Actually, its cheaper to buy an unlocked phone if you want to use t-mobile. Compare the 500 min + unlimited txt + unlimited data (although slow) for $60/month tmobile plan to the AT&T 450 min + unlimited txt + 2GB capped data for $85/month. That $25 difference pays back the subsidy in 18 months, less than the 24 month contract, plus you have an unlocked phone which means cheap local plans overseas instead of the outrageous AT&T international plan.
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Apple Now Selling Unlocked iPhone 4 in U.S.
- Thread starter ChakaChaka
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Actually, its cheaper to buy an unlocked phone if you want to use t-mobile. Compare the 500 min + unlimited txt + unlimited data (although slow) for $60/month tmobile plan to the AT&T 450 min + unlimited txt + 2GB capped data for $85/month. That $25 difference pays back the subsidy in 18 months, less than the 24 month contract, plus you have an unlocked phone which means cheap local plans overseas instead of the outrageous AT&T international plan.
Questions for US AT&T users:
I can see that you can sign up for a 2 year contract with AT&T but actually pay an Early Termination Fee of $325 less $10 for each serviced month to exit the contract. I assume this means you can keep the handset?
If so then by my calculations it is cheaper to buy then phone on contract with AT&T and then terminate after one month than to buy it unlocked?
Handset cost (32GB iPhone 4) = $299 + 9% sales tax = $325
Activation fee = $36
Total upfront cost = $361
Termination fee = $315
Total cost of handset acquisition = $676
Cost of unlocked phone + 9% sales tax = $707
So really you are paying $30 for the privilege of having it unlocked?
Or does the ETF not apply if you bring your unlocked handset with you to AT&T and cancel after one month?
I can see that you can sign up for a 2 year contract with AT&T but actually pay an Early Termination Fee of $325 less $10 for each serviced month to exit the contract. I assume this means you can keep the handset?
If so then by my calculations it is cheaper to buy then phone on contract with AT&T and then terminate after one month than to buy it unlocked?
Handset cost (32GB iPhone 4) = $299 + 9% sales tax = $325
Activation fee = $36
Total upfront cost = $361
Termination fee = $315
Total cost of handset acquisition = $676
Cost of unlocked phone + 9% sales tax = $707
So really you are paying $30 for the privilege of having it unlocked?
Or does the ETF not apply if you bring your unlocked handset with you to AT&T and cancel after one month?
Prices are not determined by how much more it might cost for towers in the US. Prices are determined by supply and demand. The answer for why prices are higher in the US is simple, enough people are willing to pay it.
May I ask: how many minutes does $30 buy you, and what are the limitations/extent of this?
e.g., does $30 get you unlimited minutes, or unlimited night and weekend minutes, or a set bundle of minutes? Are there any perks like being able to make calls to others with your wireless company without deducting from your minute pool? Also, how many texts does this include, and how much data? And, does your service extend outside of Singapore, or do you have to pay extra/buy another SIM when leaving the country?
Thanks in advance for indulging a curious American.
A couple of counterpoints:
- 18 months might be the break-even point, but with the yearly product cycle of the iPhone if you don't replace it EVERY year than you will definitely every two years. So in a best-case scenario you only have a few months of actually saving fees from having paid a huge upfront cost.
- in your example of Tmobile US, assuming the unlocked phone is an iPhone4, that is using Edge data. Savings or not, those data speeds are insufferable.
Your quote of the unlocked iPhone is for the 16gb model. Add an extra $100 for the 32gb.
Part only by what the market will bear (supply/demand) but they still have to recoup their investment.
You'll notice the wireless industry is a cozy affair where carriers align themselves on each other's prices. No one is really a better deal, no one sticks out. Except for the pre-paid outfits which biggy-bank on the established network, the cost of which they didn't advance/ pay for.
You didn't add the cost of the first month of service with the carrier, about $65 ($39.99 voice + $15 data + taxes).
You can only cancel on day 31 (after the first month).
I believe you also have to add the first month service fee to the ATT figure so that is at least $70 on top of your number for ATT and at the end of the day you're stuck with a locked phone going the ETF route.
I am about 90% confident that Apple will sell iPhone 4S/5 this fall that is CDMA/GSM compatible. So in a few months you should get your wish.
Honest question though- you want to spend $700 upfront to use it on a $45 plan?
I am still hopeful that smartphone prices will come down a couple hundred bucks in the next year or two. Then I can justify the upfront.
There has been talk of an iPhone mini (or whatever) with a no-contract price of $300.
What is the point of this if it's only good for 1 carrier in the US (AT&T)?
I thought the point of an unlocked iPhone was to use it on any carrier you choose. Since these are GSM phones and AT&T is the only GSM carrier then that is void.
Also, now I fear I won't be able to afford the next iPhone since they all probably will be unlocked. Personally I have no problem with contracts but it would be good for the market to have it universal to choose any carrier which I thought was the reason for an unlocked phone. If any the CDMAs should've been the ones unlocked.
I guess I'll be sadly saying bye to iPhones. the most i can afford is $399 which I was willing to pay for 64GB if they came out with the next generation
I thought the point of an unlocked iPhone was to use it on any carrier you choose. Since these are GSM phones and AT&T is the only GSM carrier then that is void.
Also, now I fear I won't be able to afford the next iPhone since they all probably will be unlocked. Personally I have no problem with contracts but it would be good for the market to have it universal to choose any carrier which I thought was the reason for an unlocked phone. If any the CDMAs should've been the ones unlocked.
I guess I'll be sadly saying bye to iPhones. the most i can afford is $399 which I was willing to pay for 64GB if they came out with the next generation
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Agreed
In reality what I am trying to figure out is my strategy for whether to buy an iPhone 4 or wait for 4S/5 in September. I would use for a minimum of 9 months before returning to the UK. Could either sell a locked phone on eBay at this point or hopefully the 4S/5 will default to unlocked.
Does AT&T still charge an ETF even if you have not bought your handset from them / it is unlocked?
The problem is that for those who live outside a major city, there are really only two options: AT&T and Verizon. I would have loved to go with T-Mobile or Sprint or an affiliated MVNO but there is no coverage in my area apart from AT&T and Verizon and no deals for MVNOs affiliated with the latter two. Also, Cellular One is no longer an option since AT&T purchased Dobson Communications years ago. AT&T saw fit to terminate all of their plans, including the one I was using.
Don't worry, that will definitely not happen. Apple learned its lesson a few years ago just how addicted people are to subsidies. You will always have the option to buy at a reduced price through the carrier with a contract, at least until prices come down to where Apple can sell at $300-$400 out the door to consumers and entice everyone to upgrade annually.
On Apple Store it states $649 for the iPhone 16Gb. Is that with tax or without?
If I am buying one when in the US, and have one of those tax free applications filled up, what kind of money will I get back?
Thanks if someone can help me on this one
In the US, retail prices are generally advertised exc. taxes since the sales tax varies from state to state and some states such as DE don't collect sales tax.
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States
So you are looking at $649 and $749 before taxes.
When the first iPhone came out in 2007, it was $499 for a 4gb and $599 for the 8gb. There was no contract but it was laughably still locked to AT&T.
People lined up but still did not sell as well as they must have hoped, because 3 months later the dropped the price $200.
Then in 2008 they moved to the subsidy model and the iPhone 3G was $199 with a contract.
On Apple Store it states $649 for the iPhone 16Gb. Is that with tax or without?
If I am buying one when in the US, and have one of those tax free applications filled up, what kind of money will I get back?
Thanks if someone can help me on this one
That is without tax.
Most of the time when you see products listed in the US they do not include tax as rates vary from state to state.
I agree. The lack of availability of micro-sims makes the unlocked 3GS a better device for those who travel and want to use local sim cards and carriers.
I did just this a few months ago. If you're going to go this route now is a good time to do so IMO. You'll get good value for your i4 right now. This will also give you a few months with the V, and enough time to realize how much you miss your iPhone right before the refresh happens this fall.
At the price it's a good deal for the right person. However if you can afford an i4 and the VZ/AT&T plans now you probably won't be satisfied with the V IMO.
Interesting - an AT&T spokesperson has confirmed to TUAW that you can go on a rolling contract with no commitment - per http://www.tuaw.com/2011/06/14/unlocked-iphone-faq/
This makes the numbers very different for people like me in the US for the short-term or even an extended vacation:
Buy unlocked phone for $749 + 9% = $816
Pay ridiculously expensive AT&T monthly fees of $65 in the interim
Exit after X months with no cost plus owned handset
Here's hoping the iPhone 4S / 5 will have the same option to be unlocked.
This makes the numbers very different for people like me in the US for the short-term or even an extended vacation:
Buy unlocked phone for $749 + 9% = $816
Pay ridiculously expensive AT&T monthly fees of $65 in the interim
Exit after X months with no cost plus owned handset
Here's hoping the iPhone 4S / 5 will have the same option to be unlocked.
I really like that plan, but unfortunately Sprint's coverage in my area is rather meager. Too bad, or Virgin Mobile would have another customer.