Sidebar Sidebar
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

Why would anyone pay full price to avoid contract?

johndallas999 said:
What is the point of not getting a subsidized phone? It's not like youre going to not use it with the carier you bought it for during the next 2 years. I could see this if you wanted to have lots of phones to switch between but other than that what would be the point of having a phone that isn't under contract, so you can cancel and have an iPod touch?
Click to expand...

WHy do you care what other people do with their money? Or a better question is why don't you think your question through? Do you actually think the price you pay in order to get a subsidized phone is the same as prepay? Stay in school..and get a clue.

----------
Daniel L said:
You guys do realize that opening a line and canceling it will result in you paying less out of pocket than just paying full price right? (199+325=$524 vs $649) Not only that, AT&T will unlock the phone for free after you pay the ETF. And for the smarter "cosmopolitan" users, unlocks are only 15 minutes and $15 away. OP has a good point.
Click to expand...

No he doesn't and neither do you when you do not understanding math and the meaning of present value but in this case paying a premium over a 2 year period. You forgot (not really) or lack the basic understanding that pre pay and post pay plans prices are different.
 
Even in the US, you can use an unlocked phone with something like StraightTalk to get unlimited calls/text/data (about 2gb uncapped) for $45/month. Or you can use the prepaid plans and save some money even with AT&T (unlimited talk/text and 1gb data is $65 prepaid vs $85 for Mobile Share plan)
 
johndallas999 said:
What is the point of not getting a subsidized phone? It's not like youre going to not use it with the carier you bought it for during the next 2 years. I could see this if you wanted to have lots of phones to switch between but other than that what would be the point of having a phone that isn't under contract, so you can cancel and have an iPod touch?
Click to expand...

People on Verizon who have unlimited data plans must buy the phone full price in order to keep said plan.

Daniel L said:
You guys do realize that opening a line and canceling it will result in you paying less out of pocket than just paying full price right? (199+325=$524 vs $649) Not only that, AT&T will unlock the phone for free after you pay the ETF. And for the smarter "cosmopolitan" users, unlocks are only 15 minutes and $15 away. OP has a good point.
Click to expand...

There are hidden costs that you did not factor in. Nice attempt in calling people who paid full price stupid. I am going to educate you.

Buying subsidized + paying ETF:
$199 + tax on $649 (assume 8% tax) = $250
activation fee $30
Must cancel after 14 days in order to pay ETF, if you cancel before, you get a refund, they take the phone back, and then you pay for x-days/# of days in billing cycle for the plan.
15 days of $100 voice/data plan/30 days = $50
ETF = $350, not $325

Total = $250+30+50+350 = $680

Paying full price for the phone:
$649 + tax (assume 8% tax) = $700.92

Amount saved = $20.92.
 
Last edited:
darster said:
Dont forget to add another $100 for activation and first month bill to your total. So its $624.
Click to expand...

If i am not wrong, the activation is $36 .
considering that you buy iphone 5 16gb which is $199 under contract.
lowest monthly plan from ATT is $60
activation fee : $36
ETF is $325 - $10( for every month that you have completed under contract)

tax : 7% (NJ)
So IF YOU break contract after 30 days, it would be ( $199 + 315 + $60 +36 ) = $610

including 7% taxes : it would be $610+$42.7 = $652.7 .
If you break the contract when you are in 2nd month.. then some prorated charge( arnd $8-$10) may also get applied depending on your plan.

If you buy a device only, then it would $649 + 7% tax ( NJ) = $694

Correct me if i missed anything.
 
I also sell last years model every iPhone usually get half of the price if not more of the new iPhone I'm on Verizon with a discount and grandfathered unlimited data that's why plan on doing this until it changes
 
pure3d2 said:
People on Verizon who have unlimited data plans must buy the phone full price in order to keep said plan.



There are hidden costs that you did not factor in. Nice attempt in calling people who paid full price stupid. I am going to educate you.

Buying subsidized + paying ETF:
$199 + tax on $649 (assume 8% tax) = $250
activation fee $30
Must cancel after 14 days in order to pay ETF, if you cancel before, you get a refund, they take the phone back, and then you pay for x-days/# of days in billing cycle for the plan.
15 days of $100 voice/data plan/30 days = $50
ETF = $350, not $325

Total = $250+30+50+350 = $680

Paying full price for the phone:
$649 + tax (assume 8% tax) = $700.92

Amount saved = $20.92.
Click to expand...


Hi,
where does it say that ETF is $350 ? any link?

as per the below link, it is $325
http://www.wireless.att.com/learn/articles-resources/early-term-fees.jsp

edit : Ahh.. i see u r talking abt verizon...For verizon, ETF is $350....

for verizon it says,
If your contract term results from your purchase of an Advanced Device after November 14, 2009, your Early Termination Fee will be $350 minus $10 for each full month of your contract term that you complete
 
Last edited:
friendchet said:
Hi,
where does it say that ETF is $350 ? any link?

as per the below link, it is $325
http://www.wireless.att.com/learn/articles-resources/early-term-fees.jsp

edit : Ahh.. i see u r talking abt verizon...For verizon, ETF is $350....

for verizon it says,
If your contract term results from your purchase of an Advanced Device after November 14, 2009, your Early Termination Fee will be $350 minus $10 for each full month of your contract term that you complete
Click to expand...

For AT&T the etf is $325.
Verizon $350.
Either way for all the legwork you have to do to save $30 or so it's not worth it IMO.
Just get it full price and avoid the runaround.
 
For Australia

lets do some maths

Outright + TPG no commitment plan

$899 for a 32gb iphone
$14.99/month for $550 credit and 1.5gb data (unlimited talk and text between same carrier)

total over 24 months: $1259
_________________

On plan - Virgin 32gb iphone plan

$58/month for $550 credit and 1gb data (unlimited talk and text between same carrier)
$5/month for an additional 500mb to match TPG

total over 24 months: $1512

Difference is $253
if I get tax back for the iPhone from travelling, thats an additional $82 which brings the total difference to $335
 
No he doesn't and neither do you when you do not understanding math and the meaning of present value but in this case paying a premium over a 2 year period. You forgot (not really) or lack the basic understanding that pre pay and post pay plans prices are different.
Click to expand...

In the United States, if you want Tier 1 service, you'll have to do post pay. Prepaid plans will not get you LTE service on AT&T or Verizon networks. If you're OK with subpar service, then prepaid is an option. I know it's not like that in foreign countries but that's the way it's here.

You can also calculate on adding another line ($10 a month + $20 data) to a family plan. Prorated it would come out to $15 after 15 days. It's still a significant savings.
 
After this year I'll do it to keep unlimited on Verizon. It's worth $300/yr to keep unlimited, especially on LTE.
 
katmeef said:
I use the same amount of data on lte as when I used 3G, why would you suggest a faster connection uses more data? Unless you're downloading more its not going to..
Click to expand...

If you're on Verizon, going from their 3G to LTE is a big leap. There's a lot you can do now that was difficult before with the often frustratingly slow speeds. If you stream video and are grandfathered unlimited, I can't imagine any circumstance where upgrading on contract would make sense. If nothing else, do it one time, monitor your usage, and then just get on contract the next time.

$450 to protect your unlimited data plan for two years is hardly a major outlay. My monthly costs between FiOS TV & Internet plus Verizon Wireless for my phone and a data plan on my iPad is $250. The $450 cost spread over two years is practically nothing--less than $20/mo.
 
mattydee87 said:
The question is not why, but why not?

I'm in a 2 year contract and I want the latest iPhone. Full price is the only option so sell old phone and put money towards iPhone 5.
Click to expand...

what this guy said. and in addition to what this guy said, for some of us paying full price for the latest iphone every other year is not an issue or something worth complaining about.
 
Keep unlimited data with Verizon and use LTE as a home Internet replacement. Will save about $300 over 2 years.
 
I don't usually post, but this thread made me...

I was grandfathered into Verizon's unlimited data plan. If I were to use my upgrade and buy the phone for a subsidized price, I would lose my unlimited data and only have the option of 2gbs a month or whatever Verizon has now. I use way more than that a month and am not willing to pay the extra out of pocket. I did the math and by me paying the $800 or so to buy the iPhone 5 out right I actually saved about $200 for the year. So to some people it actually makes sense financially to pay the full amount for the phone.
 
ninethirty said:
A better question would be why you care, but I'll answer you anyway.

Because I don't like not having the choice of switching. Or leaving. Since 2006, I've lived in 3 different countries. Sometimes I move with only a few months notice, so I'd rather not be locked into a contract.

Also, when your phone is unlocked, you have the freedom of being able to travel, and using a local SIM card, instead of roaming.
Click to expand...

HEY GUESS WHAT!

People who are in a contract ARE free to leave whenever they please. They have to pay a penalty tho.. Signing a contract makes more sense, let me break it down for you...

Outright $700
In contract $200

Difference? $500

If to wanna leave, it will cost you less than $500 to cancel.

While you're in a contract, you're still paying the same fee
 
pragmatous said:
On streaming sites they auto detect if your fast enough for HD or not. What happens is you stream a show but it is in HD.

Lots of sites auto detect if you can view the advanced website or not also. You use more bandwidth with a faster connection.

It's the difference between HD or not and sites auto detect that setting.
Click to expand...

I have never noticed a problem getting full quality on my 3G iphones. Also it would seem like a good idea for sites which offer both hd and sd streaming to have an option to force sd if you wanted.

That being said I don't stream a bunch of video over my cellular connection :) my lte iPhone is using the same amount of data as my 3G iPhone
 
i dont live in the US but travel there often. there is no iphone in my country since it has declared war to Apple.

so my only option is to buy it unlocked, with the plus that i can use it anywhere with local sims.
 
It doesn't really matter what you think a good idea would be I'm telling you how it is and why you use more bandwidth with a faster connection.

If you have a 100mb connection on your phone you will use more data because you can. It's not a hard concept to follow. I'm glad you don't use your phone as a smart phone but some people actually do. Which begs the question why do you need a smart phone? I would argue you would get by with a normal flip phone. You need to understand that people use their smart phones as more than just a phone.

katmeef said:
I have never noticed a problem getting full quality on my 3G iphones. Also it would seem like a good idea for sites which offer both hd and sd streaming to have an option to force sd if you wanted.

That being said I don't stream a bunch of video over my cellular connection :) my lte iPhone is using the same amount of data as my 3G iPhone
Click to expand...
 
Applejuiced said:
I know someone that has a family plan with 4 lines and keeps buying iphones on ebay. Pays and arm and a leg but refuses to sign a contract. He's been with AT&T for over 8-9 years and all this time he could have got tons of upgrades and iphones cheap but instead he's wasting the upgrades and not using them and still paying the same price for monthly service.
I dont get it. Its not like he's going to go anywhere, he's been with them forever.
Click to expand...

He's lying.
 
bogatyr said:
Keep unlimited data with Verizon and use LTE as a home Internet replacement. Will save about $300 over 2 years.
Click to expand...

Your either not tethering or are only using the amount given in your tethering package right? If not thanks for helping push us to throttling.
 
Applejuiced said:
About what?
He's my uncle and he just doesn't want to sign a contract and keeps chasing iPhones on eBay.
Doesn't make sense to me either.
Click to expand...

Something doesn't make any sense unless they on a very old plan and or have grandfathered data plans.
 
You must log in or register to reply here.
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.
Top Bottom
Back