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Maybe worth it to pay non-subsidized price?
- Thread starter ODog4523
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I thought about that too but when you consider that if you cancel with att, it's 175.00 and that goes down $5 for every month you have the plan. So in my opinion your better off just doing the contract. Cheaper that way.
I think it's worth the money to avoid 2-year prison term.
So much for that great AT&T subsidy. Apple makes a 16GB 3GS for $179 and sells unsubsidized for $599. So, if AT&T buys each 16GB 3GS from Apple for $399 or $499, AT&T is subsidizing only $200 or $300 for full TWO years. And, how much we are forking over in 2 years?
I think it's worth the money to avoid 2-year prison term.
So much for that great AT&T subsidy. Apple makes a 16GB 3GS for $179 and sells unsubsidized for $599. So, if AT&T buys each 16GB 3GS from Apple for $399 or $499, AT&T is subsidizing only $200 or $300 for full TWO years. And, how much we are forking over in 2 years?
Apple is selling the iphones to AT&T at $600+.
All you need to do is go to Apple's quarterly earnings --- take their iphone revenue and divide by the units sold.
That is a very good point. I don't have much of a choice other than ATT though because of where I live. They have much better coverage than other carriers so I probably would not switch and I use my cell as my home phone so have to have it. So the contract doesn't bother me too much.
I definitely see both sides of it.
I definitely see both sides of it.
No they don't. It's impossible. They're buying millions of iPhones at bulk.
As for the OP's question, it may be worth it for a couple of reasons. First, you are automatically eligible for the subsidized price for 2010's iPhone (thus, you will enjoy the 3GS and next year's too). And second, if the iPhone goes elsewhere next year (possibly), you can automatically jump ship. Sure, the $175 not much, but you can't pay it to enjoy subs pricing for next year's iPhone.
Nobody knows the exact price that carriers pay to Apple for the iphone.
But if you take a look at Apple's quarterly earnings filings (which provide as few information as the SEC required) --- you will know that Apple gets more than $600 in revenue per iphone.
Italy sells completely unlocked unsubsidized iphone for about $1000 US (32 GB iphone 3GS) --- that's tax included. So say about 15% sales tax --- the real price for an unlocked unsubsidized top level iphone is $850 US.
It's all public information in Apple's SEC filings --- divide their iphone revenue by the units of iphone shipped.
Youre going to pay AT&T like 75 a month anyway, might as well get a subsidy for it. The only convincing arugment I've seen for not entering into a contract is if you have more money than sense or your the type that need to use multiple phones for fun/status.
OK, so here's some crunched numbers for the next year (assuming we'll be clammering for the next IPhone this time in 2010:
new 32gb 3GS at retail = 740.94 (with tax and such)
12 months at my current rate = 90.00+/-
total = 1820.94+/- to use the 3GS for the next 12 months w/out starting a new contract
as apposed to:
32gb 3GS with my semi ATT upgrade price = 528.94
24 months on a new plan at about 90.00 divided by 2 = 1098.00 again for 12 months (including 18.00 upgrade fee)
total = 1626.94 for 12 months + about 150.00 for cancelling = 1776.94
So slightly cheaper to go ahead and get the contract? Make sense??
Of course, if the next phone is still on ATT, I wouldn't be up for the best price on that.
new 32gb 3GS at retail = 740.94 (with tax and such)
12 months at my current rate = 90.00+/-
total = 1820.94+/- to use the 3GS for the next 12 months w/out starting a new contract
as apposed to:
32gb 3GS with my semi ATT upgrade price = 528.94
24 months on a new plan at about 90.00 divided by 2 = 1098.00 again for 12 months (including 18.00 upgrade fee)
total = 1626.94 for 12 months + about 150.00 for cancelling = 1776.94
So slightly cheaper to go ahead and get the contract? Make sense??
Of course, if the next phone is still on ATT, I wouldn't be up for the best price on that.