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$934 for a phone... What's wrong with me.
- Thread starter lavrishevo
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I feel the same way as the OP; however, I justify it by saying that I'm switching to a value share plan that will same me $25 a month and my phone is what keeps my head straight.
I have been in this game since the first Palm Pilot came out and then iPaqs. I rely heavily on setting appointments and reminders so although this cost allot of money, it's no different than buying a nicer car. A regular car will get me where I need to go but I don't want to get into a regular car everyday, several times a day. Sometimes you just have to realize what brings you happiness!
Life is not a dress rehearsal. You deserve to spoil yourself now and again.
That being said, I will for the first time seriously consider keeping my phone for two or more years. I think Apple will set records for upgrades this time but it will be offset by the amount of people that pass on the next one. Especially at these prices!
I have been in this game since the first Palm Pilot came out and then iPaqs. I rely heavily on setting appointments and reminders so although this cost allot of money, it's no different than buying a nicer car. A regular car will get me where I need to go but I don't want to get into a regular car everyday, several times a day. Sometimes you just have to realize what brings you happiness!
Life is not a dress rehearsal. You deserve to spoil yourself now and again.
That being said, I will for the first time seriously consider keeping my phone for two or more years. I think Apple will set records for upgrades this time but it will be offset by the amount of people that pass on the next one. Especially at these prices!
I think it depends where you are coming from. I bought my first iphone on subsidy for not much up front. But paid and paid and paid as time went along. Each month that goes buy, my total (money/time) outlay goes up. During those same years, I bought 3 separate iPads. Each between $700 and $900 and none with a monthly fee. Each month that goes by, my total (money/time) outlay goes down. Since time passing is inevitable, I'm going with the option that makes time work for me.
An iPhone is just a smaller iPad with a two way voice radio added. Connecting to the phone network adds value, so it should be worth at least as much.
An iPhone is just a smaller iPad with a two way voice radio added. Connecting to the phone network adds value, so it should be worth at least as much.
Biggest thing it changed in my family is how we look at upgrades. In the old days of subsidies and flat monthly rates, upgrades were more common. The kids started with hand me down phones and when an upgrade was 'only $199' (or $99) for the C, it was a reasonable birthday/holiday present.
Now that that phones aren't subsidized and there is a line discount for a BYOD device, I'm not not dropping $650-$850 for my 16 and 12 year old to have the latest and greatest. They can save for it/contribute to the monthly cost, look for a reasonably priced use phones or wait for hand me downs again.
Now that that phones aren't subsidized and there is a line discount for a BYOD device, I'm not not dropping $650-$850 for my 16 and 12 year old to have the latest and greatest. They can save for it/contribute to the monthly cost, look for a reasonably priced use phones or wait for hand me downs again.
When I say subsidised I mean signing a new contract and paying $199 or whatever not the Next or Edge financing program. There is no additional built in cost to my service contract just signing a new contract.
Depends on who you sign with. If you're paying $199 for the phone, odds are you are likely paying $30-$40 a month for a data plan. The extra cost for your phone is built into those payments for the duration of your two year contract. And under that model (with AT&T and Verizon) you continue to pay that higher monthly service rate even when the plan is paid off or when you BYOD. (That was truly a ripoff.....)
But it for retail, use NEXT/EDGE or buy it subsidized, it's all the same. You are ultimately paying full freight for the phone.
The subsidized pricing model was genius though. It got people into smartphones buying habits they never would have done if they paid for the device upfront like the rest of the world. If you asked 5 years ago how many customers would pay $650-$850 for a device that depreciates by 80% in 3 years and would do it every 1-2 years....you'd never have guessed tens of millions.
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That $60/month single-line plan is the exception rather than the norm and it's a limited time offer, too. That said, it really is a great deal for those with single lines and upgrade phones every 1-2 years.
I'm actually on postpaid. We have a family plan and it works out to just $60/mo per line back when we were on subsidy and now on MSVP, it's $40/mo per line without subsidy so what we're paying is cheaper or comparable to prepaid plans. It gives us 10GB shared data (of which I use 6-8GB), personal hotspot and unlimited international texting. The only plan I can find even cheaper is Cricket Wireless with multi-line discounts (ends up being ~$35/mo per line) but I can't find anything concrete on their website regarding a tethering policy.
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Yes. This is exactly why I disliked the subsidy model.
Exactly. The subsidy model greatly accelerated smartphone adoption in the US.
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The real problem is that most people don't truly understand the real cost of the phones. People don't realize that the phones really do cost $650 starting out brand new. All they see is $199 and think that's what the cost is.
My MIL still doesn't understand that iPhones cost this much. She wanted to buy one of our old phones when we upgraded to the iPhone 5 as she wasn't eligible for an upgrade. I told her like $150 or so and she got outright mad that we were ripping her off. Why would she pay me $150 when she can get a brand new one for $49 or even possibly free? She didn't understand that they are subsidized pricing and the phones really cost $549+.
I would bet that if everyone had to pay the real cost of the iPhone and no subsidized price or even using the Next program....tons of people would not own an iPhone at all.
I know that you understand how subsidizing works...but looks like you've gotten used to that mentality to where you weren't realizing the true cost of the phones.
I agree...the phone prices are outrageous...but Apple/other phone makers/AT&T etc. have figured out a way to trick people into not realizing the true cost of these phones.
With this iPhone 6+....it will be my main device as i will probably end up selling my iPad mini. For the price....it does so much. But for someone who just wants to make a couple calls or a few texts....it's overkill.
not that you can see....but it's built in. it has helped shield people from the true cost of these phones for years. You pay $199, plus a $40 upgrade fee, plus subsidized built in and you are way over what the phone actually costs. But since you can't see the true cost....most just think it's $199 and nothing more.
Also, in the USA, people love monthly payments. So if they just have to pay a little bit more each month instead of paying the true cost of the phone upfront...that's great!
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It's unfortunate that the device is saddled with the "phone" moniker: it's so much more than a phone. I see that I have a very powerful computer, communicator, and entertainment device in my pocket, and the price makes sense to me. They're way better than what I saw on Star Trek.
exactly...good point!
People can't believe i'm getting the 6+. But i'm like...a phone is not just a phone anymore. I seriously only make a few calls a week. I mostly do when i'm in the car and have bluetooth anyways. It is so much more than just a phone... it's a mini computer in ur pocket with super fast data on all the time.
I know that feel.
I was just questioning it the other day and my wife said "well, you use it every day and you use it for work so if you're going to buy something expensive, at least it's something you use!!"
(paraphrasing)
But she's sort of right... not that my iPhone 5 isn't still just fine...
I was just questioning it the other day and my wife said "well, you use it every day and you use it for work so if you're going to buy something expensive, at least it's something you use!!"
(paraphrasing)
But she's sort of right... not that my iPhone 5 isn't still just fine...
People always throw the "$1500 for a subsidized phone" phrase, but I don't understand why they include the service fee. The monthly bill is higher because I'm paying off the phone, but I would be paying for the core service to actually use the phone whether it is under contract or not.
Also, lets be real, most of the people buying it outright are buying on credit anyway. Same with Macs. I don't have the most the high end specs on my Apple devices, but at least I completely own them.
Also, lets be real, most of the people buying it outright are buying on credit anyway. Same with Macs. I don't have the most the high end specs on my Apple devices, but at least I completely own them.
Oh wow, you bought it -- hook, line and sinker.
Of course it's built in!! You think they can just pony up ~$450 for EVERYONE who gets a new handset? No way! The reason your phone bill is so much is because they've built the subsidized cost into their pricing scheme.
That's why I always tell people like my parents: "Even if you're not going to use a new phone, you should go get one and re-sell it because ultimately, you're paying for the subsidy whether you get a new device or not."
they are just now starting to show the difference with the AT&T Value plan for example. Where they give you discounts for BYOD or if you buy on Next etc. Before, yes your statement was true as it was the same cost regardless if you paid it outright or not. Not the case anymore.....
Ahhhh you're one of the people that hates credit cards bc you weren't disciplined and got into trouble. thanks for clarifying!
Painful indeed. I was actually going to buy the high end iPhone 6+ on its release, that would be $950 + $85 in taxes. At a price of 1035, I felt it was way too much to pay for a phone when a 13" rMBP has been on my 'to get list' for a while. Im going to fight through the new iPhone hype and wait until November for my upgrade to get the subsidized price, albeit, it does pain me to wait.
I paid full price for the 64GB 6+ as well.
I look at it like this. Generally speaking I sell my old iPhones/Phones each year. With what I sold my iPhone 5S for, the actual out of pocket wasn't bad. I also use straight talk, which is $45 a month.
There will always be something less or more expensive, but does it fill the need and is it what you want?
No, but core service is significantly less expensive if you take out subsidy. For example, in my case, service+subsidy was $60/mo while service only is $40/mo. On the old plans, I was paying an extra $240 ever year regardless of whether I get a new device or not.
Less people would be buying $650+ smartphones, though, if they're actually made aware of the true cost. My mom has taught me to always pay my credit card balance in full every month so I never buy stuff on credit card that I'm unable to pay off.
No way i'd pay that for a phone, no way. I could almost buy two new pistols for that.
I'd cancel it at that price.
I'd cancel it at that price.
That is the way I look at. I use my phone now for a lot of the same things I do on my MBP. Music, photos, movies, streaming, blogs, contacting friends and family, etc. My phone is also a big part of my photography business now. It is an extension of my computer.
Well, my friend was offered the mobile share value plan, and he's on contract, so he's paying even less now.
Actually I'm 20 years old, a college student, and never owned a credit card. The things people judge and say on the internet. I don't hate credit cards, they can be useful in certain situations, plus I need to get one eventually to build credit. I also pay my own car payment. My point wasn't a nock at credit cards, it was that people come on here saying how much they save by buying outright, but most of them are paying on credit(and thus, interest) anyway. It also shows they can't really afford the phone, either.
I was also pointing out the fact, that just as less people would get an iPhone if they had to pay $650 outright(which I agree with), MUCH less people on here wouldn't have Macs either if they weren't paying on credit.
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Agree, which is why I upgrade every 2 years anyway. However, during those 2 years, it doesn't cost you $1500 for the phone itself. Again, you are paying extra those 2 years for the cost of the phone. You can't include the core service in the cost of the phone. With that said, yes, if you past the 2 year contract date and paying the same price, it's completely a rip off.
Less people would be buying $650+ smartphones, though, if they're actually made aware of the true cost. My mom has taught me to always pay my credit card balance in full every month so I never buy stuff on credit card that I'm unable to pay off.
That's great, and I agree. My point wasn't a nock at credit cards, see my post above.
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+1. I'm in the exact same boat. I will save over $600 over two years due to the fact I bought outright vs upgrading and being forced to a more expensive plan.
Yes it's a tough pill now ($970 tax in) but I still save over time.
Yes, my iPhone 5 16gb is still fine, but I can likely get close to $300 if I sell locally. Will get much less than that in a year. So now is a good time to jump to the iPhone 6.
The things people judge and say on the internet?
I believe you are the one saying that only people who pay full price are those that pay it on credit anyways. And are saying that people who own macs have them on credit also. Who is the one doing the judging here?
If you get a subsidized iPhone on the value plan it's now $40/line. If you BYOD or Next it's only $15/line.
If you go the subsidized route:
$199 iphone upgrade price
$40 upgrade fee
$25 extra per month ($40 instead of $15, see above) x 24 months=$600
TOTAL $839 plus i'm sure there is some taxes in there as well to make it little more.
If you go the Next route:
$27.09 per month x 24 months=$650.16
no upgrade fee
no additional monthly cost per line
TOTAL $651 plus i'm sure there is some taxes in there as well to make it a little more.
$188 difference...give or take depending on all taxes