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Can someone please explain the benefits of buying a phone at full retail

thewitt said:
If you want to upgrade your phone in a year rather than at the end of a two year contract, buy a full price phone with no contract.
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This still makes no sense. Have you sat down and done the math? It's better to take the money available today and hope for an early upgrade than it is to leave a subsidy just sitting there unused with a "plan" of using it someday.

OP is in the US, let's keep on topic.
 
It all depends on ones circumstances and what works for you.

I've found that the carriers are actually quite accommodating when approached in a friendly fashion. There's a concept called "lifetime value". My ongoing loyalty to the carrier has a very high lifetime value. Once I've called that to the attention of a decision maker, I find they're quite receptive.

Along with a track record of always paying my bill on time, not being a difficult customer, I find they're quite easy to deal with. I get two upgrades per year, one for each of my lines. I'm given unlock codes for free because I travel internationally & have negotiated that as a part of my contract. I've never had a reason to complain because we work together. It's all in the approach.

I've consistently, year after year, enjoyed two new smartphones of my choice, five years in a row. For me it's a terrific arrangement. AT&T likes it too.
 
Givmeabrek said:
It makes no sense in the US because you are paying the same monthly bill. You can leave your carrier without paying the ETF but so what? You paid so much for the phone that you lose anyway.
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But when you pay on a contract, you pay 2/3's more in the end. It's simple math. There is no such thing as a 300 dollar iPhone. You have been brainwashed into thinking this by the operators. Get a clue dude. The operators are ripping you off with contracts.... If you can't afford to pay the full price but want the phone, expect to be ripped off over the course of 2 years.
 
sapporobaby said:
But when you pay on a contract, you pay 2/3's more in the end. It's simple math. There is no such thing as a 300 dollar iPhone. You have been brainwashed into thinking this by the operators. Get a clue dude. The operators are ripping you off with contracts.... If you can't afford to pay the full price but want the phone, expect to be ripped off over the course of 2 years.
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You must not be referring to US rates. The OP is in the US.
 
Geckotek said:
You must not be referring to US rates. The OP is in the US.
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Doesn't matter where the OP lives. There is no such thing as a 300 dollar iPhone. All those prices are subsidized. They are not real. The operators are bearing the initial cost of the iPhone and then loaning the iPhone to the user at a higher cost. The loan is over in 2 years. Don't you get it or have you believed the scam for so long that you can't tell the difference?
 
sapporobaby said:
Doesn't matter where the OP lives. There is no such thing as a 300 dollar iPhone. All those prices are subsidized. They are not real. The operators are bearing the initial cost of the iPhone and then loaning the iPhone to the user at a higher cost. The loan is over in 2 years. Don't you get it or have you believed the scam for so long that you can't tell the difference?
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It does matter where the OP lives. You need to do some simple math. Let's use a $400 phone subsidized to $100 and on a 24 month $50/month contract.

Subsidized
$100 - phone
$1200 - rate plan
$1300 - Total cost over 2 years

Unsubsidized
$400 - phone
$1200 - rate plan
$1600 - Total cost over 2 years

It's prety simple. There is no financial advantage to buying unsubsidized in the US.
 
Let's see, the best contract here I could find for the iPhone 4S, 64GB is roughly $74 a month for 2 years. Thats a total cost of $1776 over the time

I pay $999 for the phone, and $30 a month for a pre-paid plan, or $1719 over that time. Sure I dont get the data or the volume of calls, but I'm also not contracted, I can sell the phone, upgrade or change carriers at any time. When the next phone comes out I can sell this one, not locked to any carrier, and buy the next one with no problem at all.

I get by with the $30/month plan, but if I'm planning on going away, need more data or calls I can just pay more for that month, or simply renew the pre-paid plan when I'm close to using all the plan value that month - My choice
 
When I get an iPhone I'm getting an unlocked one because, as a 14 yr old I'm not financially secure. If I get a subsidized iPhone then I'll have to come up with XXX $ every week/month without fail. No thanks!

...Plus I often switch carriers to get better deals :)
 
The factory unlocked phone is a better deal.

You buy the phone outright and can use a cheap $40/month plan with data.
You can travel with your phone and use it in any country.
You can switch carriers and take advantage of cheaper data plans that aren't offered with the subsidized iPhone.

Think about it - when you buy furniture, electronics, anything on credit, you pay interest. There's no free lunch. Most of my friends pay around $100/month for their iPhone plans. I pay $40 for T-Mobile's cheap data/voice plan.

-Happily using an unlocked iPhone since 2007
 
Ping Guo said:
The factory unlocked phone is a better deal.

You buy the phone outright and can use a cheap $40/month plan with data.
Click to expand...

Once again, OP is in the US. This does not apply. In the US we do not get the choice of a cheaper rate plan because we purchased our phones w/o a subsidy.


Try to stay on topic.
 
I'm in the UK, and always try and buy the unsubsidised model as you can switch carriers at any time and usually pay as you go turns out cheaper.
 
Even if the price over a year or two years ends up roughly the same, some people just prefer to keep monthly outgoings low by paying up front for things rather than spreading the cost if there's no need to. SIM only is far cheaper every month obviously, and it's more flexible with an unlocked phone as you can switch carriers or upgrade the phone at any time, and use a local SIM if travelling abroad.
 
Why doesn't anyone in this thread understand that buying unsubsidized in the US is just not worth it!
 
I guess it must be because you have a bunch of carriers who can seemingly get away with inflexible practices, lack of consumer choice and a cartel of high priced tariffs, which are long gone elsewhere.
 
it can work out cheaper.

over here in the UK you could buy the 4S for £500 outright (unlocked), and then buy a sim only deal for say, £10 a month. Over the course of 2 years you would only be paying £740 in total.

Whereas if you bought into a contract, you would be paying upfront for the phone (£119 ish?) and then locking yourself into a 2 year contract at £35 a month. Which would total around £960.
 
sulpfiction said:
So that makes no sense still..I just signed a new contract for the 4S. But I could go out and buy any other phone I want, whenever I wang if I'm paying full retail.

Thanks for ur response but now I'm even more baffled.
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I bought two iPhone 4s at full price.

You must realize that $600 or even more is not a lot of money to some. It is all relative. This will tick many off but before you get mad a me, it ticks me off to hear many are buying their new iPhone before th:mad:ey buy food or pay rent!

Everyone has a right to spend their money as they wish!
 
In the UK you can get sim only contracts that are cheaper.

That and the option of changing phones and not being locked down in a 18m or 24m contract
 
miggitymac said:
The advantage for me:

I have a $25 (after tax) per month plan, which includes data.

If I get a subsidized phone, they'll make me sign a new contract at at least $50 per month over 2/3 years.
Click to expand...

Same reason I bought my 4S outright from Apple (in Canada).

Which plan/carrier are you on for $25? I am still choosing - leaning towards Telus' $20 text and data prepaid.
 
I bought the iPhone 4 on Verizon and am ending contract early. I can save a lot of money by going to AT&T (SATAN) and starting a new contract, getting the subsidized price.

With full retail price $749 32GB.
Minus $350, sale of iPhone 4.
Equals $399 total price if staying with Verizon and selling iPhone4.

Cost of phone on AT&T $299 new contract
Then sell iPhone 4 for $350
Pay off the Verizon ETF $190
Equals $139 total cost after sale of old iPhone and switching to AT&T.

I save $260 and get some what better signal in my area.

When I mentioned that to the Verizon rep, she said it was silly to cancel, and didn't make sense and mentioned unlimited data. Oh well. I don't care about unlim data, I use .8 GB at the most anyway.

Buying full price is foolish! Buying an unlocked factory phone is smarter. It's cheaper to end the contract early.
 
vitzr said:
It all depends on ones circumstances and what works for you.

I've found that the carriers are actually quite accommodating when approached in a friendly fashion. There's a concept called "lifetime value". My ongoing loyalty to the carrier has a very high lifetime value. Once I've called that to the attention of a decision maker, I find they're quite receptive.

Along with a track record of always paying my bill on time, not being a difficult customer, I find they're quite easy to deal with. I get two upgrades per year, one for each of my lines. I'm given unlock codes for free because I travel internationally & have negotiated that as a part of my contract. I've never had a reason to complain because we work together. It's all in the approach.

I've consistently, year after year, enjoyed two new smartphones of my choice, five years in a row. For me it's a terrific arrangement. AT&T likes it too.
Click to expand...

Did they really unlock your iPhone when you traveled overseas? which iPhone did they unlock for you? and how did you convince them to unlock it for you?
 
sulpfiction said:
I see a lot of discussions about this but I don't really understand it. Most likely because I've never bought an un-subsidized phone before.

What are the benefits of buying a phone at full retail with no contract? I understand ur not locked into a 2 year commitment but if I'm staying with the same carrier I'm still going to have to pay for service...right?
Click to expand...

For an iPhone, the only reason would be if you plan to spend a while in Europe. If this is for US-only use, there is no advantage.

Unless you have to have a smartphone traveling, the alternative is just to buy a cheap GSM phone to take with you. Samsung makes a very inexpensive usable clamshell phone that T-Mobile used to give away. Easy to swap SIMs.

Maybe somebody with an iPhone "world phone" could post on how well this works out in Europe?
 
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I personally buy simfree through apple as I do not want to lose my unlimited everything!

Problem over here is you cannot carry stuff over when you upgrade. The upgrade is really just like a new contract.
 
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Stealthipad said:
sulpfiction said:
So that makes no sense still..I just signed a new contract for the 4S. But I could go out and buy any other phone I want, whenever I wang if I'm paying full retail.

Thanks for ur response but now I'm even more baffled.
Click to expand...

I bought two iPhone 4s at full price.

You must realize that $600 or even more is not a lot of money to some. It is all relative. This will tick many off but before you get mad a me, it ticks me off to hear many are buying their new iPhone before th:mad:ey buy food or pay rent!

Everyone has a right to spend their money as they wish!
Click to expand...

Tick me off?? My post has nothing to do with who can afford what. I could care less that u bought 2 phones at full retail. I'm just wondering what the advantage would be to do that in the US. And the answer is, other then not being tied to a carrier for a period of time, there is no benefit. Ive been with AT&T for a long, long time and I'm quite happy. I've also been able to get a new iPhone every year, since 07 at the full subsidized rate. I have unlimited data and my bill stays the same every month. So for me, paying full price for the phone wouldnt make any sense.

I think u missed the entire point of the thread. Or maybe u just wanted to tell everyone that u can afford 2 iPhones at full price. Whatever the reason, your post makes no sense.
 
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