“T-Mobile has announced its pricing for Apple’s new iPhones, offering the iPhone 5c with no down payment and the iPhone 5s for a $99 down payment,” Juli Clover reports for MacRumors. “The 16GB iPhone 5c will require 24 monthly payments of $22 per month for a total device cost of $528, while the 16GB iPhone 5s will require 24 monthly payments of $22.91 for a total device cost of $648.84.”
Clover reports, “As with other carriers, T-Mobile will begin offering pre-orders for the iPhone 5c on Friday, September 13 at 12:01 AM PT. The iPhone 5s, which will not be available for pre-order, can be purchased from T-Mobile on September 20.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]
I think we have to accept that 2013 =|= 2007. Smartphones have moved from a ‘desirable’ device to a ‘commodity’ device. There’s just too much competition out there in the market. If Apple is to win the platform wars it will have to sacrifice profitability to match market realities. That’s just the way it is.
T-Mobile is just being ahead of the curve here at discounting the cost of the iPhone.
Ballmer’s spot on. Cannibalize yourself or someone else will.
Jobs said that, not Ballmer. Fatboy never had that sort of insight.
What discount? You’d pay 3 – 4 times as much. It’s not as if this method comes with less expensive service plans.
Am I the only one here who can do the math?
T-mobile’s deal is still by far the best one for the iPhone for families of two or more ($80 for unlimited all, with throttling after 500MB). Other big three (Verizon, AT&T, Sprint) all have exorbitant plans ($130 for two!!?), and when you pay off that phone, they still continue to charge you the same.
On T-Mobile’s plans, with two new 5S phones, you pay $$125 per month and get unlimited everything. After two years, your monthly bill drops to $80. Furthermore, your downpayment is only $100 per phone, whereas on others, you have to pay $200 down, pay a higher monthly plan with data limits (and hefty overages if go over), and continue paying even when you pay off the phone.
T-Mobile isn’t discounting ANYTHING. Just like every other operator, they are getting (over 24 months) full retail price for that phone.
Ah, if only I lived in an area that had decent coverage from T-Mobile. I’d drop AT&T in a heartbeat.
T-Mobile definitely seems to be the best US carrier. They also have a $3/day plan for visitors which I’ve used when in the states.
What planet do you live on? T-Mobile breaks out the $22 per month from the data/service plan. After 24 months (contract expiration) the $22 goes away, and T-Mobile’s monthly charge drops accordingly. T-Mobile is the ONLY carrier to do this. Everyone else keeps charging you the same amount, as if you’d bought a new phone, even when you didn’t. You can also simply pay the balance owing on the hardware at any point and your service plan then drops $22 per month. If you’re not with T-Mobile you’re being screwed after 24 months.
So contrary to believe from tmobile the 5c is a cheap phone. How about that
So completely forgo subsidization and still be on contract (for 24 months of device payments)? You’ll pay $430 more this way on 5C and $450 more on 5S. How is this helpful?
The cost of the subsidized device is baked into the monthly rates. Except that baked in cost doesn’t disappear after the contract has ended, so you’re essentially paying extra for your phone.
What T-Mobile is doing is just allowing you to buy the device by making payments which added to your monthly bill. Once the device is paid for the charge comes off the bill.
That is EXACTLY why T-Mobile is so much better than any other operator. Their monthly plans are at least $30 cheaper than the competition. Even with the installment plan ($23 per month), they are still cheaper than others, and they don’t continue to charge you after you have paid off your phone.
Throttling data after 500 MB isn’t the same service.
That may be true, but I’m sure you’ll agree it is much preferable to ripping you off with overages if you exceed your data limit (or even worse, just blocking data until next month).
I have punched through that 500 MB limit on few occasions, over the past five months since I’ve been on T-Mobile. The service is definitely not the same (no usable Skype or YouTube at EDGE speeds), but it works just fine for e-mail, web, maps, weather, Shazzam, Evernote, Yelp…
It is infinitely more preferable (at least to me) to know that my bill will be exactly the same every month, rather than holding my breath as the bill date approaches, not sure how much I’ve gone over my meagre limit, and how that would translate into $$$.
We’ve been with T-Mobile for a few years now with unlocked iPhones. Yes, it used to be that mostly what you got was Edge coverage. When T-Mobile officially got the iPhone my wife and I both got iPhone 5’s that were not unlocked. We have noticed that over the last 6 months Edge coverage is getting less and less prevalent, with G4/LTE now appearing about 80% of the time in urban/suburban areas. T-Mobile is no longer a sub-standard carrier.
I live on the coast of New Jersey. I can see lower Manhattan from my deck. 2 blocks down from my perch on the hill, T-Mobile provides decent coverage, 4G/LTE. From my house, 2 blocks up, no signal inside the house.
I think you’re right. I have two feature phones for family and pay $80 plus taxes per month no data but otherwise unlimited. I think me and wife are getting 5s for $125 and get a data plan as a plus.
BTW, my current two phones are not subsidized. If they were tmobile would be charging me $20 per month per phone in addition to the $80. 5s here I come.
We have a family plan at T-Mobile with 2 feature phones for the teenagers and 2 iPhone 5’s with 1 GB data plans. Our total monthly bill, including $40 to pay for the two iPhones is $166 per month. When the iPhones are paid off (why pay them off early when it’s a 0% loan?) it will drop to $126 per month for all 4 phones.
That must be with full taxes, or with some older plans. The current ones don’t offer 1GB option. They are $$100 (four people) at 500MB each line, and $10 extra extends the limit to 2GB (each line separately). It would seem that you would be paying $120 (plus taxes, of course) for 4 lines with 2 of them at 2GB.
I don’t think T-Mobile even offers feature phone plans, since the extra line on a family plan is only $10, and it comes with unlimited all (with throttling after 500MB of data).
Yes, 1 GB was a typo. It is 2 GB each and does include all taxes and fees. So yes, add $40 to pay for the 2 iPhones to the $120 for services, and then add another $6 in taxes. I could easily pay off both iPhones, but I can’t bring myself to ditch a zero interest loan.
Well, I guess after 24 months, ye bill would go down by $22 – $24 per month? Sounds like they’re just selling iPhones with no interest payments to get you on their network for at least two years. Still seems better than Verizon or AT&T. Methinks.
anything is better than AT&T.
…except for Verizon, Sprint, or T-Mobile. 😉
Verizon is far superior to AT&T in California. I hate AT&T and all the verizon friends I have don’t have any of the connectivity issues I have to deal with. Who cares if i can make a call and browse the web at the same time? The phone call will have poor reception and the calls will get dropped anyways. It’s too bad verizon is so damn expensive in comparison. T mobile may be my future soon.
So, let’s review:
T-Mobile offers unlimited everything starting at $50 for one person, $80 for two and $10 per additional line. 4G data is throttled down to EDGE speed after 500MB (extra $10 per line pushes the limit to 2GB).
The cheapest iPhone plan on AT&T is $60, and it is colossally crappy (450min voice, 300MB data, NO text !!?). Their cheapest family plan (for two) is $100 (300MB data, 550min voice per line, and NO text). There is no comparable plan, since data limits are hard, and if you go over, they rip you off with overages. So, to be safe, you have to over-subscribe for data. Reasonable amount is about 3GB ($10 extra per line). Also, we have to add $20 per month for texting ($30 for all lines on family plan).
So, comparable AT&T looks like this:
Single: $90 (450 min voice, 3GB data unlimited text)
Family of 2: $150 (550 min voice, 3GB data, unlimited text)
T-Mobile:
Single: $50 (unlimited all)
Family of 2: ($80 (unlimited all)
To me, even with monthly installment plans for the iPhone, T-Mobile’s plans are still cheaper and better (unlimited talk, no overages on data).
You think Apple as been listening since these phones were announced? Apple is giving TM and others I’m sure, the go head to lower entry payment in order not to have the 5C flop as it drives sales to the 5S.
Sim Only Unlimited Everything for £15 ($23.71) on virgin in the UK. US plans are so much of a rip-off!!!!
There is a very simple reason why T-Mobile’s plans are cheaper than others’. They aren’t taxing the phones themselves as wireless service; instead, you just pay retail tax.
When T-Mobile sends you a monthly bill, it has two parts: wireless service, which is subject to all surcharges, fees and taxes, which in some states go over 20% on top of that bill, and the second part, which is monthly installment for your phone. This installment is NOT taxed; when you first buy your phone, you pay your down-payment, as well as RETAIL tax on the full price of the phone ($0 for 5C, plus some $20-45 in tax, depending on your state). in subsequent months, you pay interest-free loan payments, until your phone is paid off (24 months later).
When AT&T sends you your monthly bill, the whole thing is taxed as wireless service (in some places, over 20%), even though part of that bill (some $20) represents your phone subsidy. Unlike with T-Mobile, with AT&T, you pay those high taxes on this subsidy part as well. The bottom line is, some $480 (the approximate total of subsidy) is taxed at 20% or more, instead of at 7% or less. The difference in taxes needlessly paid is close to $60 (almost 10% of the full price of the phone). In other words, AT&T (and Verizon, and Sprint) are forcing you to donate taxes in the amount of $60 for the privilege of owning a smartphone.
next quarter (Q1 for APPL, the new phones will only have been on the market for one week in Q4) will see record revenues and number of units sold the liked we have not even seen. I don’t think APPL will be able to build enough for demand.
Optimistic.
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