Remember when iPhones cost $199.00?

[mazdamiata210]

Yes, we understand that. But the subsidized phones weren't free either. So if you didn't have a corporate discount, you paid $135/mo after all of the taxes and fees + $200 + tax = $215 for the phone. Total 24 month cost for the service and the phone is ($135 x 24) + $215 = $3455.

Now if you pay $95 with all of the taxes/fees and $1000 + tax = $1075, total 24 month cost for the service and the phone is ($95 x 24) + $1075 = $3355, so about $100 less.

The subsidized upgrade fee is higher too, $40 for subsidized phones and $30 for financed phones, but that is a negligible difference.

Of course if you had a good corporate discount, you were better off on the older plans. But if you didn't, you are better off on the newer plans.

I don't believe you're going back in time enough, plus I'm talking about AT&T pricing since that's what I had.

A single line was about 90-95 per month after taxes/fees and a discount I had with 700 minutes (essentially unlimited with the rollover and unlimited nights/weekends) and unlimited data and messaging.

95x24 months= 2280 + 199.99 for a new phone = 2479.99 for 2 years with the phone cost added.

Now:

95x24 months= 2280 + 41.63/month for a new 64 gig X = 3279.99 for 2 years with the phone cost added.

Not sure how you can argue that it's cheaper now.
[doublepost=1509158244][/doublepost]

Yes, we understand that. But the subsidized phones weren't free either. So if you didn't have a corporate discount, you paid $135/mo after all of the taxes and fees + $200 + tax = $215 for the phone. Total 24 month cost for the service and the phone is ($135 x 24) + $215 = $3455.

Now if you pay $95 with all of the taxes/fees and $1000 + tax = $1075 for the phone, total 24 month cost for the service and the phone is ($95 x 24) + $1075 = $3355, so about $100 less.

The subsidized upgrade fee is higher too, $40 for subsidized phones and $30 for financed phones, but that is a negligible difference.

Of course if you had a good corporate discount, you were better off on the older plans. But if you didn't, you are better off on the newer plans.
[doublepost=1509157960][/doublepost]
And don't forget that the carriers offer trade in deals for the financed phones that can be quite good. Best Buy often discounts the financed phones when you buy from them, for instance right now the Note 8 is $250 off. I am sure there will be deals on the iPhone 8/8+ through Best Buy on Black Friday and Cyber Monday. Last year I got a Pixel for $240 and a $100 BB gift card on Cyber Monday.

A single line was about 90-95 per month after taxes/fees and a discount I had with 700 minutes (essentially unlimited with the rollover and unlimited nights/weekends) and unlimited data and messaging. The same as we are getting now with shared plans.

95x24 months= 2280 + 199.99 for a new phone = 2479.99 for 2 years with the phone cost added.

Now:

95x24 months= 2280 + 41.63/month for a new 64 gig X = 3279.99 for 2 years with the phone cost added.

Not sure how you can argue that it's cheaper now.

 

[Oridus]

I don't believe you're going back in time enough, plus I'm talking about AT&T pricing since that's what I had.

A single line was about 90-95 per month after taxes/fees and a discount I had with 700 minutes (essentially unlimited with the rollover and unlimited nights/weekends) and unlimited data and messaging.

95x24 months= 2280 + 199.99 for a new phone = 2479.99 for 2 years with the phone cost added.

Now:

95x24 months= 2280 + 41.63/month for a new 64 gig X = 3279.99 for 2 years with the phone cost added.

Not sure how you can argue that it's cheaper now.
[doublepost=1509158244][/doublepost]

A single line was about 90-95 per month after taxes/fees and a discount I had with 700 minutes (essentially unlimited with the rollover and unlimited nights/weekends) and unlimited data and messaging. The same as we are getting now with shared plans.

95x24 months= 2280 + 199.99 for a new phone = 2479.99 for 2 years with the phone cost added.

Now:

95x24 months= 2280 + 41.63/month for a new 64 gig X = 3279.99 for 2 years with the phone cost added.

Not sure how you can argue that it's cheaper now.

Because you're forgetting that it's not just cut and dry unlimited vs unlimited. Not everybody has the same data usage habits as you. Not everybody purchases the same phone as you. Some people may have family plans. Some people may have Directv. Some may have better discounts, some may have worse discounts, and some may have no discount at all. It's NEVER cut and dry black and white. In MOST cases it is cheaper now for MOST people in MOST cases. Not all.

 

[mazdamiata210]

Because you're forgetting that it's not just cut and dry unlimited vs unlimited. Not everybody has the same data usage habits as you. Not everybody purchases the same phone as you. Some people may have family plans. Some people may have Directv. Some may have better discounts, some may have worse discounts, and some may have no discount at all. It's NEVER cut and dry black and white. In MOST cases it is cheaper now for MOST people in MOST cases. Not all.

Well this was my story... It was still cheaper on my old plan that I was forced off of

https://forums.macrumors.com/threads/remember-when-iphones-cost-199-00.2081309/#post-25300174

 

[Oridus]

Well this was my story... It was still cheaper on my old plan that I was forced off of

https://forums.macrumors.com/threads/remember-when-iphones-cost-199-00.2081309/#post-25300174

You weren't forced off the old plan.

Also, with that quote you just linked me back to, did you intentionally leave off 2 unlimited data plans? Or did you only have 3 smart phones and two basic phones without data?

 

[mazdamiata210]

You weren't forced off the old plan.

Also, with that quote you just linked me back to, did you intentionally leave off 2 unlimited data plans? Or did you only have 3 smart phones and two basic phones without data?

If I wanted to upgrade my phone I was told by multiple people I had to change my plan. The system would not allow me to upgrade a phone without switching plans. So yes, I was forced off my old plan.

"Started with 2 basic flip phones back in 2003/2004 era" so there was no data on them.

 

[Oridus]

If I wanted to upgrade my phone I was told by multiple people I had to change my plan. The system would not allow me to upgrade a phone without switching plans. So yes, I was forced off my old plan.

"Started with 2 basic flip phones back in 2003/2004 era" so there was no data on them.

Then you didn't talk to the right people. There are people to this day that are still allowed to be grandfathered into the legacy AT&T Family Talk Nation plans.

Those two basic flip phones were eventually switched to smart phones with no data? Or did they stay flip phones?

 

[Dunbar]

95x24 months= 2280 + 199.99 for a new phone = 2479.99 for 2 years with the phone cost added.

Now:

95x24 months= 2280 + 41.63/month for a new 64 gig X = 3279.99 for 2 years with the phone cost added.

Not sure how you can argue that it's cheaper now.

You aren’t factoring in the resale value of the X after 24 months. My 6S+ has cost me $25/month in deprecation over the last 25 months. I am guessing a 64GB X will cost me ~$30 a month in depreciation over 24 months. And service is definitely cheaper now for me on a single Verizon plan. I used to pay for 450 minutes / 2GB and pay-per text which came out to $77-82 a month to get a subidized iPhone. Now I get unlimited talk, text and 5GB of data with rollover data and free hot spot for $57/month. It’s pretty much a wash for me vs two year subsidized contract pricing.

 

[mazdamiata210]

Then you didn't talk to the right people. There are people to this day that are still allowed to be grandfathered into the legacy AT&T Family Talk Nation plans.

Those two basic flip phones were eventually switched to smart phones with no data? Or did they stay flip phones?

I called multiple times, spoke to managers, went to the store, they all told me the same thing. If I wanted to upgrade I had to change plans.

They're still basic phones.

At the end of the day, it cost me less on my old plan and cost me less to buy a phone. There are no ways around it. Sure in a very niche situations it's cheaper for some people now, but for the most part unlimited back then was cheaper than unlimited now when everything is factored in.

Like I said back in the day a single line cost about 95 per month for unlimited everything.

95x24 months + 199.99 for a phone + $20 to cover tax = about $2500 for 2 years of service with a new phone.

Now:

95x24 months + 999.99 for a phone + $80 to cover tax = about $3360 for 2 years of service with a new phone.

And that 95 is being generous on the new plans because that's not including taxes and fees.

 

[JulesJam]

One other thing is that a lot of people on these forums think everyone else is like them and either upgrade every year or two years, or will have the know-how to sell their products on the third party market for a slight profit... when in reality most consumers don't care about doing that and want convenience. Also, there's a huge amount of consumers that don't upgrade every 2 years, in which case having the overall cheaper service is far more profitable considering that they're not paying installments sometimes for 2-3 years after they finish their prior installments.

That is a huge point. I know some people who were on the Nationwide plans and hadn't upgraded in 4 years!!! They didn't realize that by not upgrading every 2 years, they were flushing money down the toilet since they were paying for a new phone in their service contract anyhow.
[doublepost=1509160727][/doublepost]

A single line was about 90-95 per month after taxes/fees and a discount I had with 700 minutes (essentially unlimited with the rollover and unlimited nights/weekends) and unlimited data and messaging.

700 minutes with rollover isn't unlimited. If you happen to not use many minutes that weren't AT&T to AT&T calls, then that was your pattern but it still wasn't unlimited.

And you had a corporate discount, not everyone does. But as I pointed out that those with very large corporate discounts were better off under the old plans. But not by much.
[doublepost=1509160989][/doublepost]

In MOST cases it is cheaper now for MOST people in MOST cases. Not all.

Yep, but pretty much the only people who were better off on the old plans were people who got large corporate/government/university discounts because they worked for large corporations or universities or the government. Self-employed people and others who didn't get any discounts were really screwed by the old plans.
[doublepost=1509161149][/doublepost]

Well this was my story... It was still cheaper on my old plan that I was forced off of

The majority of people are better off on the new plans.

 

[NoBoMac]

If I wanted to upgrade my phone I was told by multiple people I had to change my plan. The system would not allow me to upgrade a phone without switching plans. So yes, I was forced off my old plan.

Odd that this happened to you: I was able to upgrade my phone via Apple and keep the grandfathered data plan.

But otherwise, agree with you re: could be actually higher cost today vs subsidies era. The old grandfather unlimited plan has no speed cap ($90-95/mo + 200-300 upfront for phone) vs current ATT Choice Unlimited (3Mb/s max; $60/mo) vs ATT Plus Unlimited (LTE speeds, $95/mo) with full price for phone up front (or same price via Next).

For me, iPhone 8 64GB:
Grandfather + subsidy: 90x24+300 = $2460 (upped the bottom end phone upfront to 300 vs original 200)
Grandfather + full phone price: 90x24+700 = $2860
Unlimited Choice + phone: 60x24+700 = $2140 (data speeds capped)
Unlimited Plus + phone: 95x24+700 = $2980

Yes, simple math if not adding in employee discounts etc, phone resale price, not concerned re: data speeds or HBO. No easy straight comparisons and what is important re features to someone.

That said, recently changed to $60/mo 3GB plan with data carry over, since at peak, use 5-6GB max once or twice a year. And will be changing to $45/mo 6GB carry over pre-pay plan next month. Will be saving overall, since not paying for data I am not using (45x24+700 = $1780).

 

[Packers1958]

Remember when new cars cost $3000?

 

[NoBoMac]

Remember when new cars cost $3000?

Unfortunately, yes.

 

[quietstormSD]

Ahhh I remember the old days of rollover minutes with all this talk about older rate plans. I’d rack up like 5000 of those things because I stopped using my phone as some I talk to people with!

 

[Diorama]

I wonder if anyone here thinks the phone used to genuinely be $199 but also goes on rants at thanksgiving that socialised medicine ‘isn’t actually free guys!”

 

[macsrcool1234]

Trust when we say, you’ve always paid full price for the phones you bought. It’s called subsidized pricing for a reason. Why do you think the contracts were for 2 years? It’s because it took the carriers that long to make back the $400 they didn’t take up front from you.

Wrong. Bills did not change before or after a contract.

Coming from someone who worked for AT&T

This is why I trust nothing that comes from your mouth. A glorified AT&T salesman.

 

[Oridus]

Wrong. Bills did not change before or after a contract.



This is why I trust nothing that comes from your mouth. A glorified AT&T salesman.

That's the reason why the old system was bad for MOST people. Their bill DIDN'T go down when they were done with their contract. They continued paying the higher prices on the services that the subsidy was built into. Unless they bought a new phone, they weren't taking advantages of any discounts. Now, all the discounts are built into the service... Either through employer discounts, DTV discounts, auto pay and paperless, things like free HBO or netflix... so on and so forth. Not tied to the singular sale of a phone, that way people who decide to hang on to their phones, buy their phones full retail price, or decide to bring their own phones to a carrier can take advantage of a lower price point.

The exception to this rule is that a lot of carriers will do BOGO and things of that nature to attract new customers.

For example. Back in the day, lets say you had two families, family A and family B. Family A decided they were going to buy 4 new phones with AT&T, and they got four new phones at $199 a piece. Lets, for simplicity purposes, say they paid $200 a month for their monthly service bill. Now family B, lets say they had the same exact plan as family A, however they decided they wanted to bring their own devices to AT&T that they were given to other family members because they didn't want to spend $199 per phone on new phones, or didn't want a contract. Family B paid the same exact price for the same exact plan as family A, even though they didn't buy new phones from AT&T. This is not a good deal for the customer. They were paying the same price point even though they weren't getting a subsidy.

Note: This is a VERY GENERAL idea and ONE EXAMPLE of what happened in the past... so please no comments about pricing. It was an EXAMPLE, not using specific numbers.

 

[Aibocyrus]

Wrong. Bills did not change before or after a contract.



This is why I trust nothing that comes from your mouth. A glorified AT&T salesman.

Someone woke up on the wrong side of the bed. I no longer work for AT&T. You actually think that the computer airs really took a $400 hit!? That makes no sense.

So since you seem to be so educated on the matter, tell me, how did they make back the $400 they discounted the phone upfront for customers??

This should be good. I’m waiting.

 

[Cyberghost]

Coming from someone who worked for AT&T and knew how it worked, the information I’m giving is educated on the subject.

You was trained to brainwash your customer but you were brainwashed in the process. The bill isn’t different and the service isn’t more or even better. Structure may change but just to show.

 

[CrAkD]

I know many have already said this but iPhones never cost $199. This thread title reminds me of every year when i tried to sell my old phone and my friends and family would ask how much and i would say like $500 or whatever I was charging and then they would be shocked and say “isn’t it $199 New” and then I would have to explain to them how dumb they sounded haha.

 

[macsrcool1234]

Someone woke up on the wrong side of the bed. I no longer work for AT&T. You actually think that the computer airs really took a $400 hit!? That makes no sense.

So since you seem to be so educated on the matter, tell me, how did they make back the $400 they discounted the phone upfront for customers??

This should be good. I’m waiting.

I'll tell you right after you explain why the bill didn't go back down after I paid off my phone.

Can't? That's what I thought. Back to the sales kiosk, there's some customers waiting to be preyed upon.

 

[lsutigerfan1976]

Guys Tim Cook has to eat too. You just can’t survive on the salary he has these days. Hence the increase in price...

 

[Diorama]

But think about how much phones would cost if they were made in America at American labor costs instead of the current $2 per hour or whatever Apple pays someone in China to make your phone for $8 in labor and $200 something in parts and then charges $1000 for it adding that $750 profit to their already ridiculous $400,000,000,000+ cash hoard.

And yet somehow Apple has this insane amount of die hard fans that will buy their products no matter the markup... LOL

Didn’t you buy the 6SSS for like $800?

 

[Aibocyrus]

I'll tell you right after you explain why the bill didn't go back down after I paid off my phone.

Can't? That's what I thought. Back to the sales kiosk, there's some customers waiting to be preyed upon.

You don’t read everything do you? Just hear what you want to. Again. I don’t work for AT&T. I work for Tesla now. And not a sales role either.
Go ahead and keep thinking phones only cost $200.
You couldn’t answer why companies would take a $400 hit. Stumped ya.

 

[Diorama]

I'll tell you right after you explain why the bill didn't go back down after I paid off my phone.

Can't? That's what I thought. Back to the sales kiosk, there's some customers waiting to be preyed upon.

In the uk they don’t reduce your bills after you pay off your phone. It’s a big scandal at the moment.
https://www.theregister.co.uk/2017/...vercharging_customers_after_contracts_expire/

 

[Oridus]

You don’t read everything do you? Just hear what you want to. Again. I don’t work for AT&T. I work for Tesla now. And not a sales role either.
Go ahead and keep thinking phones only cost $200.
You couldn’t answer why companies would take a $400 hit. Stumped ya.

Logic is hard to grasp.

People really think that a carrier would take a $400m hit for every 1 million units sold at $199.99. It's mind boggling how they can think the carriers would do this.