Yeah, I'm not everyone, but arguing that "most people" won't do what I did is kind of missing the point-- they already DO pay that much, just not all at once. It's kind of crazier when you realize what people are paying without knowing it.
The subsidies are going away -- ATT and Verizon in the US are forcing people into their monthly payment plans -- which is kind of nice, because people actually see what they're paying instead of just seeing it "bundled".
I think it's very slowly catching on how bad a deal it is to rent your phone on contract.
I was stuck for three years with a crapphone (LG P150) that was too weak to lift its own operating system (Android). After those three years of torture (and using it only for calls and text messages, as turning on Internet would max out the processing power and memory and would require taking out the battery) I can say such phones should not be allowed on the market. Especially not pushed by telecoms on contracts. It's especially sad to look at people who get burned by this when buying their first smartphones. It's basically a story of shattered dreams. It's just evil.
So folks, either buy a dumbphone (if all you need is text and calls), or shell out for some decent tech. Buy that Nexus or S4. It's worth the money.
So I agree, shell out for some decent tech, it's totally worth the money, but be excited that it only costs a couple hundred bucks to do so!
I'm going to stick to buying high-end phones now and yes, I'm excited to learn it's not as expensive as I thought anymore :).
> $2,082 for a game console? Have you lost your mind?
> This is a ridiculous retail proposition. What fool would sign up for this?
> Not me, but I couldn't help noticing that Aaron's Xbox price ($79/month for 24 months) is the exact price and duration of my AT&T wireless contract which I signed to take delivery of my fancy new Galaxy Note smartphone.
> This is embarrassing.
[1] http://www.cockeyed.com/citizen/aarons_and_rentacenter/ps4_x...
Have converted a few people to that mindset - but (let's ignore the point about if you don't have much cash, locking yourself into a long term phone contract isn't smart, people will do it anyway), it is easier for people who live month to month to have it bundled like that, it's a bit like buying a sofa from DFS on credit...
$750 + ($50 * 24) = $1950
Last I checked, AT&T was about $100/month. It also charges a $36 "upgrade fee".
$36 + $200 + ($100 * 24) = $2636
That also assumes you upgrade immediately after paying your 24th month of service. Otherwise, tack on $50 overpayment for every month you wait to upgrade.
To the extent you are getting a real subsidy, it will be if the carrier decides to forgo margins on the device.
This isn't always true, though it's typically only not true when operators are throwing ridiculous offers at people who are trying to leave them. Similarly, I got phone a few years back at a ridiculous student-only deal. Both cases ended up with me paying about £200 more over the whole contract than I would've with SIM-only contracts, and both got me phones that retail for more than double that.
When the value of the phone is $600 and the value of the contract is $2400, $200 is really high.
In the end since I had completed and past the end of my contract on the 4s the 6 was free. Pay 200 to get it and get 200 back for returning the 4s.
There are some good deals out there but most people don't look for them or worse ignore them. There are people won't do the 4s or such trade in because "its a hassle". Yeah, they mail you mailer and you send it back in postage paid. Oh, fill out a form on the site to start the process.
There are people who don't care what the true price is just as there are people who don't want to know; they aren't the same people
Phone upgrades are like a call option you get every two years but since you had a 4S you let some time slide in between excercing. If you didn't like the 5s the better move would have been to upgrade anyway and immediately sell the phone, possibly saving the money to buy one later or spend it on something else.
The longer you wait to upgrade, once you have the ability, the less your upgrade is worth to you as the carrier has already made the discount back (and then some) through your payments.
The optimal strategy is to hit it as soon as you get it.
I think the optimal strategy is to avoid "buying" the option to begin with, get a cheap unsubsidized plan, get an inexpensive phone, and keep it for three to five years.
The length of the contract is usually limited to two years. Do you think we should have laws forbidding contracts of this duration? Why? Both parties are free to reject contracts they think are too long (or too short).
https://www.o2.co.uk/shop/refreshTariffs/apple/iphone-6-64gb...
With the Nexus phones (previous versions at least) you could get them at a reasonable price direct from Google. Most of my friends bought direct from Google. I understand Apple let's you buy a phone direct as well, though they're prices aren't/weren't as reasonable.
Hopefully this helps to set the precedent that you can have your cake and eat it too (Have a reasonable phone at a reasonable price).
That was one of the things I liked most about the Nexus 5 when it came out. Even unlocked you were getting a current gen phone, unlocked, worked with three major carriers and many MVNOs, and only cost $350. At that point, it's not as tough to make the jump and ditch the contract. Without the contract, you can just leave if a competitor offers a better deal or if your carrier screws you over.
Even with this new SIM, I imagine you're still either gonna pay full price or you're gonna get it subsidized with a contract and then have the option of flipping over to some secondary plan when needed. Might be good for smaller carriers with good rates but less coverage. Phone works great at home but drops off when you go to another town? Just flip to a prepaid SIM from a cheap prepaid carrier with service in the area.