Originally Posted by Durandal1707
That's actually $580 for the phone. Whoops! Also whoops in that you're missing a crucial fact, which is that contract plans include that extra cost, usually around $20 per month, to subsidize the phone price. It's just that that subsidy payment is baked into the plan price, instead of itemized separately. In other words, T-Mobile's honest about it. No way are you only paying $200 for that phone — that's less than it costs Apple to even make it ($207), let alone profit margins.
On your other carrier, what you're really paying for the phone is $199 + $20/mo for 2 years, which comes out to $680. This is more than the phone's off-contract price of $650 — i.e., it's a rip-off. Add in that the contract plan is significantly more expensive even besides the subsidy payments, and you'll just about always spend a lot more on AT&T or Verizon than you will on T-Mobile.
Contract plans are for people who can't manage fifth grade arithmetic..
I thought I had it wrong with T-mobile's plan and sort of mentioned that.
Thanks for the break down.
One thing that confuses me is that if some one (like myself) who decides a better service for them, is to choose AT&T over T-mobile due to coverage and other non-monetary related issues, still has to pay the same rates for their plan whether they subsidize or not.
An iPhone plan on AT&T is the same cost month per month whether you subsidize or not.
So, off contract or on contract (at this time) you are still paying the same price for your service.
The only drawback is that you sign on for 2 years and there are penalties is you leave before that time is up.
I mean, unless there's some underground iphone plan fight club I personally haven't heard of where they give non-contract iPhones service plan discount, this is still a better choice for me.
I know it's built into their (AT&T-Verizon-sprint) plans currently, but t-mobile service I can't do.
Also, I have an extremely good discount going where I am at. 60$ month.
So .....concerning me I am staying put.
The last comment about
"Contract plans are for people who can't manage fifth grade arithmetic.."
Isn't always the case. Funny though.