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Can you explain how $50-$100 off is of zero benefit. I missed your logic.:confused:

My entire analogy is that if you see a penny on the ground and pick it up, sure, it helped you (it wasn't negative or zero benefit), but by how much?

My point is that while $50-$100 is a lot, it isn't that big when you look at the cost of the contract as a whole.

I didn't think this would be a hard concept to grasp. What I happen to pay on my contract is irrelevant, and actually an ad-hominem. But it really isn't even that big of a deal, so I don't even know why I've wasted my time arguing this point. Perhaps it's because I'm upset with the high cost of the iPhone contract.
 
Great. $50-$100 off a $2000+ contract. Nice try, Best Buy. Consumers may be fooled, but I'm not. That's between a 2.5%-5% discount, or near inconsequential.

That's why I like Sweden and other parts of Europe. I'll just buy the phone outright for €550 and drop a pay-as-you-go-card in there. And, I'll probably spend less money. Even if I move back to the states, I am never doing a contract again ... in the end it just costs too much.
 
My entire analogy is that if you see a penny on the ground and pick it up, sure, it helped you (it wasn't negative or zero benefit), but by how much?

My point is that while $50-$100 is a lot, it isn't that big when you look at the cost of the contract as a whole.

I didn't think this would be a hard concept to grasp. What I happen to pay on my contract is irrelevant, and actually an ad-hominem. But it really isn't even that big of a deal, so I don't even know why I've wasted my time arguing this point. Perhaps it's because I'm upset with the high cost of the iPhone contract.

LOL. I guess we are looking at two different pictures. You were looking at the whole contract and I at just the phone. I assumed that you are already prepared to pay the AT&T contract (my bad). For people on the verge of buying an iPhone (they have made up their mind and looking for cheaper way of buying it), this is a decent deal rather than paying full price.
 
LOL. I guess we are looking at two different pictures. You were looking at the whole contract and I at just the phone. I assumed that you are already prepared to pay the AT&T contract (my bad). For people on the verge of buying an iPhone (they have made up their mind and looking for cheaper way of buying it), this is a decent deal rather than paying full price.

You're not looking at the entire picture. It's not just the cost of the phone, it's the entire cost over a fixed period of time.

And he's right, a $100 savings is relatively insignificant compared to a $2000 contract. Over here, it's mandated that you can get the any phone with (locked to provider) or without (unlocked) contract, which is nice because you can change providers whenever you want as great deals can be had when the competition heats up.
 
You're not looking at the entire picture. It's not just the cost of the phone, it's the entire cost over a fixed period of time.

And he's right, a $100 savings is relatively insignificant compared to a $2000 contract. Over here, it's mandated that you can get the any phone with (locked to provider) or without (unlocked) contract, which is nice because you can change providers whenever you want as great deals can be had when the competition heats up.

As I've said earlier, for people who are decided to buy the iPhone and is just looking a cheaper way of getting it, BB offer is not such a bad deal. You are going to pay $2000 to AT&T regardless where you bought it so might as well take some discounts off. I'm not saying $2000 contract is cheap or expensive as this is subjective on use and need.
 
As I've said earlier, for people who are decided to buy the iPhone and is just looking a cheaper way of getting it, BB offer is not such a bad deal. You are going to pay $2000 to AT&T regardless where you bought it so might as well take some discounts off. I'm not saying $2000 contract is cheap or expensive as this is subjective on use and need.

We're making the argument that it's not a significant savings ... and it's less than 5%, so it's not. Not to derail the thread, but your argument is exactly why the debt:income ratio is the way it is in US.
 
We're making the argument that it's not a significant savings ... and it's less than 5%, so it's not. Not to derail the thread, but your argument is exactly why the debt:income ratio is the way it is in US.

Let me hold your hand here:
Step 1. I am planning to buy an iPhone with around $2000 two year contract.
Step 2. ATT and Apple store and Best Buy sells the iPhone.
Step 3. I would get $50-100 discount if I buy it in Best Buy.
Step 4. I go to Best Buy instead of buying it in ATT or Apple store.


And now you know my debt:income ratio thru a statement in intesrnetz weBzz forum. Some people can actually afford $2000 without putting it in a card you know.
 
Let me hold your hand here:
Step 1. I am planning to buy an iPhone with around $2000 two year contract.
Step 2. ATT and Apple store and Best Buy sells the iPhone.
Step 3. I would get $50-100 discount if I buy it in Best Buy.
Step 4. I go to Best Buy instead of buying it in ATT or Apple store.


And now you know my debt:income ratio thru a statement in intesrnetz weBzz forum. Some people can actually afford $2000 without putting it in a card you know.

You're missing the point where I said that it's not a significant difference. $50 or even $100 off of a $2200 total purchase or $50/$2200 or 2.27% is not significant.
 
LOL. I guess we are looking at two different pictures. You were looking at the whole contract and I at just the phone. I assumed that you are already prepared to pay the AT&T contract (my bad). For people on the verge of buying an iPhone (they have made up their mind and looking for cheaper way of buying it), this is a decent deal rather than paying full price.

:D
 
You're missing the point where I said that it's not a significant difference. $50 or even $100 off of a $2200 total purchase or $50/$2200 or 2.27% is not significant.

So when you buy a car for say.. $20,000 - do you calculate all the taxes, license fees, insurance, maintenance et al bills you will be paying for the rest of the car's life too? If some dealer gave you the car for $15,000.. you wouldn't consider that good savings?

I'm sure that people who are buying the iPhone already know what the contract will cost them. So yes, the savings on this phone is a big deal - stop trying to compare it with the total cost of the contract. :rolleyes:

I hardly spend any money on cell phone bills.. so I have a prepaid $10 nokia phone. I don't need the iphone, nor the contract - so i haven't bought one. But for people who are in the market, this is a great deal.
 
Great. $50-$100 off a $2000+ contract. Nice try, Best Buy. Consumers may be fooled, but I'm not. That's between a 2.5%-5% discount, or near inconsequential.

asiapres.jpg
 
I'm on my parents' plan, so about $10 a month extra. $20 if you distribute it across all phones.

All I'm saying is that the sale is inconsequential. I'm not saying it's BAD. I'm simply saying its benefit is effectively zero.

Ah. So you really have no concept of economics, then. Well, keep enjoying having your parents pay for your phone. Once you are in the real world, paying $70 per month for your BB, you can tell us if you understand economics any better.
 
You're missing the point where I said that it's not a significant difference. $50 or even $100 off of a $2200 total purchase or $50/$2200 or 2.27% is not significant.

I have a current contract with AT&T. On Wednesday, I'm eligible for a subsidized phone upgrade. My contract will go up $22.80 per month (thanks to my 24% FAN discount) for the required data plan. $22.80 * 24 = $547.20. $547.20 + $299 = $846.20. $50 off that total is a savings of 5.91%. It's not huge by any means. But $50 is $50, and throwing it away doesn't make sense either.

In simpler terms, don't assume that the discount is insignificant to everyone. Lots of people are already paying for cellphone plans. Many even already have data plans. The percentage savings from $50 off can be significant. If I already had MediaNET, and my monthly rate only went up $7.60, $50 off the phone would result in a savings of over 10% for the total cost of the phone and 2 years of additional costs.
 
You're missing the point where I said that it's not a significant difference. $50 or even $100 off of a $2200 total purchase or $50/$2200 or 2.27% is not significant.

So, say your rent is $1000 per month. Your landlord comes to you and says he decided to give a bonus of $500 if you sign for another year. You like the place, but you'd been looking at the place down the street, which also costs $1000 per month.

Now, since you are going to be paying that $1000 per month anyway, because you need shelter, that tiny $500 bonus (only a measly 4% of the total contract) is very significant.

Get it?

You are making an error because you are comparing the $100 discount to the $2000 commitment, as if the only reason you are making that $2000 commitment is to get the $100 discount. But that's not true - you would be making that commitment anyway, to sign with some carrier for a smartphone.

Now, if your other option is to sign up with a freebie Nokia and a $30 per month contract, then clearly you are not comparing apples to oranges.

I'm not sure why I understand why someone from Sweden would be chiming in on this anyway, since you clearly don't see the value of signing a contract for a cell phone. Here in the USA, we do, and we're quite happy about it. It lets us get great phones for a very small up-front cost, paid for by a contract which we find to be a good deal. For $100 per month we get 1500 minutes or so, how many minutes do you get for your money?
 
I have a current contract with AT&T. On Wednesday, I'm eligible for a subsidized phone upgrade. My contract will go up $22.80 per month (thanks to my 24% FAN discount) for the required data plan. $22.80 * 24 = $547.20. $547.20 + $299 = $846.20. $50 off that total is a savings of 5.91%. It's not huge by any means. But $50 is $50, and throwing it away doesn't make sense either.

In simpler terms, don't assume that the discount is insignificant to everyone. Lots of people are already paying for cellphone plans. Many even already have data plans. The percentage savings from $50 off can be significant. If I already had MediaNET, and my monthly rate only went up $7.60, $50 off the phone would result in a savings of over 10% for the total cost of the phone and 2 years of additional costs.

The point that I'm trying to make, and probably failing miserably, is that, in reality, you're not "eligible for a subsidized phone upgrade." You're extending your mandatory contract by accepting the upgrade. Essentially, you're locking into a carrier and plan. You don't have to accept the phone and you could cancel at any time (without an early termination fee).

You don't need to accept a 2-year contract to use the network, you only are required to to take the contract if you take the phone. That's what I am saying.
 
So, say your rent is $1000 per month. Your landlord comes to you and says he decided to give a bonus of $500 if you sign for another year. You like the place, but you'd been looking at the place down the street, which also costs $1000 per month.

Now, since you are going to be paying that $1000 per month anyway, because you need shelter, that tiny $500 bonus (only a measly 4% of the total contract) is very significant.

Get it?

You are making an error because you are comparing the $100 discount to the $2000 commitment, as if the only reason you are making that $2000 commitment is to get the $100 discount. But that's not true - you would be making that commitment anyway, to sign with some carrier for a smartphone.

Now, if your other option is to sign up with a freebie Nokia and a $30 per month contract, then clearly you are not comparing apples to oranges.

I'm not sure why I understand why someone from Sweden would be chiming in on this anyway, since you clearly don't see the value of signing a contract for a cell phone. Here in the USA, we do, and we're quite happy about it. It lets us get great phones for a very small up-front cost, paid for by a contract which we find to be a good deal. For $100 per month we get 1500 minutes or so, how many minutes do you get for your money?

I lived in the US for 30 years and I find the quality of service and options over here much, much better. When one factors in the social benefits from paying an increased price on everything, I even find the value much better as well.
 
The point that I'm trying to make, and probably failing miserably, is that, in reality, you're not "eligible for a subsidized phone upgrade." You're extending your mandatory contract by accepting the upgrade. Essentially, you're locking into a carrier and plan. You don't have to accept the phone and you could cancel at any time (without an early termination fee).

You don't need to accept a 2-year contract to use the network, you only are required to to take the contract if you take the phone. That's what I am saying.

Welcome to cell service in the US....

Yes, I lock myself into a 2 year contract by getting the phone. You were going on about how it wasn't a savings, that is what I was responding to.

If I could buy the phone without a contract for the same cost, I still am going to need service, and that service is going to cost me somewhere from $60-$100 per month. Given the fact that I need a service plan to use the phone, and I'm going to maintain a service plan for some type of cell phone, saving $50 on the phone itself is a significant savings.
 
^^^You guys sound like a bunch of whiny babies. Put your big boy pants and your thinking caps on and see if this is a good deal for you. If it is, go to BB. If it's not, then don't. Plain and simple.
 
All I'm saying is that the sale is inconsequential. I'm not saying it's BAD. I'm simply saying its benefit is effectively zero.

Again, its not inconsequential to those that have already factored in and/or accepted the cost of a monthly plan. My situation, as an example, this is very tempting. I was an original iPhone owner, and purchased the 3G when it came out. I accidentally dropped my 3G into a pool this weekend (I work in waterparks), and was able to reactivate my 2G.

I'd like to replace my 3G, and now have the opportunity to do so at 33% off. This is a great deal.

(However, in my situation, I'm moving to another contract next week, where I won't have AT&T service at all. And I don't know how long I'll be staying, so I'm going to pass on this promotion. Though considering they do have Sprint 3G there, I'm really REALLY going to have to make a tough decision when the Pre's get released. I've got a family member that works at Sprint, so I have access to whatever it is that they replaced the SERO plans with).
 
Great, wake me up when they offer $60 off the service price and I'll be all over it :D
 
These arguments are pathetic. I registered just so I could post how moronic the folks that are arguing that this isn't a "significant" deal sound.

You logic is flawed to the nth degree. When you purchase a cell phone, many times you have to sign a contract to help pay for the phone (i.e. it is subsidized). You obviously understand this, but you are taking it to the extreme. You act as if the $70/month is only buying the privilege of owning the phone. Are you not aware of the voice and data capabilities that come with that? Surely you do realize that you can call people, receive calls, email, surf the net, etc? Do you not understand that this purchase is really for 2 (or 3) items? 1) The physical phone 2) The SERVICE!!! WTF is so hard to grasp about this?

Like someone said before with the car analogy: Do you factor in the cost of interest you pay on the life of the loan for your car (assuming you don't pay cash)? Do you factor in mandatory insurance? Do you factor in the cost of oil changes/maintenance for the life of the car? Do you factor in the cost of gas for the usage of the car (i.e. cell service)? You should if this is the way you make your purchases. Since you are bashing everyone here, I assume you wouldn't take $1000 back from the dealer on a $20,000 car because this only adds up to an "insignificant savings". On the face of it, this is only 5% savings, but by your horrible logic, it is probably more like 1 or 2% or something petty like that. I'll take that $1000 if you don't want it...
 
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