I decided to post this topic because I'm genuinely interested in hearing the experiences of people from around the world. And hopefully this will be nice and educational to any reader who comes across this topic.
The reason I wanted to post this was because many people around here complain about how expensive the iPhone is. Personally I don't have the full knowledge of why they think that way, so above anything else, I'd like to hear some justification behind that mentality. Yes I know that the out-of-contract price for the iPhone is generally a bit more than everybody else, but people would have to be out of their mind to pay those prices over doing a contract deal.
Beyond that, if anybody would like to post a break-down of mobile costs local to them, I think this would make for a very interesting topic
So here in the USA, phones are subsidized, so we get a significant discount on the retail price of the phone, but are locked into a contract. The two biggest carriers are AT&T and Verizon, so I'll use AT&T for my example. If I walk into their store and want to sign a new contract (2 years) with the iPhone 5, it will cost me $200 (USD) upfront for the phone. Then for the contract, let's say I want unlimited calling minutes, unlimited texting, and 3GB of data per month. That totals up to $120 per month.
For for the duration of the 2 year plan, it would cost:
- $200 upfront for the iPhone 5
- $120 per month x 24 months
- Total: $3080 USD (not including taxes)
Generally speaking, any top-tier new phone will start at $200, except for the Lumia 1020, which starts at $299. I think the GS4 was $250 at first too. And an average smartphone plan in the US will run anywhere from $60-150 per month depending on the options. There are pay-as-you-go plans, month-to-month, and all sorts of other options, but the majority of people go the route of 2 year plans. So overall, the iPhone here is the same, if not cheaper, than the other top-tier options.
So out of curiosity, I looked up a major carrier in the UK to see what their pricing was like. It looked like EE was a major carrier, so I priced up a comparable plan, and here's what I came up with:
- £9.99 upfront for the iPhone 5
- £46 per month (10GB data monthly, unlimited calling and texting) x 24 months
- Total: £1114 including tax ($1724 USD)
Here's where I found these numbers: http://shop.ee.co.uk...s/#choose-plans
And this is what baffled me. Not only is that plan much cheaper than the AT&T plan, it includes 3.3 times the data. Not to mention that the upfront cost of the phone was basically nothing. Since people complain that the iPhone is expensive, that would have to mean that they are buying the phone at out-of-contract prices. Are there really that many people that don't go for the contract deals? If people are willing to spend $500-700 upfront for a phone, the monthly price of the service would have to be almost nothing to make it actually worth doing. Sure it's nice to be able to upgrade your phone whenever you want, but that's a pretty huge dollar value we're talking here.
So for those of you that haven't fallen asleep and have made it though all of that, let's here some of your experiences. I want to know how this works around the world.