Buying a brand new cell phone

[GoLowDrew]

There are sellers on ebay that sell brand new iphones (any phone of your desire), without contract.

One might say (which was true at one time), if it's without a contract, you will be paying more for the phone.

Today, you can get a new iPhone 4 (or any phone of your choice) for $425, without contract. That's less than the cheapest data plan for 2 years. Let's not debate the numbers.

Let me just get to the question.

How are they able to sell NEW cell phones without a contract? They seem to be legit vendors. The cost of the contract is often offset against the real cost of the phone.

I can understand if it's an "used" phone.

[G Stone]

$425 for a cell phone? My God! I would never pay that much for a phone.

To your question: idk.

[ElectricFuzz]

$425? Using upgrade offers, you can usually get the newest released phone for $200-$300 when you renew your 2 year contract.

[GoLowDrew]

Originally Posted by ElectricFuzz

$425? Using upgrade offers, you can usually get the newest released phone for $200-$300 when you renew your 2 year contract.

Let me break down my plan.

Let's first take your example.

- $200 for phone with 2 year contract.
- Cheap data plan $25 a month X 24 = $600.

Total cost $800.

So I want a smart phone for WiFi, camera, video, music player, and phone. I don't need a data plan.

And I want to carry only ONE thing. Not two things.

Oh... and the bonus is. I'll sign the 2 year contract for a "regular" phone. Get the new FREE phone. Pull the SIM card out. Sell "new" phone on ebay for $75.

Insert SIM card into new iPhone.

So there is the plan.

[ElectricFuzz]

Originally Posted by GoLowDrew

Let me break down my plan.

Let's first take your example.

- $200 for phone with 2 year contract.
- Cheap data plan $25 a month X 24 = $600.

Total cost $800.

So I want a smart phone for WiFi, camera, video, music player, and phone. I don't need a data plan.

And I want to carry only ONE thing. Not two things.

Oh... and the bonus is. I'll sign the 2 year contract for a "regular" phone. Get the new FREE phone. Pull the SIM card out. Sell "new" phone on ebay for $75.

Insert SIM card into new iPhone.

So there is the plan.

You don't need a smart phone to have wi-fi, camera, video, and music. I don't know what phone doesn't have those features nowadays.

Basically, you want an iPhone to use as a regular phone and not pay for a data plan. So it's cheaper for you to do what you're saying.

From your first post, it sounded like you were comparing the actual upfront cost of a phone.

[GoLowDrew]

Originally Posted by ElectricFuzz

You don't need a smart phone to have wi-fi, camera, video, and music. I don't know what phone doesn't have those features nowadays.
Basically, you want an iPhone to use as a regular phone and not pay for a data plan. So it's cheaper for you to do what you're saying.

From your first post, it sounded like you were comparing the actual upfront cost of a phone.

Either do I. If anyone know of one, please post.

Actually, doing some research since. My plan won't work. They got smart now. ATT for example will know what phone you are hooking up for voice call. It's it's a smart phone, they will automatically charge you a data plan. So if I was to insert my SIM card into a iphone, I will get billed.

[Aramas]

I'm going with Drew on this for a bit lol I honestly don't know any phone that's not considered a smart phone that has Wi-Fi on it, but everything else is definitely on regular phones now.

[ElectricFuzz]

Originally Posted by Aramas

I'm going with Drew on this for a bit lol I honestly don't know any phone that's not considered a smart phone that has Wi-Fi on it, but everything else is definitely on regular phones now.

I have a smartphone now (just got it last month) but my last 2 phones (both Nokias) were not smartphones and had wi-fi. I was able to use the internet at any wi-fi hotspot and I didn't have a data plan.

[Aramas]

Wish I knew about that years ago before when I couldn't have a smart phone yet lol (On my dad's company phone plan for some really good discounts at the time).

[Mitchell]

Originally Posted by GoLowDrew

How are they able to sell NEW cell phones without a contract? They seem to be legit vendors. The cost of the contract is often offset against the real cost of the phone.

I can understand if it's an "used" phone.

Since most phones are SIM phones then they arn't locked to certain carriers. Only a few in Canada still use GSM (which is not unlockable, and if you did manage to unlock it then features would never work the same)

Apple probably sells the phone to the seller on ebay for something like $375, they sell it for $425, make a $50 dollar profit. I know its not much, but the mark up in electronics is virtually nothing. I use to work in the electronics department at a store similar to Walmart, and after checking the cost of several items I found out that the markup can be as little as 5% and never exceed 25%.

[Jensennn]

or why don't you buy a new smartphone that's worth more than $75 like a S3 or iphone and just keep it and cancel the data plan?

[12Blk_accord]

I believe companies (verizon, sprint, att, etc) now are saying like if you buy a smart phone, data plan is required. Unless you get a phone that isn't a smart phone. I tried going around but won't work.

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[G Stone]

Originally Posted by 12Blk_accord

I believe companies (verizon, sprint, att, etc) now are saying like if you buy a smart phone, data plan is required. Unless you get a phone that isn't a smart phone. I tried going around but won't work.

Sent from my SPH-D700 using AutoGuide.Com Free App

This is the thing. I wanted a smartphone for basically the same reason Drew did. I didn't need a data plan on my phone but when you buy a smartphone, they automatically charge you for a data plan. No getting around it.

[RTexasF]

Look into NON contract plans and an unlocked phone. For instance T-Mobile has an unlimited talk, text, and data for $50 a month. You set it up on auto pay so it gets billed to a credit card each month. You do pay outright MSRP for the phone as a rule. Other service providers offer similar plans.

[cdp326]

I know the feeling - I had an iPod Touch and got so hooked on being on Wi-Fi all the time, but tired of carrying two devices everywhere. All I really needed was the Wi-Fi capable phone, not the data plan, but late in spring I caved and got one - plus my old phone was irritatingly buggy. Since we still have a good plan the data plan isn't a big expense. If it were their new data-sharing plan, might not be as much so.

As you may know, the iPhone 5 is rumored to come out next month and it's expected that the iPhone 4 will drop in price (currently the older 3GS is $0.99 with contract). Currently an 8gb 4 is $99 with contract from AT&T, though I read that some stores (Best Buy) are offering it for $50.

The prepaid/no-contracts as mentioned above by RTexasF are a good deal if you don't already have a plan or are planning to leave your current carrier, though the cost of adding data to your plan and getting the subsidized phone may still be the better deal if you're fine with your carrier.