Subsidies for Apple's iPhone are 40% higher than the industry average

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Comments

  • Reply 21 of 30
    Regardless of the TCO, unsubsidised phones means not tied to a long contract (anything can happen in 2 years), can upgrade or change to a new phone anytime you like, can use local SIM when abroaf and where options exist, you can use PAYG for cheaper monthly cost.
  • Reply 22 of 30
    richlrichl Posts: 2,213member
    I went the unsubsidised route in the UK. $16 (inc. 20% tax) gets me 250 minutes, unlimited texts and truly unlimited data with GiffGaff's rolling 1 month contract SIM.



    I'm saving quite a bit over the course of two years.
  • Reply 23 of 30
    cameronjcameronj Posts: 2,357member
    Quote:
    Originally Posted by Splash-reverse View Post


    Regardless of the TCO, unsubsidised phones means not tied to a long contract (anything can happen in 2 years), can upgrade or change to a new phone anytime you like, can use local SIM when abroaf and where options exist, you can use PAYG for cheaper monthly cost.



    ATT gives me a $500 gift in the form of subsidy every 12 months. Lower billed users get it every 18. I have paid exactly zero dollars (net) on iPhones since I paid for the first one. Sell the old one, buy the new one for the same or less. Gee, sounds like all you Euros who brag about free iPhones!



    An ATT user who does not intend to switch would be an idiot to not sign a contract.



    If I had bought unsubsidized phones each time I would have spent about $2000 more than I did spend. And yet you think this is the smart way to do it?
  • Reply 24 of 30
    linkgx1linkgx1 Posts: 742member
    Quote:
    Originally Posted by richl View Post


    i went the unsubsidised route in the uk. $16 (inc. 20% tax) gets me 250 minutes, unlimited texts and truly unlimited data with giffgaff's rolling 1 month contract sim.



    I'm saving quite a bit over the course of two years.



    i hate you.
  • Reply 25 of 30
    linkgx1linkgx1 Posts: 742member
    Quote:
    Originally Posted by cameronj View Post


    ATT gives me a $500 gift in the form of subsidy every 12 months. Lower billed users get it every 18. I have paid exactly zero dollars (net) on iPhones since I paid for the first one. Sell the old one, buy the new one for the same or less. Gee, sounds like all you Euros who brag about free iPhones!



    An ATT user who does not intend to switch would be an idiot to not sign a contract.



    If I had bought unsubsidized phones each time I would have spent about $2000 more than I did spend. And yet you think this is the smart way to do it?



    ATT upgrades you yearly? How much you gotta pay each month?
  • Reply 26 of 30
    nasseraenasserae Posts: 3,167member
    Quote:
    Originally Posted by mjtomlin View Post


    Unsubsidized phones are unlocked and can utilize pay-as-you-go plans.



    I recently went to BestBuy, bought a $10 GoPhone, activated the SIM online, signed up for $25 voice/text, and $15 data service and slipped the SIM into my off-contract 3GS.



    It's not unlimited, but it also means I'm not locked into 24 outrageous monthly bills.



    I'm actually thinking about canceling my iPhone 4S order and just buying one outright and having it unlocked. I don't need unlimited data as most places I go usually have WiFi.



    The prepaid data plan will not work with the iPhone 4/4S. I have many friends who bought unlocked iPhone 4 and their prepaid data did not work. They called AT&T and were told the prepaid data plans will not work with the iPhone 4.



    Beside, there is no unlimited data plan anymore. You get a $25/month for 2GB or $15/month for 200MB.
  • Reply 27 of 30
    Quote:
    Originally Posted by Splash-reverse View Post


    Regardless of the TCO, unsubsidised phones means not tied to a long contract (anything can happen in 2 years), can upgrade or change to a new phone anytime you like, can use local SIM when abroaf and where options exist, you can use PAYG for cheaper monthly cost.



    "tied to a long contract"? Huh?



    Ok, maybe i'm stupid, so follow me here, and please point out where I'm wrong.



    Looking online, the unlocked iPhone 4 sells for anywhere between $400-$800, so let's go with $600 as being a REAL price (the $400 might be a scam, the $800 full retail).



    I can get an iPhone 4S (better and newer than the 4) at AT&T for $200 today, and if I break that "long contract" tomorrow, I owe them another $375 for breaking the contract - total cost $575.



    To me, that's a wash. Same cost, no longer under contract. What am I missing? Except if I decide to stay under contract, every month they lop $10 off that $375, so actually if I stay with them one year, I only owe them $275 to break the contract at that point.



    Again, what am I missing?
  • Reply 28 of 30
    Quote:
    Originally Posted by Bregalad View Post


    Nobody in North America buys a phone outright because the carriers charge the same amount per month for voice/data whether you own the phone or have a subsidized one from them.



    I'd love to be corrected on this point. Can anyone show me a carrier that offers a better deal to those who bring their own phone?



    Look up T-Mobile's "value plans".



    Essentially, T-Mobile has three tiers of pricing with respect to the receipt of a subsidy. Assuming 200 MB, 500 minutes, and unlimited text, you would pay:



    1) If you bring your own phone, or buy a phone outright, you can use a "value plan" and pay $45 per month.



    2) You can buy a new phone with a 0% APR loan consisting of 20 monthly payments of $5.00 (for feature phones), $10.00 (for low-end smartphones), or $15.00 (for high-end smartphones), with a down payment at the time of purchase to make up the difference between the full retail price and the total loan amount. In that case, you can use the same value plan (200 MB, 500 minutes, unlimited texting), paying a total of $50, $55, or $60 per month for the first 20 months, and then $45 per month thereafter.



    3) You can acquire a phone using the traditional subsidy model, and use T-Mobile's "classic" price plans. In that case, your monthly service fees for 200 MB, 500 minutes, and unlimited texting will be $60 per month, for the full duration of your service agreement.
  • Reply 29 of 30
    stelligentstelligent Posts: 2,680member
    Quote:
    Originally Posted by SSquirrel View Post


    Push to talk was always stupid. I got over my interest in walkie talkies when I was 12.



    So for the 40% higher subsidy to be $200, that means the carrier is paying Apple $500 per phone and then I would assume $600 and $700 for the larger storage units. Also for those who say it makes more sense to buy the phone outright, yeah it probably does if you are using T Mobile or live in a country that isn't the US. None of the other major US carriers give your plan a discount if you own the phone outright.



    Actually, if Sprint is paying 40% higher in subsidy for the iPhone than for others, and if that 40% = $200 as stated, then the subsidy for other phones would $500 (because % change is always calculated with the original amount as the reference). And the subsidy for the iPhone 4S would be $700. This cannot be right. Either the Sprint CEO misspoke, or was misquoted.
  • Reply 30 of 30
    mjtomlinmjtomlin Posts: 2,687member
    Quote:
    Originally Posted by NasserAE View Post


    The prepaid data plan will not work with the iPhone 4/4S. I have many friends who bought unlocked iPhone 4 and their prepaid data did not work. They called AT&T and were told the prepaid data plans will not work with the iPhone 4.



    Beside, there is no unlimited data plan anymore. You get a $25/month for 2GB or $15/month for 200MB.



    Actually it does work, if you know what you're doing. And yes, I know there isn't an unlimited data plan anymore. When I said unlimited, I meant voice. The prices you quoted aren't GoPhone data rates, which are currently, $5/10mb, $15/100mb, and $25/500mb. Yes, those rates suck, but again, you're not tied to a contract.
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