Time to Unload - 6 Trade Values Just Tanked

[boltjames]

[doublepost=1472961935][/doublepost]I don't understand why you say you pay 2x more for it. It is interest free for the full price of the phone for 24/30 monthly payments. Where are you getting 2x the price from?

I am an iPhone customer since 2009 and have always gotten the iPhone with the most storage. The math has always been it's an $800 phone that through subsidies and a 2 year contract with AT&T I could get for $399 on the day of release.

"Interest" has never come into play for me or millions of iPhone users. We plunk down $399, we get a phone for 2 years, at the end of the contract it's unlocked, we own it, and we can sell it on Craigslist to a local buyer for $399, in the end the phone costs us $0. Let me remind you that half the iPhone sales were the smallest capacity which was free with a 2 year contract, those people could sell their unlocked iPhone's for $100 after 2 years. Today that customer that was paying $0 for an iPhone would have to pay $549 (that's the current price for the iPhone 6).

With today's unsubsidized plans, we would pay $800 for the phone over 2 years, that's 2x what we paid for it until now. "No interest" and "no money down" sound good in TV commercials for those who aren't used to the old 2 year contract model or don't have a few hundred cash to spend on a phone in one shot. To those of us who went from the 3GS to the 4 to the 5 and to the 6, what our carriers are doing to us now is a 2x price increase for the hardware and (for many of us) a price increase on the service/data as well.

BJ

 

[comptr]

Just work a couple hours overtime instead if you're that tight.

Well its not as if I was that tight on money, I guess I just got into the habit of selling my phone every 2 years a month before the phone comes out.

 

[Applejuiced]

I am an iPhone customer since 2009 and have always gotten the iPhone with the most storage. The math has always been it's an $800 phone that through subsidies and a 2 year contract with AT&T I could get for $399 on the day of release.

"Interest" has never come into play for me or millions of iPhone users. We plunk down $399, we get a phone for 2 years, at the end of the contract it's unlocked, we own it, and we can sell it on Craigslist to a local buyer for $399, in the end the phone costs us $0. Let me remind you that half the iPhone sales were the smallest capacity which was free with a 2 year contract, those people could sell their unlocked iPhone's for $100 after 2 years. Today that customer that was paying $0 for an iPhone would have to pay $549 (that's the current price for the iPhone 6).

With today's unsubsidized plans, we would pay $800 for the phone over 2 years, that's 2x what we paid for it until now. "No interest" and "no money down" sound good in TV commercials for those who aren't used to the old 2 year contract model or don't have a few hundred cash to spend on a phone in one shot. To those of us who went from the 3GS to the 4 to the 5 and to the 6, what our carriers are doing to us now is a 2x price increase for the hardware and (for many of us) a price increase on the service/data as well.

BJ

I hear you. Many still don't get it and think this financing thing is great.
It's only great for the carrier and their pocket. All the changes and pricing shifting its to benefit them not the customer.

 

[ray737]

I hear you. Many still don't get it and think this financing thing is great.
It's only great for the carrier and their pocket. All the changes and pricing shifting its to benefit them not the customer.

I hear you guys. However contracts are really a thing of the past for most carriers. Those of us that can afford can buy our phones and resell them. Hell that Apple financing doesn't seem that bad if u like a phone every year.

 

[comptr]

I hear you. Many still don't get it and think this financing thing is great.
It's only great for the carrier and their pocket. All the changes and pricing shifting its to benefit them not the customer.

Its not that bad if your carrier gives you a discount every month for 24 months for having the phone on carrier financing. Then its similar to 2 year price and in fact it works out to be cheaper depending on how much discount there is.

 

[Applejuiced]

I hear you guys. However contracts are really a thing of the past for most carriers. Those of us that can afford can buy our phones and resell them. Hell that Apple financing doesn't seem that bad if u like a phone every year.

It's a thing of the past but some carriers still have them available.
You gotta do the math and see what works out best for you. The slick salesman at the stores don't always look after your best interest

 

[lsutigerfan1976]

Its not that bad if your carrier gives you a discount every month for 24 months for having the phone on carrier financing. Then its similar to 2 year price and in fact it works out to be cheaper depending on how much discount there is.

This is why i am considering financing and upgrading every year through Verizon. If i do that, i would pay $40 a month to lease the phone for a year. But Verizon would give me about $20-$25.00 off of my rate plan if i do it that way. (Depending on which data package i am on). So my bill wouldn't really increase that much. And i get a new phone every year.

I can actually finance through Apple directly. Give them the $40 a month, and get the applecare included. But no "rate discount" with Verizon. But i can trade my phone in every year just like with the Verizon upgrade plan.

Or i could just keep selling my old phone, use that money to pay for a new phone. And not have to sign a contract each year. Most of the time, i can get 0% for 12 months with one of my cc accounts that i have. So i can pay it off in a year, sell off that phone. Buy the new phone every year, and start over again. Rinse and repeat.

So i am not sure which way i will go this time. But i am leaning towards the Verizon upgrade plan. Simply cause i can get a new phone every year. Finance it with them at 0%, and get that $20.00 price break on my monthly rate.

So as a simple example. If i do it with Verizon. My rate plan may be $100 a month right now with my data package. It would go up to let's say $140 after adding the finance charge. But go back down to $120.00 with the credit they give me on my bill. So basically i pay an extra $20.00 a month to verizon for the privilege of leasing a phone with them, and getting a new one every 12 months. Which i am ok with.

 

[comptr]

This is why i am considering financing and upgrading every year through Verizon. If i do that, i would pay $40 a month to lease the phone for a year. But Verizon would give me about $20-$25.00 off of my rate plan if i do it that way. (Depending on which data package i am on). So my bill wouldn't really increase that much. And i get a new phone every year.

I can actually finance through Apple directly. Give them the $40 a month, and get the applecare included. But no "rate discount" with Verizon. But i can trade my phone in every year just like with the Verizon upgrade plan.

Or i could just keep selling my old phone, use that money to pay for a new phone. And not have to sign a contract each year. Most of the time, i can get 0% for 12 months with one of my cc accounts that i have. So i can pay it off in a year, sell off that phone. Buy the new phone every year, and start over again. Rinse and repeat.

So i am not sure which way i will go this time. But i am leaning towards the Verizon upgrade plan. Simply cause i can get a new phone every year. Finance it with them at 0%, and get that $20.00 price break on my monthly rate.

So as a simple example. If i do it with Verizon. My rate plan may be $100 a month right now with my data package. It would go up to let's say $140 after adding the finance charge. But go back down to $120.00 with the credit they give me on my bill. So basically i pay an extra $20.00 a month to verizon for the privilege of leasing a phone with them, and getting a new one every 12 months. Which i am ok with.

Well you need to pull out the trusty calculator and some paper and pencil and figure out if 2 year contract is better or Verizon Device Payement is better.

 

[12vElectronics]

Sprint still offers 2 year contracts

 

[pdxmatts]

I am an iPhone customer since 2009 and have always gotten the iPhone with the most storage. The math has always been it's an $800 phone that through subsidies and a 2 year contract with AT&T I could get for $399 on the day of release.

"Interest" has never come into play for me or millions of iPhone users. We plunk down $399, we get a phone for 2 years, at the end of the contract it's unlocked, we own it, and we can sell it on Craigslist to a local buyer for $399, in the end the phone costs us $0. Let me remind you that half the iPhone sales were the smallest capacity which was free with a 2 year contract, those people could sell their unlocked iPhone's for $100 after 2 years. Today that customer that was paying $0 for an iPhone would have to pay $549 (that's the current price for the iPhone 6).

With today's unsubsidized plans, we would pay $800 for the phone over 2 years, that's 2x what we paid for it until now. "No interest" and "no money down" sound good in TV commercials for those who aren't used to the old 2 year contract model or don't have a few hundred cash to spend on a phone in one shot. To those of us who went from the 3GS to the 4 to the 5 and to the 6, what our carriers are doing to us now is a 2x price increase for the hardware and (for many of us) a price increase on the service/data as well.

BJ

Sorry, but you paid the full price for the phone even with the subsidy when you include the amount you paid for 2 yrs of service on contract.

I am an iPhone customer since 2009 and have always gotten the iPhone with the most storage. The math has always been it's an $800 phone that through subsidies and a 2 year contract with AT&T I could get for $399 on the day of release.

"Interest" has never come into play for me or millions of iPhone users. We plunk down $399, we get a phone for 2 years, at the end of the contract it's unlocked, we own it, and we can sell it on Craigslist to a local buyer for $399, in the end the phone costs us $0. Let me remind you that half the iPhone sales were the smallest capacity which was free with a 2 year contract, those people could sell their unlocked iPhone's for $100 after 2 years. Today that customer that was paying $0 for an iPhone would have to pay $549 (that's the current price for the iPhone 6).

With today's unsubsidized plans, we would pay $800 for the phone over 2 years, that's 2x what we paid for it until now. "No interest" and "no money down" sound good in TV commercials for those who aren't used to the old 2 year contract model or don't have a few hundred cash to spend on a phone in one shot. To those of us who went from the 3GS to the 4 to the 5 and to the 6, what our carriers are doing to us now is a 2x price increase for the hardware and (for many of us) a price increase on the service/data as well.

BJ

When you are on a 2-year contract you are paying a $40 line access fee. When off-contract (or on a Next agreement) you are either paying a $15 or $25 line access fee depending on how much data your plan has. The subsidized price for phones is $450 off the retail price. ATT gets that money back from the $40 line access fee. Let's do some math:

(On ATT NEXT example) Both for a 64gb iPhone 6s that retails for $749:

2-year contract price:
$299 for the iPhone at time of purchase
$40 line access fee a month x 24 months = $960
$40 activation fee
Total cost = $1,299


Next agreement price:
$749 for the full retail price paid for the iPhone over the course of the next agreement
$15 line access fee a month x 24 months = $360 (10gb plan)
$15 activation fee
Total cost = $1,124

So under a 2-year contract you are paying $175 more for the phone than you would be under the Next Agreement. The savings are substantial if you have several people on the family plan. A family of 4 could save $700 every two years by having everyone on a Mobile Share Plan. Plus, you are off contract, can either trade in the phone and start a new contract each year, or you can pay off in full over 24 months or pay off early and keep the phone and get it unlocked. Sell it on Craigslist or keep it, it's yours to own.

***This is if you are not on a grandfathered plan, unlimited data plan or have a fan or employee discount, which in case would be cheaper to stay on a subsidy plan***

 

[boltjames]

Sorry, but you paid the full price for the phone even with the subsidy when you include the amount you paid for 2 yrs of service on contract.

No, I did not. I'm an EVP for a publicly traded company. I know how to read a phone bill.

I never paid a line access fee or an activation fee, I don't know what you're talking about. When I run both scenarios through a spreadsheet, my current iPhone 6 UDP cost all-in and a potential iPhone 7 NEXT cost all-in, I'm out around $900 over the life of the two year commitment. And my wife and kids all have iPhones, we own 5 of them and that's real money now.

BJ
[doublepost=1473106167][/doublepost]

I hear you. Many still don't get it and think this financing thing is great.
It's only great for the carrier and their pocket. All the changes and pricing shifting its to benefit them not the customer.

Thank God there is someone else here who knows what's going on.

The financing thing is considered 'great' by some because 90% of potential buyers don't have $300 or $400 cash to pay out in a single day, they get to own a new phone with no-money-down, they get ripped off slowly each month, it's fine with them I guess, just like people with jacked credit cards paying 26% interest every month and thinking they are in good shape.

And the rest, well, their perception that "you were paying full price anyway, it was just hidden in the special sauce" that's a combination of wishful thinking and denial. Two years ago, my 10 year old daughter, I walked in to AT&T, got an iPhone 5 for $0, added her to our Family Share plan for $15, got her $25 worth of data, that was it, there were no mystery fees to recoup the $600 cost of the hardware, she cost me exactly $40 per month for unlimited talk and text and 1GB and not a penny more. I did this with my two boys as well, back in 2010 and 2012. There is no mystery here; the carriers have increased their prices dramatically because Apple reduced their subsidy requirements dramatically.

BJ

 

[puma1552]

No, I did not. I'm an EVP for a publicly traded company. I know how to read a phone bill.

I never paid a line access fee or an activation fee, I don't know what you're talking about. When I run both scenarios through a spreadsheet, my current iPhone 6 UDP cost all-in and a potential iPhone 7 NEXT cost all-in, I'm out around $900 over the life of the two year commitment. And my wife and kids all have iPhones, we own 5 of them and that's real money now.

BJ

Nobody cares.

This is about as tacky as post #505 of yours in the following thread (and the posts thereafter), or your comical signature.

https://forums.macrumors.com/thread...ith-iphone-6s-in-them-already.1783652/page-21

Not sure why you always feel the need to brag about stuff nobody cares about. You can certainly make your point about being able to read a phone bill without some socially awkward proclamation of being an executive vice president of a publicly traded company.

 

[boltjames]

Nobody cares.

This is about as tacky as post #505 of yours in the following thread (and the posts thereafter), or your comical signature.

https://forums.macrumors.com/thread...ith-iphone-6s-in-them-already.1783652/page-21

Not sure why you always feel the need to brag about stuff nobody cares about. You can certainly make your point about being able to read a phone bill without some socially awkward proclamation of being an executive vice president of a publicly traded company.

I just spoke to my manservant and he thinks I could have been more coy but then again I showed restraint by not mentioning the private jet so I'm good with it.

BJ

 

[pdxmatts]

No, I did not. I'm an EVP for a publicly traded company. I know how to read a phone bill.

I never paid a line access fee or an activation fee, I don't know what you're talking about. When I run both scenarios through a spreadsheet, my current iPhone 6 UDP cost all-in and a potential iPhone 7 NEXT cost all-in, I'm out around $900 over the life of the two year commitment. And my wife and kids all have iPhones, we own 5 of them and that's real money now.

BJ
[doublepost=1473106167][/doublepost]

Thank God there is someone else here who knows what's going on.

The financing thing is considered 'great' by some because 90% of potential buyers don't have $300 or $400 cash to pay out in a single day, they get to own a new phone with no-money-down, they get ripped off slowly each month, it's fine with them I guess, just like people with jacked credit cards paying 26% interest every month and thinking they are in good shape.

And the rest, well, their perception that "you were paying full price anyway, it was just hidden in the special sauce" that's a combination of wishful thinking and denial. Two years ago, my 10 year old daughter, I walked in to AT&T, got an iPhone 5 for $0, added her to our Family Share plan for $15, got her $25 worth of data, that was it, there were no mystery fees to recoup the $600 cost of the hardware, she cost me exactly $40 per month for unlimited talk and text and 1GB and not a penny more. I did this with my two boys as well, back in 2010 and 2012. There is no mystery here; the carriers have increased their prices dramatically because Apple reduced their subsidy requirements dramatically.

BJ

$40 per month x 24 = $960. That's what you paid for your daughters iPhone 5 and 1gb plan. Plain and simple.

 

[boltjames]

$40 per month x 24 = $960. That's what you paid for your daughters iPhone 5 and 1gb plan. Plain and simple.

No, that's what I paid for unlimited phone calls, unlimited text, and 1 GB of data which is the customary AT&T cost for those services whether using a new iPhone, an old iPhone, a Samsung, any phone on the network. Those are service plan costs.

The cost of the hardware to me was $0. Now it would be $549. $549 + $960 = $1,509

BJ

 

[pdxmatts]

No, that's what I paid for unlimited phone calls, unlimited text, and 1 GB of data which is the customary AT&T cost for those services whether using a new iPhone, an old iPhone, a Samsung, any phone on the network. Those are service plan costs.

The cost of the hardware to me was $0. Now it would be $549. $549 + $960 = $1,509

BJ

That's because you are not on a Mobile Share plan. On the Mobile Share plan you would pay $80 for the 10gb share plan for example and then $15 per line. If you use the Next installment plan to get a new device, you pay interest free on the device over time and monthly payments are added to the line with the installment. So, you are paying over time but without interest and yes that is appealing to people who can't PIF or the subsidy price up front. It allows them to own a new phone and make payments interest free. It allows them to be off contract. It allows them to PIF if they want to and own the device and get it unlocked. It allows them to trade in after 12 mos and start a new installment with a new phone. What I am saying is that the installment plan is not 2x more than the price of subsidizing as you claimed. It's really not the topic for this thread so I'm done trying to explain anymore. Good luck

 

[H2K03]

Swappa trade in (which is done through Nextworth) is still doing $240 for a 64 gig 6, locked in for 30 days. So I just went ahead and did that and carried it far enough through to get the quote sent to my email, which is a close enough price to Buyback World's $275 without the hassle/expense of having to get a prepaid phone in the meantime, so it works out the same. Will sit on my 6 with that offer and see what the 7 brings, and decide between 7 or SE (or maybe nothing) after the keynote.

You'll make way more selling on CL or Swappa then any of these buyback sites.

 

[Cigsm]

Hahaha that's the funniest thing I've heard on this forum. Apple resale value continues to be roughly 40% of retail price. Samsungs flagships continue to be roughly 5% of retail price per gazelle and eBay. Obviously, when Samsung is selling their flagship phones buy one get one free within a month of their release, people will continue to treat them as such. In regards to your hysterical comment about Samsungs innovation and world class performance, besides Samsungs flagship note 7 having a worldwide recall due to exploding batteries, they couldn't even beat the year old iPhone in benchmark tests.

The days of iPhones holding their resale value are over.

As the tide turns and Apple loses its luster, iPhones become just another phone. The last few years of complacency, profit taking and potification are catching up to Apple. Only the faithful view Apple through rose colored glasses.

Samsungs innovation, stellar design and world class performance have paid off.

 

[Cigsm]

Oh and besides being the top selling phone in the world 8 years running, Apple continues to be the most admired brand and most valuable brand in the world. Samsung didn't make the top 10 on either list.

The days of iPhones holding their resale value are over.

As the tide turns and Apple loses its luster, iPhones become just another phone. The last few years of complacency, profit taking and potification are catching up to Apple. Only the faithful view Apple through rose colored glasses.

Samsungs innovation, stellar design and world class performance have paid off.

 

[CEmajr]

The days of iPhones holding their resale value are over.

As the tide turns and Apple loses its luster, iPhones become just another phone. The last few years of complacency, profit taking and potification are catching up to Apple. Only the faithful view Apple through rose colored glasses.

Samsungs innovation, stellar design and world class performance have paid off.

Such comedy.

Despite the fact that Iphones still hold their value more than any other smartphone while Samsung devices do not hold up as well. Anyone who resells devices knows that the iPhone is where the most demand and most money is and it's not even close.

Trade in companies are middle men, they're not paying market value for the phones. As someone who's been doing it for several years I can tell you prices always tank the week of the announcement and then stabilize about a month after the release. They drop so low due to the uncertainty of how much the reseller can get for them with the upcoming flood of used Iphones on the market. Usually they tend to actually go back up slightly about a month after the release.