Earlier
this month, T-Mobile introduced its Jump plan to let users snag the
latest smartphones. After six months, users can drop their old phone and
flip to a new device. On Tuesday, AT&T followed with a similar
option, AT&T Next. Users make monthly payments on a new device, then
can choose to upgrade after 12 months.
But how much do you pay for staying on top of smartphones trend?
Let's
look at a 16 GB Apple iPhone 5 as an example. On AT&T Next,
consumers can own one for $32.50 a month for 20 months, with no down
payment. That amounts to about $650, the unsubsidized price of the
device.
So, what happens if, say, you want to trade in that phone
12 months from now? No problem. Just trade in the phone -- so long as
it's in good condition -- and all payments stop. However, it also means
you've paid $390 for a smartphone you no longer own. And the longer you
wait, the more you pay for the device. (Also, as outlets including The Verge note, users still pay the monthly subsidy fee despite owning an unsubsidized device).
As for T-Mobile's Jump plan, an iPhone 5 requires a down payment of $145.99 on their website,
with payments of $21 a month for 24 months. There's also a $10 monthly
fee for Jump. Let's say Apple introduces an iPhone 5S, and you really
want it. Again, simply trade in your old phone. But, consumers will have
spent about $272 after six months, and about $398 after a year. This
doesn't count the $10 monthly Jump fee.
Subsidized versions of the
iPhone 5 with those two-year contracts cost $199. Once the two years
are up, you can choose to pass the phone along to a friend or even trade
it in. For example, trading in an iPhone 4S in good condition through
outlets such as Gazelle or Amazon can net around $170.
Is
there any value to these smartphone plans? If you want the flexibility
to own the latest and greatest smartphone, then these plans might be
worth considering. Just prepare to spend more money.
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