4 ms·

It's not free at all if you have to sign a contract. When obtaining a phone under contract I always consider the total cost of ownership (which is conveniently

by jeza 15y ago

It's not free at all if you have to sign a contract. When obtaining a phone under contract I always consider the total cost of ownership (which is conveniently written into the contract where I live at least). So if you're paying $50[1] a month over 24 months then the total cost is really $1,200. Then I consider if it's really worth skimping on $300 (25% in this case) upfront then not having a better phone. Or I might compare it to the cost of buying a phone outright and how much I'm likely to spend over the next 24 months on a non-contract plan. [1] Prices are not actual, but are close to what I recall when I last signed up on a contract.

untog 15y ago
Yes and no. Often (almost always?) the price per month would be $50 whether you take a free phone or use your old one. Cash grab by the networks of course, but still. The different is contract length- if you want a phone it's two years or more. But if you intend on having cell service for the next two years (and who doesn't?) it doesn't seem like such a big factor.
- nodata 15y ago
  Rubbish. Most networks have a special contract specifically for iphone users who get a phone. It costs a small fortune more than the contract for other phones. You can also buy a simcard only contract that includes no phone - again, cheaper.
  - jeza 15y ago
    I just looked at Telstra's plans for iPhone in Australia and you can get the base model iPhone 4S for $63 a month or the 64GB model for $72 a month. An Android phone will cost you at least $59 a month on a contract but there are also handset repayments involved. Granted this is our more expensive carrier but the only one you can really rely on for coverage outside the main cities.
    - weaselspice 15y ago
      Wrong. Samsung Galaxy S on Telstra is currently $49/month (no upfront, no handset repayment). http://telstra.com.au/mobile/phones/android/ http://telstra.com.au/mobile/phones/android/ Admittedly, $63/month for 4S 16GB is a cracking deal
- nextparadigms 15y ago
  There are "free" Android phones with a lot smaller contracts.
- ugh 15y ago
  Not in Germany. To get the iPhone 3GS for 1€ from Deutsche Telekom you have to sign their 60€ contract for 24 months. That’s 1,440€. The same contract costs 50€ without a phone, that’s 1,200€ for 24 months or 240€ less. It’s not really worth it buying the 3GS new and unlocked from Apple (if you want that specific contract) since they want 370€ from you. It usually never is worth it, no matter the carrier. (That is, if those carriers offer a subsidized iPhone. Some MVNOs don’t, but you might still get away cheaper by picking a MVNO and buying the unlocked phone. MVNOs are often cheap and might have contracts that fit your needs better.) But there is always a difference in price between getting a contract with phone and one without. Some carriers don’t add to the price of the contract but let you pay for the phone in installments. In practice, though, that’s a small difference. (The nice thing about paying in installments is that the installments automatically stop. Your contract will cost you the same increased price, even after 24 months. You have to manually intervene if you want to pay less.) What you definitely should never do is buy your phone based on the subsidized price. That just makes no sense. You always have to consider the whole package. Deutsche Telekom offers a 20€ contract (30 minutes for outgoing calls, unlimited incoming calls, 0.19€ per SMS, unlimited data, throttled to GPRS speeds when you are over 300MB) and if that’s all you need you have to pay 480€ for two years of contract and 200€ for the 3GS. That’s less than half of the 1,440€ for the 1€ 3GS. (I’m sorry, I’m currently researching phone contracts for my sister so I have all this crap stuck in my head.)
- martingordon 15y ago
  I just did some quick research. Neither AT&T nor Verizon offer lower rates for bringing your own phone, T-Mobile offers a $20/month discount between month-to-month/BYO phone and contract plans, and I couldn't find anything on Sprint's site about prepaid options (I believe Sprint tries to steer its prepaid customers to it's Boost Mobile subsidiary). As other commenters have mentioned, this is usually not the case outside the US. For example, Vodafone UK offers both different plan prices AND handset prices depending on length of contract. As an example of the power of "free*", my mom went to buy one of her employees an iPhone and told me in amazement how it was the first time she walked out of an AT&T store without spending a dime. I'm sure I'm not the only one she's told the story to, and I don't think she was as excited about the time when she bought my grandmother a $50 3GS just a few months ago.
- keltex 15y ago
  Here's another comparison. Sprint doesn't offer the iPhone 3GS, but assume it did for $0. Their unlimited service plan is $99/month. So to own the phone for 2 years would be about $2400. In comparison, let's say you get a Samsung Android phone from Boost Mobile (which uses Sprint's network). That costs $150. But Boost's monthly unlimited plan is $55/month. So the plan cost over 2 years would be $1320. Add the phone and you're at $1470. So going the Android route on the same network would be $930 cheaper.
ubernostrum 15y ago
We're aware of that. But "free (with contract)" is a powerful marketing device, and as a result any points made in reference to it are likely to stand.
dendory 15y ago
That's not the point of the article... the "non-free" Android phones are also under contract! That $150 Android phone would otherwise cost you $400 or more.
- tatsuke95 15y ago
  I'm not sure about the providers in the US, but comparing a "free with contract" iPhone 3GS to a $150 Android phone with contract is ludicrous. I can get a Samsung Galaxy S2 right now, for $99 and a contract. That thing will run circles around that old iPhone. This is a marketing ploy, nothing more. Is it any wonder the global economy is in shambles when people can't determine what's free and what is "free"?
rsheridan6 15y ago
A lot of people live paycheck to paycheck and just don't have $300 to pay upfront. This deal ought to appeal to them.
- tatsuke95 15y ago
  People who can't afford to pay $300 up front for a luxury device probably shouldn't be buying it.
  - icebraining 15y ago
    Possibly, but many will anyway, and Apple will profit from it, while Android manufacturers won't.

by jeza 15y ago

untog 15y ago

Yes and no. Often (almost always?) the price per month would be $50 whether you take a free phone or use your old one. Cash grab by the networks of course, but still. The different is contract length- if you want a phone it's two years or more. But if you intend on having cell service for the next two years (and who doesn't?) it doesn't seem like such a big factor.

nodata 15y ago
Rubbish. Most networks have a special contract specifically for iphone users who get a phone. It costs a small fortune more than the contract for other phones. You can also buy a simcard only contract that includes no phone - again, cheaper.
- jeza 15y ago
  I just looked at Telstra's plans for iPhone in Australia and you can get the base model iPhone 4S for $63 a month or the 64GB model for $72 a month. An Android phone will cost you at least $59 a month on a contract but there are also handset repayments involved. Granted this is our more expensive carrier but the only one you can really rely on for coverage outside the main cities.
  - weaselspice 15y ago
    Wrong. Samsung Galaxy S on Telstra is currently $49/month (no upfront, no handset repayment). http://telstra.com.au/mobile/phones/android/ http://telstra.com.au/mobile/phones/android/ Admittedly, $63/month for 4S 16GB is a cracking deal
nextparadigms 15y ago
There are "free" Android phones with a lot smaller contracts.
ugh 15y ago
Not in Germany. To get the iPhone 3GS for 1€ from Deutsche Telekom you have to sign their 60€ contract for 24 months. That’s 1,440€. The same contract costs 50€ without a phone, that’s 1,200€ for 24 months or 240€ less. It’s not really worth it buying the 3GS new and unlocked from Apple (if you want that specific contract) since they want 370€ from you. It usually never is worth it, no matter the carrier. (That is, if those carriers offer a subsidized iPhone. Some MVNOs don’t, but you might still get away cheaper by picking a MVNO and buying the unlocked phone. MVNOs are often cheap and might have contracts that fit your needs better.) But there is always a difference in price between getting a contract with phone and one without. Some carriers don’t add to the price of the contract but let you pay for the phone in installments. In practice, though, that’s a small difference. (The nice thing about paying in installments is that the installments automatically stop. Your contract will cost you the same increased price, even after 24 months. You have to manually intervene if you want to pay less.) What you definitely should never do is buy your phone based on the subsidized price. That just makes no sense. You always have to consider the whole package. Deutsche Telekom offers a 20€ contract (30 minutes for outgoing calls, unlimited incoming calls, 0.19€ per SMS, unlimited data, throttled to GPRS speeds when you are over 300MB) and if that’s all you need you have to pay 480€ for two years of contract and 200€ for the 3GS. That’s less than half of the 1,440€ for the 1€ 3GS. (I’m sorry, I’m currently researching phone contracts for my sister so I have all this crap stuck in my head.)
martingordon 15y ago
I just did some quick research. Neither AT&T nor Verizon offer lower rates for bringing your own phone, T-Mobile offers a $20/month discount between month-to-month/BYO phone and contract plans, and I couldn't find anything on Sprint's site about prepaid options (I believe Sprint tries to steer its prepaid customers to it's Boost Mobile subsidiary). As other commenters have mentioned, this is usually not the case outside the US. For example, Vodafone UK offers both different plan prices AND handset prices depending on length of contract. As an example of the power of "free*", my mom went to buy one of her employees an iPhone and told me in amazement how it was the first time she walked out of an AT&T store without spending a dime. I'm sure I'm not the only one she's told the story to, and I don't think she was as excited about the time when she bought my grandmother a $50 3GS just a few months ago.
keltex 15y ago
Here's another comparison. Sprint doesn't offer the iPhone 3GS, but assume it did for $0. Their unlimited service plan is $99/month. So to own the phone for 2 years would be about $2400. In comparison, let's say you get a Samsung Android phone from Boost Mobile (which uses Sprint's network). That costs $150. But Boost's monthly unlimited plan is $55/month. So the plan cost over 2 years would be $1320. Add the phone and you're at $1470. So going the Android route on the same network would be $930 cheaper.

ubernostrum 15y ago

We're aware of that. But "free (with contract)" is a powerful marketing device, and as a result any points made in reference to it are likely to stand.

dendory 15y ago

That's not the point of the article... the "non-free" Android phones are also under contract! That $150 Android phone would otherwise cost you $400 or more.

tatsuke95 15y ago
I'm not sure about the providers in the US, but comparing a "free with contract" iPhone 3GS to a $150 Android phone with contract is ludicrous. I can get a Samsung Galaxy S2 right now, for $99 and a contract. That thing will run circles around that old iPhone. This is a marketing ploy, nothing more. Is it any wonder the global economy is in shambles when people can't determine what's free and what is "free"?

rsheridan6 15y ago

A lot of people live paycheck to paycheck and just don't have $300 to pay upfront. This deal ought to appeal to them.

tatsuke95 15y ago
People who can't afford to pay $300 up front for a luxury device probably shouldn't be buying it.
- icebraining 15y ago
  Possibly, but many will anyway, and Apple will profit from it, while Android manufacturers won't.