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Carrier Why do you buy your iPhones outright rather than from your carrier/telco?
- Thread starter aj_niner
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I normally buy through Apple and spread payments out over 1yr / 2yr with 0% interest.
The advantage of buying from Apple instead of telco is that the phone isn't SIM locked to just that carrier. (This used to suck if traveling internationally)
The advantage of buying from Apple instead of telco is that the phone isn't SIM locked to just that carrier. (This used to suck if traveling internationally)
I buy my iPhones outright because of the freedom. The freedom to move around carriers and travel without any restrictions .
I want to buy the phone and be done with it and not read any fine print or worry about plans or financing or whatever.
It started with my 8+ in 2019, when I decided to give the 11 pro max a miss as I found it too expensive at the time. Also, because I has opted to not use a case with my 8+, it would end up getting rather scuffed, effectively destroying any resale value it may have had.
This was also about the time when telcos were aggressively pushing postpaid SIM plans at very attractive rates and generous data caps. I did the math and buying an iPhone directly from Apple + postpaid SIM worked out to be slightly cheaper than getting one via a 2-year contract. So I terminated my carrier plan and switched to a SIM only plan for the cost savings, and haven't looked back since.
In 2021, I upgraded to the 13 pro max (primarily for the battery life), which I plan to keep for the next 4 years at least.
Heck, my series 5 watch is more than 4 years old and for some reason, I resisted upgrading to the Ultra 2 last year. Just as I am waffling as to whether to upgrade my M1 MBA, and my 5k iMac is still used extensively by my dad, and well, it just feels like a waste to toss a good screen away. But my 2018 iPad Pro is getting a bit long in the tooth and I do see myself upgrading, simply because of how much I use one.
What's happening to me?!?
Am UK based and the cost of buying via a carrier/network is much more expensive when you split out the cost of the phone and the network contract. Great to be able to spread the cost if you can't shell out in full but have also generally traded my phone in to part pay for the upgrade and it usually covers a good chunk of the cost of the new model since they hold their value well. Initially I moved to buying in full when the networks started 2 year contracts and limiting my ability to upgrade yearly without further penalty. However nowadays I tend t only upgrade every 2 years. If I wanted to ever spread the cost again I would either buy direct from Apple if 0% finance available or pop on interest free credit card.
I don't like to make payments on hardware of any kind. That goes for software too, but lately more don't give you a choice.
I split the difference. I buy a new iPhone every few years, but I buy directly from Apple so it's unlocked. That way I can switch carriers if things go south or I move to an area where coverage with my current carrier isn't as good. But the financial impact is exactly the same: decent trade in, 0% interest.
I prefer not making my cell bill any more money than it already is. So I always go through Apple to purchase my iPhone
We pay my in-laws for our part of the family plan. In order to simplify things, I'd rather pay for my phone outright than bother others with "Did the total bill go up this month and is it because of a phone purchase?" and then again, "I think the bill should have gone down. Can you check and see?"
I prefer having the phone paid off immediately. I've done it both ways each have their advantages..
Where I live, you tend to pay more in the long run under a bill pay plan (and that's even when taking my monthly sim only plan into account on top of the full price of the phone). So paying it all straight up seems painful initially, but it's the more sensible choice.
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Buying from a carrier makes no sense to me. In the old days it was the way phones were bought when you had less options for carriers, but over time it became clear that it wasn't worth it. When I did the math, I found that the phone comes out barely any cheaper (if at all), and the trade off is that you cede the option to change carriers or downgrade your plan for the next two years.
So if something goes wrong, your carrier is unreliable, something happens with roaming charges or whatever and you get a big bill for something that shouldn't have been charged to you, you don't want to be stuck with that carrier and without a contract you have the leverage of threatening to walk away if the problem isn't remedied. And of course, there's the phone not being carrier locked so you can decide to sell it after five days if you want to.
Since I don't have these issues, the main benefit for me in avoiding carrier subsidized phones is that if I am out of contract, my carrier will call me with offers of various discounts just to get me to sign a one or two year deal (if you bought a phone from them, you don't get this as the phone is their end of the deal, you're already locked in so they have no interest in giving you incentives to stay). This way I get some services for free, like for instance at the moment I am approaching the end of my two year free subscription to Tidal, which meant not paying for Apple Music or Spotify for two years. Very simple math says I come out way ahead since no carrier deal can net me the savings I got from having free music streaming. In fact it's been so long since I paid for Apple Music that the Music app has already offered me free trials three times over the last couple of years, each time offering one or three months for free.
From what I can tell, carrier deals are good for two types of people - 1. those who don't qualify for or simply don't (want to) own a credit card, as they can do a payment plan for a phone they may not afford or want to buy outright, and 2. those who have ginormous phone bills due to a lot of calls and texts so these people get excellent deals for more expensive phones as they will pay them off through their massive carrier traffic anyway. But I guess no. 2. is on its way out, since these days you will easily find carrier plans that give you unlimited pretty much everything even in the mid-tier plans. I have such a plan with my carrier and for 20 euros everything is unlimited, and the only thing that is technically constrained is the internet traffic, which is 60GB at max speed and then it drops off to unusable speeds, but you're still online as the internet data itself is flat. I can't even take full advantage of this since I have Wi-Fi so I'm interested in seeing what the carrier will offer me next as my contract is up in four months and my Tidal free subscription ends.
I buy my tech either through my company (self-employed so it's a tax deduction) or on a payment plan through a credit card with no interest. I find it completely unnecessary to pay for tech outright unless I'm going through my company, since no interest on my credit card means I am not losing any money, I am just defering the payment until later, and given how money loses value over time due to inflation and whatnot, technically I can even come out a little bit ahead if the payment plan is for two years and some mental midget starts a war that explodes world trade and inflation along with it.
So if something goes wrong, your carrier is unreliable, something happens with roaming charges or whatever and you get a big bill for something that shouldn't have been charged to you, you don't want to be stuck with that carrier and without a contract you have the leverage of threatening to walk away if the problem isn't remedied. And of course, there's the phone not being carrier locked so you can decide to sell it after five days if you want to.
Since I don't have these issues, the main benefit for me in avoiding carrier subsidized phones is that if I am out of contract, my carrier will call me with offers of various discounts just to get me to sign a one or two year deal (if you bought a phone from them, you don't get this as the phone is their end of the deal, you're already locked in so they have no interest in giving you incentives to stay). This way I get some services for free, like for instance at the moment I am approaching the end of my two year free subscription to Tidal, which meant not paying for Apple Music or Spotify for two years. Very simple math says I come out way ahead since no carrier deal can net me the savings I got from having free music streaming. In fact it's been so long since I paid for Apple Music that the Music app has already offered me free trials three times over the last couple of years, each time offering one or three months for free.
From what I can tell, carrier deals are good for two types of people - 1. those who don't qualify for or simply don't (want to) own a credit card, as they can do a payment plan for a phone they may not afford or want to buy outright, and 2. those who have ginormous phone bills due to a lot of calls and texts so these people get excellent deals for more expensive phones as they will pay them off through their massive carrier traffic anyway. But I guess no. 2. is on its way out, since these days you will easily find carrier plans that give you unlimited pretty much everything even in the mid-tier plans. I have such a plan with my carrier and for 20 euros everything is unlimited, and the only thing that is technically constrained is the internet traffic, which is 60GB at max speed and then it drops off to unusable speeds, but you're still online as the internet data itself is flat. I can't even take full advantage of this since I have Wi-Fi so I'm interested in seeing what the carrier will offer me next as my contract is up in four months and my Tidal free subscription ends.
I buy my tech either through my company (self-employed so it's a tax deduction) or on a payment plan through a credit card with no interest. I find it completely unnecessary to pay for tech outright unless I'm going through my company, since no interest on my credit card means I am not losing any money, I am just defering the payment until later, and given how money loses value over time due to inflation and whatnot, technically I can even come out a little bit ahead if the payment plan is for two years and some mental midget starts a war that explodes world trade and inflation along with it.
I bought my 13 Pro at Walmart.
The phone was $999, and the 60 day Verizon service requirement was additional.
With the package, Walmart gave me a $300 gift card.
The phone was on a 24 month/no interest payment plan.
So I got the phone for $700 net with free financing for 24 months.
Verizon automatically unlocked the phone 60 days after purchase, as was their committment.
I think I got a very good deal.
The phone was $999, and the 60 day Verizon service requirement was additional.
With the package, Walmart gave me a $300 gift card.
The phone was on a 24 month/no interest payment plan.
So I got the phone for $700 net with free financing for 24 months.
Verizon automatically unlocked the phone 60 days after purchase, as was their committment.
I think I got a very good deal.
All of the phones I have purchased over the years (mine, my wife's, our two kids) have been financed, but only two purchased direct from Apple (but still financed). We are all with T-Mobile.
I have never had an issue with this because, while we (my wife and I) have had cell phones for 24.5 years (since 1999), T-Mobile is only our second carrier. We were with Sprint for 16 years and have now been on T-Mobile for 8.5 years. The iPhone 5 was our last subsidized phone. Precisely because I don't see us leaving our carrier, I don't have an issue with monthly payments. T-Mobile's EIP (Equipment Installment Plan) is a zero-interest loan. We pay the tax for the down.
But I/we also do not upgrade every year. Right now my wife and I are using the 11 Pro Max, which we got in 2021. I'm not planning on upgrading for at least another year or two. By that time, both phones will have been paid off for over 2-3 years (paid off in 2023). T-Mobile has been very good in my market and 16 years with Sprint taught me how to deal/not deal with useless and horrific customer service.
We are on an 8.5 year old grandfathered plan with the pricing that you can infer from having that plan. One of my lines is free. I don't chase deals or promos because having this plan is the primary value of having T-Mobile.
I have no idea what this is supposed to be. But we do complete write-offs after two years. I just let the accountant work his magic, so long as the account stays afloat, I have no interest in the specifics of penny pinching.
It's an iPhone (or Android) plan for business customers. In my country these business plans have the best smartphone amortization rates whether personal plan, credit card amortization or Home Credit. These are better than the 1 time cash payment if you consider inflation and depreciation of cash over time.
Where I am from my country's equivalent to the IRS disallows receipts that aren't named to the company name.
But each country's different.
I'll get to it when comes time to refresh my Tech stable, thank you for the advice !
Glad to help.
As I pointed out each country's different.
It was confirmed to me by 3 telco account managers 1 reason why business plans have better amortization rates than non-personal plans is because of the lower risk of the business to default on their obligations.
Depending on the country & the personal subscriber's economic situation they may or may not pay off all their amortization.
1.) Sim-unlocked direct from Apple.
2.) Not tied to a carrier for 24-36 months.
3.) Keeping my phone bill as low as possible.
2.) Not tied to a carrier for 24-36 months.
3.) Keeping my phone bill as low as possible.
As a stockholder, I prefer to deal Apple and give them the profit on the sale. I will use interest free extended terms and use my Apple Card for the cash rewards.