$99/$149 Iphone at Best Buy

[acidfast7]

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...

The car analogy is flawed because the cost of the car is equal to, if not more, than the cost of everything else (insurance, registration, taxes, maintenance). One could easily imagine $350/month for a payment and another $350/month for the other items.

However, the cost of the phone is relatively small compared to the cost of overall contract. Simply put, if one averages out the cost of the phone over the length of the contract; the $50-100 savings averages out to a few dollars (about $4) per month over a two period out of total cost of $80-$120/mo. Therefore, the overall savings is quite insignificant.

Personally, it doesn't really matter to me. If I want a 3G iPhone, I'll just walk down to the Apple store (50 meters) and buy an unlocked one for €500 and run whatever plan I want (they have one pay-as-you-go over here with unlimited data transfer for 8SEK/day or about $0.90).

 

[KUKitch]

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...

Two thumbs up! It would seem to me that the plan service is a sunk cost, unless you have the option of pay-as-you-go, and if so then more power to you... otherwise you can't really factor that in as you'd be paying it for any phone you did buy, assuming you did want the smartphone.

In my opinion, if I'm looking at the iPhone vs. a Bold or something along those lines, and the plan is going to happen regardless, I would say the discount is a significant factor. It's a minimum of 20% off the 16 gig, which is the lowest you'll save assuming you get the priciest phone and only qualify for the $50 discount. The plan is irrelevant to me because I don't have a choice, at least in the U.S., and will be paying it to have the right to have cell service.

I came from being an add'l line on my parents' plan, and I would much prefer that still, as it was a great deal cheaper. However, I'm on my own now, and unfortunately have to pay to play as it were. I think the plan is expensive, but don't have much choice in that matter, and so to me it's an irrelevant cost that doesn't factor in when considering whether or not this $50/$100 is a significant savings. Versus the plan, perhaps not, but that isn't valid to me, and for the phone it is significant in my view.

 

[siddavis]

The car analogy is flawed because the cost of the car is equal to, if not more, than the cost of everything else (insurance, registration, taxes, maintenance). One could easily imagine $350/month for a payment and another $350/month for the other items.

However, the cost of the phone is relatively small compared to the cost of overall contract. Simply put, if one averages out the cost of the phone over the length of the contract; the $50-100 savings averages out to a few dollars (about $4) per month over a two period out of total cost of $80-$120/mo. Therefore, the overall savings is quite insignificant.

Personally, it doesn't really matter to me. If I want a 3G iPhone, I'll just walk down to the Apple store (50 meters) and buy an unlocked one for €500 and run whatever plan I want (they have one pay-as-you-go over here with unlimited data transfer for 8SEK/day or about $0.90).

Of course the car analogy is flawed, but we have to come up with special stories to illustrate the facts that are so difficult to grasp.

We are all so happy that you can get a phone 50 meters away from you, for a price that you personally find to be a value. That is the way it works over in Europe, neat. In the U.S. (which is the basis of this thread - BB vs ATT...), this is not the case. Since I have no idea what typical voice + data plans typically cost for any given smartphone, let's pretend that the plan required for the iPhone is $10 more than the others. THIS is the ONLY other cost besides the phone that you can factor into your math that you call "economics". Therefore, $10/month * 24 month term = $240 surcharge for the benefit of getting the iPhone. This would be the subsidy that is spanned over the term of the contract. So, regular price is basically $199 + $240 = $439. You still with the rest of us? Since you are an econ professor, you could also figure in the time value of money, so really this cost is even less -- but I imagine you figure the time value of money to be insignificant. So, the savings would be at a minimum 11%, not too shabby.

Oh, and given the exchange rate, your 500 euro phone would cost us $630 without the plan, so it seems to me, you're getting hosed.

 

[BornToMac]

This just in...
... The debate forum is over there -------------->

 

[Scottsdale]

Is anyone really going to rush out and buy an iPhone 3G right now? The new iPhones are probably going to be out within a few months... Seems like maybe Best Buy wants to dump some iPhones??? I got an email from Best Buy with the offer. Had my 3G since day one, and most of us here at MacRumors are Apple junkies and probably wouldn't buy a 3G at this time even if it were nearly free. It would mean we would have to wait a full year to upgrade to the new iPhone when released.

Anyone going to jump on this deal?

 

[txjeep]

Scottsdale,

This BB phone is not subsidized by ATT. Unless I am misunderstanding, you could buy it at BB for $99/$149 or whatever without affecting your eligibility to get a subsidized phone from ATT later. If I am wrong, someone please correct me.

I may buy one of these on the way home today.

 

[KUKitch]

Is anyone really going to rush out and buy an iPhone 3G right now? The new iPhones are probably going to be out within a few months... Seems like maybe Best Buy wants to dump some iPhones??? I got an email from Best Buy with the offer. Had my 3G since day one, and most of us here at MacRumors are Apple junkies and probably wouldn't buy a 3G at this time even if it were nearly free. It would mean we would have to wait a full year to upgrade to the new iPhone when released.

Anyone going to jump on this deal?

I would say why not? It seems like there's a healthy second-hand market for used iPhones via eBay and such, and if the dev team can come up with a couple more unlocks (a big IF I suppose, but hey I can hope) then you should be able to subsidize it yourself somewhat by selling your used 3g.

I know I got $400 for my old 8 gig last summer, and I would guess it'll at least carry over somewhat with this next gen. Given that I only paid $200 for my 3g, I would think I could get at least that out of selling it unlocked to subsidize buying a new one, if it's worth it at least. Here's hoping it can be unlocked with any interim FW updates, though I'm still on 2.2 j/b with an option to unlock if desired for sale... Of course I'm on AT&T so it's unnecessary for me, but I bet I could sell it to a friend for a similar price or eBay for more if it came to it. Or at least I hope so.

 

[Lucky A]

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.

Think of it this way: $100 takes you half the way thru the $200(?) penalty you'd pay to get out of $2000+ contract. Right?

Say, you exercise your right to terminate right after you sign your contract. You loose the termination penalty (plus the set-up fee). That should roughly be the same as the difference between the retail and subsidized prices for hardware, so its as if you just paid full price for the set. Right? Then the BestBuy discount is WORTH its notional ($100), and your actual savings is $100/$700=~14%. (I might be off on the actual numbers since I don't own an iphone and don't know the specifics of the At&t contract).

 

[AlecMyrddyn]

Scottsdale,

This BB phone is not subsidized by ATT. Unless I am misunderstanding, you could buy it at BB for $99/$149 or whatever without affecting your eligibility to get a subsidized phone from ATT later. If I am wrong, someone please correct me.

I may buy one of these on the way home today.

You are wrong. You must sign up for a contract to get the BB pricing, or be eligible for contract renewal & equipment upgrade.

 

[KiraDouji]

Honestly, I look forward to new models because of this very instance. So what if something slightly better comes out in three/four months? It means I can get the current (very nice) product right now at a discount. That's what I call niiiice.

 

[sjivan]

I am a RewardZone member and I just picked up an iPhone from Best Buy. Everytime I go in that store it is such an aggravating experience. Customer service sucks and I wasted 3-4 hours to get the phone. And I have to return in a few days as they had run out of service contract documents.

I would have gladly paid the extra $50 for a much nicer customer service experience from the Apple Store. Lesson learned.

Sanjiv

 

[txjeep]

You are wrong. You must sign up for a contract to get the BB pricing, or be eligible for contract renewal & equipment upgrade.

Yes, I figured that out. I called and asked about this before my post, but whoever I talked to was misinformed. I dropped by the store on the way home and it rang up $400 and something since I am not eligible for an upgrade until next month. I passed.

 

[thedaryl]

Hi. Got a question, not sure if this is the right place to ask, but since the 99 deal is whats drawin me to possibly gettin an iphone, figured I'd post.

Went to BB today to buy one, asked about all the terms and what not, and what would happen if say a year down the road I cancelled (as a consumer, I kinda like to know this, and have no problem payin whatever fees I'll need to do so).

The guy told me that I'd be charged the pro-rated ETF (which I know), AND that Best Buy wants the phone back, and that if I don't return it, that they (or at&t) will be me 400.00 (the difference I guess in retail vs 2 year price).

I called another BB, and the rep there told me that was BS, that all I'd be liable for would be the ETF... so.. anyone out there happen to know whos right about this? AT&T says all they'd want, is the etf amount owed (which makes sense).

 

[yobrigidey]

Just got back with mine. Regarding the tax policy, it is a state-by-state basis for taxing the subsidised or unsubsidised price. The rep I talked to said Utah was the only state he knew of that taxed on the unsubsidized price.

Anywho, 250 bucks for a 16 gig and hard plastic case OTD.

 

[dave006]

In certain states, sales tax is calculated based on the un-activated "Retail Price" and it is not just for the iPhone 3G. Blame your state reps not Best Buy or AT&T.

Dave

 

[sp0di]

I went ahead and got this deal at Best Buy earlier today. I want to clarify that even though you get $50 off at regular Rewards member price....you end up paying tax of the regular MSRP price. So you are paying the tax of it as if you were paying $600 (I think). It came out to $54 tax and about $205 so in the end you only really save 12 bucks than if you bought it anywhere else full price. (In this case the 8GB model)

Very tricky. Although I needed a new phone cause my old 2G's screen cracked yesterday, I just wanna point that out to everyone. Your paying full price tax on discounted item.

Do you still have the 2-year contact? $799 is the non-contract price, if I recall. BB is giving you $400 instant and 50/100 off from that. Why would this equal 2-year contract?

 

[sp0di]

Think of it this way: $100 takes you half the way thru the $200(?) penalty you'd pay to get out of $2000+ contract. Right?

Now there is an angle I did not think of. Some other threads say the want the equipment back. Just use a burner CC and call it a day. They cannot charge you for more

 

[dave006]

Do you still have the 2-year contact? $799 is the non-contract price, if I recall. BB is giving you $400 instant and 50/100 off from that. Why would this equal 2-year contract?

Yes. Best Buy requires a two year service commitment (contract) that's the only way they get their commision from AT&T. No iPhone 3G sold in the US by Apple, AT&T, Best Buy and now Wal*mart will be sold without a two year commitment.

Dave

 

[davidng150]

Hi. Got a question, not sure if this is the right place to ask, but since the 99 deal is whats drawin me to possibly gettin an iphone, figured I'd post.

Went to BB today to buy one, asked about all the terms and what not, and what would happen if say a year down the road I cancelled (as a consumer, I kinda like to know this, and have no problem payin whatever fees I'll need to do so).

The guy told me that I'd be charged the pro-rated ETF (which I know), AND that Best Buy wants the phone back, and that if I don't return it, that they (or at&t) will be me 400.00 (the difference I guess in retail vs 2 year price).

I called another BB, and the rep there told me that was BS, that all I'd be liable for would be the ETF... so.. anyone out there happen to know whos right about this? AT&T says all they'd want, is the etf amount owed (which makes sense).

I know that if you purchased it directly from AT&T/Apple stores that you'll only be charged the ETF if you return it after the first 30 days:

http://gizmodo.com/5014909/att-memo-to-retail-managers-shows-iphone-3g-policy

"To cancel service within the first 30 days, the customer must return their equipment to the place of purchase (no exceptions).
If the customer cancels service after 30 days, they will be charged the ETF. The customer is not required to return the device to cancel after 30 days."

I would think that this would apply to Best Buy as well, but don't quote me on this.

 

[EggyToast]

Picked one up tonight. Best Buy is getting slammed, there were 3 people in front of me getting iPhones tonight, which I'm sure isn't "normal" for a Monday night.

As an existing AT&T customer (from back when they were cingular, sigh), it took all of, I think, 10 minutes once we sat down. About a 30 min wait or so to get to that point. Their computers were going slow and the phone wait was pretty long, so they were double-teaming it -- calling and trying to connect via their computers, so whichever came in first is what they used. I happened to sit down about 2 minutes before my rep got someone on the phone so it was very quick, and the customer service was quite friendly despite having had an extremely busy Sunday and what looked to be a busy rest of the week.

I don't really care what the haters say -- I was thinking about an iPhone for a while and a nice $50 bonus is enough for me. That covers almost the first two months of service, if you think of it that way, or simply "$200 is a little much, but 25% off makes it do-able." So I'm now a very pleased iPhone owner.

 

[Michael CM1]

Is anyone really going to rush out and buy an iPhone 3G right now? The new iPhones are probably going to be out within a few months... Seems like maybe Best Buy wants to dump some iPhones??? I got an email from Best Buy with the offer. Had my 3G since day one, and most of us here at MacRumors are Apple junkies and probably wouldn't buy a 3G at this time even if it were nearly free. It would mean we would have to wait a full year to upgrade to the new iPhone when released.

Anyone going to jump on this deal?

Nope. I jumped on a refurb deal for the first one, and my main issue is STORAGE CAPACITY!!!!! If Apple could somehow redesign the phone to cram two of those flash chips in there (making a 64GB iPhone), I'd probably buy one of those. But assuming Apple realizes a 32GB iPhone is almost a must for the next model, I'm waiting for that. The only way I can get the music I want on there now is with very creative playlists and to take off videos and photos.

This is a good deal for people who had been on the fence about buying one. Yes, the plans are still god awful expensive (one good thing about the EDGE phone is it's only an extra $20/month AND I get the free text messages), but $50 is still $50. I'm hoping the rumors floating about AT&T creating tiered data plans becomes reality. I don't need "unlimited" with WiFi at home. I need about 500MB of data per month. Right now, I'm not even using 200.

 

[johndinh]

$99 earn more

It's a good news for us when they sell Iphone at a best price. I want to buy Iphone as gift to my friends but I can't buy than 01 so if anybody can buy and sell it to me even 400 I also buy all

 

[johndinh]

$99 earn more

It's a good news for us when they sell Iphone at a best price. I want to buy Iphone as gift to my friends but I can't buy than 01 so if anybody can buy and sell it to me even $400 I also buy all . Pls call John 7143008538

 

[Scottsdale]

Scottsdale,

This BB phone is not subsidized by ATT. Unless I am misunderstanding, you could buy it at BB for $99/$149 or whatever without affecting your eligibility to get a subsidized phone from ATT later. If I am wrong, someone please correct me.

I may buy one of these on the way home today.

Does anyone know if this is right? Does buying it at Best Buy somehow, not subsidize it nor require that you connect to AT&T? Could I buy one for $99 and turn around and sell it for $400? Or could I use the new one and sell my old one for $400?

I thought no matter if you bought at AT&T, WalMart, Best Buy, or Apple that you were getting an AT&T subsidized phone??? So, according to KuKitch, I can buy this for $99 and not have it alter or affect my current AT&T plan... and when the new iPhone is released in a month or two, I can still be eligible for an upgrade price?

Doesn't seem right to me???

 

[Scottsdale]

I would say why not? It seems like there's a healthy second-hand market for used iPhones via eBay and such, and if the dev team can come up with a couple more unlocks (a big IF I suppose, but hey I can hope) then you should be able to subsidize it yourself somewhat by selling your used 3g.

I know I got $400 for my old 8 gig last summer, and I would guess it'll at least carry over somewhat with this next gen. Given that I only paid $200 for my 3g, I would think I could get at least that out of selling it unlocked to subsidize buying a new one, if it's worth it at least. Here's hoping it can be unlocked with any interim FW updates, though I'm still on 2.2 j/b with an option to unlock if desired for sale... Of course I'm on AT&T so it's unnecessary for me, but I bet I could sell it to a friend for a similar price or eBay for more if it came to it. Or at least I hope so.

Does anyone know if this is right? Does buying it at Best Buy somehow, not subsidize it nor require that you connect to AT&T? Could I buy one for $99 and turn around and sell it for $400? Or could I use the new one and sell my old one for $400?

I thought no matter if you bought at AT&T, WalMart, Best Buy, or Apple that you were getting an AT&T subsidized phone??? So, according to KuKitch, I can buy this for $99 and not have it alter or affect my current AT&T plan... and when the new iPhone is released in a month or two, I can still be eligible for an upgrade price?

Doesn't seem right to me???