Maybe worth it to pay non-subsidized price?

Discussion in 'iPhone' started by ODog4523, Jun 25, 2009.

  1. ODog4523 macrumors regular

    ODog4523

    Joined:
    Apr 11, 2009
    #1
    I had previously scoffed at paying 6 or 700 bucks for a new phone at the retail price, but now I'm wondering if it might be worth the extra money up front to avoid entering a new 2-year plan...

    Thoughts?
     
  2. crzy4ifone macrumors newbie

    Joined:
    Jun 25, 2009
    #2
    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.
     
  3. coolwater macrumors 6502a

    coolwater

    Joined:
    Jun 8, 2009
    #3
    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? :mad:
     
  4. ODog4523 thread starter macrumors regular

    ODog4523

    Joined:
    Apr 11, 2009
    #4
    ...And I'm also thinking next year. If Apple offers a worthy upgrade next summer and/or the phone turns up on another carrier, I would be free to shop around and get the best price at THAT time.
     
  5. samab macrumors 6502a

    Joined:
    Mar 27, 2006
    #5
    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.
     
  6. crzy4ifone macrumors newbie

    Joined:
    Jun 25, 2009
    #6
    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.
     
  7. coolwater macrumors 6502a

    coolwater

    Joined:
    Jun 8, 2009
    #7
    AT&T pays higher than retail price ($599) to Apple for an iPhone?
     
  8. kas23 macrumors 603

    kas23

    Joined:
    Oct 28, 2007
    #8
    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.
     
  9. samab macrumors 6502a

    Joined:
    Mar 27, 2006
    #9
    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.
     
  10. samab macrumors 6502a

    Joined:
    Mar 27, 2006
    #10
    It's all public information in Apple's SEC filings --- divide their iphone revenue by the units of iphone shipped.
     
  11. dagomike macrumors 65816

    Joined:
    Jun 22, 2007
    #11
    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.
     
  12. GeekGirl* macrumors 65816

    GeekGirl*

    Joined:
    Feb 26, 2009
    Location:
    Buffalo, NY
    #12
    Apple wanted me to pay 499.99 if I had my 2g replaced with a 3G, ... so yea its high
     
  13. ODog4523 thread starter macrumors regular

    ODog4523

    Joined:
    Apr 11, 2009
    #13
    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.
     

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