# iPhone: unlocked or sign 2-year contract



## FrSprt1314 (Dec 11, 2013)

Want to hear your opinion on if it's worth it to sign a 2-year contract for iPhone 5s. This is what I think:

My current iPhone plan is $30 plus tax without data per month. If I buy an unlocked 16G iPhone 5s for $719 +HST, over 2 years it'll cost me $1,626.07.

If I sign a contract for 2 years on a $60 + HST plan, and can get an iPhone for free, over 2 years the cost will be $1,627.20. There is almost no price difference between the 2 options, and the $60 plan will include data (I don't need to use a lot of data).

Then the only question is if I can get the iPhone for free, or the extra cost will be how much I pay for the iPhone under contract. If it'll cost me $99 + HST under the second option, like the offer ran during BlackFriday in Canada, i'll just view the cost as adding $10 to my current plan to add some data. 

Valid analysis?


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## Causalien (Apr 4, 2009)

FrSprt1314 said:


> Want to hear your opinion on if it's worth it to sign a 2-year contract for iPhone 5s. This is what I think:
> 
> My current iPhone plan is $30 plus tax without data per month. If I buy an unlocked 16G iPhone 5s for $719 +HST, over 2 years it'll cost me $1,626.07.
> 
> ...


Somewhere along the line the math is wrong as I recently did the same calculation.
Unlocked iphone + windmobile at $30/ month vs locked 2 year at $60. I think the break even point is at 1 year. After 1 year, the unlocked phone + wind mobile is more cost effective.
Let's take the case where after 2 years, both plans are equal cost. Unlocked phone will beat locked phone anytime in resale value + mobility. You can stop windmobile/($30 carrier of your choosing) anytime.


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## m3s (Apr 3, 2010)

If you ever plan to travel, get an unlocked phone hands down. Locking phones is a carefully calculated marketing ploy... you won't beat them at their own game. In any other country, the math is clear, but in Canada it does take a lot of work and hoops to get a better plan unlocked. With a locked phone your only choice is to bend over for 3 years... (2 in most countries)


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## andrewf (Mar 1, 2010)

It's now two years in Canada as well.


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## FrSprt1314 (Dec 11, 2013)

Causalien said:


> Somewhere along the line the math is wrong as I recently did the same calculation.
> Unlocked iphone + windmobile at $30/ month vs locked 2 year at $60. I think the break even point is at 1 year. After 1 year, the unlocked phone + wind mobile is more cost effective.
> Let's take the case where after 2 years, both plans are equal cost. Unlocked phone will beat locked phone anytime in resale value + mobility. You can stop windmobile/($30 carrier of your choosing) anytime.


I heard the Wind's service is limited geographically. Signal would be quite weak outside GTA. Is it true? 

As I was shopping around, I found that no provider even sell iPhone 5S with $60 monthly plan, only $70 ones. At least on Boxing Day the phone is free with BestBuy. Even though I know unlocked phone and cheaper plans are the right thing to do, paying $719 + tax up-front seems less attractive compared to getting a free phone and pay the bills later. hehe.


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## Causalien (Apr 4, 2009)

FrSprt1314 said:


> I heard the Wind's service is limited geographically. Signal would be quite weak outside GTA. Is it true?
> 
> As I was shopping around, I found that no provider even sell iPhone 5S with $60 monthly plan, only $70 ones. At least on Boxing Day the phone is free with BestBuy. Even though I know unlocked phone and cheaper plans are the right thing to do, paying $719 + tax up-front seems less attractive compared to getting a free phone and pay the bills later. hehe.


Don't know. It really depends on where you go and what you want to do. If my job requires me to travel to remote area and I need a phone. My job needs to pay for it. Otherwise, the chance of me being in a remote area is slim to none. In any case, look up the cell tower coverage map before you go with Wind or mobilicity or any of the $30 per month plans. They are usually cheap because of less coverage. However, because less people is on the network, my data is actually very fast. Not sure about other network, but better than the US.


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## thompsg4416 (Aug 18, 2010)

The only question I would ask is are you sure you need an Iphone? I recently purchased an unlocked Iphone 4s for my wife. Now I'm doing research for myself and the Iphone is nice but there isn't alot of value. You can get a better android phone. The best value I can find on the market myself is the JiaYu G5. The only downside to it is the 720P screen. 

Given the price and the features and the size(I don't like big phones) I don't think there is any better value out there.


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## kcowan (Jul 1, 2010)

I don't think you would want an iPhone if you ascribe no value to iTunes, iCloud and their automatic world. Especially in China where they are playing catchup.


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## brad (May 22, 2009)

But the OP said that he/she already has an iPhone. There's little reason to switch once you've chosen one platform, purchased apps, and set everything up. The time to choose a platform is really at the outset when you're buying your first smartphone. Android would be the more frugal and flexible choice, but if you're already in the Apple ecosystem it can be a pain to have to manage things on two platforms. Whenever I contemplate getting a smartphone, I always lean toward Android but then I remember that I already have an iPad (with lots of apps) and I use a Mac, so it would be much more efficient for me to have an iPhone. I just can't justify the cost at this point.


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## andrewf (Mar 1, 2010)

You would let 50 dollars worth of apps tie you to a 500 dollar a year phone?

And don't tie your media to a platform.


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## brad (May 22, 2009)

andrewf said:


> You would let 50 dollars worth of apps tie you to a 500 dollar a year phone?
> 
> And don't tie your media to a platform.


It's not the apps that's the barrier, it's the ecosystem. I have my calendar, email, contacts, music photos etc. all in Apple's ecosystem. I am totally comfortably "tying my media to a platform," because the platform makes them easy to access and share across devices. The original media are accessible in their native formats in the file system -- they aren't modified by the platform, they are simply organized by it. 

I've already learned what a headache it is to have some of my files and data on Windows and some on Mac. It would be even more of a headache to have some of my files on iOS and some in Android. If you've already got data and files on one platform, there's little reason to switch.


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## kcowan (Jul 1, 2010)

We have DWs iPhone 4S on Roger Paygo and Telcel Amigo. Maybe 1000 pesos in Mexico and $100 in Canada each year. Plus wifi only. What is not to like. My Android costs the same. If I could get it to work seamlessly with my Samsung Smart TV, I might love it.

Granted the purchase prices were somewhat different but that is the cost of consistency. Having observed DWs enjoyment of her iPhone, I might switch. But then I am not a geek.


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## OurBigFatWallet (Jan 20, 2014)

Causalien said:


> Somewhere along the line the math is wrong as I recently did the same calculation.
> Unlocked iphone + windmobile at $30/ month vs locked 2 year at $60. I think the break even point is at 1 year. After 1 year, the unlocked phone + wind mobile is more cost effective.
> Let's take the case where after 2 years, both plans are equal cost. Unlocked phone will beat locked phone anytime in resale value + mobility. You can stop windmobile/($30 carrier of your choosing) anytime.


Maybe I'm missing something, is the iPhone now available on wind mobile?


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## andrewf (Mar 1, 2010)

If iPhone works on T-Mobile, it works on Wind.


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## CanadianCapitalist (Mar 31, 2009)

I recently got a Google Nexus 5 ($412 including shipping). Cut the SIM card from the old Speakout Wireless phone with a pair of scissors and I have a pay-as-you-go phone plus data ($10 for 100 MB per month). Though my other devices are Apple, all my contacts, calendar etc. are on Google, so having an Android phone works for me. Getting data across platforms isn't an issue for me with Dropbox or Google Drive.


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## KRIS_KROSS (Jan 28, 2014)

Once you considering the present value of both options over 2 years, the locked phone is approximately $30 cheaper. 
However, once you present value over 3 years, the unlocked phone is approximately $350 cheaper. 
Thus, from a completely quantitative standpoint, if you can keep the iPhone 5S for greater than 2 years, you should get the unlocked phone. If you "need" a new phone every 2 years, you are likely better off with the locked phone.


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