iPhone 4: Contract VS Uncommitted Pricing?

Discussion in 'iPhone' started by idyll, Jun 16, 2010.

  1. idyll macrumors 6502

    Joined:
    Jun 5, 2007
    #1
    Isn't it cheaper to buy an iPhone with a contract and then cancel and pay the early termination fee of $375, vs buying an uncommitted pricing iPhone 4?

    If so, does it hurt ones credit score to cancel a contract and pay the ETF?
     
  2. GadgetGeek71 macrumors 6502

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    #2
    Good luck in trying that. It would be better if you changed your name and got a new account.
     
  3. idyll thread starter macrumors 6502

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    Jun 5, 2007
    #3
    Why?

    I am an account owner of a family plan and was thinking about buying an iPhone 4 and adding a new line and then cancelling it.
     
  4. GadgetGeek71 macrumors 6502

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    #4
    I think AT&T will catch on if you cancel your account soon after the purchase, then try and use it on another line. I may be wrong.

    As far as the credit, It shouldn't hurt, since your paying a fee. If they report it, I would demand my money back.
     
  5. goosnarrggh macrumors 68000

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    #5
    It used to be cheaper back when the ETF was $175. Back then, after you factored in also having to pay for the first month's worth of service, it was only marginally cheaper.

    With a $375 ETF, and no correspondingly significant increase in the size of the subsidy, I'm not sure you'd still end up ahead.
     
  6. GadgetGeek71 macrumors 6502

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    #6
    I just did some research and found that I would pay $399 for the iPhone 4 (16GB), and I've only had my 3GS for 5 months. A few more $$ and you don't need to worry about your credit. :D
     
  7. idyll thread starter macrumors 6502

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    #7
    I suppose I could do that as well, but I would still be signing a 2 year contract I believe. I do not plan to keep it that long so I'd really like to get an iPhone that is contract-free, and it seems like buying it for $200 and then paying the ETF seems like the cheapest option.
     
  8. goosnarrggh macrumors 68000

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    May 16, 2006
    #8
    Let's see:
    Buy 4G 16GB phone with full subsidy: $199
    ETF: $325
    Total so far: $524

    No-commitment pricing on 4G 16GB phone: $599

    Assuming you'll be using AT&T as your primary carrier for the first few months either way --so there's no need to bother factoring in the price of first month's service-- I guess you'd have a savings of at least $50.00 if you go the ETF route.

    In fact, if you plan to stick with AT&T for several months, then the pro-rating of the ETF will make the ETF option progressively more attractive than the no-commitment option as time goes by.

    Keep in mind, after you invoke the ETF option to terminate your contract, AT&T will not let you back on their network for 6 months.
     
  9. citivolus macrumors 6502a

    Joined:
    Sep 19, 2008
    #9
    I may be wrong too but I specifically asked this question to AT&T several times. Each time they told me there would be no problem re-activating the phone in the future if I were to cancel within the first 30 days and pay the ETF.

    I'd be shocked if there were any impact to one's credit report as you are simply taking advantage of the carrier's 30-day trial period.

    This would all be avoided if AT&T/Apple simply offered the phone for sale under the no commitment pricing they advertised. The problem is they probably won't begin to do this for many months after launch.
     
  10. crashnburn macrumors 6502

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  11. Irish Rose macrumors 65816

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    May 29, 2010
    #11
    Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_0_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8A306 Safari/6531.22.7)

    As long as you pay the full amount of the ETF, nothing happens to your credit, and the phone is yours to do what you want with.
     

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