Remember when a new iPhone was $199

[576316]

Yep remember those days
Contracts three one plan unlimited everything including unlimited tethering free iPhone 4s £35 bargain

I remember a Freddo costing me 10p. What has the world come to?
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I can get the X for £9.99 upfront but it’s £83pm for 24months with yearly upgrades

I always wince when I see people's monthly network charges, and the fact they're locked into those deals for a minimum of 2 years. Just buy the phone outright and get yourself a much better value for money SIM-only deal with no lock-in. You'll pay so much less monthly.

 

[Phonzoxd]

I used to pay $90 a month for unlimited on ATT with a subsidized phone. Now I pay $50 for unlimited on T-Mobile plus $40 for IUP. It’s the same for me.

How is it the same? You didnt account for the upfront cost you had to pay when you upgraded your phone. For a $40 per month phone thats roughly $500 on contract up front.

Now what if you want to use your phone over 2 years? On contract you are still paying them that higher price, but the new model, you just pay $50 a month.

Ive been using my 6+ for 3 years now. I just saved a ton.

 

[HEK]

I remember a Freddo costing me 10p. What has the world come to?
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I always wince when I see people's monthly network charges, and the fact they're locked into those deals for a minimum of 2 years. Just buy the phone outright and get yourself a much better value for money SIM-only deal with no lock-in. You'll pay so much less monthly.

But it adds up to same.

 

[DNichter]

... Subsidized.

 

[mattopotamus]

While the upfront cost is high, going prepaid makes the most sense with current prices.

 

[PhillyGuy72]

I vividly remember standing in line at the ATT store on a humid late June morning for about 3 1/2 hours for the original. The line was not THAT long compared to the few Apple stores in the Philly area. $499 for the 4GB. (Crazy since the current iPhone I have at the moment, the 6 Plus was cheaper back in 2014. [64GB])

For the original I was already on ATT at the time with my Motorola Razr. My aunt however bought the 8Gb and planned to keep it sealed and resell it. But then decided to return it within the 14 day period. I do wish I talked her out of that though seeing how some are (trying to) sell the sealed original for unreal prices.

I can't quite recall the details, maybe it was when 3G was announced only a few months later - and the price for the Original June iPhone dropped and a few were ticked off. Apple did send me a online Gift Certificate for that price cut. No clue what I used it for, it was probably on iPhone accessories.

Still have the box, the bag - which I see on Ebay also. The phone which works...somewhat. Just for the heck of it I may buy a new battery for this since the current original battery life on iPhone 1 is an an amazing 7, 8 minutes lol.

 

[576316]

But it adds up to same.

Depends on the SIM deal you get, it can work out being cheaper in the long run. Plus you're not locked into an evil contract, bending to the will of the network who will do what they like with your pricing and you gotta deal with it.

 

[rui no onna]

No it hasn’t. I pay the same monthly. Get a $20 price break off my plan. And I pay $40 more for my phone. So I actually pay $20 more a month than when the phones were only $199 every two years.

I keep driving this point. The providers are giving everyone $20-$25 discounts on their plans. But once you add the phone price back into your plan. Your monthly bill is more than what you paid for before. lol

Add in the $200 and it kinda evens out.

$25 * 20 = $500
$500 + $199 = $799
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Even the $550 or so an X would have cost out of pocket would still work out to less money after 2 years for most people. Nobody has explained why the telecoms were so generous as to make less money off of us consumers by moving from contracts to contract-free. Here's a dose of reality, they didn't. Relatively few managed to save money, while the large majority pays more now.

The AT&T and T-Mobile merger fell through. T-Mobile used the money they got from AT&T for upgrading their network and better marketing. The Big Two reacted because they were losing customers to T-Mobile. It had absolutely nothing to do with benevolence.

That said, the new plans work better for multi-line family plans than single lines.

 

[solo118]

I vividly remember standing in line at the ATT store on a humid late June morning for about 3 1/2 hours for the original. The line was not THAT long compared to the few Apple stores in the Philly area. $499 for the 4GB. (Crazy since the current iPhone I have at the moment, the 6 Plus was cheaper back in 2014. [64GB])

For the original I was already on ATT at the time with my Motorola Razr. My aunt however bought the 8Gb and planned to keep it sealed and resell it. But then decided to return it within the 14 day period. I do wish I talked her out of that though seeing how some are (trying to) sell the sealed original for unreal prices.

I can't quite recall the details, maybe it was when 3G was announced only a few months later - and the price for the Original June iPhone dropped and a few were ticked off. Apple did send me a online Gift Certificate for that price cut. No clue what I used it for, it was probably on iPhone accessories.

Still have the box, the bag - which I see on Ebay also. The phone which works...somewhat. Just for the heck of it I may buy a new battery for this since the current original battery life on iPhone 1 is an an amazing 7, 8 minutes lol.

Wow, brings back memories I just remember picking mine up from a NJ mall on launch day and I was the only person in the store. It was a weird feeling giving up my Blackberry, but I knew it was for the better.

 

[rui no onna]

I can't quite recall the details, maybe it was when 3G was announced only a few months later - and the price for the Original June iPhone dropped and a few were ticked off. Apple did send me a online Gift Certificate for that price cut. No clue what I used it for, it was probably on iPhone accessories.

Apple dropped the price by $200 within just a few months of release.

Iirc, launch:

$499 iPhone 4GB
$599 iPhone 8GB

Then maybe around September or so:

$299 iPhone 4GB (clearance sale on Walmart, I think)
$399 iPhone 8GB
$499 iPhone 16GB

Given lack of expandable storage, the 8GB model was too small for me so it wasn't until after the 16GB model was released that I got an iPhone. I lost my flip phone around Oct/Nov 2007 so it actually worked out.

 

[brianric]

The service providers are no longer subsidizing iPhones and building it into the monthly plan. The monthly plans haven't come down much either.

Really? In 2010 I had a 450 minute plan at $39.99 with Verizon with no text and data with unlimited calling nights and weekends. I believe nights were from 9 PM to 6 AM. For $20 more per month I got a 900 minute plan and the capability to add five numbers for unlimited voice. I did the upgrade so I could talk to my brother, was dying, every day. Add tax to that. Now I have unlimited calling, unlimited text, 5 GB data with caller ID for $55.50, taxes included.

 

[krause734]

Really? In 2010 I had a 450 minute plan at $39.99 with Verizon with no text and data with unlimited calling nights and weekends. I believe nights were from 9 PM to 6 AM. For $20 more per month I got a 900 minute plan and the capability to add five numbers for unlimited voice. I did the upgrade so I could talk to my brother, was dying, every day. Add tax to that. Now I have unlimited calling, unlimited text, 5 GB data with caller ID for $55.50, taxes included.

 

[aneftp]

As others have said, the full price of the iPhone has always started at 649 retail.

It wasn't until the 6 Plus that started at 749, the 8 that started at 699 and the X that starts at 999 that we've seen these price "increases"

EDIT: A tubeexperience corrected me, the iPhone was $599. The "entry level" price for the iPhone remained $599 until the iPhone 4S, at which point it rose to $649.

So it actually appears that Apple raises the price of the iPhone by $50 about 5th new model

Actually the iPhone was $599 retail price 2007 (dropped it to $399 when it wasn't selling well). Than for iPhone 3G it was $599. The iPhone 3GS was $599. The iPhone 4 was $599 in June 2010 when it launched. Than apple did the what Apple did. They freaking raised the price of the iPhone 4 10 months into its cycle. People don't remember this but back in April 2011. Apple raised iPhone 4 price 10 months old cycle by $50!!

https://techcrunch.com/2011/06/14/apple-prices-unlocked-iphone-4-at-649/
[doublepost=1505773157][/doublepost]Subsidies worked for carriers with one line plans. The issue is they look at revenue PER LINE.

SO in the USA many of us have family plans. Lines 2-5 were only 9.99 to add on. So subsidizing a phone $400 every 2 years was fine with carriers for the more lucrative primary line. It's lines 2-5 that cost carriers a lot.

Notice even after after getting rid of device subsidies. Verizon in feb 2017 introduce $100'unlimted plans plus $20 a device add on. But Verizon probably noticed more people were signing up for lines 5-10. So a 5 line plan costs $200 a month. Effectively making it $40/line. Now add 7 lines. $240/7. The price per line goes down.

That's why Verizon got rid of the plan2-3 weeks ago and made all lines after $200/4 lines $50 a line. So a 5 line plan costs a whopping $250

 

[rui no onna]

Subsidies worked for carriers with one line plans. The issue is they look at revenue PER LINE.

SO in the USA many of us have family plans. Lines 2-5 were only 9.99 to add on. So subsidizing a phone $400 every 2 years was fine with carriers for the more lucrative primary line. It's lines 2-5 that cost carriers a lot.

I expect the subsidies are partly what the mandatory smartphone $30 data plans were for. Caveat is the contract language didn't require the data plans to be kept on the line for the entire length of the contract until much later (I think post-iPhone 4S release). The restriction was a data plan was required if a smartphone is on the line but one can cancel the data plan if they replace the smartphone with a dumb phone. So one could have, say, two lines with alternate upgrade years, keep a dumb phone on one line and get a new iPhone every year at the subsidized price of $199.

 

[aneftp]

I expect the subsidies are partly what the mandatory smartphone $30 data plans were for. Caveat is the contract language didn't require the data plans to be kept on the line for the entire length of the contract until much later (I think post-iPhone 4S release). The restriction was a data plan was required if a smartphone is on the line but one can cancel the data plan if they replace the smartphone with a dumb phone. So one could have, say, two lines with alternate upgrade years, keep a dumb phone on one line and get a new iPhone every year at the subsidized price of $199.

Yes. Exactly. Many of us did that.

So subsidies have ended. Carriers tried the tiered data plans to get more revenue. Than they went back to unlimited data earlier this year (throttled potentially during peak times after 22-28gb).

But after Verizon lastest BS plans targeting $50/line ($200/4 lines). One can easy say Verizon has RAISED prices even when they removed the device subsidies from the equation (subsidies were worth roughly $20/line). Prices really have not gone down with Verizon PER line

 

[Phonzoxd]

Yes. Exactly. Many of us did that.

So subsidies have ended. Carriers tried the tiered data plans to get more revenue. Than they went back to unlimited data earlier this year (throttled potentially during peak times after 22-28gb).

But after Verizon lastest BS plans targeting $50/line ($200/4 lines). One can easy say Verizon has RAISED prices even when they removed the device subsidies from the equation (subsidies were worth roughly $20/line). Prices really have not gone down with Verizon PER line

Yep, thats why im sticking with Verizon old More Everything Plan.

10GB for 80bucks (64 after corp discount)
5Lines at $15 a line
1 ipad at $10 a line

Im sure Verizon wants to get me off bad. If i were to switch to their new unlimited, it'll cost me over $80 more per month.

 

[rui no onna]

Yes. Exactly. Many of us did that.

So subsidies have ended. Carriers tried the tiered data plans to get more revenue. Than they went back to unlimited data earlier this year (throttled potentially during peak times after 22-28gb).

But after Verizon lastest BS plans targeting $50/line ($200/4 lines). One can easy say Verizon has RAISED prices even when they removed the device subsidies from the equation (subsidies were worth roughly $20/line). Prices really have not gone down with Verizon PER line

Yeah, it's creeped up again. It was ~$160 for a 10-20GB family plan with 4 lines for the past 3 years. Prior to that, I believe I was paying $240 for 4 lines or $60/line on for 10GB on 2-yr contract. I expect I'm probably gonna hold on to my current plan for as long as possible. The AT&T double data rate promo was pretty darned good for our usage.

 

[HEK]

Yep, thats why im sticking with Verizon old More Everything Plan.

10GB for 80bucks (64 after corp discount)
5Lines at $15 a line
1 ipad at $10 a line

Im sure Verizon wants to get me off bad. If i were to switch to their new unlimited, it'll cost me over $80 more per month.

Same with AT&T family plan.
15GB rollover for $80 per month after discount
3 phones at $15 each
$125 plus 2 iPhones on Next.

Latest plan would be $32 unlimited data for each iPhone after discount. 3 phones went up to $20 per phone.
$124 plus 2 iPhones on Next.

So break even point either way with three phones.

 

[cyb3rdud3]

Depends on the SIM deal you get, it can work out being cheaper in the long run. Plus you're not locked into an evil contract, bending to the will of the network who will do what they like with your pricing and you gotta deal with it.

It all depends on what deals are available, everyone would do well to simply do the sums. it was only last Wednesday I did that for my youngest, and to my surprise for the contract we wanted getting it inclusive with the phone it was £50 cheaper over 2 years and with no large capital outlay upfront.

For what I require of my phone and contract that just wasn't the case so I bought my phone outright and then got a contract.

It is impossible to simply make a blanket statement like that that covers all cases. And no the network can't bend you to their will, nor do what they like with your pricing...If they change the pricing then you are within your right to change your contract or leave. I'm sorry but in the UK that was simply false information.

 

[maflynn]

Regardless of the phone being subsidized the fact remained, that the older model iPhones were less expensive.

As for subsized, its funny but my bill hasn't gone down per month with the loss of subsidized phones. I'm still paying > 200 for 4 lines, yet now instead of getting the iPhone for 199, I also need to spend close to 700 or take a loan out.

 

[throAU]

A new iPhone was never really $199. The full price was just slowly taken from you during the course of the contract.

Not quite correct.

The price plus an additional amount of interest and less competitive call rates.

Buying phones on plans is for chumps.


Edit:
That said I'm basing that on the Aussie phone market. It's easy to buy a device outright here. YMMV

 

[576316]

If they change the pricing then you are within your right to change your contract or leave. I'm sorry but in the UK that was simply false information.

Wrong. A network can change your pricing under UK inflation, and they tell you that when you sign up. You can't just leave a contract if they change the price.

 

[aristobrat]

Buying phones on plans is for chumps.


Edit:
That said I'm basing that on the Aussie phone market. It's easy to buy a device outright here. YMMV

Buying a device outright (i.e. not bundled) in the US is pretty much the only option now, but the majority of the previous 70 posts are complaining about how that is more expensive than when they could buy the phone on a plan. So I guess between the US and AU, the milage varies quite a bit on that!

 

[maflynn]

Buying a device outright in the US is pretty much the only option now,

No its not, and I personally avoid such a habit, this probably why I've been so resistant to get the X

 

[ashleyman]

I currently pay £18 a month for unlimited everything, plus unlimited tethering allowance, plus free roaming in a bunch of countries.

I paid £799 for an iPhone 8 Plus.

Total cost over 2 years is £1231 or £51 a month. (18*24 = £432 + £799)

If I wanted to get a 2 year contract on a new iPhone 8 Plus with a similar allowance and phone I would be paying £79 up front and £60 a month. That gives me 100GB limit of data.

Total cost over 2 years is £1519 or £63 a month.

I bought my 6 Plus outright in 2014 on launch day. I was paying less than I do now for my sim but even if I took the higher £18 figure it still works out super cheap.

£18 a month x 36 months = £648
iPhone 6 Plus 64GB = £699
Total = £1347.

Amortised monthly = £37 over 3 years or £47 over 2 years (18*24=£432/24).

I cannot even imagine going back to paying £40+ a month per month for a phone plan. It's crazy and I can't believe I did it for so long!

I usually sell my phones when I upgrade so I can also deduct that income from the purchase price of the phone which will make the monthly prices even lower.

Obviously do what's right for you but it's always cheaper to buy the phone and sim separate so long as you're getting a good sim deal.