Originally Posted by DCSRM
why is there so much hate on the 2 year contract subsidized phones? I am happy with my carrier, pay 63 bucks a month for my line with unlimited data + my wife's phone with 2gb and really good service. I dont care that I cant switch, I wouldnt anyways. When this contract is up Ill sign another and get a phone for cheap.
Am I missing something? Do people really switch carriers that often?
I don't think it's that, but take this into perspective. Once your contract is up, the only thing that requires you to renew your contract is getting another subsidized phone.
The Galaxy Nexus on Verizon was $299 under contract, $650+ without. Granted, it had 32GB of internal storage, but I find that totally irrelevant in this case. The fact that you can get a premium unlocked phone now for not much more than that of a subsidized phone can be appealing. While it is still much out of the price range of the general population, it is definitely more achievable, and you have no liability or required loyalty to any carrier.
I myself upgrade my phone more often than my PC. It's not that I'm generally unhappy with the phones I buy, I just like having a new toy every so often, and it's something I use to it's fullest potential. In the past 4 years I've owned an iPhone 3G, AT&T iPhone 4, HTC Inspire, Samsung Galaxy SII Skyrocket, VZW Galaxy Nexus, VZW iPhone 4, HTC One X, and my current phone is a Motorola Razr M (AT&T iPhone 4 and Razr M are among the best purchases of my short life). Keep in mind, all but one of these phones were bought out of contract, with a couple being trades or bought used/secondhand.
I'm still not completely satisfied with VZW, so come this time next year, when my contract is up, this will be the type of phone that catches my attention. Even with the lack of LTE (AT&T's HSPA+ speeds are comparable to VZW's LTE in my area), it's still a more appealing phone.
So while it might be people who switch carriers a lot (this phone is compatible with many GSM carriers), it could just simply be for piece of mind.
Originally Posted by geoxile
The contracts are expensive. Now, T-mobile's bring your own phone promotion is decently priced but you have to bring your own phone obviously.
This is also a good point. I'm actually surprised T-Mobile will charge people $199 for the Nexus 4 on top of signing a new, 2-year contract. Terrible deal to save potentially $100-150.
Originally Posted by Mr.Pie
well for one it locks you down in one carrier for 2 years.......
also when buying on contract phones *cough (Verizon GNexus) the carriers delay the updates so you can't get the latest version.
additionally its been calculated; (I can't remember where the breakdown thing is) but on contract you pay slightly more vs coughing up at the beginning for a new phone then a data plan.
These are also great points.
And I'll break it down, now:
Price-per-month of a GNex: Voice and Text + 2GB Data is $100 before fees and taxes.
This is actually more expensive now because of the new Share Everything plans. In the state of NC, with taxes and fees, you'll be shelling out around $110 per month. After 24 months, that's $2,640. Then on top of that, the device was $299 to boot. Again, with NC state tax (7%) this comes to about $320. You've almost dropped 3 grand on a phone that you signed on for 2 years with.
Versus the cost of the phone unsubsidized at $650. If you were even able to get it to work on something like Straight Talk that offers Unlimited Everything for $45 a month, with the cost of the phone and a $45 plan over 24 months, you've spent about $1800; less than two-thirds of going with a subsidized phone.Edited by pez - 10/30/12 at 5:45pm