Do you buy a new phone subsidized or pay for it up front?

[Saturn1217]

When it was time to start paying my own phone bills (and get off my parent's plan) I went with T-mobile specifically because back then (and now) they had a relatively cheap plan that you could get if you bought the phone at full price. I'm still grandfathered in to the even more plus plan and I get 500min, 5gb high speed data and unlimited texts for $66 (including taxes and fees). That is far better to me than paying $100+ a month with a subsidy and like the OP I like to feel that my phone is truly mine and not on loan from a carrier.

BUT, it is really frustrating that even when you buy a phone up front you still have to deal with all the carrier lock down and bloatware. I wish the unlocked phone market were easier to get to. Right now I'm buying nexus but I wish for example that I could get a completely carrier free Galaxy S4 compatible with T-mobile hspa+. Right now I'd have to root and rom a T-mobile GS4 or pay for the GPE (which I'm not as interested in).

Basically the US phone market is getting better but it still isn't very convienient for people who want to buy phones outright

 

[chagla]

i buy it for full price. you usually end up paying more if you get phone subsidized. do the math. if you don't want/can't afford latest and greatest, i recommend getting a used unit from ebay/amazon. decent phones (android or iphone) can be had for ~$250.

 

[bnnentertainmen]

i used to have a subsidized phone, it's a big mess, you can't upgrade for 2 yrs, pay more than the actual price, stuck with one carrier, etc.
it's good to pay upfront and be free.

check this out

 

[nixiemaiden]

So far most of the phones I have owned have been subsidized. I have had a few that I purchased off of ebay while I was mid-contract though.

Currently I am waiting for my contract with AT&T to be up and then I am going to buy a phone full price and switch to Go Phone. Right now we are paying $200 a month for 3 lines (really 2 lines, one of them was just an extra line added to get an early upgrade) and switching to Go Phone will drop that down to $120 so will be cheaper in the long run. 2 of the lines are up in a few months and the other one still has over a year on it but we are considering moving over with our current phones once the contracts are up on the main lines, then paying ETF on the 3rd line and saving up with the extra $80 a month to get new phones.

I am currently waiting for a new Nexus phone to come out which will hopefully be affordable unlocked like the original and that will make my genius plan awesome.

 

[maflynn]

i buy it for full price. you usually end up paying more if you get phone subsidized. do the math. if you don't want/can't afford latest and greatest, i recommend getting a used unit from ebay/amazon. decent phones (android or iphone) can be had for ~$250.

Please explain how you end up paying more with ATT if you buy the subsidized phone.

I'm on VZW now, but I was on ATT for a few years. My family plan (2 lines) was the exact same if I decided to buy the phone outright or subsidized.

 

[Apple fanboy]

It's a simple question of mathematics. Cost of phone + Monthly tariff = ? Vs cost of Subsidised phone + monthly tariff = ?, Vs free phone + monthly tariff = ?. (excel is your friend here!)

Then all you have to factor in is;

Do you want the freedom to upgrade when you want?
Do you want to be able to switch networks when you want?
Do you plan on unlocking (cost) and selling your phone at some point?
Do you have the cash to buy the phone outright?

Do the sums and go with the cheapest option if the other criteria are met.

Personally I always buy my phone as this has always worked out the cheapest option in the longterm for me.

 

[tbayrgs]

Please explain how you end up paying more with ATT if you buy the subsidized phone.

I'm on VZW now, but I was on ATT for a few years. My family plan (2 lines) was the exact same if I decided to buy the phone outright or subsidized.

He may be referring to the ridiculous new program (Next??) where you to pay monthly installments for the device and allows for more frequent upgrades.

Otherwise, I agree with you. As with all major US carriers, there is no monthly rate discount whether you pay a subsidized prices upfront or pay full retail for an unlocked device. I buy unlocked because I like to upgrade more frequently than every two years and prefer unlocked devices without carrier 'baggage', so to speak.

 

[Dr McKay]

I try to pay for it upfront, I got my Galaxy S4 on contract, it was my first subsidized phone I'd gotten since my iPhone 3G when it first launched.

 

[einmusiker]

unlimited data so never buying subsidized again

 

[F123D]

I'm paying the same monthly rate through AT&T whether I'm subsidized or not so I'll get a subsidized phone any chance I get.

 

[gotluck]

Prepaid att go phone is a better deal for those that Dont have insane FAN discounts or large family plans.

$60 for unlimited talk text and 2gb LTE. Discounts are steadily available on eBay and such too.

VZW doesnt have much of a choice- their prepaid alternatives are more complicated.

Only a moron buys off contract on postpaid att.

 

[Stooby Mcdoobie]

I buy a subsidized phone every time I have an upgrade available. I'm on a post-paid family plan and paying the same amount of money each month regardless, so it would be a waste not to.

 

[gotluck]

Please explain how you end up paying more with ATT if you buy the subsidized phone.

I'm on VZW now, but I was on ATT for a few years. My family plan (2 lines) was the exact same if I decided to buy the phone outright or subsidized.

Have to use the att go phone smartphone prepaid plans

 

[spinedoc77]

Prepaid att go phone is a better deal for those that Dont have insane FAN discounts or large family plans.

$60 for unlimited talk text and 2gb LTE. Discounts are steadily available on eBay and such too.

VZW doesnt have much of a choice- their prepaid alternatives are more complicated.

Only a moron buys off contract on postpaid att.

Yep. 2 phones on goPhone and I can afford to buy 2 phones per year, pay a bit less every month and even have money left over. Saving at least $50/month (170ish mobile share versus 120 goPhone) means $600/year in my pocket, sell my phones and that's usually another 600 to 800, giving me enough to buy my 2 phones cash every year instead of every 2 years, maybe even having cash left over. With postpaid I'd be out the 199 upgrade fee and still only get phones every 2 years.

 

[ChrisTX]

Until I switched to the Android dark side, I was always using my subsidy. Now that there are so many new Android phones being released, I feel the need to pay full price in order to upgrade often.

 

[JeffiJers]

full price to keep my unlimited data.

Been doing good with selling off current for 400-500 so out of pocket is less then the "upgrade"

not sure how it will work this time being I have an S4 and a lot of new phones are coming out. Will prob end up keeping s4 until iphone6 or vzw nexus comes out.

 

[thefourthpope]

I hate ATT, but I'm grandfathered into their unlimited data plan and don't want to spoil that. So, I get a new iphone with contract every two years on my upgrade cycle. It works out that I get the S version, which is fine with me--a few spec bumps, all the accessories are worked out--and I can usually sell my older version for near the upfront cost of the new one.

 

[Macman45]

I bu all my iPhones outright, as the charges here in the UK are nuts.

 

[blitzer09x87]

the thing is, paying $650+ at once is a bit hard for me, although i do know that getting an unlocked phone is great, it's the true freedom, but, i cant pay the whole price at once and that's why i usually go for the on-contract version. let's hope i get a promotion soon, so that i dont have to bare this torture anymore.

 

[MyiBill]

Actually I'm on MetroPCS. $50 a month, 2.5 GB free text, calls and 4g LTE service is great down here in Miami, I average about 15 mbps download speeds. Plus, MetroPCS GSM phones now run T-mobile towers...So I was looking at switching to T-mobile to buy the black version, subsidize it and use there service. But after looking at things, I just saw that it was best for me to buy the phone cash and take it to my carrier.


I can understand that on another carrier the Galaxy S4 would have been $200 down and $350 early termination fee if I end it right away. That would already put the phone at $550, plus any taxes. My phone with out taxes would have come out to $580.

Also, if you terminate it early, wouldn't they want you to pay full price for the phone or will they include that in the $350 fee? Plus aren't you paying about $20 a month for the phone for 2 years? Sorry, just not familiar with all the carriers options.

Wasn't aware how metro and the other prepaid work. If you canceled on say AT&T or Verizon (the two I'm familiar with) you would just pay the $350 or less and be done so the phone would come out to $550. Yes you do pay the ~$20 few every month but if you don't take the subsidy you still have to pay the $20 so on these two carriers it's really not worth it not too. Tmobile on the other hand doesn't require the $20 monthly fee if the phone is bought outright.