax or regulatory fees on prepaid. I save 300 a year plus my phone will sell for more money on ebay when I upgrade.

It definitely costs less in the end.
 
Geckotek said:
Uh...exactly how is that a benefit? Does it cost you less? My plan is $40 so I'm not seeing any benefit here.

And paying full retail isn't what allowed you to do that. Either buying an unlocked phone or unlocking your own phone got you that ability.
Click to expand...

So you pay $40 for your iPhone contract, with data, all inclusive. Care to provide a link? I'm sure a lot of people would be interested.

For a comparison, the cheapest iPhone 4S plan is Sprint for $70/month + $200 with a 2-year contract.

$70 x 24 months, + $200 = $1880

Unlocked 16gb 4S is $649. T-Mobile basic data + voice is $30/month.

$30 x 24 months, + $649 = $1369

You just saved $511, plus you have the freedom to change plans and providers whenever you choose, and you can travel with your phone.

But please, don't let facts and basic math stop you from spouting off yet again. 🙄
 
Ping Guo said:
So you pay $40 for your iPhone contract, with data, all inclusive. Care to provide a link? I'm sure a lot of people would be interested.

For a comparison, the cheapest iPhone 4S plan is Sprint for $70/month + $200 with a 2-year contract.

$70 x 24 months, + $200 = $1880

Unlocked 16gb 4S is $649. T-Mobile basic data + voice is $30/month.

$30 x 24 months, + $649 = $1369

You just saved $511, plus you have the freedom to change plans and providers whenever you choose, and you can travel with your phone.

But please, don't let facts and basic math stop you from spouting off yet again. 🙄
Click to expand...

No, and I didn't say I did. Tell me where this $40/month with 3G data all-inclusive is.

Oh, and don't let things like comparing Apples to Apples stop you from spouting off yet again. 🙄

----------
orbitalpunk said:
/\/\/\
This is exactly why. I can get unlimited talk and text and enough data for $55 a month. And there is no tax or regulatory fees on prepaid. I save 300 a year plus my phone will sell for more money on ebay when I upgrade.

It definitely costs less in the end.
Click to expand...

Not in the US, not unless you are willing to use Edge data speeds.

OP, are you willing to accept Edge data?
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back