This year, around 63% of Americans say that inflation will keep them from buying a new phone, according to the personal-finance website WalletHub’s new 2024 iPhone Survey. However, as the iPhone 16 release date approaches on September 20, WalletHub found that people can save $872 - $2,320 over two years by picking the right plan.
You can find some highlights from the report below, along with expert commentary. You can also crunch the numbers to see which iPhone plan is right for you, using WalletHub’s custom Cell Phone Savings Calculator, ahead of the newest models starting to ship.
Key Stats
- A no-contract individual plan from Straight Talk is the best way to get the new iPhone, beating plans from all three major carriers.
- For even more savings, keep your old phone. Individuals can save up to $1,599 and families can save up to $2,723.
- More than 2 in 5 people think that the new iPhone is worth going into debt for.
- 9 in 10 Americans think iPhones are overpriced.
WalletHub’s Cell Phone Savings Calculator lets users input their upfront and monthly costs to compare the true cost of two-year contracts, installment plans and no-contract plans from all of the major carriers. You can check out the calculator, along with an embeddable infographic comparing the most popular plans, here: https://wallethub.com/cell-
To what extent does the secondary market for cell phones (e.g., eBay) alter the price comparison for no-contract plans?
“eBay, Craigslist, and Facebook Marketplace are all sources for secondary market cell phones. However, there is still a stigma. With eBay, there is comfort in the guarantee of goods and a return policy in place to protect purchasers. For Craigslist and Facebook Marketplace (for the most part), the ‘in-person’ aspect can be intimidating. While police departments have established ‘safe transaction’ places to alleviate fears of meeting strangers, it is still an inconvenience in terms of driving somewhere and hoping someone shows up. The second issue is reliability and confidence in the quality of the purchase. The third issue would be the lack of support if there are problems with the phones. This comes back to the person’s skills and confidence level in knowing about the technology and how to use it, as well as being aware of limitations in purchasing a phone. And again, the overruling issue is the dollar sign. People seek short-term perceived savings at a potential greater long-term cost. Money talks.”
Catherine Beaton – Associate Professor, Rochester Institute of Technology
“Contract plans that provide (or force) a smartphone usually include a price premium to cover the seller’s risk of giving you the phone upfront. So, you are better off if you can bring your own phone, even if you buy from a secondary source like eBay. You might worry about the authenticity and quality of the phone; therefore, look for a reliable seller with a high rating history and a good reputation. Alternatively, there are very high-quality budget phones that cost the same as a used flagship phone and will be just fine for most buyers.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
How popular do you think Apple's "new iPhone every year" plan is among consumers? To what extent does it impact the installment plans offered by carriers themselves?
“I know many people who upgrade each year. People want to be seen as innovators possessing the newest toys or devices (Rogers’ concept of observability). It comes with a cost: the (in)stability of the device. In a way, new adopters are second-level testers who discover flaws. Exporting and setting up a new phone, and familiarizing yourself with new processes, are both ‘costs’ as well in terms of the learning curve, time, and complexity. The developer's perspective of complexity (‘It is logical’) and adopter perceptions of how things should work may be two different things. Donald Norman addresses the designer mental model and consumer mental model as melding in the system image. They are not always in sync in ‘bad’ design. Rogers also talks about relative advantage, compatibility, complexity, trialability, and the aforementioned observability. These things may enter a consumer's mind either as a deliberation or a (sub)conscious concern. How popular is it? Quite popular. A free upgrade is one consideration. A credit for an upgrade means you reset your monthly payment amount.”
Catherine Beaton – Associate Professor, Rochester Institute of Technology
“An effective way for marketers to increase a person’s motivation to process information or take action via a purchase is through the use of the novelty technique. This can be anything that appears in an unexpected or current way to ‘stand out’ among the competition, and Apple’s ‘new iPhone every year’ plan does just that with a fresh take on its offering that markets well to early adopters of innovation. This rewards the consumer group with guaranteed early access and benefits marketers with a long-term commitment to its plan offerings. When considering the impact of this new offering, an installment plan could anchor on the one-year time frame to match the annual promise of a new release by the brand or manufacturer; these shorter terms (versus other longer installment plans) are not too risky for marketers since their marketing hook has a high likelihood of retaining its consumer base year over year. Another component to consider is if and how the AppleCare warranty will apply to one-year contracts, as Apple iPhones already have existing one-year warranties on their phones.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
What does the FCC’s bill-shock agreement mean for consumers?
“Except for the truly ‘unlimited’ plans, a buyer’s monthly bill goes up with usage. It is very easy to ‘unknowingly’ run up extremely high data usage these days and then receive a shock when you see your bill. The bill-shock agreement forces the provider to send alerts to the consumer. But more than this, you can protect yourself by setting up similar alerts on your phone and also by restricting the use of background data at certain times or for certain apps.”
Andrew Burnstine, Ph.D. – Associate Professor, Lynn University
No comments:
Post a Comment