Originally Posted by ghostrider85
that is sarcasm my friend. and yes in my POOR country philippines we rarely buy a subsidized phone under contract, we always buy unlocked phones at full retail price and we have a prepaid service, need more airtime? buy a prepaid card.
LOL... I guess I fell for it then. You're right though... It seems that the "rest of the world" has figured out how to do the whole cell phone thing the right way, but here in the US; people are still "conditioned" to getting the phone "cheap" today regardless of how much it ends up costing them in the end. It's a cultural thing I think.
Originally Posted by stargate125645
Huh? The only way that is true is if buying a phone at full price prevents you from having to change the contract you are on to one that would cost you significantly more money (greater than several hundred over the 2-year period if we are talking about a new, high end phone). At least in the U.S., it is always cheaper to buy the subsidized phone if the particular scenario noted above does not apply.
If you're already on a contract with a carrier.... They already got their money from you... And even if you go and renew your contract and get the high end phone at a discounted price; you're still spending more money during the 24 month period than if you were to buy the phone at its full retail price and go to one of the plenty of "no contract" service providers in the US.
Samsung Galaxy SIII
* MetroPCS: $500 for the phone + $70 x 24 months = $2180 out of pocket in the 2 years that a normal contract would last with another provider. And you can go with the $55/month plan and save $360.
* Verizon: $200 for the phone + $110 x 24 months = $2840 out of pocket in the 2 year contract. --> ($110 amount is based on Verizon's "Share Everything Plan" that costs $40/month for Smart Phones + $70/month for 4GB of data).
* ATT: $199 for the phone + [$69.99/mo (Unlimited Voice Individual Plan) + $30/mo (3GB Data Plan)] * 24 months = $2599.75 out of pocket in the 2 year contract.
--- Let's even go as far as classifying MetroPCS as a carrier and not buy the phone from them.
* Full retail on the 32GB Samsung Galaxy SIII is $650.
* You can get Unlimited Voice, Text and Data (Speeds get throttled after 2.5GB has been used, but all carriers do this) for as low as $50 from a number of "no contract" providers and you don't have to buy the phones from them; they will work with the phone you bring in.
My math says I'm only spending $1800 in the 24 month period and that is less than what you'd spend going with a 2 year contract with ATT/Verizon just to get the phone for $200.
So please show me where it is that one saves money by going with the "subsidized" phones?Edited by xXSebaSXx - 10/29/12 at 2:44pm