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Apple Now Selling Contract-Free iPhone in Retail Stores?
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to everyone asking 'what's the point?'
there is none. except to make people feel better signing contracts.
there is none. except to make people feel better signing contracts.
Here's a scenario:
I have a 2-year-old phone on a pay-as-you-go plan with AT&T. I want an iPhone solely for the convenience of having 1 device (iPod + phone). I care very little about 3G. I also have money set aside for a luxury item like a $700 iPhone.
Question 1: Since it is an AT&T card, would the SIM card from my PAYG phone work in the non-contract iPhone?
If the answer is yes and I don't care about the 3G functionality of the iPhone, then this is the math:
Estimated cost of a 16GB non-contract iPhone (with local taxes) = $760
Estimated cost of 16GB iPhone on contract (including 1-time setup fee) = $335
Difference = $425
Monthly cost of contract (without taxes and fees) = $70
$70 X 6 months = $420
Okay, I realize the argument that the iPhone wouldn't be "fully functional" in this scenario and that the great 3G network wouldn't be accessible. But if the above is possible, then this is the market that would be able to benefit from this type of offer.
And for those wondering, I spend roughly $100 a year on phone service on the PAYG plan.
I have a 2-year-old phone on a pay-as-you-go plan with AT&T. I want an iPhone solely for the convenience of having 1 device (iPod + phone). I care very little about 3G. I also have money set aside for a luxury item like a $700 iPhone.
Question 1: Since it is an AT&T card, would the SIM card from my PAYG phone work in the non-contract iPhone?
If the answer is yes and I don't care about the 3G functionality of the iPhone, then this is the math:
Estimated cost of a 16GB non-contract iPhone (with local taxes) = $760
Estimated cost of 16GB iPhone on contract (including 1-time setup fee) = $335
Difference = $425
Monthly cost of contract (without taxes and fees) = $70
$70 X 6 months = $420
Okay, I realize the argument that the iPhone wouldn't be "fully functional" in this scenario and that the great 3G network wouldn't be accessible. But if the above is possible, then this is the market that would be able to benefit from this type of offer.
And for those wondering, I spend roughly $100 a year on phone service on the PAYG plan.
according to the rumors ATT is still the only legit service provider for the phone and they don't do CMDA. so likely not.
also if any of this is true it is interesting that it is not on the Apple website. it still says ATT two year contract, must be 18 years of age and the primary account holder blah blah.
at this point in time it is totally legal to lock a phone hardware to one service network. which is why the LG Dare is locked, why the sidekick is locked, why the blackberry storm is locked, why the instinct is locked.
until someone comes along and changes the laws about the issue, companies will still be able to get exclusives.
GM should start selling OnStar for $300-500/month, get a free car "with contract".
Of course if they did that, I'd pretty much guarantee they'd be required to specify to consumers the cost of the vehicle vs. cost of OnStar services. How the wireless carriers and phone makers get away with their crap is beyond me.
Got it. Thanks
....still would be interesting if Apple releases a non-ATT bound iPhone...
Doesn't make sense
Why would you buy "without a contract" when it is cheaper to buy "with a contract", break the contract, and pay the early termination fee.
Am I missing something here?
Why would you buy "without a contract" when it is cheaper to buy "with a contract", break the contract, and pay the early termination fee.
Am I missing something here?
Nope... Even if you buy it without a contract, you still have to sign up if you want to actually USE IT. Basically you'd have to pay the $599, then you can have a nice looking piece of metal and plastic with a little "slide for emergency" screen. You can play with the touch screen all day long sliding and typing in random numbers, but you won't be able to use the phone unless you activate it.
If one were to purchase a 3G iPhone at the apple store, would there be any forcing mechanism to sign up for a plan at ATT (or anywhere else). Couldn't one use it like a touch on Wifi without needing a wireless voice/data plan?
Am looking forward to Skype and using the microphone rather than earbuds.
Is there a problem installing updates to the OS for a phone without a plan?
Can one buy a refurb phone without a plan?
DB
Am looking forward to Skype and using the microphone rather than earbuds.
Is there a problem installing updates to the OS for a phone without a plan?
Can one buy a refurb phone without a plan?
DB
Go Phone Option?
I like the iPhone reasonably well, but don't actually use cell phones enough to warrant paying monthly contracts. I currently am quite happy with AT&T's "Go Phone", a pay-as-you-go SIM-card-requiring system where I spend $100-ish per year per phone. Some people complain about unit prices and then happily shell out 50-100$ per month (don't forget the 4-8$ in tax) for their monthly contracts. That's $600-1200 per year for a phone.
Is there any restriction anyone knows of with the new 'sort of unlocked' iPhones that would stop me from being able to use one of my Go Phone SIMs in these phones?
Of course if one uses their cell phone constantly, the Go Phone options are not well priced at all. I only use my cell phone a dozen minutes per week, mostly for SMS and internet, and when traveling. When I'm at my desk, the internet and VOIP are already paid for.
I like the iPhone reasonably well, but don't actually use cell phones enough to warrant paying monthly contracts. I currently am quite happy with AT&T's "Go Phone", a pay-as-you-go SIM-card-requiring system where I spend $100-ish per year per phone. Some people complain about unit prices and then happily shell out 50-100$ per month (don't forget the 4-8$ in tax) for their monthly contracts. That's $600-1200 per year for a phone.
Is there any restriction anyone knows of with the new 'sort of unlocked' iPhones that would stop me from being able to use one of my Go Phone SIMs in these phones?
Of course if one uses their cell phone constantly, the Go Phone options are not well priced at all. I only use my cell phone a dozen minutes per week, mostly for SMS and internet, and when traveling. When I'm at my desk, the internet and VOIP are already paid for.
If I'm not mistaken, I'm pretty sure that metro PCS is CDMA... As in NOT GSM...
You are correct. I got excited when I read that about MetroPCS but when I called to setup a possible service initiation, I was told they are CDMA only - not GSM.
This will not work for the iPhone as they do not use SIM cards.
I agree. I owned the Imate JASJAR when it came out roughly 4 1/2 years ago and paid $1,500.00 .
I also owned HTC Advantage X7500 and X7501.
Costing $1,300.00 & $1,200.00 respectively.
Owned the Nokia N93, N93i , N95
Which all are roughly the same price if not a little bit more after tax. So the amount that is paid for the iPhone (16/8 GB) is really not expensive, considering that it comes with the amount of storage that it does (None of the models that I mentioned could tout more than 8GB) and the feature set....
That being said, its more than reasonable for the functionality that is built within the device.
Very Interesting....
"Staffers at Apple’s flagship Fifth Avenue store in New York City confirm that as of Thursday at 8 a.m., customers are now permitted to buy unlimited quantities of iPhones without an AT&T contract — the very thing the company was working so hard to prevent in late 2007 when the devices were being snapped up in large quantities to be unlocked and re-sold in overseas markets," Philip Elmer-DeWitt reports for Fortune.
AT&T’s policy applies only to existing customers and limits them to one unsubsidized phone. Apple is imposing neither of those restrictions, leading some to speculate that the company has plenty of iPhones in stock and may be trying to clear inventory in advance of new models.
FULL ARTICLE:
http://apple20.blogs.fortune.cnn.com/2009/03/27/has-apple-begun-clearing-iphone-3g-inventory/
"Staffers at Apple’s flagship Fifth Avenue store in New York City confirm that as of Thursday at 8 a.m., customers are now permitted to buy unlimited quantities of iPhones without an AT&T contract — the very thing the company was working so hard to prevent in late 2007 when the devices were being snapped up in large quantities to be unlocked and re-sold in overseas markets," Philip Elmer-DeWitt reports for Fortune.
AT&T’s policy applies only to existing customers and limits them to one unsubsidized phone. Apple is imposing neither of those restrictions, leading some to speculate that the company has plenty of iPhones in stock and may be trying to clear inventory in advance of new models.
FULL ARTICLE:
http://apple20.blogs.fortune.cnn.com/2009/03/27/has-apple-begun-clearing-iphone-3g-inventory/
It's not a monopoly. It's business. Competition. Strategy. If apple and AT&T had control of ALL phones and cell service, then that's a monopoly. Don't start to think that there's a monopoly had on the iPhone. They created a business partnership to sell devices and service. It happens everyday in ways that u don't know. Ever wonder why burger king doesn't have Disney kids' meals toys? Bc Disney and mcdonalds have a partnership. They market their brands together. I don't see blackberry running to make a 3G version of the storm to slap on AT&T. IMO, the iPhone is the most popular phone that has had an enormous amount of publicity and controversy. No other phone, if not product in general has ever done this. Cell phone manufacturers and cell providers have exclusive phones all the time. The only reason people are noticing this with the iPhone is that they looooooovvvvee their service provider (verizon, sprint, tmobile) for some reason. And they want an iPhone. Not a bb.
So are these phones activated on AT&T, just pop a SIM card in?
I don't see the point if you get it home, then have to sign up for an expensive AT&T iPhone plan anyways just to activate.
I don't see the point if you get it home, then have to sign up for an expensive AT&T iPhone plan anyways just to activate.
So are these actually available in-store now?
Has anyone seen them in a UK store yet, I know O2 does the Pay as you go iPhone but would they bother selling them in their own stores?
Has anyone seen them in a UK store yet, I know O2 does the Pay as you go iPhone but would they bother selling them in their own stores?
I think not!
http://gsmworld.com/roaming/gsminfo/cou_us.shtml
Search for Metro PCS. Non Existent
although there is a, MTPCS. (cellularOne) - I'm pretty sure AT&T just bought them too.
Why Buy Contract Free? Im Not Stupid
I remember the first iPhone plan was 15.00 per month Less than the iPhone 3G. Because the phone was full 499.00 Now Att subsidized the phone for 24 months at a plan price of 15.00 per month more ( $15*24 = $360.00 ) I guess im saying if Att is not subsidized the phone and i have to pay full price why isnt the plan 15$ per month cheeper. SO all in all there is no benefit to anyone other than ATT.
I remember the first iPhone plan was 15.00 per month Less than the iPhone 3G. Because the phone was full 499.00 Now Att subsidized the phone for 24 months at a plan price of 15.00 per month more ( $15*24 = $360.00 ) I guess im saying if Att is not subsidized the phone and i have to pay full price why isnt the plan 15$ per month cheeper. SO all in all there is no benefit to anyone other than ATT.
I remember the first iPhone plan was 15.00 per month Less than the iPhone 3G. Because the phone was full 499.00 Now Att subsidized the phone for 24 months at a plan price of 15.00 per month more ( $15*24 = $360.00 ) I guess im saying if Att is not subsidized the phone and i have to pay full price why isnt the plan 15$ per month cheeper. SO all in all there is no benefit to anyone other than ATT.
Not entirely true. At the time the 1st gen iPhone wasn't considered to be a smartphone by AT&T so it used the Media Max plan plus 200 SMS ($20, IIRC). When the 3G came out, AT&T decided to classify it as a smartphone. If you traded the iPhone 3G for a Windows Mobile phone or a Palm phone you'd still pay the same $30 a month.
Right now Sprint and Verizon use the same technology. Sprint is rolling out wiNMax, which the iPhone won't support and later this year, Verizon will roll out LTE, which the iPhone currently does not support. Even the next model won't support it. It is a waste to go down the CDMA path.
Even with LTE, you will see phones being locked.