Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Neustar, Inc.
Protect your website & network
using real-time information & analysis

www.neustar.biz
Apple/Mac
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Apple Now Offers Unlocked iPhone 5: Is It Worth the Cost?
Apple Now Offers Unlocked iPhone 5: Is It Worth the Cost?

By Adam Dickter
November 30, 2012 10:55AM

    Bookmark and Share
Analyst Kirk Parsons noted that once consumers sign up with a no-contract carrier, particularly if that carrier has a cheaper plan than rivals, the longer they keep that plan the better chance they will recoup their investment. "However, at price points of over $600, an unsubsidized iPhone may be high for most customers to consider."
 



Like the newest iPhone but can't make up your mind on carrier options? Or, do you plan to use if for travel?

Now you can buy it -- new -- and make up your mind later. Apple this week began selling the world's most popular smartphone unlocked -- meaning you can use it on any carrier that uses the GSM standard. Since the iPhone 5 hasn't been around long enough for anyone to be off contract, it's the first opportunity to bring an iPhone 5 to a new carrier that wasn't purchased by that carrier.

Choosing None of the Above

On Apple's Web site, after choosing black or white, consumers can now choose between plans from AT&T Mobility, Verizon Wireless or Sprint Nextel, or none of the above. The unlocked phone, however, won't work on Verizon Wireless or Sprint without being jailbroken, a practice on which Apple frowns.

The move benefits struggling fourth-place carrier T-Mobile, which has been trying to lure more iPhone users to its unlimited data plans, though it does not have a distribution agreement with Apple. In September, T-Mobile boasted that it already has more than a million iPhones on its network through its Bring Your Own Phone program and moved to lure more iPhone 4S customers with an unlimited data plan -- unavailable on Verizon and AT&T -- that it says is also cheaper than AT&T.

Of course, an unlocked phone comes with a higher price tag: $649 for the basic 16-gigabyte model, $749 for the 32 GB, or $849 for the 64 GB iPhone. The carrier-subsidized price, respectively, is $199, $299 or $399.

We asked some experts for their take on when it pays to splurge for the unlocked model.

"Only if they are going to change carriers in less than the two-year contract term, or if they want to buy it here and take it overseas because it's cheaper here," said Ken Dulaney of Gartner Research. "Specialized situations only."

Consumer devices expert Avi Greengart of Current Analysis noted that unlocked options are limited in the U.S.

"T-Mobile's plans are less expensive than AT&T," he said. "However it is extremely important to note that one key feature of the iPhone 5 -- LTE data speed-- is entirely network dependent; T-Mobile USA does not currently have LTE."

Good Military Option

Greengart said an unlocked iPhone is also cool for people who like to upgrade more often than biannually. "iPhones hold their value well and are easily resold," he said. "Also, people who move around a lot and don't want to be locked into contract terms that they won't fulfill -- for example, members of our military who might be deployed overseas."

Kirk Parsons of J.D. Power and Associates noted that once consumers sign up with a no-contract carrier, particularly if that carrier has a cheaper plan than rivals, the longer they keep that plan the better chance they will recoup their investment.

"Typically, the longer you are on a non-contract plan, the payout becomes more cost-effective versus a contract plan," he said. "However, at price points of over $600, an unsubsidized iPhone may be high for most customers to consider."
 

Tell Us What You Think
Comment:

Name:

AppleJohn:

Posted: 2012-12-03 @ 7:03am PT
I don't know why more folk don't look at satellite phones. The instrument prices start at ~$150 and service starts at $50 - $60 a month.
They don't have ANY of the problems of cell phones, in particular, your coverage area is... Planet Earth!

Jodie:

Posted: 2012-11-30 @ 3:04pm PT
Iphones in Australia have always been unlocked at a high price $700 to $1000. This price doesnt include call and data cost, that is extra. So a 2 year plan (around $60-$80 a month) with a Telco is usually a better and cheaper option. But most of the Australian Telco's have the iphone available for sale, its not monopolised like the US

Chris:

Posted: 2012-11-30 @ 1:57pm PT
If you had that kind of money up front y would u need a no contracted phone so not worth it

Eric:

Posted: 2012-11-30 @ 1:18pm PT
Especially with the Nexus 4 selling for 299 and 349, it would be crazy to buy this for over 600.

John Smith:

Posted: 2012-11-30 @ 1:13pm PT
So basically...this article tells us how math works. If you pay up a large cost upfront, you can recooperate your costs over time by saving a little monthly. It was well written, but I just think this information is common sense...



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Apple/Mac
1.   Is Apple Dumping iPhones on eBay?
2.   Apple Seeks an 'iCup Technician'
3.   Apple Expands CarPlay System
4.   Apple Updates Mavericks, iOS 7
5.   Apple Cuts Prices of iPod Touch


advertisement
Apple Updates Mavericks, iOS 7
Another failed attempt by Apple?
Average Rating:
Summer of Silicon Valley's Interns
Good pay, perks, and a future career.
Average Rating:
Is Apple Dumping iPhones on eBay?
Factory Certified sells refurb handsets.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Enterprise Hardware Spotlight
Another Day, Another Internet of Things Consortium Is Born
In the emerging Internet of Things, zillions of devices will be talking to each other. Samsung, Intel and Dell just formed a consortium to ensure each thing can understand what others are saying.
 
Gartner Sales Study Sees Tablets Up, PCs Down but Recovering
Are PCs on the comeback trail? That depends on how you define "comeback." While tablet sales remain strong, Gartner's latest study found PC shipments aren't dropping as fast as they did last year.
 
Review: Warming Up to Tablets with Keyboard Covers
If you've ever thought tablets with keyboard covers were just a poor excuse for a laptop, think again. Nokia's Lumia 2520 comes with an optional keyboard cover that just may change your mind.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.