What are the Advantages of a No-Contract iPhone 5?

Discussion in 'iPhone' started by CoMoMacUser, Dec 7, 2012.

  1. CoMoMacUser macrumors 6502a

    Jun 28, 2012
    The answers probably will vary by country, but in the U.S., where I live, I'm not sure what the advantage is.

    Suppose that I pay $649 for an unsubsidized iPhone 5 16 GB. To recoup the $450, I'd need to find a plan that's at least $18.75/month less expensive than what I could get going the traditional subsidy-and-contract route. The forthcoming T-Mobile iPhone plan, for example, will save $20/month, so the savings over two years works out to $30. That's not a huge savings.

    So unless I can save a lot more than $30 over two years, what's all the fuss about?
  2. Beeplance macrumors 68000


    Jul 29, 2012
  3. nharrietha macrumors member

    Oct 17, 2012
    Higher resale value. That's about all I can think of.
  4. CoMoMacUser thread starter macrumors 6502a

    Jun 28, 2012
    When Sprint PCS launched, it tried to break the mold by eschewing subsidies. That lasted about 5 minutes, about as long as its GSM network.
  5. forcetactic macrumors 6502

    Jul 30, 2010
    Straight talk is $45 a month and ATT is close to $100 for an individual line. Of course you don't get LTE but the savings is huge
  6. 617aircav Suspended

    Jul 2, 2012
    The fact that you are not stuck in a two year contract is an advantage to some. They can switch carriers as they see fit.
  7. crispytreat macrumors member

    Oct 29, 2007
    This is why I switched from AT&T 6 months ago. I started out on a 4 and pick up a 5 a couple weeks ago. I am a happy camper. If T-Mobile gets there network together I may switch to them. These are the 2 factors that I value, a lower monthly bill and the freedom to change carriers when I want.
  8. aziatiklover macrumors 68030


    Jul 12, 2011
    Location: and
    $30 tmobile postpaid plan with unlimited data 3G in my area!
  9. CoMoMacUser thread starter macrumors 6502a

    Jun 28, 2012
    Shelling out $650 for an iPhone 5 and then signing up for 3G rather than LTE seems odd, like buying Apple TV and then signing up for 1.5 Mbps DSL because it's cheap.
  10. Mrbobb macrumors 601

    Aug 27, 2012

    I got WIFI at home, WIFI at work, I really only need to use my cellular data so *occasionally* hell even edge <gasp!> may suffice 4rme. I can't buy a dumb phone because they don't do data at all, and the "other" smart phones, well, don't work as good, smooth, seamless like the iPhone so that's what I got, but hell why pay the carrier if I don't have to?

    Camp1: Heavy cellular data user - indeed it does you no good to pay full price.

    Camp2: We know what we do, we know how much we want to pay as the total (2 yrs) cost of ownership.
  11. Mr Hill macrumors 6502

    Apr 28, 2012
    Charlotte, NC
    Once T-Mobile gets one it will no longer make sense to buy one out of contract.

    The only time it is a good idea is if you plan on using T-Mobile prepaid or an MVNO like Straight Talk or Simple Mobile. You won't have LTE either since the Big 4 will not allow prepaid or MVNOs to use their LTE networks.
  12. GoCubsGo macrumors Nehalem


    Feb 19, 2005
    This girl nailed it! Why bother if you're only going to have 3G?
  13. CoMoMacUser thread starter macrumors 6502a

    Jun 28, 2012
    An iPod Touch might be the way to go if you live in a city where there's enough hotspots that you could skip cellular altogether. LTE modems cost at least $125 in the volumes that Apple buys. Add in the markup, and that's a lot of extra money for something used only sparingly and then only on 3G or EDGE.
  14. isephmusic macrumors 6502

    Oct 31, 2012
    2 years on atnt contract = 2.5k + 200 phone
    2 years on straight talk unlimited 45$ = 1.08k + 670$ phone

    pretty legit savings if you ask me
  15. CoMoMacUser thread starter macrumors 6502a

    Jun 28, 2012
    If you don't need LTE.
  16. XboxMySocks macrumors 68020


    Oct 25, 2009
    Okay then regard this.
    I pay $23 a month on Rogers on an iPhone 5. This includes pay-for-use data (LTE) which is used maybe 1-2x a month at $1 per day usage. HUGE. Savings.
  17. Mrbobb macrumors 601

    Aug 27, 2012

    Roger that. But even occasional I do need it from time to time and I've been looking forward to merge my iPod and phone into 1 device for a long time.
  18. duneriderltr450 macrumors 6502


    Sep 20, 2012
    Or if you live in an area where AT&T won't update to LTE for another 135 years. ;)
  19. CoMoMacUser thread starter macrumors 6502a

    Jun 28, 2012
    A couple of years ago, Sprint sold a ZTE modem sled for the iPod Touch that basically turned it into an iPhone sans circuit-switched voice. I considered it.

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