Wednesday, September 10, 2014

Why I pay full non-contract price for phones

I read an article today about how expensive the new iPhone 6 will be if you buy it off contract.  I admit, it's a lot of money but it's actually less money than what you'll pay if you buy it with a contract.

I recently switched back to AT&T from Verizon because they introduced a new plan called the Mobile Share Value plan that offers non-subsidized pricing if you own your phone.  There are two rates for each line on this plan. If you own your phone the rate is $15/month for the line.  If you buy a "contract price" phone that rate is $40/month for the line and you have a 2 year contract.

In case you didn't get that, they will charge you and extra $25/month for 2 years to pay for the rest of that phone.  Over 24 months that ends up being $600.
With that, here are the actual iPhone 6 Plus costs:

Contract Prices:
iPhone 6 Plus 16GB: $899
iPhone 6 Plus 64GB: $999
iPhone 6 Plus 128GB: $1099

Non-Contract Prices:
iPhone 6 Plus 16GB: $749
iPhone 6 Plus 64GB: $849
iPhone 6 Plus 128GB: $949 

The other thing to consider is with non-contract plans you don't have a 2 year contract.  I know that seems obvious but let me just say it once again... you don't have a 2 year contract.  You are free to terminate your service any time you want with no cancellation fees.

1 comment:

Garrett said...

This is what I do as well (although first with a Palm Prē, and then a few Android phones since). If one can afford a phone upfront, it really doesn't make sense to send more money to a telco.

Most importantly, people need to stop thinking of these devices as "phones". My Nexus 5 is a pocket computer with always-on Internet. I think it can also make phone calls (but I can't remember the last time I tried out that feature).

That price isn't so bad for a super-advanced computer that's small enough to fit into pockets.

(FWIW: The US price is much better than the European price... which is still worlds better than the Brazilian price.)

Wake Up Alarms (part 2)

Back in January of 2013 I wrote about wakeup alarms and compared the difference between Android and iOS.  That was back on an iPhone 5 and a...