Does anyone else compare "discounts"?


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  1. Snow_Fox

    Snow_Fox Well-Known Member This Topic's Starter

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    I am just wondering.. because lately.. I have noticed a horrible trend with consumers.. even otherwise intelligent people fail to understand that when you get a phone it is not really in anyway "free".

    It acutally astounds me because I look at different phones and there really is a pretty big difference in the subsidized cost of the phone.. Sometimes it is up to 200$ or more off.. Sometimes you barely get anything at all off..

    And how much you get can even vary retailer to retailer as seen.. You can really get murdered on how much your paying for the phone itself..
     

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  2. Ambictus

    Ambictus Well-Known Member

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    I'm not exactly sure what you mean... Do you mean like comparing what AT&T sells the Backflip for ($99) vs what Amazon Wireless sells it for ($0.01)?
     
  3. Snow_Fox

    Snow_Fox Well-Known Member This Topic's Starter

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    I was more meaning the total cost of the phone vs what you pay for it at various places.
     
  4. nb_mitch

    nb_mitch Well-Known Member

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    I am not sure what you mean either, the "total cost" of a device is is going to be basically the asking price, activation, tax, plus shipping, etc. There may be deals that are different, but in the end when you walk out the door or "hit submit", that is the total cost.

    Now if you are shopping providers, that is a whole different question. But most people don't have the luxury of shopping providers, they are not all equal based on where you live, work & travel. It is always best to get the provider that has the best service, price is secondary.

    For devices, I do shop around (Wirefly, Wal-Mart, Best Buy, Amazon, etc). I have bought my last 3 Blackberries from Wirefly, because they were "free", no shipping & taxes. Might have had an activation fee. I don't understand it, because the exact same device was $100-200 from AT&T directly.

    Right now, I am in a bad place, I really really want a Dell Streak (which isn't here yet), but at the same time, we plan to move to Florida in October. Both of our current devices are off contract and ready to upgrade. But, if I get 2 new devices this summer and then in 4 months live where there is no service, that won't be pretty :(

    Worst case, I could terminate my contract, pay the termination fees, sell both phones on Ebay and hopefully start over again with a different provider and new equipment.
     
  5. Snow_Fox

    Snow_Fox Well-Known Member This Topic's Starter

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    What i mean is if you buy any phone out right.. it is usually over 300$ even a cheap flip phone..

    WHen you get on a contract they give you a discount or the phone for signing a new two year contract.

    Do you ever compare the actual cost of the phone to what you pay when you get on a contract?
     
  6. mkeath

    mkeath Well-Known Member

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    You could do the alternative and pay the full price of the phone and still pay month-to-month for the same price as a contract. It's not like people with cell phones are going to stop using them. Most people would probably get rid of their landline before they got rid of their cell phone. Yes I think most people realize that they are locked into a contract for 2 years and that their phones are discounted because of that. I don't really understand why you brought this up as it has little to do with Android and is not specific to AT&T.
     
  7. nb_mitch

    nb_mitch Well-Known Member

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    I understand what you are saying now, but it really doesn't matter or I just don't get it. I can have "most" devices right now for free or very cheap on a contract. Why pay $300-600 for the same device to not have a contract? It would normally be cheaper to just sign the contract and break it if you are unhappy with it.

    Now if there was a different billing rate for "on or off" contract, then there would be something to talk about. As it currently stands in the US, the major carriers all have different frequencies, so you are limited where you can take a device, etc.

    I have only broken a contract once with T-Mobile, right after moving here, they just didn't have any service. It didn't cost me anything, I sold the Blackberry (which I got free) on eBay for $250 and might have made money.

    But, like mkeath said, what does this have to do with AT&T? :D
     
  8. lordmaxx

    lordmaxx Well-Known Member

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    I think it is different for us because if you plan on buying the phone and staying with that carrier you take the contract, But for some providers in Europe if you take the subsidy you have to also purchase a particular rate plan. People safe money ultimately by purchasing the phone outright and being able to signup for a much cheaper rate plan. Or perhaps a data only plan and using google voice...

    For AT&T I dont think it really matters as long as you plan on staying with them for the full 2 years, of if the EFT you end up paying still turns out less than purchasing the phone outright.
     
  9. tsanuri

    tsanuri Well-Known Member

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    The only US carrier it matters on is T-mobile since they charge less for those that did not get the subsidy. And we can hope that once LTE starts getting deployed we can get more competition.
     
  10. Ambictus

    Ambictus Well-Known Member

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    Actually the off contract price of a phone is an interesting thought in your case. If you're going to assume that AT&T is going to be shit in FL then say you bought the Streak outright for $500x2. So that's $1000 you're out. Now compare that to buying the phone on contract for $200-250 each then paying the ETF which would put you out $1050-1150. So if you're guaranteed to cancel your service with AT&T when you move it's actually cheaper to buy them unlocked and outright.
     
  11. Snow_Fox

    Snow_Fox Well-Known Member This Topic's Starter

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    It has to do with at&t because it is my carrier and I felt it was a little more relevant here than in the "nexus one" forum.

    I suppose what I was really trying to find out is if anyone else ever in some ways feels ripped off..

    I mean the total cost of one phone is 200$.. the total cost of another phone is 500$.. So if you pay 200$ you get the 500$ phone.. on the flipside you pay nothing and get the 200$ phone.. So really the better deal is the 500$ phone...

    THis isn't always the case but, I suppose what I am getting at is.. I sometimes find it funny that at&t is willing to discount more off of certain phones than others..

    Unfortunately now with at&t even if you pay full price for a phone.. you have to keep the 25$ or 30$ a month data plan even if you don't use it..

    I know n1 imei's have been given to at&t or are now in at&t hands.. however, I have heard of some people getting other unlockeds and at&t never knowing.

    ALthough I do think if you supply your own phone you should get a discount x.x
     
  12. mkeath

    mkeath Well-Known Member

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    No I don't. They are helping you pay for a phone in exchange for paying for their service that you would be paying for anyways.
     
  13. nb_mitch

    nb_mitch Well-Known Member

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    Actually, the ETF isn't that bad, but AT&T just changed the fees June 1st, which helped people with basic phones but raised the fee for smart phones.

    Based on the new fees, and the fact that we are moving in Oct, but don't expect to be in our final home until March-April of 2011, we would be 8-9 months into a new contract. At ($325 minue $80($10/month)) or $245 x 2 for a total termination fee of $490. Now since I would probably end up on Sprint or Verizon depending on which coverage worked best in my new place, niether would accept a Dell Streak At&t unlocked device, so I would sell both devices on eBay and probably be able to break even.

    Copied from the AT&T press release:

    "For customers who enter into new two-year service agreements in connection with the purchase of our more advanced, higher end devices, including netbooks and smartphones, the ETF will increase to $325, and be reduced by $10 for each month that you remain with us as a customer during the balance of your two-year service agreement. After that, the ETF will no longer apply"
     
  14. nb_mitch

    nb_mitch Well-Known Member

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    ps. I won't pay full price for a device, I am hoping AT&T follows the UK plan of "Free", but could pay something, doubt I could pay over $200 regardless.
     
  15. Ambictus

    Ambictus Well-Known Member

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    I was basing my calculations on the new ETF but didn't realize they took off $10 for every month of service you've maintained. That makes it much easier to swallow the ETF at the end of the day.

    The only thing I see being a problem for you is the timeline of the Streak coming to AT&T on subsidy. At this point it's not even announced and we haven't see the phone Dell has announced yet despite it's announcement like 2 months ago.
     
  16. anoid

    anoid Well-Known Member

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    ^:D
    I have a friend that always tries to buy the phones outright.
    I asked him why. He said he didn't want to be tied to a contract.
    I asked how many years he had been with his carrier. He said many years.

    I don't get it. You have to have cell service anyway, why not get the phone at a discount. :confused:
     
  17. HustlinDaily

    HustlinDaily Well-Known Member

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    Some people want the option to get the hell out. I am currently not tied to any contract (then again, I really wanted an Android phone which was not the Backflip. And came up on some extra money through poker).

    AT&T makes some spike in prices, eff it, I am taking my phone to T-Mobile (and giving up 3G lol).
     

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