iPhone 12 Starts at $799 With T-Mobile and Sprint Activation After All, SIM-Free Model Still Starts at $829

[SteveJUAE]

Not really; you weren't paying the cost of the phone in your bill. If you were, when the phone was "paid off" and out of contract, your bill would drop by a certain amount.

But it did not. This would pressure people into upgrading, because they "might as well" get a new phone if they're eligible for another subsidy.

Frankly I like the new way better. Treat the phone as a separate thing you buy and pay for as a line item on the bill (or credit card) and have the service be on its own.

This $30 fee is bull, though.

That's exactly what happened many continued to over pay for their phones post the minimum term originally as the hidden fee was based on minimum term

Only latterly and more honest ish carriers started to reduce the fee post the minimum term

But many paid $100's over for their phones by not being wise to couriers charges until plans changed and moved on from this false subsidy title many attached to purchase plans

It took a long time for US carriers to change and still their are many pitfalls and lock-ins and stealth charges or catches on accessories etc and even legacy plans some dare not upgrade from

I think US rates the 3rd most expensive country to own a smartphone but fares much better as a % of average income

 

[edsel12]

with smartphones prices reaching $820 which is equivalent and more than desktop PC prices, these things are now bound to have a 4-5 year life cycle. No more yearly upgrades.

I am still rocking a 6s+ so I get what you mean about a long life cycle. This might be the year for me to upgrade though!

 

[BeefCake 15]

Isn't the TMobile version always been the same as buying it sim free? If it's bought out right, why would T Mobile have any control over it.

 

[KrispE00]

Am I missing something? $829 / $699 = 1.186

I was about to write the same thing. I’m glad someone knows math around here. And thank you for showing your work. Full credit!

 

[kcslc]

well, that's a little better, i suppose, but still though. if i was in the market for a 12 i'd be pissed about an extra 30 that i shouldn't have to pay.

You have to pay it anyway. All carriers charge around $30 as an activation fee or “SIM card fee”.

 

[Rogifan]

Not really; you weren't paying the cost of the phone in your bill. If you were, when the phone was "paid off" and out of contract, your bill would drop by a certain amount.

But it did not. This would pressure people into upgrading, because they "might as well" get a new phone if they're eligible for another subsidy.

Frankly I like the new way better. Treat the phone as a separate thing you buy and pay for as a line item on the bill (or credit card) and have the service be on its own.

This $30 fee is bull, though.

I agree the new way is better. The monthly installment for the phone is separate from the cellular data bill. In the past though marketing made it seem like you were only paying $199 for a $699 phone which wasn’t true at all.

 

[Jzvm]

On a $1000 loan, paid back over 2 years, a $30 fee is equivalent to a 1.5% annual interest.

It is 3% APR because half the payments occur in the first year and the other half in the second year. It would be 1.5% APR if there was only one payment at the end. For the $800 iPhone 12 loan it is 3.75% APR. Still, compared to credit card rates that is a low interest.

If you pay full price up front, then it is infinity APR because there is no loan.

 

[JMStearnsX2]

Maybe for the 3G. I don’t remember that for the first iPhone, 3G is the only generation I didn’t own.

I preordered the original at $599, they did offer a $200 Apple store gift card. I remember being rather chaffed at the sudden discount after paying full price just a couple months prior. I emailed them about it and a week later they issued the gift card.

 

[JM]

This is a pretty greasy move to be honest. Just advertise the price as $829 from the start.

My guess is, this has to do with the mmWave antenna hardware costs. We don’t see this in other regions.

Was thinking that it was just a greasy move, too.... But that theory about it costing more for the MMWave antennae makes sense. Maybe they could have spun it as: "The US is getting the faster mmWave Tech and therefore it only costs $29 more."

But, ehh, that would invite complaints too from people who say they won't ever get to experience the super fast 5g in stadiums, cities, airports, etc.

Good theory, though. Reasonable 👍

 

[dmk1974]

OF COURSE I placed my order through the T-Mobile website for the additional $30 first thing this morning. Dammit!

 

[Apple_Robert]

Glad to read this update. Good news.

 

[currocj]

Does anyone know the 'requirement' to purchase a Verizon iPhone Mini? I'm a verizon prepaid plan member, does it matter that I'm not on a post paid plan? I'm going to pay monthly with my Apple Card and trade-in with Apple. Am I good?

 

[tennisproha]

Does that mean the carrier phones will be carrier locked and will have to go through the hassle of jumping through hoops to get it unlocked?

 

[alex2792]

Wouldn’t the phone be unlocked if you pay in full instead of doing carrier financing at checkout?

 

[ian87w]

So Sprint DOESN'T EXIST.

Why are they even on this list or on the Apple site? lol.

Probably for the existing customers so they won't get confused.

 

[Jzvm]

Wouldn’t the phone be unlocked if you pay in full instead of doing carrier financing at checkout?

If the phone is unlocked, then why does Apple ask who your carrier is. I assume there is something they are doing to the carrier linked phones that they are not doing with the sim free phones.

When I buy a MacBook they don’t ask me what my Comcast account is. For both phones and laptops it should not matter what your internet/cell provider is.

 

[WiseAJ]

You have to pay it anyway. All carriers charge around $30 as an activation fee or “SIM card fee”.

T-Mobile doesn't for upgrades. I only had to pay a Sim card fee when I switched over to them from AT&T. The only thing I've had to pay to T-Mobile in the past 3 years since then is my $70 a month phone bill, no extra BS greed fees has been great.

 

[ian87w]

Does that mean the carrier phones will be carrier locked and will have to go through the hassle of jumping through hoops to get it unlocked?

Based on the comments here, AT&T has always locked their iPhones. Verizon locked theirs for the first 60 days of service (I think).

So yeah, you will probably have to go through the hoops. Exception is the iPhone Upgrade Program from Apple. With iUP, the iPhone is unlocked.

 

[WiseAJ]

So Sprint DOESN'T EXIST.

Why are they even on this list or on the Apple site? lol.

AFAIK the T-Mobile and Sprint customer systems haven't combined yet

 

[mjk5025]

I was about to write the same thing. I’m glad someone knows math around here. And thank you for showing your work. Full credit!

Percent difference is calculated (new - original) / original. So (829-699)/699= ~18% (this formula usually gives roughly the same numbers as new/original, the decimals don't really matter in this case but can in other situations). I think the OP accidentally used $899, which gives ~28%.

 

[ian87w]

If the phone is unlocked, then why does Apple ask who your carrier is. I assume there is something they are doing to the carrier linked phones that they are not doing with the sim free phones.

When I buy a MacBook they don’t ask me what my Comcast account is. For both phones and laptops it should not matter what your internet/cell provider is.

I know this is confusing. It's a US problem imo. The rest of the world doesn't really have this confusion (well, except maybe Japan).

As I understand it, in the US, Apple will ship iPhones with the SIM of the carrier of your choice pre-installed in the phone. Majority of people in the US are on postpaid plans with one of the 4 (3) major carriers. It just makes it easier for people to activate and use their phone right away once they get it.

Then you have the option to pay it in full (which Apple will register the phone as unlocked in their database) or finance it (where the regular locking policy applies).

The SIM free version simply won't have any carrier SIM pre-installed. This is the normal version in most countries.

 

[ian87w]

Isn't the TMobile version always been the same as buying it sim free? If it's bought out right, why would T Mobile have any control over it.

If it was bought outright, then yeah, it's unlocked. The difference is that you must have an existing T-Mobile line to get the T-Mobile version. Some people don't, so the SIM free option is there.

 

[ian87w]

You have to pay it anyway. All carriers charge around $30 as an activation fee or “SIM card fee”.

Ah, this is the weird US thing I guess? Where they charge you just for wanting to give them more money...

 

[im_to_hyper]

They're giving you more than the phone costs new for trade in? Something is way off there.

I think it’s a gimmick to get me to switch to AT&T.... over 2 years I’ll save a whopping $30 over what I pay now.

However, I spoke with them and qualify for the first-responder discount as even though I’m not a nurse; I interact in COVID units at the hospital. And therefore that’s enough I guess.

So I’ll save even more!

But even with the trade in value spread over 24-months AND the discount it seems AT&T baked the cost of the phone into the plan anyway.

They still are making money. And got me to commit for 2 years vs buying an unlocked phone and using whomever, as was originally planned.

 

[havenyoung]

I remember the first iPhone being only $599… then $399 after either Apple or AT&T subsidized it.

The OG iPhone cost $499 with a two-year contract with AT&T, which means it was already a subsidized price.