Why is the iPhone 2.5x as expensive as iPod Touch

[Deguello]

If you're investing money with a two year window, you may well be making a mistake. Savings accounts are paying less than 1%... or about $16 for $800 over two years, less taxes at your marginal rate.

My point is that someone who laughs at someone else who pays outright for the phone probably doesn't understand math. It's going to be close to a wash one way or the other. I certainly don't claim that buying an iPhone outright is the only way to go, but it's not meaningfully worse, and might be better, than not doing so.

The main differences are that I wouldn't be on contract and my credit card would pay for the full value of the phone if it were lost or stolen rather than the subsidized price.

If someone thinks a contract is better for them -- maybe they can't afford the cost upfront or whatever -- that's fine, but it's silly to believe that someone who pays full price for an iPhone is doing something laughable. Carriers aren't stupid and you're going to be paying for the phone one way or another.

 

[C DM]

If you're investing money with a two year window, you may well be making a mistake. Savings accounts are paying less than 1%... or about $16 for $800 over two years, less taxes at your marginal rate.

My point is that someone who laughs at someone else who pays outright for the phone probably doesn't understand math. It's going to be close to a wash one way or the other. I certainly don't claim that buying an iPhone outright is the only way to go, but it's not meaningfully worse, and might be better, than not doing so.

The main differences are that I wouldn't be on contract and my credit card would pay for the full value of the phone if it were lost or stolen rather than the subsidized price.

If someone thinks a contract is better for them -- maybe they can't afford the cost upfront or whatever -- that's fine, but it's silly to believe that someone who pays full price for an iPhone is doing something laughable. Carriers aren't stupid and you're going to be paying for the phone one way or another.

Agreed, it's not really laughable to do it one way or the other, given that different things work out differently for different people at different times and circumstances.

 

[NuggetSauce]

Let's see: A two year agreement at $40 a month -- leaving aside data because it costs the same, regardless -- instead of $15 a month is a $25 a month phone subsidy. $25 a month times 24 months is $600. Plus $199 for the base iPhone 5 means you paid $799 for a $750 phone. Now, you might want to quibble about sales tax or whatever, but you're also paying higher taxes and fees on a higher phone bill, typically at a rate even higher than sales tax, plus you're paying a $36 activation fee.

Plus, my credit card covers loss and theft and, if such happens, such coverage will be for the full cost of the phone, not the subsidized cost, which would leave me far less out of pocket for a replacement.

So, I'd say your opinion isn't highly controversial so much as highly innumerate.

Who's phone bill are you talking about? That's not mine.

And for $15 a month, you get what you paid for. Had prepaid T-Mobile, been there, done that. For the $20 I pay a month (my share on a family plan) i'll put it up to any $15 a month prepaid service.

And there's nothing that you can say that's going to not make me laugh at people who pay full retail ($800) for their phone. We both know there are cheaper options going prepaid or not.

If telling me off helps you feel better about how you got reamed on your new unlocked iPhone, go nuts dude.

 

[Deguello]

Who's phone bill are you talking about? That's not mine.

And for $15 a month, you get what you paid for. Had prepaid T-Mobile, been there, done that. For the $20 I pay a month (my share on a family plan) i'll put it up to any $15 a month prepaid service.

And there's nothing that you can say that's going to not make me laugh at people who pay full retail ($800) for their phone. We both know there are cheaper options going prepaid or not.

If telling me off helps you feel better about how you got reamed on your new unlocked iPhone, go nuts dude.

The $15 a month is the price for a smartphone on AT&T Mobile Share, not a prepaid service.

How much do you pay for your new, in-box, current generation iPhones?

 

[NuggetSauce]

The $15 a month is the price for a smartphone on AT&T Mobile Share, not a prepaid service.

How much do you pay for your new, in-box, current generation iPhones?

I got my iPhone 5 (before the release of the 5S/5C) for $100 with a port in number promo offer. Without it, it would have been $200.

I understand how people are justifying the high cost of an unlocked off contract iPhone by money they are saving on certain plans, but that doesn't change the fact that they are paying a large unnecessary premium for it. There are plenty of people who are frugal and good at math, and if it made economical sense, everyone would be buying new unlocked iPhones and using them on unsubsidized plans.

 

[Deguello]

I got my iPhone 5 (before the release of the 5S/5C) for $100 with a port in number promo offer. Without it, it would have been $200.

I understand how people are justifying the high cost of an unlocked off contract iPhone by money they are saving on certain plans, but that doesn't change the fact that they are paying a large unnecessary premium for it. There are plenty of people who are frugal and good at math, and if it made economical sense, everyone would be buying new unlocked iPhones and using them on unsubsidized plans.

$200 and a contract or $200 and you own it outright?

 

[617aircav]

I got my iPhone 5 (before the release of the 5S/5C) for $100 with a port in number promo offer. Without it, it would have been $200.



I understand how people are justifying the high cost of an unlocked off contract iPhone by money they are saving on certain plans, but that doesn't change the fact that they are paying a large unnecessary premium for it. There are plenty of people who are frugal and good at math, and if it made economical sense, everyone would be buying new unlocked iPhones and using them on unsubsidized plans.

People don't need to justify their purchase. Whey do you feel they do?

 

[rui no onna]

I got my iPhone 5 (before the release of the 5S/5C) for $100 with a port in number promo offer. Without it, it would have been $200.

I understand how people are justifying the high cost of an unlocked off contract iPhone by money they are saving on certain plans, but that doesn't change the fact that they are paying a large unnecessary premium for it. There are plenty of people who are frugal and good at math, and if it made economical sense, everyone would be buying new unlocked iPhones and using them on unsubsidized plans.

Last I checked, it's not exactly a one-size fits all scenario. Some might be better off on their old subsidized plans while others will save more money on the unsubsidized plans. Mind, the really frugal probably wouldn't be buying brand new iPhones. More likely than not, they'd go for an inexpensive Android or Windows smartphones or eschew smartphones altogether and just stick to basic phones.

 

[kevink2]

Yes, but even if you pay full retail for the phone you still pay the outrageous monthly fees, even if you do not have a contract (at least with the big companies that have good coverage).

Which is why I may just go ahead and upgrade to the 6 this fall when my contract is up. The plans ATT has where you get a discount for not buying a phone are pricier than what I currently pay. You get more, but if you already get the minutes/texts you need, getting more isn't a true value.