Why Are iPhone Contracts So Expensive?

Discussion in 'iPhone' started by Certinfy, May 7, 2011.

  1. Certinfy macrumors 6502a


    Jan 29, 2011
    I'm from the UK so I doubt I can complain much considering many other countries pay a lot more for their contracts. But anyway I mean with other phones on the market which retail for the same sim free price the contract price for them is a lot less. For example at the iPhone 4 launch the cheapest contract over the 24 months I could have gotten would of equalled over £800 while now at the Samsung Galaxy S2 the cheapest contract over that amount of time from what I've seen is around £600. And both phones retail at £500 sim free.

    So yeah, just out of interest I'm wondering why iPhone contracts are a whole lot more? Seems the iPhone is the only phone it's worth buying sim free and then getting a contract sim to go with it.
  2. unlimitedx macrumors 6502a

    Jun 15, 2010
    because it's the iPhone... the most popular phone
  3. iRach macrumors member


    Dec 11, 2009
    I was pondering price earlier so I worked out on an 18 month contract if I divided what I pay per month in half, half of it would pay for the cost of the phone, including initial purchase price, and the rest would pay for my usage, which I consider ok :)
  4. Tom G. macrumors 68010

    Tom G.

    Jun 16, 2009
    Champaign/Urbana Illinois
    iRach is correct. You're subsidizing the iPhone. Same with any smartphone. Basically your are buying it on time. Other wise few people could afford it.
  5. RebeccaL macrumors 6502a


    Jan 1, 2011
    I am in the US and the contract price for the iPhon is the same as for other phones.
  6. TheOriginalKi macrumors 6502

    Jan 2, 2011
    My iPhone cost me £69 plus £35 a month for two years. Total of £909

    If I bought it sim free at the time it would have been £499 plus £25 a month for the same contract sim-only. Total of £1099

    Doesn't seem too bad to me!
  7. Hermes Monster macrumors 65816

    Hermes Monster

    May 4, 2010
    I think you're missing the op point - the issue isn't why it's so expensive, but why it's not comparatively as expensive as other phones which have the same sim free price.

    I dont know the answer, but it's likely because they can. What I do know is..that after a year of having an iPhone I can sell it for much more than I can sell any other handset, so I guess it evens out :rolleyes:
  8. old-wiz macrumors G3

    Mar 26, 2008
    West Suburban Boston Ma
    IIRC, Apple gets a cut of the monthly charge.
  9. From A Buick 8 macrumors 68040

    From A Buick 8

    Sep 16, 2010
    Ky Close to CinCinnati
    The price represents what the market will bear.
  10. kevink2 macrumors 65816

    Nov 2, 2008
    Only for the original iPhone, which was sold unsubsidized in the US.
  11. ikaveh macrumors regular

    Nov 2, 2008
    the real price of iphone is around 700$. when you buy it from a career they sell it to you for less but have to pay around extra 300-400 to Apple. so you can guess where they can get this money from. contract!

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