iPhone6 lifetime costs: contract vs full price?

[ride74]

I'm looking at getting the iPhone6 64GB with AT&T. I have never been one to upgrade all the time. In fact, I buy a cell phone and can hold onto it for 4-5 years. Given this info, I'm trying to determine if it would be wise to just pay the full cost? My scenarios:

A) ON CONTRACT w/ AT&T
$300 [64GB iPhone6]
$65/month(1GB plan) for 2yrs [24 x 65] = $1560
===============================
TOTAL after 2 yrs: 300 + 1560 = $1860

If I continue for a 3rd year (65 x 12 = 780): 780+1860= $2640 accumulative costs


B) FULL PRICE w/ AT&T
$750 [64GB iPhone6]
$50/month(1GB plan w/discount) for 2yrs [24 x 50] = $1200
======================================
TOTAL after 2 yrs: 750 + 1200 = $1950

If I continue for a 3rd year (50 x 12 = 600): 600+1950= $2550 accumulative costs

As you can see, at 2 years only, scenario A is a cheaper option. But at some point past 2 years and definitely by year 3, I've saved (2640 - 2550 = 90). Not much, but it is something. And if I own for 4 years, even more would be saved.

Here's my question: If I go with scenario B, how long could I go before AT&T (or any carrier for that matter) would choose to just raise my bill? After all, I wouldn't be on a contract. Does this happen often? I know over a 2-4 year period, plan prices are bound to change, but if I go in at a certain rate, does that typically hold for a while before a carrier would 'raise my bill'? I assume for at least 2 years?

Assuming I do hang on to the phone for 4 years before upgrading, scenario B is cheaper, but only relative to what scenario A would've been.

 

[coldwaves]

I'm looking at getting the iPhone6 64GB with AT&T. I have never been one to upgrade all the time. In fact, I buy a cell phone and can hold onto it for 4-5 years. Given this info, I'm trying to determine if it would be wise to just pay the full cost? My scenarios:

A) ON CONTRACT w/ AT&T
$300 [64GB iPhone6]
$65/month(1GB plan) for 2yrs [24 x 65] = $1560
===============================
TOTAL after 2 yrs: 300 + 1560 = $1860

If I continue for a 3rd year (65 x 12 = 780): 780+1860= $2640 accumulative costs


B) FULL PRICE w/ AT&T
$750 [64GB iPhone6]
$50/month(1GB plan w/discount) for 2yrs [24 x 50] = $1200
======================================
TOTAL after 2 yrs: 750 + 1200 = $1950

If I continue for a 3rd year (50 x 12 = 600): 600+1950= $2550 accumulative costs

As you can see, at 2 years only, scenario A is a cheaper option. But at some point past 2 years and definitely by year 3, I've saved (2640 - 2550 = 90). Not much, but it is something. And if I own for 4 years, even more would be saved.

Here's my question: If I go with scenario B, how long could I go before AT&T (or any carrier for that matter) would choose to just raise my bill? After all, I wouldn't be on a contract. Does this happen often? I know over a 2-4 year period, plan prices are bound to change, but if I go in at a certain rate, does that typically hold for a while before a carrier would 'raise my bill'? I assume for at least 2 years?

Assuming I do hang on to the phone for 4 years before upgrading, scenario B is cheaper, but only relative to what scenario A would've been.

If plan price changes, it will also change for the contract price, isn't it? Also, if you buy the phone at full price, you can probably get much better monthly plan price for some prepaid service. I would guess $30-40/month can get you 1 GB data with unlimited talk and text.

 

[siurpeeman]

wouldn't the monthly contract price change after the 24 months? to match the off contract price? if you went for year four, couldn't you sell the iphone after two years and buy another contract price iphone?

 

[azhava]

My scenarios:

A) ON CONTRACT w/ AT&T
$300 [64GB iPhone6]
$65/month(1GB plan) for 2yrs [24 x 65] = $1560
===============================
TOTAL after 2 yrs: 300 + 1560 = $1860

If I continue for a 3rd year (65 x 12 = 780): 780+1860= $2640 accumulative costs...

In addition to the $65/month for your 1GB plan, you forgot to factor in the $40/month device fee (which is how they recoup the rest of the cost of your subsidized phone). So over the course of two years, add another $960 to the above cost, for a total of $2820.

If you bring your own device (e.g., a paid in full iPhone), the device fee is $15/month - so add that to the total of plan B, for a total cost of $2310.

 

[ride74]

wouldn't the monthly contract price change after the 24 months? to match the off contract price? if you went for year four, couldn't you sell the iphone after two years and buy another contract price iphone?

That's what I would like to know: Does the monthly contract plan price change after 24 months to match the off contract (cheaper) plan price?

 

[rigormortis]

I've done the calculations and i have found that in order to save money on AT&T with payments ( full price vs 2 year contract ) you must subscribe to a data plan of 10 to 15 gigs.

you need a phd to figure these plans out

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That's what I would like to know: Does the monthly contract plan price change after 24 months to match the off contract (cheaper) plan price?

i believe AT&T drops the price from $40 a line to $15 a line once the phone is paid off.

but i don't know if that is automatic or if you have to ask to change plans