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"The first mistake people make is believing that the subsidized cost of the hardware (usually $2...


G+_Paul Fidalgo
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Originally shared by Paul Fidalgo

 

"The first mistake people make is believing that the subsidized cost of the hardware (usually $200) is the real cost of the device, when it's far wiser to remember that this small device you're haphazardly tossing around and shoving in your jeans pocket is actually a super-advanced computer that costs roughly $650 or $700."

http://nearearthobject.net/nearearthobject/2014/4/24/755tf09j295qomdfelk3meitjge087

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But if you buy the phone outright you still would want a data plan so the calculations are all wrong. You may only save ~10% in your monthly bill without the subsity.

 

So let's look at a version plan $2100 over the 2 years 83% is the voice/data plan that is ~1750 over two years. If you pay for your phone outright you may save about 10%, $175 over the two years. That still means you got your shiny new iPhone at a (700-{200+175}) $325 discount.

 

The problem is the telcos just don't subsidize the plans enough to make buying your phone outright justifiable if you want a top of the line phone.

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Matthew Zier-Vogel SOME carriers...

 

4 years ago I had an iPhone 3s with ATT. I paid $200 for the phone and had a monthly bill of $100. That means over the course of the 24 month contract I paid a total of $2600.

 

I switched to a full-purchase Samsung SII. The outright purchase price was $600. My monthly dropped to $30. (unlimited data/text +100 minutes) . Over the course of 24 months I paid a total of $1320.

 

That's a HUGE difference, almost half the price of the subsidizes device. More than enough to pay for a total of THREE top-of-the-line devices in the time it would take the subsidized plan to run its course.

 

At first I thought I would be hamstrung by the limitation of 100 minutes... but as it turns out I RARELY use voice... and when I do, it's easy enough to use VoIP services.

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