Discussion Forums > Technology
iOS vs android
Bob2004:
Yeah, purchasing phones on contract from a carrier is always cheaper, because the carrier subsidises the cost. The iPhone 5, for example, costs $499 for the most basic version from Apple (going up to $699 for the top), but carriers will sell it for $199 (going up to $399) and pay the rest of the cost themselves. Having you locked into a contract for 2 years, with a phone that's locked to their network, is worth the $300 they pay for it.
Slysoft:
--- Quote from: Bob2004 on November 17, 2012, 06:29:00 PM ---Yeah, purchasing phones on contract from a carrier is always cheaper, because the carrier subsidises the cost. The iPhone 5, for example, costs $499 for the most basic version from Apple (going up to $699 for the top), but carriers will sell it for $199 (going up to $399) and pay the rest of the cost themselves. Having you locked into a contract for 2 years, with a phone that's locked to their network, is worth the $300 they pay for it.
--- End quote ---
It actually isn't cheaper. You can buy off contract plans for lower rates so you save more money over the life of the phone. Most people are too short sighted to see this however.
Bob2004:
--- Quote from: Slysoft on November 17, 2012, 09:00:06 PM ---
--- Quote from: Bob2004 on November 17, 2012, 06:29:00 PM ---Yeah, purchasing phones on contract from a carrier is always cheaper, because the carrier subsidises the cost. The iPhone 5, for example, costs $499 for the most basic version from Apple (going up to $699 for the top), but carriers will sell it for $199 (going up to $399) and pay the rest of the cost themselves. Having you locked into a contract for 2 years, with a phone that's locked to their network, is worth the $300 they pay for it.
--- End quote ---
It actually isn't cheaper. You can buy off contract plans for lower rates so you save more money over the life of the phone. Most people are too short sighted to see this however.
--- End quote ---
Well, it depends on the contract, obviously. Here in the UK it's pretty much a choice between a fixed contract or a pay as you go plan, and unless you're a pretty light user (who never uses any data allowance at all), contracts are often better value. They purposely make them relatively cheap to encourage people to purchase one, since it's better to earn a slightly lower profit margin but have it guaranteed for 24 months.
GoGeTa006:
--- Quote from: Slysoft on November 17, 2012, 09:00:06 PM ---
--- Quote from: Bob2004 on November 17, 2012, 06:29:00 PM ---Yeah, purchasing phones on contract from a carrier is always cheaper, because the carrier subsidises the cost. The iPhone 5, for example, costs $499 for the most basic version from Apple (going up to $699 for the top), but carriers will sell it for $199 (going up to $399) and pay the rest of the cost themselves. Having you locked into a contract for 2 years, with a phone that's locked to their network, is worth the $300 they pay for it.
--- End quote ---
It actually isn't cheaper. You can buy off contract plans for lower rates so you save more money over the life of the phone. Most people are too short sighted to see this however.
--- End quote ---
true that,
the iPhone 5 at 500 dlls from cricket with 55 dlls/mo unlimited comes out to a whooping 1800 dlls but if you buy it for 200 at a 2 yr contract that they range from 80 - 120 dlls/mo it comes out to around 2000-ish
its a fucking rip off tho
I was looking at ATT's plans
and they advertise it for 60 bux but once you finish "check-out" it comes otu to like 100 per month, because theres a 40 dlls smartphone fee added to your "60 dlls unlimited plan"
fucking joke!
still its the basics of credit, its easier to put out 200 dlls down than to put 500
Freedom Kira:
--- Quote from: mgz on November 17, 2012, 11:05:32 AM ---my point of reference is the top of the line phones which generally have a 500-700$ price tag and a 199-299 price tag if you buy them through a carrier.
for instance nokia lumia 920 100$ with contract at att. 450 without
samsung rugby 2 rugged flip phone - 100 with 270 without
even the shitty flip phones that are free or 20$ with contract are like 100-200 without one
the without contract pricing is equivalent roughly to buying a unlocked phone. And you can get the locked phones unlocked, although that doesnt help much with verizon phones or sprint phones unless they are global capable and have simcard slots
--- End quote ---
No, I get that; it's pretty common knowledge. My main point is that when you get it through a carrier, it's locked regardless of whether or not you get it on contract (and typically costs a bit more to get the unlocked version, which would end up being roughly the same price as a never-unlocked version), and contains all the extra software that the carrier installed. Sometimes the phone is not even entirely the same as the never-unlocked version of the phone because some carriers require the phone to be modified. The biggest difference caused by such modifications that I've seen to date is the Galaxy S3, which has a quad core outside of North America and dual core within North America.
--- Quote from: GoGeTa006 on November 17, 2012, 10:02:28 PM ---true that,
the iPhone 5 at 500 dlls from cricket with 55 dlls/mo unlimited comes out to a whooping 1800 dlls but if you buy it for 200 at a 2 yr contract that they range from 80 - 120 dlls/mo it comes out to around 2000-ish
--- End quote ---
The carrier sees no difference because of the time value of money. Regardless of the total amount you end up spending, the carrier's income is the same because the extra $300 you put down at the beginning has potential to gain interest over the entire contract's time. It's like how spending $2000/year on an RRSP for ten years from when you are 20 and then not putting any more in after that can be equivalent to spending $2000 a year on the same RRSP from age 30 to 65.
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