"Is America getting over its smartphone subsidy addiction?"

[COZisBack]

Unlike most leading-edge phones, the Moto G launched with emphasis on its off-contract pricing. Somehow, Motorola had shoved a potent list of innards into a surprisingly affordable device. In many ways, it represented the start of a movement — at long last, we finally had smartphones that were fast and cheap enough for the masses. Previously, anything priced at this level was just painful to use, with sluggish menus, ancient operating systems, and woeful battery life. No more.

 

This phone won’t be the last that’s engineered in such a way — just look at the growing lineup from the likes of BLU and OnePlus. It won’t be long before the mainstream public begins to wonder if the latest $599 Galaxy S is truly worth $400 more than a $199 phone like the Moto G. Moreover, they’ll probably wonder why phones like the $129 Moto E won’t suffice.

 

http://bgr.com/2014/05/22/smartphone-subsidies-us-analysis/

I haven't been a big fan of BGR.com lately, so I haven't been on it as much and have relied on Engadget & FierceWireless for my latest mobile news, but, I found their opinion piece here to be a great read.

 

With the Framily Plan & Easy Pay through Sprint, what are your thoughts after reading the piece?

[joshnys8913]

I agree with everything, but I still like the 2 year however.  

[JeffDTD]

Lowered access costs for Americans who go subsidy free and finance are finally baiting people away from the subsidy model. Entirely factual. But expecting that trend to exponentially benefit the consumer is flawed. Once subsidies are no longer the norm, the carriers will be less inclined to take the hits to access costs they are taking right now. Some easy ways to curb this: 1)strict credit requirements for 0% financing, steep financing rates for everyone else 2)Mass adoption again of upgrade and activation fees. 3) Removal of trade in/early upgrade programs

 

Sent from my SM-N900V using Tapatalk

[jamisonshaw125]

It was rare that I paid full price for this 5s, and that's only because I had a credit on my credit card and a little left over from the tax return, and I didn't want to wait until next february to be able to use b26. I will say, it won't happen again.

 

I'll be signing another 2 year in february, unless presented with another option. I personally don't care if it takes me 2 years to get another phone, because often the next version of the iPhone isn't the one that would make me want to switch. This would also apply to if I had a galaxy. The difference between the s3 and s4 (except for triband) wouldn't have made me switch. Maybe from an s3 to the s5? And again, I would not pay full price.

 

Edit: also, I don't often have $600+ to just throw out at a device. 

[thetio]

I like the contract pricing.  If they made it easy to discount my bill without having to go find a bunch of strangers to add to my bill I would be willing to look at the off contract.  The discount on my monthly bill for a BYOD would have to be greater than the easy pay price.  I have never had any desire to leave Sprint though so the contract portion doesn't bother me. 

[themuffinman]

Well as it stands with my current account and number of lines, it would still benefit me more if I stuck with a 2 year subsidy plan.  In an ideal world, I would prefer just paying straight up with actual service pricing being substantially less than what it is now.   

[JonnygATL]

It was rare that I paid full price for this 5s, and that's only because I had a credit on my credit card and a little left over from the tax return, and I didn't want to wait until next february to be able to use b26. I will say, it won't happen again.

 

I'll be signing another 2 year in february, unless presented with another option. I personally don't care if it takes me 2 years to get another phone, because often the next version of the iPhone isn't the one that would make me want to switch. This would also apply to if I had a galaxy. The difference between the s3 and s4 (except for triband) wouldn't have made me switch. Maybe from an s3 to the s5? And again, I would not pay full price.

 

Edit: also, I don't often have $600+ to just throw out at a device.

 

But you are paying full price with a 2 year agreement. Just over a longer term.

[dkyeager]

I think smartphones would have never taken off without the 2 year subsidized phones.  With all the carriers coming out with new bands/AWS for their LTE service requiring new phones, they will find it hard to get users to use these bands.  They had trouble getting users to upgrade their phones when it was "free", now it will be even harder.  Many will still wait until their phone's reliability becomes unbearable.  This likely means a 3 or 4 year cycle.

 

Palm found the natural price point for a regular purchase was at $100 in the late 1990s, so Motorola may have at least hit that price point in today's wage index.

[jamisonshaw125]

But you are paying full price with a 2 year agreement. Just over a longer term.

But for the phone that I want, and the price that the phone costs... I could not afford to hand out 700+ bucks and pay full price at once. 2 years is worth it for me. Even easy pay which I would prefer not to do.

 

If I didn't want to continue using my iPhone, and the moto or one plus prove to be reliable phones then I could see myself owning one. But with a decrease in price, you often pay for it in quality. 

[Steve Dean]

I would rather pay full price for the phone at the time of purchase.  For me, paying cash upfront works.  You know when you walk away, it is yours, no questions asked.

[COZisBack]

I think I'm now on the Full Price (Non-Payment Plan) train. The next device with CA and is similar to a Nexus 5 will be my next purchase.

[JonnygATL]

But for the phone that I want, and the price that the phone costs... I could not afford to hand out 700+ bucks and pay full price at once. 2 years is worth it for me. Even easy pay which I would prefer not to do.

 

If I didn't want to continue using my iPhone, and the moto or one plus prove to be reliable phones then I could see myself owning one. But with a decrease in price, you often pay for it in quality.

 

Understandable. But just out of curiosity, why wouldn't you do easy pay?

 

I guess, in reality, Sprint's pricing plans should go down once you've paid for your device via easy pay. That would actually be more fair and make more sense.

[WiWavelength]

But for the phone that I want, and the price that the phone costs... I could not afford to hand out 700+ bucks and pay full price at once. 2 years is worth it for me. Even easy pay which I would prefer not to do.

 

Keeping the subsidy model is what makes that handset cost an inflated $700.  So, it becomes a vicious cycle.

 

AJ

[jamisonshaw125]

Keeping the subsidy model is what makes that handset cost an inflated $700.  So, it becomes a vicious cycle.

 

AJ

Makes sense...

 

Understandable. But just out of curiosity, why wouldn't you do easy pay?

 

I guess, in reality, Sprint's pricing plans should go down once you've paid for your device via easy pay. That would actually be more fair and make more sense.

I just don't want the additional amount on top of my monthly bill. Nothing more than that really. 

[briank86]

I have a difficult time choosing one of the three options. With a network like Sprint that has just been rebuilt for the future I have no problem committing to a 2 year contract. Do not confuse that with my preference though. I want whatever option provides the lowest overall cost. With my use the 2 year contract and a maxed out framily plan are fairly close in cost with the 2 year edging out the maxed framily plan. If overall phone prices drop, as AJ prescribes, my next purchase may be using a framily plan w/ easy pay.

[COZisBack]

Makes sense...

 

I just don't want the additional amount on top of my monthly bill. Nothing more than that really. 

 

I had the same standpoint, but consider this. Best case scenario your bill is $45 with data on Framily. Add $30 for your device financing. That's the same $30 you're paying extra on your bill each month for being in a 2-year contract ($75 a month). But after those 2 years (when your device is paid off), your bill isn't dropping back to $45.

[clbowens]

I had the same standpoint, but consider this. Best case scenario your bill is $45 with data on Framily. Add $30 for your device financing. That's the same $30 you're paying extra on your bill each month for being in a 2-year contract ($75 a month). But after those 2 years (when your device is paid off), your bill isn't dropping back to $45.

 

But after 2 years, being me, I'm going to want (and maybe NEED.  They don't build these phones to last) a new phone anyway.  So add that $30 back in there.  :-)

[PDXmike]

I had the same standpoint, but consider this. Best case scenario your bill is $45 with data on Framily. Add $30 for your device financing. That's the same $30 you're paying extra on your bill each month for being in a 2-year contract ($75 a month). But after those 2 years (when your device is paid off), your bill isn't dropping back to $45.

That is how I am looking at it. Also, with the $20 unlimited data option on Framily, you get the ability to upgrade every 12 months for essentially no out of pocket cost. Simply turn in your current phone for a new one and keep paying the ~$30 per month, but for a new device. I see this as an attractive option for a lot of people.

 

That being said, my preference is to purchase the phone outright. However, if I don't have an extra $600-$700 laying around at the time I go to upgrade, I will likely switch to Framily and do Easy Pay, since I have family members who want to switch to Sprint and start/join a Framily.

[COZisBack]

But after 2 years, being me, I'm going to want (and maybe NEED.  They don't build these phones to last) a new phone anyway.  So add that $30 back in there.  :-)

 

Then your cost is essentially the same. You're either paying $30 a month for a device or for a contract. Your choice. The benefit though is wait Mike is bringing up below. Annual upgrades.

 

That is how I am looking at it. Also, with the $20 unlimited data option on Framily, you get the ability to upgrade every 12 months for essentially no out of pocket cost. Simply turn in your current phone for a new one and keep paying the ~$30 per month, but for a new device. I see this as an attractive option for a lot of people.

 

That being said, my preference is to purchase the phone outright. However, if I don't have an extra $600-$700 laying around at the time I go to upgrade, I will likely switch to Framily and do Easy Pay, since I have family members who want to switch to Sprint and start/join a Framily.

 

My only problem with easy pay is, I'd want a device like a Nexus and Sprint is charging more for the N5 than Google.

[PDXmike]

My only problem with easy pay is, I'd want a device like a Nexus and Sprint is charging more for the N5 than Google.

 

That is a drawback to Easy Pay. Given that scenario, I would just purchase the phone from Google and enjoy the lower monthly Sprint bill, though I realize that is not an attractive option for all.

 

Either way, I like how the move away from the subsidy model is finally giving consumers more flexibility and choice in how they decide to structure their phone and service expenditures.

[PDXmike]

Apparently, I like the term attractive option today.

[Destroyallcubes]

If you do a two year Contract on Framily plan, it is only a $15 charge on top of the $45, Correct? SO isn't that cheaper than paying for your phone ever two years? Given you will not get yearly upgrades. I have the nexus 5, and pay 15.67 a month for easy pay on it. I actually cut my bill being on a framily with 9 others, so Easy pay cut my bill, but I couldn't wait another year and a half for an upgrade for a phone. 

[centermedic]

Makes sense...

 

I just don't want the additional amount on top of my monthly bill. Nothing more than that really. 

That's what stopped me from doing family. I would have ended up with 60-90 dollars of smart pay charged each month for my three lines of smart phones. On top of that these phones are upgraded every two years so I would never get ahead of the curve even with a maxed out family plan.

[sbolen]

I think I'm now on the Full Price (Non-Payment Plan) train. The next device with CA and is similar to a Nexus 5 will be my next purchase.

 

I'm on that plan right now... the iPhone has such a high resell value if you can keep them in good condition, you can easily upgrade every year at very little out-of-pocket cost. I've been selling my old phones on Craigslist or eBay for roughly 40-60% of what I paid full retail, and then put the new phone on a travel rewards credit card (get the miles!), and then pay it off the next month.

[centermedic]

If you do a two year Contract on Framily plan, it is only a $15 charge on top of the $45, Correct? SO isn't that cheaper than paying for your phone ever two years? Given you will not get yearly upgrades. I have the nexus 5, and pay 15.67 a month for easy pay on it. I actually cut my bill being on a framily with 9 others, so Easy pay cut my bill, but I couldn't wait another year and a half for an upgrade for a phone. 

Different payments for different phones. For instance the HTC M8 and Galaxy S5 are about 28 dollars a month while the iPhone 5c is about $22 a month.