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iPhone 4S subsidy savings totals a whopping $450

By | October 6, 2011, 3:00am PDT

Summary: Not all of us are eligible for the full upgrade subsidy pricing of the new iPhone 4S and if we want this new device we are going to have to pay a $450 premium.

It has been a couple of years since I owned an iPhone and earlier this week I participated with Jason Perlow in the Great Debate about the new iPhone 4S. I wasn’t necessarily overwhelmed by the iPhone 4S and wasn’t sure if I was going to buy one, but I am almost certain to order one after reading of Steve Jobs’ passing as a personal tribute to his legacy. One factor in my purchase decision is the non-subsidized price because I have only been a Verizon customer for about 8 months. Larry wrote a post about the subsidized pricing model, but without this upgrade eligibility be prepared for a shock.

We always compare subsidized pricing in reviews since that is the way people buy their phones in the U.S. However, I usually buy my phones overseas or so often that I rarely get the subsidized price. The new iPhone 4S comes in 16GB, 32GB, and 64GB capacities priced at subsidized prices of $199, $299, and $399, respectively. If you are like me and not yet eligible for the full price subsidy then the prices are $649, $749, and $849, respectively. Yes, the subsidy takes care of $450 of the full price.

Due to this huge $450 cost difference, I realize I could pay the $325 ETF and still come out $125 ahead of the game with another carrier. Thus I started to consider the Sprint iPhone 4S with unlimited data or the AT&T iPhone 4S with faster data speeds. The thing is I like Verizon because I am grandfathered into their unlimited data plan and I get better coverage with them than with Sprint or AT&T. However, for the same price I pay Verizon I could also get unlimited text messaging and unlimited calls to other mobile phones. Thus, before Friday morning (that’s when online pre-orders start) I need to decide if I am going back with Sprint or sticking with Verizon at a premium price.

Will you be buying a non-subsidized iPhone 4S or is this price just too high for you?

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Matthew Miller started using a Pilot 1000 in 1997 and has been writing news, reviews, and opinion pieces ever since.

Disclosure

Matthew Miller

Matthew is a professional naval architect by day and a mobile gadget freak at all other times. He purchases his own devices and then sells them on eBay or Craigslist to buy more. Many other devices are sent for review on a 30-day loaner basis and then returned to the carrier or manufacturer. If any are provided as “long term loaner units” this will be clearly disclosed in his reviews.

Biography

Matthew Miller

Matthew Miller started using a mobile devices in 1997 and has been writing news, reviews, and opinion pieces ever since. He is a co-host with GigaOM's Kevin Tofel on the MobileTechRoundup podcast and an author of three Wiley Companion series books. Matthew started using mobile devices with a US Robotics Pilot 1000 and has owned over 125 different devices running Palm, Linux, Symbian, Newton, BlackBerry, iOS, Android, webOS, Windows Mobile, and Windows Phone operating systems. His current collection includes an HTC Radar 4G, Dell Venue Pro, Apple iPad 2, HTC Flyer, Samsung Galaxy Nexus, Nokia N9, Apple iPhone 4S, MacBook Pro, and many more, along with tons of accessories and classic devices like the Apple Newton MessagePad 2100 and Sony CLIE UX50. Matthew can be found on various discussion forums under the user name of "palmsolo".

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RE: iPhone 4S subsidy savings totals a whopping $450
tomlin21-24319035676893835085146735905770 11th Oct
I have not checked in right here for just a small though for your rationale that I regarded as it had been getting uninteresting, however undoubtedly the foremost modern posts are amazing mulberry bag superior superior quality i unquestionably guess I will include you oh no- my day by day bloglist
I think most of us have little understanding just how much the handsets we have are actually worth (not just iPhones).

I don't get the "underwhelmed" thing. What were you looking for Apple's new iPhone to be? Clearly it would be an iPhone - they were never going to change the launch screen (because they don't think widgets make sense, and big icons mean noodling around to launch stuff). I actually like the case design of the iPhone 4 (especially in black - I know, and we waited so long for the white one!) I think Siri seems amazingly cool (though in truth I'm not sure I'd use it much). The faster processor and better camera seems very cool, and iOS5 seems to address legitimate shortcomings in the UI. As distinct to just "wanting it to be different to what it is".

So what's not to like? (serious question)
@Jeremy-UK
better camera and faster processor..aint enuf reasons for update...

for rest of it ios5 and siri i think u can get that with free software update...
@sagarshirish: ... catastrophe.
0 Votes
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Buy an unlocked instead
taylor@... Updated - 6th Oct
If you're stuck paying the full unsubsidized price, why not just get the unlocked version? Unlocked will have a higher resale vale too. Also, sell your iphone 4 to close the price gap. You won't get $450 for it, but you could get at least half that. Is the 4S really enough of an upgrade to pay such a premium?
If you get it from AT&T it only has a $250 premium. $449, $549 and $649.
0 Votes
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Why Buy at All
bethereornot 6th Oct
Just to let you know I do own a iPad and a iTouch and have had the iPhone in the past. But since I live in an area that has 4G, there is no way in heck I am going to switch to a lower technology. Before you ask, Yes 4G is that much faster for me on a my smart phone. Plus I do travel so I do tether with it and it feels like I am on a decent DSL link when surfing. I will absolutely buy a iPhone when they doing make the move to 4G but not until then, I will stick with Android.

PS
Mr. Jobs
May you rest in peace and go down in history as the Greatest mind of our time.
0 Votes
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@bethereornot Unfortunately some of us that live in rural areas (I live about 60 miles north of Pittsburgh) do not have 4G, and will not for a few years. So I cannot see spending money on a technology that I will hardly ever use. If it was available, and the price was more inline with the service, I would buy into it. But the wireless companies all overcharge for their service, and the data caps get hit faster on 4G. In a year, or two, when 4G becomes ubiquitous, then I will revisit the need for a 4G phone. Until then 4G is not a show stopper.
dual antennas and has effectively doubled data throughput on a 3G network, without the battery killing power consumption of a 4G chip.
@baggins_z You know, I guess it really depends on which radio chip is in the New iPhone. If it is the MDM660 then it is one thing. If on the other hand it is the MDM9600, 4G could be enabled at a later date. Only time will tell which chip is in the latest iPhone.
@Rick_Kl even if it has the 9600, Apple won't go back and enable 4G on the phone. Bluetooth was one thing in the iTouch, but the iTouch isn't the high profit item that the iPhone is.
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RE: iPhone 4S subsidy savings totals a whopping $450
LoverockDavidson_-24231404894599612871915491754222 6th Oct
To be fair all cell phones are overpriced when they aren't subsidized. I do have to say this iPhone 4s is the most expensive I've seen off contract, but its not far from the $500 other manufacturers want to charge. There is no reason for the phones to be this expensive.
@LoverockDavidson_ This is one of the few times I agree with you. Cell phones off-contract are over-priced.
Jobs is laughing all the way to the grave.
I think that after years of sitting on the fence, this might be the year I finally get a smartphone. Being I have a few Macs and an iPod, getting an iPhone makes sense. Having to buy a copy of Windows to use a WP7 phone makes little, if any sense to me, so that rules out Microsoft???s OS. Android would make sense, but there is the fragmentation issue, and the Microsoft tax on Android phones.
People, this is Apple. Which radio chip do you think they put in it? Does Apple ever let you upgrade the equipment you have with firmware updates? Never. They're doing this simply because they get to use the left over iPhone4 parts, add a couple new wrinkles to it and the squirrels will come down out of the trees to get another of something they already have just to get the "latest" that apple has to offer. They basically added a "G" to the name people and that's about it. they also added siri. Anytime Apple has a minimal hardware upgrade they try to sell to us they always package it with the one piece of software that we "can't" live without. See Facetime.

This is what they do. Because in 6 months when they do come out with an actual 4G/LTE phone then you'll really want that one. What do you do then? Pay them $1000 bucks for a phone when you just paid them $650?

I agree with some other people. Why pay that price for an iphone when the Bionic is light years ahead of even this model.
0 Votes
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RE: iPhone 4S subsidy savings totals a whopping $450
jackson1984-24316069205748857739440257893812 11th Oct
I sincerely state you create quite a bit of nfljersey pretty superb points and I am going to submit different recommendations to include in shortly.
0 Votes
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RE: iPhone 4S subsidy savings totals a whopping $450
tomlin21-24319035676893835085146735905770 11th Oct
I have not checked in right here for just a small though for your rationale that I regarded as it had been getting uninteresting, however undoubtedly the foremost modern posts are amazing mulberry bag superior superior quality i unquestionably guess I will include you oh no- my day by day bloglist

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