Are people really paying $85/month+ for an iPhone?

[Doppel]

I just checked on Verizon, as a new customer, an iPhone 4S is $200 up front and the absolute cheapest monthly plan (which has to include $10 texting realistically), is $79.95/month plus the various taxes and nonsense. This is crazy, I see these things around all the time, but can hardly conceive of why so many people would pay literally half the lease payment on a cheap car just to have one of these things.

Is that $85 the idiot price, and it's actually much cheaper if purchased in a different way?

 

[Spoooon]

That's not the price of owning an iPhone, that's the price of owning a smartphone on Verizon.

 

[Fingolfin269]

Why is this a thread about the iPhone? As the previous post mentions that is Verizon's smartphone pricing.

 

[Dulanic]

It is about Verizon's pricing, but don't fool yourselves into thinking the iPhone doesn't have a major impact on the high cost of plans. Obviously, Apple is not the only cause, but it is one of the many contributing factors.

It is also the reason I am hoping to go prepaid once my cotract is up. Hopefully, as phone tech slows down, prepaid will get better phones overall.

http://money.cnn.com/2012/02/08/technology/iphone_carrier_subsidy/index.htm

 

[T_Yamamoto]

:thumbsup: gnex costs about the same

Why is this a thread about the iPhone? As the previous post mentions that is Verizon's smartphone pricing.

 

[Anubis]

yea this has nothing to do with the iphone, all of VZWs smartphone plans cost that much

 

[QueBert]

It is about Verizon's pricing, but don't fool yourselves into thinking the iPhone doesn't have a major impact on the high cost of plans. Obviously, Apple is not the only cause, but it is one of the many contributing factors.

It is also the reason I am hoping to go prepaid once my cotract is up. Hopefully, as phone tech slows down, prepaid will get better phones overall.

http://money.cnn.com/2012/02/08/technology/iphone_carrier_subsidy/index.htm

No no and no, years before the 1st iPhone I was paying $110 a month on Verizon for my WM5 Smartphone. Regardless of how high the prices currently are, I could get a Smartphone plan on Verizon today for cheaper than what I was paying 6 years ago.

 

[Dulanic]

No no and no, years before the 1st iPhone I was paying $110 a month on Verizon for my WM5 Smartphone. Regardless of how high the prices currently are, I could get a Smartphone plan on Verizon today for cheaper than what I was paying 6 years ago.

True, Verizon hasn't raised pricing lately. They have however cut benefits like the once a year upgrade and unlimited data. So what are the other No's for? That the carriers aren't paying out the ass for iphones?

Sprint, which started taking iPhone orders on October 7, said it would pay Apple a subsidy that is 40 percent higher, or $200 more per device, than what it pays for other phones.

Between 2009 and 2010, Verizon (VZ, Fortune 500) averaged EBITDA service margin of 46.4% per quarter. In the first quarter that the iPhone went on sale, that fell to 43.7%. Last quarter, when Verizon sold a record 4.2 million iPhones, its margin plunged to 42.2%.

Verizon had just one "good" stretch this year: The third quarter, when its margin bounced back up to a record 47.8%. That's the same quarter in which iPhone sales stalled, as customers waited for Apple to unveil its heavily anticipated new model.

It is amazing how few people know the true cost of a phone and it is one of the major problems with the US cellular market. People just expect to be given a $800 device for nearly free.

 

[alent1234]

Half of all smartphones are on family plans with carriers

I pay $160 a month for 4 lines including 2 iPhones and including all taxes

Big reason I have a 4s is the resale value is insane and it's only $25 a month for the data. Free phone for $25 a month and my inlaws pay me $50 for their share

 

[MrX8503]

Lower margins or not, Carriers were going to raise prices of plans anyway. This has nothing to do with carriers eating a higher cost for iPhones. If iPhones didn't exist you'd still be paying the rate you're paying now.

 

[Wonderful Pork]

It is amazing how few people know the true cost of a phone and it is one of the major problems with the US cellular market. People just expect to be given a $800 device for nearly free.

If service prices aren't going to drop once my device subsidy is repaid (so, every 2 years, or immediately with BYOD) then damn right I'm going to want a $800 device for free. Heck, they should do it like Amazon and pay me $100 for my subscription to lock me into a contract.

And for the record, I completely understand and appreciate that businesses exist to make as much profit as possible. That's why I treat myself as a business. So why would Wonderful Pork, inc take a hit just to make AT&T richer? Framing expenses like that has saved me a ton of money, and also allowed me to spend extra on "perks" others would deem unnecessary. (Note, I am not actually a business, just metaphorically).

 

[WelshBloke]

Holy s**t! Phone contracts are expensive in the US.

 

[Dulanic]

Lower margins or not, Carriers were going to raise prices of plans anyway. This has nothing to do with carriers eating a higher cost for iPhones. If iPhones didn't exist you'd still be paying the rate you're paying now.

I have a bridge to sell you.

 

[Naeeldar]

I just checked on Verizon, as a new customer, an iPhone 4S is $200 up front and the absolute cheapest monthly plan (which has to include $10 texting realistically), is $79.95/month plus the various taxes and nonsense. This is crazy, I see these things around all the time, but can hardly conceive of why so many people would pay literally half the lease payment on a cheap car just to have one of these things.

Is that $85 the idiot price, and it's actually much cheaper if purchased in a different way?

I pay $83 on sprint and I'm damn happy with that. I can remember paying $103-$110 some years back. Most people (on single lines) are in that price range and that's just for smart phones in general not iphones.

How much do you expect it to cost? Hell I pay $130 a month for cable/internet today as well.

 

[DefDC]

The single line price does look insane. Bundle up with friends and family for a discount. Preferably one with a discount on Verizon. I pay for 5 lines since I get discount. But averaging about $50 a line with 3 smartphones on the plan.

 

[alent1234]

I have a bridge to sell you.

newsflash, my $50 voice plan bought a lot less minutes 10 years ago than it does now

these days any call on the same network is free and some carriers offer unlimited mobile to mobile minutes any time of day

 

[Eug]

My current plan for my iPhone 4 with Fido is CAD$51.55 per month plus tax.

This includes:
200 daytime minutes plus unlimited evenings and weekends starting at 5 pm
1 GB data, including tethering.
100 text
Visual voice mail, caller ID, Who called.

However, I had to call and complain to get that raid. Otherwise it'd be maybe $20-25 more per month.

-

My GF pays about $20 tax in with her plan, but it's a low-minutes voice-only plan. She has my old iPhone 3G but doesn't have data or texts. She just uses WiFi when in range. When we're together and she needs to use data, she can just tether off my phone via WiFi.

 

[Red Storm]

I pay $83 on sprint and I'm damn happy with that. I can remember paying $103-$110 some years back. Most people (on single lines) are in that price range and that's just for smart phones in general not iphones.

How much do you expect it to cost? Hell I pay $130 a month for cable/internet today as well.

Just curious, but why would you pay the same amount of money for less coverage? The only reason I would consider a Verizon alternative is to save money. If it costs the same, I'd go Verizon every time.

 

[Red Storm]

My current plan for my iPhone 4 with Fido is CAD$51.55 per month plus tax.

This includes:
200 daytime minutes plus unlimited evenings and weekends starting at 5 pm
1 GB data, including tethering.
100 text
Visual voice mail, caller ID, Who called.

However, I had to call and complain to get that raid. Otherwise it'd be maybe $20-25 more per month.

While it's cheaper, that's also a lot less minutes, data, and texts than the usual ~$80 plan. But if it matches your particular usage habits, then it makes sense.

 

[antef]

I pay $83 on sprint and I'm damn happy with that. I can remember paying $103-$110 some years back. Most people (on single lines) are in that price range and that's just for smart phones in general not iphones.

How much do you expect it to cost? Hell I pay $130 a month for cable/internet today as well.

I expect it to to cost $50 for everything. Sprint isn't really much better nowadays, you pay $80/mo for an Everything Data plan. This is why I plan to switch to AT&T and drop texting entirely. It will get the bill down to $70 + fees and that's as low as I can get it. Then just text using Google Voice.

 

[Oyeve]

I have 2 lines on tmobile, 2 smartphones, 2 unlimited (6+ gigs a month before throttle) data plans, 1000 share minutes, texting for 115 bucks a month.

 

[gorcorps]

If service prices aren't going to drop once my device subsidy is repaid (so, every 2 years, or immediately with BYOD) then damn right I'm going to want a $800 device for free. Heck, they should do it like Amazon and pay me $100 for my subscription to lock me into a contract.

And for the record, I completely understand and appreciate that businesses exist to make as much profit as possible. That's why I treat myself as a business. So why would Wonderful Pork, inc take a hit just to make AT&T richer? Framing expenses like that has saved me a ton of money, and also allowed me to spend extra on "perks" others would deem unnecessary. (Note, I am not actually a business, just metaphorically).

Because they have something that you want. Not NEED mind you, just want. There are a lot of older smartphones you can get for free, so it's entirely reasonable to pay for something brand new and cutting edge. I can't believe how self entitled people are getting. They don't owe you anything.

Holy s**t! Phone contracts are expensive in the US.

It's has nothing to do with contracts, that's the price of the service with or without contracts if you get a smartphone.

 

[Oyeve]

Because they have something that you want. Not NEED mind you, just want. There are a lot of older smartphones you can get for free, so it's entirely reasonable to pay for something brand new and cutting edge. I can't believe how self entitled people are getting. They don't owe you anything.

No, but some data plans are ridiculous. Like 20 bucks for 200 megs a month. and some ridiculous overage fees after that. They dont owe us but we should not be getting basically nothing for something. 50-70 bucks for unlimited everything is reasonable. Then if you are an abuser, like 7+gigs a month, you should be throttled.

 

[Naeeldar]

Just curious, but why would you pay the same amount of money for less coverage? The only reason I would consider a Verizon alternative is to save money. If it costs the same, I'd go Verizon every time.

For where I live it's the same coverage. that said if I got the same play setup on Verizon as I do on Sprint I'd have to pay a hell of a lot more. Last time I priced out AT&T/Verizon I'd have to pay somewhere around $110-$125 a month.

I pay $83 post tax with a $6 insurance coverage for unlimited txt, internet, and phone calls. You really can't beat that price.

 

[Spoooon]

I'm at 85-90 per month with taxes and fees on Verizon. I would happily pay full price for a phone and commit to a contract if they discounted the price of the contract because I brought my own device.